Discussion:Client guidance - how to get to mgmt of payroll service company
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Discussion Forum Index --> Basic Tax Questions --> Client guidance - how to get to mgmt of payroll service company
Discussion Forum Index --> Tax Questions --> Client guidance - how to get to mgmt of payroll service company
| October 10, 2008 | |
| Client is having problems with an outside service provider. I would like ideas on how to help the client. My question is, is it appropriate to name the provider and then go from there? Naming the provider may bring out specific ideas on how to handle this particular vendor. | |
Donniecastleman (talk|edits) said: | 10 October 2008 |
| I believe as long as you state facts without slander that you're OK, I have heard certain radio finance shows that will allow callers to name companies and then some that won't, I'm not referencing this to any sort of law but a show called the Dave Ramsey show names financial companies in good and bad light, if they can do it on a radio show surely we can do it here, especially if the company will end up looking better if a flaw is discovered and fixed with good PR, if I had a company I'd want to know if something was screwed up, everyone can win in this situation. | |
| October 10, 2008 | |
| Thanks Donnie. I think I'll give the facts first.
Client has been working with this particular payroll service provider (very well known company) since the beginning of the year. Here are the issues:
2) Penalty notices started arriving in May. Client brought the issue to the attention of the provider. In July provider came back and said basically that everything is hunky dory because taxes have been paid. (They even provided a copy of a check that was dated after the due date.) 3) Client is now working with the 9th person at this company trying to get this resolved and is getting very frustrated. 4) In addition, provider has not filed the quarterly state unemployment returns with the state.
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| 10 October 2008 | |
| time to start naming names. they're messing with your clients trust fund taxes. someone needs to slap them awake. | |
| 10 October 2008 | |
| If they are doing that, what else will they do? Remember that case of the physicians' practice that ended up owing a TON due to payroll service fraud. Of course, that was a blatant case. | |
| October 10, 2008 | |
| Perhaps a friendly call from the client's attorney?
Waiting until 1/1/09 may be a bad idea depending on $$'s involved (I know, I know - changing payroll horses midstream is a PIA). I'm not sure the IRS would agree that the penalties are solely the provider's responsibility. Seems to me they'd go after the employer first. Maybe someone else has actually dealt with this? I am curious which payroll provider - I had a very strange situation with a client a couple of months ago. They use a payroll service; I get a panicked email that that IRS showed up on the doorstep....it appears it was payroll related but I still don't have the details. Sounds similar. | |
| October 10, 2008 | |
| Here's the one I dealt with last summer.
http://www.taxalmanac.org/index.php/Discussion:Revenue_Officer_Visit_%21%3F | |
| October 10, 2008 | |
| It's ADP. I realize it is ultimately the client's responsibility to pay any penalties, but they have no control over the dates the taxes are paid. Client even sent them a copy of the state employee handbook with the due dates highlighted, and the representative said they had to call the state to check on it.
I did recommend that a switch be made as of 9/30, but client wanted to wait. | |
| October 10, 2008 | |
| I would hope the IRS would see it that way too, for the sake of your client. And hope the decision to wait doesn't turn out to be wrong.
My client didn't use ADP - can't remember who they used without digging out last year's file. Curious your situation is a problem with the local ADP office(are they franchised, like HRB?) Or is the entire company clueless, or in financial trouble? Another sign of the times? I'm sure you are documenting the h**l out of all correspondence/phone calls etc - just in case! | |
| October 10, 2008 | |
| The issue is with the state, not the IRS. (Although they have also had some "rounding" problems with the 941 payments.)
