ADP National Employment Report: Private Sector Employment Increased by 107,000 Jobs in January; Annual Pay was Up 5 2%

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January’s report presents the scheduled annual revision of the ADP National Employment Report, which updates the data series to be consistent with the annual Quarterly Census of Employment and Wages (QCEW) benchmark data for March 2023. In addition, this revision introduces technical updates, namely, in re-weighting of ADP data to match QCEW data. Pay gains continued to shrink in JanuaryYear-over-year pay gains for job-stayers reached 5.2 percent in January, down from 5.4 percent in December. For job-changers, pay was up 7.2 percent, the smallest annual gain since May 2021.

  1. If a worker holds multiple jobs during a single time period, we measure the job with the highest rate of pay for the month to eliminate multiple jobs held by a single worker.
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  3. Veterans Day is observed on Thursday, November 11 and some banks may be closed.
  4. Please review applicable law in your jurisdiction and consult your legal counsel or tax professional for updates on law and guidance that may have an impact on your organization and the specific facts related to your business.

The median of the distribution of matched individuals’ year-over-year annual pay change is computed. Payroll Employment shows how many people have an attachment to an employer in the labor market, while Paid Employment shows how many people are actively working and earning income in the labor market at any given time. The relationship between the two measures may vary across segments of the labor market (e.g., industry, geography, company size) or over time (e.g., recession, pandemic, natural disaster).

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It includes payroll, tax filing and employee self-service features at a monthly cost of $29 plus $5 per employee. The report is produced by ADP Research Institute in collaboration with the Stanford Digital Economy Lab. The NER uses ADP payroll data to provide a nationally representative measure of employment. This new approach differs from the former NER’s model-based methodology, which sought to forecast changes in the Current Employment Statistics monthly survey conducted by the Bureau of Labor Statistics. With ADP data, we can measure how many employees are on company payrolls (Payroll Employment) as well as how many employees were paid in a given pay period (Paid Employment).

As an approximation, we consider a Payroll Account a business establishment (i.e., a company work location). The information in this guide is provided solely as a courtesy and should not be construed as legal, financial or tax advice. Please review applicable law in your jurisdiction and consult your legal counsel or tax professional for updates on law and guidance that may have an impact on your organization and the specific facts related to your business. If you have to run another payroll before the end of the year, you will have to review your company, employee, and contractor totals again. To be sure that your W-2 amounts are correct, process your bonus payrolls before the end of the year. The Affordable Care Act (ACA) requires certain employers to report health coverage information to their employees and the IRS annually.

RUN offers expanded tax filing services that include responding to inquiries from taxing agencies on your company’s behalf. Payroll and HR reports, employee access and new hire onboarding features are also included with the Essential plan and the creation and delivery of W-2s and 1099s is available for an additional fee. The coronavirus pandemic prompted seismic shifts in the U.S. economy and labor market, highlighting the need for access to near-real-time data for reliable measurement. ADP’s anonymized, person-level payroll data provide a comprehensive and fine-grained measure of U.S. employment, one that will deliver better insight into today’s labor market. The new NER will provide business leaders, researchers, and policymakers with a reliable read on the economy and the direction of work.

In addition, it presents regular measures of wages or earnings for defined samples or segments of the U.S. workforce. ADP Assist uses GenAI to dramatically simplify report creation by understanding context and generating insightful reports in an easy-to-understand format. HR practitioners and leaders can easily access internal, national and global workforce data from ADP’s deep HCM dataset to analyze compensation, turnover, candidate profile relevancy and talent market insights. ADP has launched ADP Assist, a cross-platform solution powered by generative AI (GenAI). ADP Assist enhances HR productivity, aids decision-making with data-driven insights, and streamlines day-to-day tasks for practitioners, managers, employees and executives with simple, human-like conversations.

It harnesses the power of ADP’s unparalleled data and expertise along with GenAI to simplify the world of work. ADP Assist builds on ADP’s current AI capabilities and is currently in early release with some ADP clients today with a planned rollout for all clients. Once individual annual pay is estimated, we match annual pay from the same job observed in both the current month and 12 months earlier. This matching process results in about 10 million individual pay-change observations each month.

ADP® Pay Insights

These amounts were previously reported in Box 7 of the Form 1099-MISC. It is important to fill this out for each of your contractors with non-employee compensation. If your check date falls on this date, please adjust it to avoid delaying your employees‘ direct deposits. You and employees (with Employee Access®) will be able to view your W-2s and 1099s on or around January 3, 2022. Ensuring information is accurate before January 14 is critical.

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As your payroll and HR needs change, you can add other ADP offerings such as time tracking, retirement services and insurance benefits. ADP’s time and attendance feature is a cloud-based tool that allows you to schedule employees and have them clock in and out of shifts. The company’s retirement services help you select retirement savings accounts to offer to employees. Insurance benefits include access to health care plans from an established network of providers and pay-as-you-go workers’ compensation insurance. Where J is the set of industry x U.S. state x establishment size cells, and Ij,t is the set of establishments in cell j in week t. The ADP NER measure of weekly employment growth is used to create an index for U.S. employment, which is then applied to a base period measure of employment level to construct a data series for weekly employment level.

Christmas Day is Saturday, December 25 and New Year’s Day is Saturday, January 1. If your check dates fall on either of these dates, please adjust them to avoid delaying your employees‘ direct deposits. All Vermont employers that are required to withhold income tax must report the total cost of employer-sponsored health care coverage. adp payroll reports Benefits administration, retirement, health insurance and workers’ compensation features are available as add-ons. Private payrolls increased 107,000 in January from a downwardly revised 158,000 gain in December, according to figures published Wednesday by the ADP Research Institute in collaboration with Stanford Digital Economy Lab.

Both measures are of interest, and together provide a richer understanding of the labor market. Sick pay should be included on either the employees‘ W-2s or on a separate form provided by the third party. If third party sick pay is not reported by the third party, it must be included on your employees‘ W-2s. It is important that you obtain this information from the appropriate third party provider as soon as possible. These entries must be processed on or before your last payroll of the year to ensure that your Form 941 and W-2 reports are accurate.

January Pay Change

View the ADP National Employment Report and interactive charts at The Pay Insights Report tracks gross pay, which includes overtime, tips, bonuses, and commissions in addition to salary and hourly wages. January 31, 2022 is the deadline to distribute W-2s to your employees or 1099s to your contractors. You can view and print your contractor(s) 1099s in the RUN Powered by ADP® platform from the W-2s and 1099s option in the Taxes section on the Reports menu.

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