"The majority of the benefits of tax reform to the ADP bottom line should flow through to shareholders," Rodriguez said. He also said the company is looking at "some modest increases" to charitable contributions and "increasing pay some of our people who are earning below $15 an hour" and for some increases to the pool available for merit pay.

No decisions have yet been made about possible dividends or share buybacks. However, Rodriguez said those actions would flow from the impact on the bottom line.

Net income for the most recently ended period was $467.5 million, down 8.5 percent from $510.9 million the year ago. Rodriguez said acquisitions had some impact on margins.

Revenue for the quarter was $3.2 billion, an increase of 8.3 percent from slightly less than $3 billion in last year's corresponding period. Payroll revenue of $2.4 billion was 5.6-percent higher than $2.31 billion a year earlier.