Automatic Data Processing

Misconduct & Legal Violations by ADP One, subsidiaries & Partners


Overview of ADP

Who and what is ADP?ADP (company) Automatic Data Processing, Inc., commonly known as ADP, is an American provider of human resources management software and services. As of 2010, ADP was one of four American companies to have a AAA credit rating from Standard & Poor’s (S&P) and Moody’s.

How does ADP make their money?

We pay roughly 1-6 working Americans.  That’s over 26,000,000.

ADP makes money by holding the employer and employee taxes until they are due on the quarterly and annual basis and invests that money.

So, if we hold $100 per week per employee that is over 2.6 billion dollars, we have each week to invest.  Now multiply 2.6 billion times just 1% that’s 26 million a week we would make.

This is why there is such extreme pressure on our Sales Executives and sales teams to rush payrolls thus resulting in unethical practices.

How & Where Do We Get All Our Clients?

Centers of Influence, Certified Public Accountants, Banks such as Bank of America, Chase, BB&T& Clients.

ADP partners with CPA/Accountants, Banks and clients.

We don’t advertise, and this is where all of our Business Comes From.

Accounting Firms being number one with the most influence over their clients. ADP Small Business Division derives most of their business from accounting firms.  Accounting firms are also paid by A.D.P. threw one of two programs.

  • Whole Sale– what I was creating with my firms.  Almost like a franchise
  • Project Take Away– We are not allowed to say those words due to the negative connotation it has.  I can imagine bringing some of the major Firms that we partner with to court with their clients and ask them if they are a part of PROJECT TAKE AWAY in front of their clients, they would turn on ADP in a heartbeat.
  • Banks– we partner with all the national banks.  BOA, BBT, Chase, Valley National just to name a few.
  • Clients-we ask our clients for referrals.

CPA’s and accountant Programs again. Important to understand

ADP has 4 programs for accountants to partner with us.

  1. Basic Referral– they just refer us because they like our services
  1. Acquisition– This is where ADP will buy a firm’s book of payroll clients. Generally, when they are about to retire.
  1. Wholesale– This is where the CPA Etc. Uses our technology and platform to run their client’s payroll.  We charge a reduced fee and they bill whatever.  Like a franchise.
  1. Project Take Away– Bad Name Choice, they don’t ever want us to say.
    1. This is where we pay the Firm 50% of the annualized revenue, we would receive off their client plus 10% residual. They must give us 5 clients per year to receive this.  Most all do way more than 5.  At 10 companies they refer us they get 75% of annual plus 10% residual.  That’s a lot of money and as Sales Reps aka District Managers, the most we ever get is 30% with no residual. WE must keep on hunting 24/7.  Do whatever it takes to get a client.
    2. From My Knowledge Accounting Firms are legally obligated to tell their clients they are receiving a profit from ADP by referring them.
    3. There are thousands of firms on this program.  A lot in which make Millions of Dollars from it.

My Personal Experience

On July 18th I was fired from A.D.P for allegedly sending emails from my work email to my “other business email.”  This came abrupt after the HR/Legal issues I was going through with ADP.  There was a current and active investigation going on due to the claims of Fraud and SEC violations.

On July 18th I received a phone call from the HR department.  This was not the individuals I had been speaking too.  They abruptly asked me if I had sent an email to myself which I said yes.  They then fired me with no warning.  The email they had mentioned was from 6 months prior when I had no IPAD and was unable to perform my duties.  I had no choice but to send the email from one email to another to upload the client documents I was onboarding at that time.  Note the Client was sitting in front of me and was an ADP client. Also, a good friend of mine.

UBCG does not exist. That was an ADP accountant wholesale program that was approved by all my leaders. It died when I got fired. ADP is saying I had created this company to compete with them.  Which is completely wrong.  There was a company being formed for a giant wholesale team that I would be their ADP rep.  Wholesale is where an accountant/company can sell ADP’s payroll at a discounted price and do all the work.  ADP and the sales rep “me” both benefit from and bring in Revenue.  This was Cleared by my management numerous and numerous times.   So how is that wrong?

I still have yet to receive any type of COBRA benefits or paperwork from ADP.  They were supposed to send me my COBRA paperwork with a box to return my laptop and iPad.

