ROSELAND, N.J., March 18 /PRNewswire/ -- ADP ®, a leading
provider of outsourced HR, payroll and benefits administration
services, announced it is ready to assist its clients with specific
statutory and other compliance requirements associated with the
Federal HIRE Act. The Hiring Incentives to Restore Employment
(HIRE) legislation was recently passed by Congress and was signed
into law by President Obama today.
"The intent of the HIRE Act by Congress and the Administration
is to reinvigorate the workforce," said Gary Butler, President and CEO of ADP. "While
these measures will certainly be welcome by employers, staying
compliant in this complex and quickly changing business environment
can be a burden for companies of all sizes. ADP is committed
to making it easy for clients to remain compliant while reducing
expenses and increasing cash flow."
ADP helps clients understand and take advantage of complex
employment-related tax credit legislation such as the job creation
provisions within the HIRE Act. The HIRE Act eliminates the
current 6.2 percent employer Social Security tax for eligible new
hires, generating immediate savings that will positively impact an
employer's bottom line. In order to obtain the credit, it
also requires any new hire to certify his/her previous employment
status by signed affidavit. Additionally, companies are
afforded either a significant income tax credit of $1,000 per qualifying worker once the worker is
employed for at least 52 consecutive weeks, or 6.2% of wages paid
to the qualifying worker over the 52-week period, whichever is
less.
For clients of all sizes already using ADP payroll systems and
whose new employees are eligible under the HIRE Act, ADP offers a
service at no additional cost that will eliminate the employer-paid
portion of the applicable Social Security tax for the benefit of
the employer.
For larger companies with more complex growth and recruiting
needs, ADP offers an expanded fee-based solution to help reduce
their administrative burden while leveraging the tax benefits of
the HIRE Act.
ADP's offering includes:
- Pre-Selection – ADP screens new hires to identify
eligible employees.
- Employee Affidavits – ADP offers convenient options for
new hires to complete the certification by affidavit process.
- Report Eligibility – ADP provides daily reports of the
employees who are eligible.
- Compliance Support – ADP runs regular compliance reports
to help ensure eligible new hires complete the affidavit
process.
- Documentation and Audit Support – ADP houses and
maintains all employee certification documentation and assists
clients in responding to related audits.
- Tax Credit Administration – ADP notifies clients of the
availability of the $1,000 per
qualified employee new-hire income tax credit after the eligible
employee completes 52 weeks of employment.
For more information and to obtain an estimate of a company's
potential savings, please visit www.ADP.com/JobTaxCredit or call
1-888 5 ADP SAVE.
About ADP
Automatic Data Processing, Inc. (Nasdaq: ADP), with nearly
$9 billion in revenue and about
570,000 clients, is one of the world's largest providers of
business outsourcing solutions. Leveraging 60 years of experience,
ADP offers the widest range of HR, payroll, tax and benefits
administration solutions from a single source. ADP's easy-to-use
solutions for employers provide superior value to companies of all
types and sizes. ADP is also a leading provider of integrated
computing solutions to auto, truck, motorcycle, marine and
recreational vehicle dealers throughout the world. For more
information about ADP or to contact a local ADP sales office, phone
1.800.225.5237 or visit the company's Web site at www.ADP.com.
SOURCE Automatic Data Processing, Inc.