Consumer complaint received 2021-07-13
Product: Checking or savings account — Checking account
Issue: Problem with a lender or other company charging your account — Transaction was not authorized
Company: ADP Inc. (CA)

This complaint relates to two transactions that occurred in XX/XX/XXXX with my payroll processor, ADP. I have worked diligently to resolve the issue for over 6 months, with no success. I am reaching out to the Consumer Protection Bureau as I seem to have no ability to bring ADP to the table to reach resolution. I am a small, one-person business. 

On XX/XX/XXXX, I submitted a payroll request to ADP. I realized after it was posted that it was incorrect. I called ADP to reverse the transaction and submit the correct one. The service representative assured me that the XX/XX/XXXX transaction was canceled. I then resubmitted the correct transaction online through the ADP portal on XX/XX/XXXX. 

My bank statement shows separate line items for wages and taxes taken by ADP. The first is the deduction for the incorrect payroll on XX/XX/XXXX, the reversal of this transaction on XX/XX/XXXX, and a further deduction on XX/XX/XXXX. On XX/XX/XXXX, ADP withdrew wages and taxes in the same amounts as the XX/XX/XXXX transaction. My bank, XXXX XXXX, denied this transaction on XX/XX/XXXX. On XX/XX/XXXX, ADP made a tax withdrawal against my XXXX XXXX account for {$35000.00}. I did not authorize this transaction. 

I have spoken to about 6 persons over the last 6 months trying to get my account straightened out. The person who is currently responsible for working with me, XXXX XXXX, does not answer my emails. The only way I can reach ADP is through email. The representatives can call me, if they choose, but I am not able to reach anyone by phone. 

It is clear to me, and to my CPA, that ADP has wrongfully deducted money from my account. I have been given many reasons for not returning this money to my account. Most prominent is that ADP submitted the {$35000.00} to the IRS and is unable to get it refunded. The company has also said that they are owed the {$35000.00}. 

I have spoken to the IRS on two occasions. The agency shows no record of the {$35000.00} being deposited against my account. At this time, I am being penalized until I pay the IRS the outstanding taxes due. 

The California Employment Development Department has also exacted penalties for taxes not being paid to that agency. The total tax and penalties amounted to {$8300.00}. I have paid the agency to avoid further penalties. I have not yet paid the IRS, trying to get ADP to acknowledge that the company is in error. It is my view that any penalties and interest charges for the unpaid taxes should accrue to ADP. They have taken the money from my account, but they have not handled it properly. At the very least, ADP should find out what was done with the funds they said were deposited to the IRS, but were never received by the agency. 

In addition to the XX/XX/XXXX transaction, the IRS received {$5500.00} from ADP on XX/XX/XXXX to be credited to my tax account. I do not know why this amount was sent in. I have had no payroll activity since XXXX, XXXX. The IRS can only tell me that they received the money from ADP. 

ADP files quarterly 940 and 941 statements with the IRS. The fourth quarter XX/XX/XXXXW2 shows that ADP withheld {$32000.00} for Federal income tax, as well as amounts for Social Security and Medicare. While this number is a bit shy of the amount they took from account for taxes, it is close enough to say that they should have deposited the tax to the IRS. Again, the IRS has not received any tax contribution for the fourth quarter XXXX. 

It is also important to say that I have sent numerous emails asking for clarification on all the points outlined above. I asked what happened to the {$35000.00}. I have asked why they made a deposit to the IRS in XXXX of {$5500.00}. I have asked why it is taking so long to reconcile my account. I either get no response, or I am told that their tax team is reviewing the many items I have submitted to them. Six months is an enormous amount of time to review 3 or 4 transactions. The company shows no willingness to respond or to work cooperatively with me. If I can not get ADP to find their internal error, I will be out an additional {$35000.00} to close my outstanding account at the IRS. ADP has taken the {$35000.00} three times. The first was reversed. The second should have been processed properly. The third is essentially robbery. 

I am including with this complaint the following documents : My XXXX XXXX XXXX  statements for XXXX, XXXX, XXXX and XX/XX/XXXX. The XXXX bank statement shows nothing concerning the {$5500.00} sent to the IRS. 
A summary of the bank transactions The fourth quarter XXXX Form 941 The W-3 Transmittal of Wage and Tax Statements Email correspondence The IRS Notice concerning the taxes due The California EDD notice showing the outstanding tax due for fourth quarter XXXX Three ADP Payment Advice statements from XX/XX/XXXX, XX/XX/XXXX, and XX/XX/XXXX ADP Payroll Liability report dated XX/XX/XXXX As a lone individual, I am powerless against a national corporation that allows no method for personal conversation unless their reps initiate a call. Even then, the process and details of their actions are completely opaque. The XXXX and W2 documents verify that ADP has taken money that it denies were either irretrievable from the IRS or are still owed the amount they said was processed.

It is my hope you can be of assistance.