They are worried about a class action lawsuit due to the fact of the sales reps Signing Federal State Unemployment paperwork on behalf of their business clients. Which is a major federal offense.  As well as Falsifying Social Security Numbers to run payrolls early. All so we can meet quota and our management can hit their benchmarks.

Fact – ADP makes their money off of holding tax dollars until the end of the Quarter and then end of the year for Federal Income Tax.  Imagine holding Billions of Dollars and compound it at 1% for 1 day, 2 days, then 3.  We are talking about major money.   This is why they are forcing us to do this.  The managers taught us how to do the State Unemployment apps.

Another major reason they fired me so abrupt is due to the fact that FINRA and SEC were contacting me regarding Self Directed IRA’s.  I had broken two national records at ADP for retirement services.  I have quite selling SIMPLE IRA’s numerous times because of the unethical and deceptive practices.

ADP pushes nothing but SIMPLE IRA’s and not SEP IRA’s.  Why?  Good Question.   Well our Sales Reps make 1200 on Simple Ira’s and 600 on a SEP.  But that isn’t why.  It’s because they only train us on that and only push SIMPLES. ADP holds a contest almost every month or every other month in regards to the sales of Simple IRAs. Usually offering money/gift card to the leading sales reps and division.

Why only Simples? This is what we need to keep asking. Obviously, there must be some underlying reason the corporate heads are pushing Simples so hard but what is it?  Besides the plans vesting almost immediately as opposed to SEP IRA’s a few prior and current allegations may shed some light.  Take a look at a class action law suit against ADP and James Blake (Donna Huffman, et al. v. Automatic Data Processing, Inc., et al).

This Class Action Lawsuit can shed some light on the continuing illegal activities ADP is involved in.

This involves Fidelity our old plan sponsor.  Currently we are with American Century Investments.  When you pull up information about the case, I found it was hard to find until I did some good digging. I also saw where the “defendant” dropped the case suddenly and James Blake filed for an Expungement.  I am concerned why James Blake is still head of the Retirement Division.  I personally know James Blake because he flew me to New Jersey after my boycott of Simple IRAs.  We had a meeting discussing my concerns with ADP’s Simple IRAs.   With their attempt to wine and dine me they promised change.

There have been recent complaints as well (Royce A. Charney, J.D., President, Trust Administrators, Inc. –  See attached PDF.

ADP has also bribed me numerous timesto sell SIMPLE IRA’s.   I have the proof via texts/emails to prove that.  The Department of Labor was supposed to impose the B.I.C.E Law regarding Self Directed Ira’s which ADP would have completely disregarded.  In fact, they should be held accountable with the Good Faith Law.  Please see ERISA violations.

After my employment at ADP I started a Credit Company and Real Estate company. Has nothing to do with payroll.  I haven’t had any contact with my Bankers/CPA’s or partners I worked with at ADP.  I was trying to forget this ever happened. Clients and partners have called me many times and I have told them I am no longer with ADP and cannot comment nor do I work in the Payroll Industry.

Role at A.D.P 

Elite Senior District Manager – Responsible for Bringing on new clients.  Job is to create relationships with Accounting Firms, Banks and Clients.  Then utilize those relationships to obtain business clients for Payroll, Retirement, HR, and Insurance Services.  At no time did I have any management responsibilities like they are saying or have any Sales Reps work for me. I just managed myself those statements are 100%Inaccurate.

I broke Numerous National Records in the Retirement Division.  I was number 1 and one of the top overall producers in all of ADP.  I have a lot of information that most of my superiors don’t even have.  This is why they are so concerned.  What I have as evidence.  Text’s and emails that are extremely damning to ADP.  This is why they are very serious about this satiation.

