ADP Definition, What is ADP

ADP or Automatic Data Processing, Inc. (NYSE: ADP) is the largest provider of computerized transaction processing and information-based solutions serving more than 570,000 clients worldwide. ADP Employer Services provides human resources, payroll and benefits administration solutions for companies of all sizes throughout the U.S. and in major markets around the world. ADP Dealer Services provides integrated dealer management system (DMS) solutions to automotive, heavy truck, motorcycle, marine and RV dealers and manufacturers in North America.

History of Automatic Data Processing

ADP was founded in 1949 by Henry Taub in Paterson, New Jersey as Automatic Payrolls, Inc. The first ADP office, above Grinker's Ice Cream shop, processed payroll manually with a bookkeeping machine, addressograph equipment, calculators and comptometers. The company's first account was New Era Dye and Finishing in Fair Lawn, New Jersey. With the introduction of punch card machines, mainframe computers and check printing machines, Automatic Payrolls became Automatic Data Processing in 1958.

ADP became a public company in 1961, with an initial stock price of $3. In the next year, Brokerage Services division was developed to serve the high volume transaction needs of major stock brokerages on Wall Street. The company proceeded to offer Dealer Services to automotive dealers to handle inventory and accounting transactions. In 1974, ADP extended into the international market with an office in The Netherlands, and later in the decade added Claims Services.

Today ADP employs more than 42,000 associates globally providing business solutions for more than 570,000 companies of all sizes � small, mid-market and enterprise.
Business Units

ADP Employer Services

The Employer Services business unit is the oldest, largest and most profitable of ADP's divisions. It includes payroll processing, HR outsourcing, 401(k)/Retirement Services, Professional Employer Organization (PEO), Time and Labor Management, Tax and Compliance Management, Benefits Administration, Screening and Selection Services, and Administrative Service Offerings (ASO). ADP's payroll services are so widespread that one in six Americans have their paychecks processed by the company.

ADP Dealer Services

In 1972, Dealer Services was created for automobile dealer front end management, business office, parts and service departments.

ADP Claims Services

ADP's Claims Services was created to assist insurance companies with property and casualty claims, automotive recycling, and collision repair in 1979. This division was sold off because its growth potential was far less than the other divisions of the company.

ADP Brokerage Services

This division of ADP was created in 1962 to service stock brokerages. Oppenheimer & Co. became the first client, averaging 300 trades per day. By 1999, ADP was processing over a million trades in a day. This business was spun off in 2007 into a company called Broadridge Financial Solutions (NYSE: BR), removing about $2 billion from ADP's total yearly revenue.

ADP References

ADP Directors and Corporate Officers
Jeffrey R. Yost (2005). The Computer Industry. Greenwood Press. ISBN 0313328447.
Edward J. Kanarkowski (1999). ADP 50th Anniversary Book. ADP.
College Savings Boosted by ADP's 529 Payroll Deduction Program
ADP Completes Spin-off of Brokerage Services Group Business