Skip to Main Content

About Automatic Data Processing, Inc.

Automatic Data Processing (ADP) is one of the largest payroll and tax filing processors in the world, serving about 740,000 clients. Employer services (payroll processing, tax and benefits administration services) account for the majority of the company's sales, and its PEO (Professional Employer Organization) services are provided through ADP TotalSource. Other offerings include accounting, auto collision estimates for insurers, employment background checks, and business development training services. The US accounts for more than 85% of the company's revenue. 


ADP operates two business segments, Employer Services, accounting for more than 70% of total revenue, and PEO Services, which brings in the remaining 30% of revenue.  

Employer Services offers a range of business outsourcing and HCM (Human Capital Management) services in more than 110 countries. Products and services offered to employers include payroll and tax management systems tailored to small to medium-size business and large enterprises. Certain offerings, including multi-currency payroll systems, cater to companies that operate internationally. Beyond payroll and tax products, ADP provides systems for time and attendance management, 401(K) and other retirement services, recruiting, and HR and tax compliance.  

PEO (or Professional Employer Organization) Services provides employment administration outsourcing services through a co-employment relationship in which employees who work at a client's location are co-employed by ADP and its client. The segment operates as ADP TotalSource. 

Geographic Reach

ADP provides its payroll, tax compliance, and other employer services in more than 110 countries. PEO Services, however, operates exclusively in the US.

The US is ADP's biggest market, accounting for more than 85% of total revenue. Sales in Europe account for 10%, while Canada accounts for less than 5%.

Sales and Marketing

ADP serves more than 740,000 clients. The company targets its suite of products to businesses of all sizes, often categorizing and designing its products and services to target small businesses with 1-49 employees; mid-sized businesses with 50-999 employees; large businesses with 1000+ employees; and multinational businesses, with any number of employees.

Financial Performance

ADP has achieved unprecedented growth over the last several years, with revenue trending up each year during the five-year period between 2014 and 2018. 

In fiscal 2018 revenue climbed 8% to $13.3 billion from $12.3 billion the previous year. A key driver of revenue growth included increased sales from new client business generated in the Employer Services segment, which saw a 5% increase in revenue. Other factors driving ADP's growth were favorable current exchange rates and revenue gained from recent acquisitions. 

Despite the rise in revenue, profits dropped 6% to $1.6 billion from 2017 results. The drop is, in large part, due to a significant gain on the sale of the businesses (CHSA and COBRA) in 2017 that was absent in 2018. 

Cash at the end of the fiscal year sat at $6.5 billion, $1.6 billion less than at the end of fiscal 2017. Cash from operations added $2.5 billion, while investing activities used $2.5 billion and financing used $1.6 billion.  


Over the years, the data processing giant has been fortifying its core Employer Services and PEO operations while divesting other business, like its Dealer Services division. Across all segments, ADP has been expanding internationally and extending its services through acquisitions. It also continues to boost its cloud-based software offerings and small-business services. 

In 2017 and 2018, ADP acquired a handful of businesses to attract new business from employers that manage international or contingent workforces. ADP's 2018 acquisition of multi-currency payroll provider Celergo provides capability to employers to pay global employees in their native currencies. Its acquisitions of WorkMarket, a freelance and contractor payroll systems provider, and Global Cash Card, which enables employers to pay workers in cards instead of electronic transfers, bolsters ADP's suite of products and services to employers that hire temporary staff. 

Mergers and Acquisitions

ADP routinely acquires companies, including start-ups, that enhance its existing offerings and add new services to meet employer demand in an increasingly global business environment. In 2018 the company acquired multi-currency payroll provider Celergo, a purchase that expanded its international payroll services and brought new services, including the ability for employers to pay international employees in their native currencies. 

To provide more flexibility to employers that work with short-term staff, in early 2018 ADP acquired WorkMarket, which provided payroll systems designed for managing freelance and contractor payroll. A 2017 purchase of Global Cash Card, which offered the option for employers to pay freelancers in cards instead of electronically, further expanded ADP's offerings to employers that routinely hire temporary staff. 

Company Background

In 1949, 22-year-old Henry Taub started Automatic Payrolls, a manual payroll preparation service in Paterson, New Jersey. Taub's eight accounts created gross revenue of around $2,000 that year. In 1952 his brother Joe joined the company, and a childhood friend, Frank Lautenberg, took a pay cut to become its first salesman. Automatic Payrolls grew steadily during the 1950s. In 1961 the company went public and changed its name to Automatic Data Processing (ADP).