Falsifying Social Security Numbers 

  Violation & Misconduct

  • Falsifying Social Security Numbers or Entering “Dummy” Numbers and sending them in to our implementation team so we can push a payroll through to get it to run.
  • I was told about 6 months after I got hired by my Vice President to put in random numbers so we could push this account through and hit quota. This was a common thing that was happening I found out.
  • I was uncomfortable with this and went to my EIT (executive in training) Rey Navarro who is one of the heads at Bank of America now and told him about the situation.
  • Just like me he was new and didn’t know really much about payroll or what was going on. But we both knew this was wrong.
  • We of course did not follow through with it and chose to wait and put in extra hard work to get it done right. The account did not run when it was supposed to but I did it ethically and legally.
  • Roughly a year later it was brought up to me from our HR department because they were investigating my VP for numerous other things as well. I was honest with them and he was fired.
  • Once this issue was brought up it was like there was an elephant in the room everyday at our office. All of the reps who had been hired before me were concerned about losing their jobs because Falsifying Social Security Numbers was a common thing before me.  It was one of those things where you just pretend like nothing happens.  Kind of turn the blind eye.

Why did ADP do this?

  • ADP Sales reps are under major pressure to close deals. Extreme pressure.  ADP REPS live off of their commission checks.  If we have a business client who doesn’t run their first payroll by the end of the month, we don’t get paid.
  • We need all of their current and former employees’ information before we turn in that deal to our implementation team who balances the businesses taxes etc. IF we do not have all of that info it will get kicked back to us and we may not be able to run that client.
  • The average business client being worth $1500- $8,000 in “roll call” which is our estimated annual revenue off of their payroll fee.
  • We get a certain percentage of that depending where you are at quota wise for the year. Either 10% 20% or 30%.  So, let’s say its worth $5,000 and the rep is at 20% that’s a $1,000 on their paycheck. A lot of times they just need a few more thousand to get to that 30% Commission structure and then their whole paycheck for that month will be at 30%.
  • With a lot of decent reps selling between low $20k to upper $50k+ those are big checks. $15,000-$20,000 commission checks are a normal thing.

So, if that Business owner has employees who no longer work for them and they plan on switching payroll companies they need to have all of that employee’s info.

  • SSN, DOB, Address, Date of hire, and how much money they made working for that business that year.
  • This is because we take on “FULL LEVEL TAX LIABILITY” supposedly, and we need to send them out their w2 earnings at the end of the year.
  • This means that the new business client will get 1 set of w2’s for that year for all employees who worked and they will distribute them to past and present employees.

If we put in dummy numbers what could happen?  Who could be harmed?


Well imagine some random ADP Rep plugging in Social Security Numbers and Attaching wages to it and it never gets corrected.  “Which is probably 90% of the time” you may have some IRS issues or major consequences.  You have no idea but your social security number is attached to earned wages you had no idea about.  Thus, you owe more taxes.

What about the employee who they are putting a fake number in for?  Well they never get credit for those wages and can have the same harsh tax consequences.  BIG MESS that goes overlooked. “IRS mistake or some people just don’t file.”

Ever wonder why you don’t’ get approved for a loan? Did you know companies can pull that information and wages get reported to the IRS and to Lenders?  So, if you made all that money and left but some ADP Rep put in a fake number there goes your shot at proving you made money!

No lender accepts pay stubs anymore and if they do, they all still verify it electronically.

You don’t even know this happens but when they pull your credit report often times, they can be provided income data.

If your trying to get a loan for something better hope that your last employer had all of your information because you never know if that ADP Rep from your last employer was under too much pressure and did something unethical.



In roughly October-November 2015 I was a new employee at ADP when I was asked to falsify social security numbers by my regional vice president.

I was bringing on a restaurant from one of our competitors Heartland Payroll.  This would have been one of my first accounts I picked up at ADP so it was kind of a big deal.

Bringing on a new client in the 4th quarter at ADP can be a tough job if they are an existing business like “Marias.”  They were a smaller restaurant with a ton of turnover. Roughly around 90 ex-employees if I remember correctly.

This can make the Sales Reps job difficult because we have to get all of the required documentation to bring the new client onboard.  Which means all their tax documents, balances, employee info etc.

Far too often for security reasons companies like Heartland mask out all of the employee/former employees SSN but the last 4.  When we are to take liability and run a client payroll, we are needing to have every last bit of info.   So that includes prior employee’s full social security number.

Why do we need this? 

ADP is taking Full Level Tax Liability for the company and will be sending out one w2 to all of the employees at the end of the year.

What happens if we don’t have the right info?

The former employee’s earnings and taxes would be attached to someone else’s tax return.  Which is a major problem.  If that number doesn’t get switched some random person may randomly have recorded earnings on their tax return and that employee will not.

