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ADP Tax Issues after Converting to ADP

edited January 2010 in General Payroll Topics
Can anyone speak to issues you have had after converting to ADP? We switched the beginning of 4th QTR and we are days away from W-2's needing to go out with multiple states with problems. They seem to be dragging their feet on getting someone in the tax area to help us.


  • Did you convert to ADP for processing your entire payroll, including W-2's, or did you just have them do the tax compliance?
  • All payroll processing, all tax filings and all W-2's.
  • Years back I participated in a 3Q payroll conversion to ADP, no tax compliance, but generating the W-2's. It was a disaster. It took over 3 months to clean up the state errors caused by their data conversion system, which had been tested/passed, but didn't work in production.

    I'm sorry to hear you're having a similar problem!
  • So, it seems they still have the same problems. The problem now is, if W-2's go out with incorrect data, not only do you have the state filing problems, but also problems with individual's W-2's. We have had over three months to resolve this and no one notified us until January 11th.

    Thanks for your response.
  • Exactly why everyone will tell you never to convert mid year.

    Sorry about your situation. Hope you get a quick resolution.
  • rrupert
    rrupert ✭✭✭
    I thought I had heard that most of the larger payroll companies, while they would do a mid-year conversion, that they covered their collective behinds on year-to-date, annual issues. They refused to be responsible for the conversion year end information, because much of it was beyond their control. Maybe that has changed, but it is one of the main reasons I would do everything to only convert at a year end. Of course, that is water under the bridge for you.

    Good luck with the the end I would love to hear the last page. I hate to be left hanging!
  • rrupert, I've worked for a couple of companies who also offered payroll tax filing services, implementing systems, and it was always that way. At those companies, we would do year-end filings IF the company could prove that all previous returns were correct and complete and all deposits were made on time. At ADP, they just wouldn't do it; there we called year-end "DIY". :D
  • When I worked for ADP years ago we converted lots of clients mid year and even mid month or mid quarter.

    If the conversion was done properly it was not an issue. The issues came when clients would give us bad information on what an earnings was or how it was taxable or what the wage base really was.

    Or the ADP Account Manager was inexperienced......

    Even on more complex systems mid year implementations are not uncommon. But most clients feel most comfortable psychologically with a start after the New Year.
  • With ADP, always change at the start of a year. If that is not possible, start at a quarter.

    ADP mainframe has soc/med / sui / sdi recalculations that force the wages and taxes to be in balance according to their system. This may not be the same as your system but it should be close.

    ADP will only take responsibility for what they processed and what they deposited. If something is out of balance, all they will tell you is 'these are the results based on the data you provided.'

    Likely culprits are the Cafe 125, or anything that is setup on a tax grid to make a pay element exempt from a specified jurisdiction or jurisdictions. Any taxable fringe calculations can also be a potential issue depending on setup. Always a challenge to have two independent systems determine the same exact result.

    If you are not getting results, have someone in your management team call the VP of Customer Service / Solution Center or the General Manager of the ADP location. A goal of any worker type at ADP is to not have these guys involved in anything they are doing, because their project will then get heavly mico-managed and everything will be reviewed and resolved.

    On speaking with someone in the actual tax department, these guys sit in a bunker and will rarely talk to a client. The tax group in most cases won't even speak to an ADP consultant or their implementation team.

    This will get you assistance and a response because those folks will light a fire under your implementation team. If you want service, call these people I mentioned, otherwise all you will get is the old story of we loaded your data as you instructed, now you tell us what to do.

    Best of luck, but I'd run this up the ladder to the GM or VP, explain your situation and you will get help you are looking for.
  • One more huge issue, when I was at ADP clients would send us the wage & taxes in a file based on their current system coding. They did not take into account any changes. Take a look at...

    - Any employee who changed Tax Jurisdictions during the year, you may be loading all the data to NC when it should be split between NC / PA.

    - Any employee who had adjustments via manual check / prepaid void, was this performed because of an incorrect tax jurisdiction, if so was the adjustment performed correctly?

    - Could be that your old system had locals, school districts, sui and others not calculating at the proper tax rates.

    Best wishes on the conversion, I've been there so I understand how challenging these can be.
  • Converted to ADP payroll in 4th qtr and I am still discovering problems. W-2's were huge problem. I kept getting them delivered to me until March 5th with no explanation only to find out myself that they misclassified a CAFE 125 benefit as post tax instead of pretax and they miscalculated HSA contributions and even miscalculated some employees gross wages. I am surprised they do not run a parallel payroll before conversion to make sure glitches are caught and pick up any errors. But year end is a nightmare. I know I have been a thorn in their side but I think a lot of things could have been done better. The GL mapping, for instance was done AFTER we performed our first payroll. I work for a car dealership and our reporting period is monthly, so I needed payroll to post to our books quickly and to begin working on the GL mapping AFTER you do payroll is insane.
    I was able to speak with tax people and get some concessions from my complaining.

  • An exciting new problem from ADP. Despite my telling them my SUI rate one month before conversion they incorrectly set the rate at 0.1000%. Not sure how the worlds largest payroll provider could think any legitimate business entity could have a rate like that in the middle of a historic unemployment. But nonetheless I received a surprise notification telling me they would be debiting our operating account for the mistake. No one has been able to answer my question as to how this happened or how ADP could possibly im a million years think my SUI rate could be 0.1000%