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Payroll Outsourcing Company Reviews

 

ADP Payroll Service Review

Payroll service ADP dominates SurePayroll, PayChex and other payroll providers. We take a look at whether the payroll emperor has any clothes.

If you believe big is inherently better, then ADP payroll outsourcing might be the right payroll service for you.
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In fact, ADP is one of the world's largest providers of outsourced business solutions. Revenues are nearly $8 billion per year.

In the world of payroll outsourcing, ADP is known as a traditional payroll service or a conventional payroll service.

That's in contrast to the newer generation of payroll services such as SurePayroll that offer an online payroll service.

Online payroll offers the added advantages of control, visibility and reduced errors, typically at lower payroll service prices than the traditional big boys: ADP and PayChex.

Nonetheless, markets get wise slowly. ADP continues to dominate the payroll industry with massive market share.

After all, ADP is a well-established brand and you can "never get fired for choosing ADP" as your payroll service. The boss will know the name.

It's a bit like the saying "You can't get fired for hiring IBM" -- a saying that used to hold true. These days, you can indeed get fired for hiring IBM as their are plenty of other good technology providers out there and there's a lot at stake.

Something similiar is going on in the payroll processing industry. What once was a near monopoly by ADP and PayChex is now a much more competitive marketplace. So, we recommend that you evaluate ADP payroll outsourcing but also evaluate SurePayroll and PayChex to get a good comparison. To our mind, those are the three full-service payroll providers worth talking to.

On their website, ADP says they provide "flexible corporate payroll services that improve payroll management for employers of every size. We handle the time-consuming tasks of payroll processing and employee payroll tax filing so employers — regardless of their size — can focus on their business."

While they seem adamant that they can handle any size business, ADP's sweet spot is with large businesses having 500 or more employees.

To us, ADP's biggest advantage is that they are used to working with big companies that have very complex payroll processing needs. If you run a large company, you won't find much that ADP can't do for you.

For a small business owner, however, that complexity leads to feature overkill and confusion.

Because ADP's offerings have been developed over so many years, there's an inherent legacy complexity that they seem to have struggled to overcome.

Even as ADP adapts into the Internet era, it's tough to figure out what they are doing.

They launched an online payroll application called RUN ADP some time ago but now if you go to those web pages, there are some allusions to RUN ADP but most of the language is about EasyPay.

Unfortunately, big companies tend to start and stop entire business units on short notice, so I'm not sure what's really going on.

Ages ago, I was a Peachtree accouting software user and ADP built a decent interface directly into the software. They had in fact acquired Peachtree so it was easy to do the integration. Then, all of a sudden one day, they stopped offering the integration and divested themselves of Peachtree.

OK, I digress but you get the idea. Big companies don't have much empathy for small companies. That's why I personally opted not to use ADP as my payroll service at a certain point. It just didn't seem like they gave a hoot about me and my business.

Of course, that was back when you had to call in payroll on a specific day and time -- which was a pain. If you had an important sales meeting at the same time as payroll needed to be called in, you were in a jam. That's why I now prefer the anytime, anywhere online payroll services, where I can process payroll in my PJs in the middle of the night if I need to.

So, getting back to this review of ADP payroll service, we haven't had a chance to put RUN ADP through the paces.

ADP tells us via their site that RUN is easy to sign up and set up, easy to learn and use.

Step-by-step wizards help you set up company and employee information to get you started. You can calculate and generate paychecks on an "as needed" basis, and pay employees through direct deposit or by printed checks.

Just like with SurePayroll and PayCycle, you can set up automated reminders on payroll and tax due dates, so you minimize the risk of missing a deadline or paying a late penalty.

So what are the drawbacks?

The knocks again RUN ADP are that there is no electronic filing at the state level, and the business owner must file all tax forms. Plus, there are no weekend support hours.

To our mind, these are some big disadvantages, enough to make us shy to recommend this relatively new offering.

Our part-time bookkeeper uses ADP for some clients and uses SurePayroll for others. She is not keen on ADP's payroll service limitations.

As an example of her frustration, she says that SurePayroll automatically does the 1096 forms for her, whereas ADP does not do the 1096 form for her. She has to do it herself. She says that's a big pain.

