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Don’t Get Burned by Compliance Overconfidence

Keeping up with tax rules and employment laws can require additional resources and a significant financial investment for businesses. Navigating a vast sea of government regulation can be a challenge for even the most-seasoned captains of industry. Tax rules and employment laws evolve frequently, leaving many businesses in a never-ending game of catch-up, trying to manage compliance and avoid penalties. Since January 2015, Congress enacted 142 new laws, many of which impact businesses that are already dealing with compliance challenges related to the Affordable Care Act and preparing for the upcoming changes to the Fair Labor Standards Act (FLSA) overtime rules. Keeping up with these changes can require additional resources and a significant financial investment. According to Thomson Reuters, 75 percent of compliance leaders expect that managing compliance will require more or much more attention in 2016.  Many expect to commit more resources (both in terms of time and staff) to compliance policies and procedures. For small and midsized businesses with limited resources, trying to manage the seemingly ever-changing...

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ACA Best Practices: Why You Can’t Take a Vacation From Affordable Care Act Compliance

Think you can kick back and relax now that your Affordable Care Act (ACA) annual reporting requirements have been signed, sealed, and delivered? Reporting is an annual event – but just the end result of many ACA compliance requirements, issues, and challenges that are evolving quickly. Requirements will change for 2016 and 2017, which makes complacency not an option. As you plan your summer vacation, help make it ACA-stress-free by joining our event at either 11AM or 3PM with other HR and finance execs like yourself to hear about some of the key findings of the past year, what other organizations are doing right… wrong, and then we’ll talk about what’s coming up for the remainder of 2016 and 2017. During this webcast, you will learn: Key findings from the first year of reporting, such as: Many organizations don’t accurately categorize employees – which leads to negative consequences: what do you need to know to make sure this doesn’t happen to you? Gathering the right data is difficult. What...

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New FLSA Overtime Rules Mean Employers Face Race to Comply

The U.S. Department of Labor (DOL) finalized sweeping changes to the Fair Labor Standards Act (FLSA) overtime rules extending protections to 4.2 million U.S. workers. The changes double the salary threshold for “white collar” exemptions from the current minimum of $455 per week, or $23,660 a year, to $913 per week, or $47,476 annually. The updated rules also increase the minimum salary of highly compensated employees from $100,000 per year to $134,004 per year and establish a mechanism for automatically updating the salary and compensation levels for exempt employees every three years. The final rules, which will take effect on December 1, 2016, also allow employers to use nondiscretionary bonuses and incentive payments to satisfy up to 10 percent of the new standard salary level. They do not make any changes to the duties test for executive, administrative and professional employees. Here are a few steps businesses should take now to further their compliance efforts: 1) Take Stock and Review Classifications. Employers should first ensure that they thoroughly understand...

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Best Companies for Multicultural Women Balancing Work, Life and Family

Rita Mitjans, Chief Diversity & Corporate Social Responsibility Officer

One of the reasons I am proud to work at ADP is our unwavering focus on providing a workplace that values each individual and enables associates to reach their full potential. The diverse experiences, perspectives, ideas, and backgrounds of our associates are essential in helping ADP deliver great service to our clients and maintain a competitive edge. According to the 2015 Bureau of Labor Statistics, nearly 70% of mothers of children under age 18 are working or looking for work. Given that, there’s little doubt that working moms, play a critical role in advancing our economy and our own company’s growth.  Considering the impact that women, in particular working moms, have on our business, nurturing a culture of inclusion that enables ADP to leverage the collective talent of multicultural women is not only the right thing to do, but a business imperative. ADP is honored to make the 2016 list for Working Mother Best Companies for Multicultural Women. This is a great achievement made possible by the commitment of...

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ACA Compliance: 3 Strategies For Managing Costs

This week, Forbes featured ADP contributor Liz Alton’s article “3 Strategies for Managing Your ACA Compliance Costs.” What options do employers have for controlling Affordable Care Act (ACA) compliance costs in 2016 and the years beyond? How can CHROs work with the rest of the C-suite to establish cost-reducing strategies in other departments to mitigate the effects of more stringent ACA compliance requirements? Check out the article to learn more, and join our upcoming webinar, ACA Best Practices: Why You Can’t Take a Vacation From Affordable Care Act Compliance to hear from our ACA...