Before I came around it was a normal thing just like the SUI apps to plug in random SSN so that we could get the client to run and we hit quota.  This means if we don’t have the right information make up some random numbers and then change them later if at all possible.  Most often times it isn’t!

I had a weird feeling this wasn’t right and I decided to go to my sales exec in training Rey Navarro.  He was new just like me and was supposed to be my direct boss.  He and I bonded and I trusted him to tell me his perspective on the situation regarding my VP.  He came from running a dozen BB&T branches and formerly was a VP of operations for Wells Fargo.

Him and I decided to go against what my Vice President told me and do it the right way.  Of course, I didn’t hit quota but I did it the right way.

Roughly a year later this was brought up by HR randomly when another situation was being investigated.  I had told them what had happened.  My VP was fired but there were numerous other things that caused that. Sexual Harassment etc.

People around the office were talking and I guess before I said something everyone did it.  I then called my friends from across the country at ADP and they all said it was just like the SUI situation.  Turn a blind eye.

ERISA, Good Faith & Securities Violations     

Violations & Misconduct

  • Are ADP Sales Reps giving investment advice?
    • Answer:Yes, we are
  • Should Unlicensed individuals be giving any sort of investment advice?
    • Answer: No
  • Are we incentivized to sell only one product?
    • Answer: Yes
  • Should this be considered a bribe?
    • Answer: Not sure, maybe
  • Do we mention or offer our other Retirement products?
    • Answer: Most often times no

ADP is the second largest retirement provider in the nation with over 70,000 plans.

If you are a business owner and you have signed up with ADP, I am sure they have tried to sell you a retirement product.  Well their “product of choice” Simple Ira.   ADP Actually has three options for their clients.  A 401k, Simple IRA and a SEP IRA.  As an ADP Sales Rep we are supposed to walk you through a series of questions and then our magic calculator spits out the best option for you.  90% of the time it’s a SEP IRA yet 90% of the time we sell you a simple Ira.

Is an Unlicensed ADP Sales Associate considered to be a Fiduciary?

Is ADP considered a fiduciary and or should they be held accountable for doing what is in the best interest of their clients? This is the question I would love to know the answer too. Most people would say yes, they should do what is in the best interest of their clients.

As far as a fiduciary responsibility that is a little gray area with a special carve out.

ADP sales reps are not licensed. Well, at least 99% are not.  Yet we are the ones who are Pressuring our clients to do nothing but buy a SIMPLE IRA.

I should know I hold two national records at ADP for Simple IRA sales and know a little more than I should.  Pressured by our Sales Execs, VP’s, DVP’s and corporate we are PRESSURED to SELL SIMPLE IRA’s 24/7 with contests, trainings and almost embarrassed in front of our whole division if we don’t. I forgot to mention bribes.

If someone wanted to know the truth on why we are pressured so much we should just ask the head of our SIMPLE IRA desk, James Blake.  He should know as he was one of the defendants alongside ADP and Fidelity in a major class action lawsuit for Securities Fraud.  With a Settlement awarded to the plaintiff before it went too far most people are completely unaware of this.

Even after taking Bribes as noted by the Judge from Fidelity and also skimming off the top he had is record “expunged” and still remains the head of the Simple IRA team.

If you ask me that is a company not doing what is in the best interest of their clients.  Negligence I suppose

My story

I was involved in an active investigation with our HR department after a letter I sent to my Vice President about some of my concerns.  During this time, I addressed all of my issues.  I also was forced to Contact the SEC and FINRA regarding the information I had against ADP.  There is a lot of information to explain so I will give a brief summary.


ADP forces SIMPLE IRA’s down our throats. Every week it’s a contest or challenge with a training as well.  We also sell 401k’s and SEP Ira’s.  SEP Ira’s are only $50.00 for a whole year of plan maintenance.  Our SIMPLE Ira’s are $40 per month so $480 per year.

With a SEP an Employer must Establish the plan by Oct 1st to receive any of the tax benefits (the main reason they open them) with a SEP they have until April and contribute way more to their plan thus resulting in a bigger tax deduction.

However, a SEP isn’t great for all businesses. Generally, 1-3-man family companies, which is a very large portion of our Client Base.