She also likes SurePayroll's instant payroll preview function much better than the way ADP informs her of the amount she needs for a payroll. With SurePayroll she gets the grand total for payroll instantly. With ADP, shes says she processes payroll and then gets an email 5 hours later telling her the required cash amount.

Long story short on ADP payroll outsourcing, don't go with them just because they are massive. Shop around. Talk to other players and get a payroll service that is right for you. Once you choose a payroll service, it's a pain to change so ask tough questions and don't move too quickly to decide.


Comment Board

Contribute to this ADP payroll service review. Add your comments and questions below. We especially would like to hear ADP comparisons to SurePayroll and/or PayChex. Thanks!

joan 2/9/2009

Unfortunately, I only have a comment regarding ADP, not a comparison. ADP is probably one of the worst payroll services in my experience. The company is uncommunicative, poorly managed and the staff appears to be lazy in efforts to remedy mistakes or errors within their system. I am a payroll recipient and would never recommend this service to anyone. Try another company such as Paychex.

Neil 2/18/2009

This is the second go round with ADP. The first time they screwed things so badly with the IRS it was two years until it was corrected. I left and returned several years later because of professional advice. The latest incident arose when my employees noticed that there were no 401K deductions. I called and was told that the changes which were made had to be looked into and that I would be called back. Never happended. I am out once again. The trouble plus 4X the expense of Paycyle is reason enough.

RB 2/18/2009

I believe this author is misinformed in some of opinions they hold about ADP. I have been a rep for ADP for 2 years and I deal only with small businesses 1-50 employees. First off, easypay and RUN BOTH do electronic filing of state AND federal taxes... that is one of the big reasons that companies use ADP. Next, the notion that the company is too big and "over kill" is a misconception. Though we have products other than payroll (that many times can save a company A LOT of $) we can do just plain old, regular, payroll just like the small companies... but usually cheaper. The advantage of a large company? We get buying power! So when you do things like workers comp we save you 30%. We give you FREE New Hire Reporting, we give you FREE Labor Law Posters, we give you FREE Delivery or checks... any way, I can honestly say that when I start my own business, ADP will be the first thing I will set up.

Disappointed 4/15/2009

I have to agree with ADP's lack of consideration for small companies. They made an error on one of our payrolls which cost us over $1200.00 in penalties. They are assuming ZERO responsibility for that! Their stand is that it is the customer's responsibility to check the accuracy of the payroll. UNBELIEVABLE! If I hired a bookkeeper to check up on ADP, she might as well do the payroll herself! What good is a company that does not stand behind their accuracy? As far as I'm concerned, that's the deal breaker! If your claim to fame is freeing up the business owner by taking on the responsibility of payroll, you need to actually ASSUME THE RESPONSIBILITY!

Debi 5/15/2009

ADP does the payroll for ITT college. They screwed up my son's payroll because they have not been paying his social security or medicaid for who knows how long. He gets direct deposit and never thought he had to check. Now most of his paycheck this week (2-week check) has been taken to back pay his ssi & medicaid. What kind of idiots are these people? From what my son told me they haven't been taking it out for a few years. I know he should have been checking but his tax man also dropped the ball when his W2 didn't show any payments and he never brought it up. What's wrong with this picture? I would have seen all this but we don't live together, since he's married. What the heck is wrong with these people at ADP? I've worked in accounting for years and I can't imagine how this happened. I'm not sure how many other people at the college were also affected.

P 7/7/2009

Debi, this error was made by PAYROLL. Not ADP.

Colleen 7/10/2009

I despise ADP - the system is insanely outdated, I cannot run it on my Mac nor on Firefox on a PC, there are just so many things that are non -intuitive... I can't believe I have a year contract with them, it seems like forever....

JB 8/11/2009

RB from ADP there is no such thing as free....your customers may be getting FREE labor posters but they have to pay shipping...so they are not FREE and small clients are nickel and dimed to death..so where is your FREE

Bob 8/18/2009

I have had ADP for almost 20 years. I needed them to do an amendement and they screwed up big time 3 times in a row. They tried to debit my account for over 3500.00 we did not owe and they made a big mess of everything. The person I have been dealing with does not seem competent in my opinion and we have had 3 conference calls with accounting and still we can not get a simple thing done right. After we fire them I will make a point of letting everyone I can know about the poor service. I go to all the chamber of commerce meetings and functions so I will really spread the word.



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