ILLMAS Posted February 24, 2015 Report Share Posted February 24, 2015 TP company changed bank, old bank used ADP to process payroll, new bank uses Paychex. Paychex used ADP YTD balances for 2014, however ADP sent my client W-2 which is also included on the W-2's issued by Paychex. Would there be a problem if I amended them to reflect zero instead of having to contact ADP? Thanks MAS Quote Link to comment Share on other sites More sharing options...
Pacun Posted February 24, 2015 Report Share Posted February 24, 2015 (edited) Most of the time payroll companies ONLY issue W-2s based on their own records for security reasons. Meaning that they don't use the balances from another company. So I would contact ADP to stop that practice.Let's say I am ADP, why will I use a W-2 stating that certain amount of money was withheld if I don't know if the money was withheld or if the money was sent to the IRS? Edited February 24, 2015 by Pacun Quote Link to comment Share on other sites More sharing options...
Terry D EA Posted February 24, 2015 Report Share Posted February 24, 2015 I find that odd as well and do agree with Pacun regarding companies using their own records. How did Paychex even know about the balances from ADP? Again, I think your client should call Paychex and ask them how this happened. I can see the IRS wanting to see both amounts on the return. Quote Link to comment Share on other sites More sharing options...
ILLMAS Posted February 25, 2015 Author Report Share Posted February 25, 2015 I think there is a confusion here or maybe I wasn't clear, when I get a payroll client that is coming from some where else, I request payroll GL from the client or have them request it from the payroll company. In this case, TP earned 10K in wages under ADP payroll service, then Paychex took those 10K and continued the payroll processing for the rest of year, so Paychex records show the 10K + 15K = 25K which is correct. Then ADP sends out a W-2 for 10K and now the TP gets two W-2's, one for 10K and another one for 25K totaling 35K which is wrong, TP was 25K for the year. Quote Link to comment Share on other sites More sharing options...
ILLMAS Posted February 25, 2015 Author Report Share Posted February 25, 2015 Forgot to mention this, our state charges for SUI or SUTA for the first $12,500 earned, so lets say the TP earned 15K with ADP, the moved to Paychex, paychex doesn't use ADP balances and starts from zero, TP earns another 15K and is charges again for SUI/SUTA, do you still agree a payroll company should not use another payroll companies balances? Quote Link to comment Share on other sites More sharing options...
Terry D EA Posted February 25, 2015 Report Share Posted February 25, 2015 I think it would be best to contact ADP and have them correct the W-2 otherwise the IRS will probably come back looking for the income from ADP on the return. After reading your second post, I see where they should use the balances to prevent the double dip of the 12,500.00. Again, I think ADP should not have sent a W-2 and needs to correct it. Quote Link to comment Share on other sites More sharing options...
GeneInAlabama Posted February 25, 2015 Report Share Posted February 25, 2015 Forgot to mention this, our state charges for SUI or SUTA for the first $12,500 earned, so lets say the TP earned 15K with ADP, the moved to Paychex, paychex doesn't use ADP balances and starts from zero, TP earns another 15K and is charges again for SUI/SUTA, do you still agree a payroll company should not use another payroll companies balances? In Alabama, SUI is based on the first $8,000.00 and reporting is done on the internet on the state's computers. It doesn't matter who reports the income, the state figures the tax on the first $8,000.00 earned by that employee. Quote Link to comment Share on other sites More sharing options...
Richcpaman Posted February 25, 2015 Report Share Posted February 25, 2015 Why DON'T the big payroll companies do this? They are not liable for the taxes, the client is. If I hand them a year to date G/L with all the gross payroll, and the deductions taken, they SHOULD put it all together and only issue one W-2 for the year. Fighting that issue with SSA right now, Moved the payroll to Paychex, gave them the YTD info, and they DID NOT report it in the year end W-2's so we have to send a second set. IN this case, ADP was wrong. They SHOULD NOT have issued the W-2's without the approval of the client. A simple ask would have prevented all this. ADP should correct its error. It won't. It will say that the client paid them before leaving to do the W-2s... So, Paychex has to fix their W-2's... I hate the big payroll processing firms. They get paid lots of dollars for no responsibility... Rich Quote Link to comment Share on other sites More sharing options...
Richcpaman Posted February 25, 2015 Report Share Posted February 25, 2015 In Alabama, SUI is based on the first $8,000.00 and reporting is done on the internet on the state's computers. It doesn't matter who reports the income, the state figures the tax on the first $8,000.00 earned by that employee. Gene: That may be true, but have you ever seen a refund go out from SUTA when the employee works two places, or there is a change like ADP to Paychex and they start at zero for the same employee's? No. Rich Quote Link to comment Share on other sites More sharing options...
GeneInAlabama Posted February 25, 2015 Report Share Posted February 25, 2015 (edited) I don't know how other states work, but when you report Alabama wages to the labor department, you do it on their web site and you just put in the amount the employee earned for that quarter. They already have the wages reported for earlier quarters for that employee from all places worked and they figure the tax for you and deduct the amount from the employer's bank account. They no longer allow the employer to send in a check no matter what the amount is. Of course FUTA could be a problem if two payroll agencies prepare a 940 for the same employer. Edit: Also, in Alabama if an employee works for two employers, the $8,000.00 limit starts over. I assume that is true in all states. Edited February 25, 2015 by GeneInAlabama Quote Link to comment Share on other sites More sharing options...
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