Worse than the Violations
ADP’s disgusting neglect of any potential fiduciary responsibility is only a minor peace to their unethical behavior.  ADP sales associates are publicly humiliated if they do not sell a SIMPLE IRA that week.  Many divisions around the country have their own sub culture but one thing remains evident.  Most of it comes from the TOP!

As a Sales Rep we have quotas, we know.  They often times are faced with a choice to due whats ethical or face a public Humiliation by their peers.  With Face in the Holes to making you stand in front of the whole division that week and RAP some awful song to embarrass yourself because you did not sell any Simple Ira’s that week.  Absolutely disgusting.

I have been a witness to this over 100 times.  Reps get scared and feel embarrassed while some have fun.  Maybe to “Fit In.”   When something like this happens usually you see the CEO and executives appalled by such action and completely deny it.  Even condemning those responsible for committing such demeaning acts.

Well, Not Here. I caught our FEARLESS LEADER RED HANDED ON CAMERA.  There is no denying corporate does not know about the public humility an ADP Sales Rep faces if they do not sell any Simple IRA’s.   Take a look here at Carlos Rodriguez our CEO.

Why don’t we push SEP’s? 

As a Sales Rep we are paid DOUBLE for a SIMPLE IRA than that of a SEP IRA. 99% of employees don’t even know anything about SEP IRA’s anyway. That is because they are never trained on them. It’s SIMPLE, SIMPLE, SIMPLE as you can see in my text messages and emails.

I was flown out to Headquarters and wined and dined once I quit selling IRA’s in hopes to get me to continue to sell them.  I had issues with the way things were handled with SIMPLES and I boycotted them numerous times.  This had a grave impact on ADP.  When they flew me to New Jersey I sat with the Head of the Retirement team James Blake.  We discussed my issues and they made changes and put a few on disciplinary watch as well as let go one or two of the Simple Ira team members

Read this article by Tom Zgainer

LinkedIn Article:

Note: This article, which has been viewed over 41,000 times, was updated on September 18, 2018 from its original published date in August, 2014.

It is or should be well known that the selection of a 401k provider must be in the “sole” best interest of its participants. Unfortunately, many business owners, in their role as the plan fiduciary, select Paychex or ADP as their 401k provider not considering that sole best interest, but rather choosing them as a matter of “convenience”.

Give Paychex and ADP credit. They do a great job of selling the idea of integration with payroll, and ease of administration as the reason to choose their 401k plan, completely disregarding the “sole” best interest of the plan participants. Because there really can’t be any other reason that is logical. The fund options in their plans can be needlessly expensive. They are not fiduciaries to the plan, that is still the business owner. They are not advisors to the plan. That often falls to their broker partners, who are earning commissions from the fund options.

According to its most recently filed annual report for 2017, Paychex has over 78,000 401k clients. ADP now has over 66,000 401k clients. Very impressive indeed. Here though is what very few of their clients know.

The total assets of the Paychex plans exceed $27 Billion. In the hundreds of fees disclosures, we have reviewed from Paychex they receive 25 basis points on average through revenue sharing of the funds in their plans. This means that over the last fiscal year the revenue from the assets of these 401k plans exceeded $67 Million. For being hired to provide administrative and recordkeeping services.

ADP very deftly does not have such clarity on their annual report, rather revenue they collect from 401k plans is categorized under a heading Employer Services. The assets on their 401k plans exceeds $50 Billion. ADP also earns revenue from mutual fund companies or wrap fees. On the hundreds of ADP fee disclosures we have reviews, their revenue share from the funds they offer can be up to 0.75%, like on this one below. For serving as the RECORDKEEPER! There is no value exchanged to justify this robbing of your future savings. Being conservative if the average they received was just 0.35%, (actual may be more or less), that would exceed $175 Million a year. For being hired to provide administrative and recordkeeping services.

It is therefore no surprise that we continue to review plans with these companies that have mutual fund options with expense ratios exceeding 1.60%. Funds that pay them, brokers, the broker dealer, all at the participant’s expense. Most often the expense ratios of the pay to play investments on their platforms exceed 1.25%. This snapshot below is from a Paychex plan we reviewed that has funds with expense ratios up to 1.99%!!