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A Marathon to 10 Million

You may have heard the phrase, “It’s a marathon, not a sprint.” That can definitely be said of the journey organizations have had in preparing for the first year of the Affordable Care Act (ACA) annual reporting. And American writer and runner Hal Higdon said, “Motivation remains key to the marathon: the motivation to begin; the motivation to continue; the motivation never to quit,” which describes the months of intense time-sensitive work and dedication needed as we were all racing towards the IRS annual reporting deadline of March 31st. In this first year, ADP assisted over 25,000 clients, ranging in size from 50 – 50,000 employees, in managing the ACA eligibility, affordability and IRS reporting for over 16 million employees, including printing and distributing more than 10 million Forms 1095-C. The Form 1095-C provides organizations with documentation they need to demonstrate they are ACA-compliant and provides key information to their employees about their health coverage. And, as a fun fact, if you stacked the 10 million Forms 1095-C ADP...

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Purple Rain…“Electric word life, it means forever and that’s a mighty long time…”

As the world mourned the loss of yet another music legend – Prince – I was struck by the outpouring of tributes worldwide.  After hearing the news, I spent a flight back home from New Jersey listening to his songs and channeling my youth.  I returned with memories from “When Doves Cry” to “Purple Rain” and spent the rest of the evening educating my children on Prince’s contributions to music and pop culture.  I celebrated his legacy, and I know he will not soon be forgotten. I’m a big believer in legacy.  We have different leaders for different times; and different leaders resonate with different people.  In a corporate setting, each leader marks a spot in time with different needs based on market conditions, the organization’s health, and client and associates’ needs. In the roles I’ve held, my goal was to build on ADP’s amazing legacy and, equally important, to add to it.  When my time ends in a role, I want to be able to look back and...

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Asia-Pacific HR Leaders Bring a Zeal for Excellence to First HR Tech China Conference

I’ve been proud to be a participant in the growth of ADP’s Asia-Pacific region since I first came here in 2013.  It’s been exciting to watch as our growth has mirrored the strides of other businesses that operate in this fascinating corner of the world. So when nearly 2,500 HR professionals met in the southern Chinese city of Zhuhai to attend the HR Technology Conference and Exposition, I couldn’t wait to discover what they considered the hottest topics in human capital management (HCM). This was the first time HR Tech, a fixture conference in the United States, was conducted in Asia.  And Zhuhai – a ferryboat ride from Hong Kong – seemed to be the ideal place to hold it.  Transformed into one of China’s first Special Economic Zones in 1980, today Zhuhai is known for modern icons of prosperity like golf resorts and theme parks – and, of course, a growing business community. China has been growing steadily for more than a decade, recently “slowing” to still rapid...

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The Not-So-Little Engine that Could: Main Street U.S.A

It chugs along 24/7, 365.  It’s Small Business America. We’re proud to support these businesses every day with not only our services but our patronage.  Every year since 1963, the President of the United States has issued a proclamation announcing National Small Business Week to recognize the contributions of America’s entrepreneurs and small business owners. ADP® is proud to once again co-sponsor this important event, which recognizes the impact of outstanding entrepreneurs, small business owners, and others from all 50 states and U.S. territories. Read a post on our Thrive blog from John Ayala, president, ADP Small Business Services to learn why celebrating small businesses is so important to...

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Are Businesses Raising Wages to Retain Workers?

Ahu Yildirmaz, Ph.D. Vice President, ADP Research Institute

We’re seeing an accelerated wage increase in the labor market for the first quarter of 2016, according to the ADP Workforce Vitality Report.  The freshly released report shows year-over-year wages grew substantially for job holders in the first quarter of 2016, rising from 4.1 percent in the previous quarter to the current 4.6 percent. This may be a signal that continued employment growth is leading to a smaller pool of available talent, in turn motivating employers to increase wages to retain experienced workers. This wage growth was evident in almost all industries and in all age groups among full-time workers.  Employers appear to be reacting to a tightening labor market by boosting wages to retain talent. Should you be more competitive with your employee compensation to retain talent? To learn more, view the full report and more information at

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