ADP Introduces a National New Hire Reporting Service; Relieves burden and risk of state New Hire Reporting legislation by automating the process.

ROSELAND, N.J.--(BUSINESS WIRE)--June 5, 1995--Automatic Data Processing, Inc. (ADP), the country's largest provider of payroll-related services, today announced the introduction of its New Hire Reporting Service.

This new service provides automatic reporting in accordance with the increasingly prevalent laws requiring companies to notify states of all newly hired or rehired employees. Currently in force in almost 50% of states nationwide, these laws are designed to reduce fraud in public assistance programs and improve compliance with child support and tax levy rulings.

According to Frank Sobyak, ADP's Director of Government Compliance Services, "The New Hire Reporting requirements represent a significant burden for employers who find they must submit new hire information accurately and on time or risk costly fines and penalties. This task is complicated by the fact that forms and requirements vary from state to state, so that multi-location companies must continually adapt their reporting practices to each state's legislation.

"By keeping current with state laws, and making the difficult reporting tasks an integral and automated part of our payroll services," Sobyak continued, "ADP provides a simple, affordable way for employers to ensure compliance and avoid the risks of penalties."

Automatic Collection and Transmittal Benefits Employers

ADP's New Hire Reporting Service allows a company's payroll department to enter a new employee's name into their payroll system as usual. ADP then isolates the information required for New Hire Reporting legislation and automatically transmits it in the proper format to the appropriate state agencies.

Clients also receive a report that verifies compliance and notifies the employer of any additional action that may be required. The service guarantees on-time transmittal to all participating state agencies nationwide. In addition, ADP keeps clients current with changing legislation or new state requirements through its use of sophisticated computerized technology.

Service Benefits States Too

By reporting electronically, ADP reduces each state's need to manually enter data from hard copy reports, faxes and W-4s. In doing so, it eliminates data entry errors and the need to interpret often illegible new hire submissions. Also, electronic reporting helps reduce the time it takes states to identify obligors. This increases the states' ability to uncover fraud and reduce the number of families on public assistance programs.

In all, ADP's New Hire Reporting Service saves a significant amount of time and money, aiding already strained employer and state budgets.

Automatic Data Processing, Inc.

ADP provides computerized transaction processing, data communications, software and information services to more than 300,000 clients in virtually every business and industry. The company, founded in 1949, had more than $2.4 billion in annual revenue in fiscal 1994. In addition to a complete line of employer services, ADP provides market data and back-office services to the brokerage and financial communities, industry-specific services to auto and truck dealerships, and automated car collision and repair estimating.

CONTACT: Automatic Data Processing, Roseland

Frank R. Sobyak, 201/994-5071