Letter to the Editor: Classy Cork owner relates ADP 'horror story'

My name is Angela Conant. I own The Classy Cork, a wine bar located at 2916 Kuykendahl Rd Suite 100, in Spring. We serve wine, other beverages, and food, and have live music from time to time.

I wanted to share with you my horror story about ADP, America’s largest payroll processing company, so you know why I think it is a huge mistake to use them.

I opened The Classy Cork in November of 2021. I initially sought payroll help from Paychex, one of America’s largest payroll companies.

In November of 2022, I switched from Paychex to ADP because of billing, customer service, employee retention, and cost issues. In retrospect it was a huge mistake.

Previously Paychex filed Form 944 instead of Form 941 for my business payroll tax returns. When ADP took over, it is my understanding they began filing Form 941.

On April 4, 2023, I received a notice from the IRS that ADP filed Form 941 for my business for the 4th quarter of 2022 and that Form 944 should be filed instead. I passed the notice along to ADP. ADP sent me a notice on April 13, 2023, that they would contact me about the next steps and on April 20, 2023, sent me an email indicating they resolved the problem.

On Friday, September 6, 2024, more than a year later, ADP sent me an invoice saying I owed $11,182.08 in taxes for 2022 and told me they would be debiting my bank account on September 16, 2024, for this amount.

On Tuesday, September 10, 2024 I contacted ADP by telephone and by email, trying to get them to explain why they were proposing to take this money out of my account and how they calculated it, and to tell them they did not have my permission to do so.

When I did not get any answers from ADP, I called them again on September 12, 2024. They said someone would call me back, but no one ever did.

On Friday, September 13, 2024, three days before ADP was to debit my bank account for $11,182.08, I emailed ADP asking for answers. No one ever replied. On Monday, September 16, 2024, I retained counsel, an attorney and CPA, to help me with the problem.

My attorney said he was not surprised. He said he had previously referred all his clients to ADP for more than 20 years but had to stop because of their repeated mistakes and customer service problems, which in some cases took months to resolve when they should have taken a few days or weeks at most.

My attorney pointed out if you Google search ADP Houston, you will find they have 30 reviews and 1.8 out of 5 stars and, if you read the reviews, they are mostly complaints.

My attorney contacted ADP for them to explain why ADP was proposing to take this money out of my account and how they calculated it, and to tell them they did not have my permission to do so. ADP told my attorney the money was for taxes I owed related to the 2022 Form 944. They could not explain how it was calculated, and they could not stop the debit. They said they could no longer work with my attorney and that their attorney would be in touch, but would not give him their attorney’s name or contact information.

That week, and the following week, instead of answering our questions, ADP responded with additional emails saying they would take the money from my account, and that if I did not pay this money, they would stop doing my payroll.

On Monday September 16, 2024, ADP debited my account for $11,182.08, which was returned NSF [non-sufficient funds]. But even worse, that debit caused my payroll tax deposit for the payroll period ended September 13, 2024, to be returned NSF. Further, ADP threatened not to do any more payroll for me until I paid the $11,182.08.

Later the week of September 16, 2024, ADP instructed me to wire the September 13, 2024, payroll taxes (not the $11,182.06) to them and they would pay them. This cost me an extra $30 wire fee.

That same week, after calling the IRS, I confirmed I had already paid the $11,182.08 ADP was trying to collect from me, and in fact that I had paid more than that, and after the $11,182.08 was applied to the right period, I would have a small unapplied credit on my account with the IRS.

That same week, ADP’s attorney contacted my attorney by email. My attorney responded with questions and asked for copies of the Form 944 ADP filed on my behalf.

ADP’s attorney replied, telling my attorney that they had made a mistake and would be applying for a refund for the $11,182.08 they paid in error, and asked me to send them the refund when I got it. ADP’s attorney said ADP would continue doing my payroll despite their previous threats to stop unless I paid the $11,182.08. But ADP’s attorney still did not explain how the amount was calculated or answer my attorney’s other questions or provide a copy of the Form 944 they filed on my behalf.

On October 9, 2024, I received a notice from the IRS saying that the IRS had changed my address on file with them but not saying who changed it or to what address it was changed. My attorney believes it was likely changed by ADP when they filed Form 944 and is looking into it and has asked ADP to look into it.

To add insult to injury on October 10, 2024, I began to make preparations to pay my October 11, 2024, payroll through ADP. However, when I input the payroll, I got an error message telling me to contact ADP customer service.

I called customer service and was transferred twice because no one could help me. ADP told me they could not do my payroll because I had not paid the $11,182.08. ADP’s attorney previously told my attorney that had been resolved. The third person I talked to tried to transfer me to a fourth person, but she was not available.

So, I emailed ADP about the problem on their secure email platform. No one ever called me back or responded to my email for help.

My attorney contacted ADP’s attorney and finally got the hold on my payroll lifted in time to process payroll for the October 11, 2024 payroll.

I have incurred thousands of dollars in attorney fees because of ADP’s negligence, failure to timely address my issues, and all-around poor customer service. My attorney asked for reimbursement of his attorney fees I paid him, and ADP’s attorney refused stating the terms and conditions of ADP’s contract precludes them from paying his attorney fees.

My attorney has recommended I file a lawsuit to challenge ADP’s position and sue ADP for breach of contract, breach of warranty, negligence, gross negligence, violation of the Texas Deceptive Trade Practices Act, negligent misrepresentation, fraud, for attorney fees and also to request actual and exemplary damages.

I have never been treated like this in my life by a vendor. For these reasons I recommend you have your payroll done anywhere but by ADP.