In this second of a series of articles on payroll, we're going to cover one of the largest payroll processing companies, as well as one of the oldest, in our history.

ADP pretty much invented payroll processing. Today there are many competitors but ADP still ranks at the top of the list. We're going to look at some of the services they offer and how they work.

First of all it needs to be pointed out that ADP is an outsourcing company. In other words, instead of having your payroll processed in house it is sent to ADP off site and they process it for you. So, just how does this work?

Actually, ADP offers two distinct solutions.

The first one is outsourcing your payroll. The company supplies ADP with all their employee records and from those records ADP processes your payroll. Either ADP sends the checks to you, or they make them available for you to get, through your own electronic check printing program, which they provide. However, if you should choose to have ADP do it all for you they will provide the payroll system, the network connections, data management center, and complete IT support. All you need to do is distribute the checks after they are delivered.

But ADP doesn't stop there. For companies that want to handle their own payroll but don't want to be responsible for all the technology that goes with it, ADP offers what they call ADP's Payforce. This is a strategic solution that offers a combination of outsourcing benefits and an internal Internet solution. This is a very low cost solution that many companies use.

Basically the way Payforce works is as follows. All the payroll records are kept in ADP's internal database systems. The company accesses these systems through a simple Internet connection. Through this connection, they can access payroll records, processing and a variety of reports. This service is available anytime from anywhere. The design of the system itself has been made simple enough to be intuitive so that minimal training is needed for persons in the Human Resources department to use. The system makes payroll data entry easy and fast. The system also includes payroll review, custom forms, effective dating, an employee transfer agent and multi level reporting.

ADP will also guarantee data integrity with this system. While no computer system is 100%, ADP has had a long history of reliability and millions of companies world wide feel confident in their service.

Also of great importance is ADP keeping up with the latest payroll regulations on a daily basis. A company is guaranteed that their payroll will be processed accurately and according to federal and state regulations.

The third solution ADP offers is your own Windows based payroll processing system, where you process your payroll in house, and are in complete control.

Whatever solution a company chooses, ADP has built its reputation of many years of outstanding service and a company can be assured that this service will continue for many years to come.

Michael Russell
Your Independent guide to Outsourcing