Automatic Data Processing, Inc.

Roseland, NJ 07068-1728
Phone: 1 (973) 974-5000

Firm Stats

Employer Type: Publicly Owned
Stock Symbol: ADP
Stock Exchange: , NASDAQ
Chairman: John P. Jones
President and CEO: Carlos A. Rodriguez
VP and CFO: Jan Siegmund
Employees (This Location): 1,500
Employees (All Locations): 58,000

Major Office Locations

Roseland, NJ

Other Locations

Little Rock, AR
Chandler, AZ
Tucson, AZ
Buena Park, CA
Camarillo, CA
Folsom, CA
Fresno, CA
Irvine, CA
La Palma, CA
Los Angeles, CA
Milpitas, CA
Pleasanton, CA
Rancho Cucamonga, CA
Redwood City, CA
San Diego, CA
San Dimas, CA
San Francisco, CA
Woodland Hills, CA
Aurora, CO
Fort Collins, CO
Wheat Ridge, CO
Milford, CT
Stamford, CT
Windsor, CT
Fort Lauderdale, FL
Jacksonville, FL
Lakewood Ranch, FL
Maitland, FL
Miramar, FL
Orlando, FL
Riverview, FL
West Palm Beach, FL
Alpharetta, GA
Atlanta, GA
Augusta, GA
Honolulu, HI
West Des Moines, IA
Algonquin, IL
Carol Stream, IL
Chicago, IL
Crystal Lake, IL
Elk Grove Village, IL
Schaumburg, IL
Fort Wayne, IN
Indianapolis, IN
Mishawaka, IN
Lenexa, KS
Wichita, KS
Florence, KY
Louisville, KY
Baton Rouge, LA
Lexington, MA
Marlborough, MA
Natick, MA
Waltham, MA
Owings Mills, MD
Rockville, MD
Ann Arbor, MI
Troy, MI
Bloomington, MN
Saint Louis, MO
Charlotte, NC
Durham, NC
Raleigh, NC
Omaha, NE
Hampton, NH
Manchester, NH
Salem, NH
Bloomfield, NJ
Clifton, NJ
Florham Park, NJ
Manasquan, NJ
Monroe Township, NJ
Moorestown, NJ
Nutley, NJ
Parsippany, NJ
Roseland, NJ
Albuquerque, NM
Las Vegas, NV
Bayside, NY
Binghamton, NY
Brentwood, NY
Buffalo, NY
Latham, NY
Melville, NY
New York, NY
Poughkeepsie, NY
Rochester, NY
Staten Island, NY
Syracuse, NY
Independence, OH
Westerville, OH
Tulsa, OK
Portland, OR
Salem, OR
Allentown, PA
Coraopolis, PA
Export, PA
Fort Washington, PA
Mechanicsburg, PA
Newtown, PA
Philadelphia, PA
Pittsburgh, PA
Wayne, PA
San Juan, PR
Coventry, RI
Warwick, RI
Columbia, SC
Florence, SC
Greenville, SC
Mount Pleasant, SC
Sioux Falls, SD
Knoxville, TN
Memphis, TN
Nashville, TN
Arlington, TX
Austin, TX
Dallas, TX
El Paso, TX
Houston, TX
San Antonio, TX
Salt Lake City, UT
South Jordan, UT
Chantilly, VA
Richmond, VA
Virginia Beach, VA
Bothell, WA
Lynnwood, WA
Fitchburg, WI
Milwaukee, WI
Bologna, Italy
Fiumicino, Italy
Padova, Italy
Roma, Italy
Torino, Italy
Porto Alegre, Brazil
Ribeirao Preto, Brazil
Boucherville, Canada
Burnaby, Canada
Calgary, Canada
Cumberland, Canada
Dartmouth, Canada
Dorval, Canada
Edmonton, Canada
Mississauga, Canada
Montmagny, Canada
Montréal, Canada
North York, Canada
Ottawa, Canada
Québec, Canada
Rockwood, Canada
Blagnac, France
Carquefou, France
Eybens, France
Herouville Saint Clair, France
Le Pecq, France
Limonest, France
Mont-Saint-Aignan, France
Wasquehal, France
Bremen, Germany
Nürnberg, Germany