ADP 2009 Annual Report Download - page 2

Part I
Item 1. Business
Automatic Data Processing, Inc., incorporated in Delaware in 1961 (together with its subsidiaries, “ADP” or the “Company”), is one of the
world’ s largest providers of business outsourcing solutions. Leveraging 60 years of experience, ADP offers a wide range of human resource
(HR), payroll, tax and benefits administration solutions from a single source. ADP is also a leading provider of integrated computing solutions
to automotive, heavy truck, motorcycle, marine, recreational vehicle and heavy machinery dealers throughout the world. For financial
information by segment and by geographic area, see Note 18 of the “Notes to Consolidated Financial Statements” contained in this Annual
Report on Form 10-K. The Company’s Annual Reports on Form 10-K, Quarterly Reports on Form 10-Q, Current Reports on Form 8-K, all
amendments to those reports, and the Proxy Statement for its Annual Meeting of Stockholders are made available, free of charge, on its website
at www.adp.com as soon as reasonably practicable after such reports have been filed with or furnished to the Securities and Exchange
Commission. The following summary describes ADP’ s activities.
Employer Services
Employer Services offers a comprehensive range of HR information, payroll processing, tax and benefits administration solutions and
services, including traditional and Web-
b
ased outsourcing solutions, that assist approximately 540,000 employers in the United States, Canada,
Europe, South America (primarily Brazil), Australia and Asia to staff, manage, pay and retain their employees. Employer Services markets
these solutions and services through its direct marketing salesforce and, on a limited basis, through indirect sales channels, such as marketing
relationships with banks and accountants, among others. In fiscal 2009, 80% of Employer Services’ revenues were from the United States, 13%
were from Europe, 5% were from Canada and 2% were from South America (primarily Brazil), Australia and Asia.
United States
Employer Services’ approach to the market is to match clients’ needs to the solutions and services that will best meet their expectations. To
facilitate this approach, in the United States, Employer Services is comprised of the following market-facing groups: Small Business Services
(SBS) (serving primarily organizations with fewer than 50 employees); Major Account Services (serving primarily organizations with between
50 and 999 employees); and National Account Services (serving primarily organizations with 1,000 or more employees). In addition, Employer
Services’ Added Value Services division provides services to clients across all three of these groups.
ADP provides payroll services that include the preparation of client employee paychecks, electronic direct deposits and stored value payroll
cards, along with supporting journals, summaries and management reports. ADP also supplies the quarterly and annual social security,
medicare and federal, state and local income tax withholding reports required to be filed by employers. ADP enables its largest clients to
interface their major enterprise resource planning (ERP) applications with ADP’ s outsourced payroll services. For those companies that choose
to process payroll in-house, ADP delivers stand-alone services such as payroll tax filing, check printing and distribution, year-end tax
statements (i.e., Form W-2), wage garnishment services, health and welfare administration and flexible spending account (FSA) administration.
In order to address the growing business process outsourcing (BPO) market for clients seeking human resource information systems and
benefit outsourcing solutions, ADP offers its integrated comprehensive outsourcing services (COS) solution that allows larger clients to
outsource HR, payroll, payroll administration, employee service center, benefits administration, and time and labor management functions to
ADP. For mid-sized clients, ADP Workforce Now™ HR Services provides integrated tools and technology to support payroll, benefits
administration, HR guidance and HR administration needs from recruitment to retirement. ADP also offers ADP Resource®, an integrated,
flexible HR and payroll service offering for smaller clients that provides a menu of optional services, such as 401(k), FSA and a comprehensive
Pay-by-Pay® workers’ compensation payment program.
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