I'm not sure how ADP is set up. My client has been working with an office on the Mainland. The bookkeeper is very detail-oriented. Yes, there is documentation all over the place. ADP bought out part of Intuit's payroll service last year. I don't know if that is affecting their service now. | |
| October 11, 2008 | |
| Thank you to Crow who suggested client write a letter to the registered agent here in Hawaii. | |
| January 22, 2009 | |
| Update -- client had paid ~$500 in penalties directly to state (against my advice), even though ADP was at fault. ADP paid most of the penalties, including approximately an additional $200, which was left as a credit on the account. Now in order to get the rest reimbursed to the client (~$300), ADP is suggesting starting over at the beginning with their client service department. It has been extremely frustrating six months of trying to get this all resolved. I will never recommend ADP. | |
| 22 January 2009 | |
| I have seen ADP do great work and I have seen them really screw up. It seems to depend on how experienced the rep is. Several years ago a new client came to me for a partnership return and ADP was doing their payroll. When I asked how many employees they had they said only themselves, meaning the two partners. Anybody who would set up payroll for the partners has no business working for a payroll service. | |
| 22 January 2009 | |
| Natalie,
I have had several problems with 'big' payroll service providers (BPSP), the problem was easily handled since I began with everything in writing, when the issues came up, paying and filing returns, I called the BPSP contact and said I though you were going to do this... to which the BPSP contact said 'no, i never did'...to which I said let me fax somethng to you... it was a letter from that BPSP contact stating they would... you could hear a dime drop... this boils down to a 'written' communication, one I requested which the BPSP said originally ' well I can do that... but we usually don't...' We talk alot but seldom communicate TexCPA 10:43, 22 January 2009 (CST) | |
MDUBIN1441 (talk|edits) said: | 22 January 2009 |
| I have previously used 2 third party payroll services for my clients one of which was ADP. Without going into details, I have found that the company I am presently using PayCycle, has not only been the best but in addition the most cost effective.
You might want to consider changing to them, see link below. https://www.paycycle.com/external/home.jsp Good luck. Mike Dubin CPA | |
| January 22, 2009 | |
| Crow, the resources that would be needed to sue in small claims court are not worth the probable settlement.
Tex, I agree communication is important. When a BPSP is given highlighted instructions from the state's employer handbook for filing and paying withholding taxes and then continues to do it incorrectly (read "continues to incur penalties"), that is a big problem. Thank you, Mike. | |
Michaelstar (talk|edits) said: | 22 January 2009 |
| I suggest to all my clients to not use ADP as a third party p/r service. I have unfortunately had more problems with that company than I want to think about and have told them so. Some of the people I have talked to at ADP are so nice that it just does not add up! I also know others that think ADP is/are great. Once things turn bad, they never seem to get it fixed which just adds to the problems.
I refer all my clients to Paychex. | |
| January 22, 2009 | |
| Huh. Must be a regional thing. In Chicago area, HEY MICHAEL, IT'S FRIGGIN' COLD NOW!, ADP does a good job. So does Paychex. I tend to use one or the other depending on the reps in play. ADP has ticked me off with some predatory pricing practices of late where they'll undercut anyone in order to get the business. But my Paychex reps who were the most personable group in the world, have vanished. | |
Tripletmom (talk|edits) said: | 27 February 2009 |
| This is for Crowcpa. I am currently having the same situation with an LLP. Is there some loop hole that since Paychex is leasing employees, that they can get around it. | |
| 27 February 2009 | |
| Leased employees might a totally different situation, but I'm not sure. I have had very little experience with employee leasing. Sorry. | |
| 28 February 2009 | |
| OMG, I knew it had to be ADP, for me they are the worst! I had a client that ADP issued five "corrected" 941s, 940s and W-2s for the same tax year. It was such a mess and it took months upon months to try and get to the bottom of why they were issued (it turned out it was a mistake on their part and nothing should have been changed). I must have spoken to at least ten different people throughout the year to try and get this rectified. Just when we thought it was all straighted, they'd receive another set of corrected quarterlies and W-2s they ran new W-2s for all 75 of the employees. There was no change in the payroll these corrected forms just started showing up six months into the next year. This was back in 1999 and I vowed to never refer a client to them and if a client used them, I told them what happened and they switched. The amount of incompentence was beyond belief from the payroll reps up through the supervisors. It was a nightmare and I told them I would never refer a client to them and ten years later I still have not! | |