Seriously? By comparison, the core list of funds in an AB401k plan average .12%. (that is 0.12% not 1.20%). If you are an employer that has your employees in one of these plans, you certainly should be prepared to justify to them why, when providers exist that can massively reduce their, and your, investment related costs. It’s THIER Money!

This can be the difference in retiring when you want, or working to age 70 plus. And we know the expense ratio is not the Only fee related to these funds. The chart at the top of this article bears out how devastating these fees can be over time. It proves quite clearly, it can be a poor decision to choose 401k plans from these companies, based upon integration with payroll. Regardless of who is your current provider, you can plug in your own company or plan name here to see if the expenses in your plan are a silent killer over time:

We have this figured out, with our payroll partners that provide the exact same level of integration between payroll and 401k administration, without them having any interest in the assets of your plan. And with all in investment related fees at .75% or lower, America’s Best 401k is leading the way to provide 401k plans that have been designed participant first, as every plan should be. 5 employees, 50 or 500, it makes no difference. All our clients enjoy like benefits. As every plan should. Perhaps it might be a great time to rethink your 401k and payroll partner relationships to better plan for a outcome at retirement you can expect.

Tom Zgainer and his team have helped over 3500 companies obtain a new or improved retirement plan over the past 14 plus years. An expert in retirement plans designed to meet corporate and individual objectives, Tom and his company have a simple mission: To work with businesses small and large to rescue the retirement savings of American’s from plans with high, unreasonable, and excessive fees. You can check your 401k fees at

Response to an ADP associate’s comment on this article

  1. Scott Farmer as an ADP associate, I am sure you are aware of how these services are implemented and administered by ADP. I wanted to know your thoughts on how ADP conducts their sales process on their investment products.

Do you think it is fair or ethical on how these plans are implemented and administered by ADP?  From my knowledge anything other than a 401k that ADP offers to a client or potential client is Explained and sold by a normal unlicensed ADP sales rep.  Then the client and sales rep make a phone call to an under educated Licensed Simple IRA staff member to walk them through the enrollment. At this point the plan has been chose and sold by the unlicensed Sales Rep.

With no fight or due diligence by the Licensed Simple IRA team the plan is then quickly set up with very little knowledge told to the client about design, fees, participation, benefits and choices the client has or had.

Thus, resulting in a potentially poor decision being made by the Business Owner.  If they are unaware of their options and fees, I don’t deem that as self-directed when under the persuasion of an extremely skilled ADP Sales Rep.  When I speak of Skilled, I am referring to their Sales Training and skills ADP is notorious for producing out of their reps.

I would think anything self-directed should be at least explained by someone with knowledge of investment products.  From my knowledge their clients have 3 choices when choosing an investment product, 401k, Simple IRA or a SEP IRA.  How do we know that these clients are getting what is best for them?

Having an unlicensed and uneducated Sales Rep sell them on their “product of choice” negates the whole idea of Self Directed.  By “Product of Choice” I mean Simple IRA’s.  With the average normal sales rep receiving 120-360 plus bonuses for selling their “Product of Choice” I see that as less than self-directed and not in the best interest of the client.

ADP has some great Retirement products, no doubt.  My personal Issues with their Retirement products stems from their lack of knowledge and immense pressure from their Sales Executives and Corporate to push their “product of choice”

I can assume most of their clients are unaware of all the plan choices and prices.  With their cost of a SEP Ira being roughly $50 per year and the Cost of a Simple IRA being upwards of $500.  I think it is unfair for their clients who are being persuaded by a Sales Rep to purchase their “product of choice” without sitting down with a licensed Advisor.

The ethical concerns from the high payouts to their sales reps is also very concerning. Lack of training or knowledge on any other product seems as if ADP has some ulterior motive with these investment products.  We are all aware of what happened in 2005 with ADP and Fidelity.

I’m not sure much has changed. With former ADP reps telling me of their rigorous Simple IRA training and lack of SEP training. It seems as if the clients merely have one choice and that choice is in the best interest of ADP not the Plan Participant.

Similar Cases

Forging Client Signatures on Government Documents                                                                       

State Re Employment (RT6 Form) aka SUI

Forging State Unemployment aka SUI APPS

  • One of the first things you learn at ADP is how to file a SUI app for your client. Every business must register with the DOR for a State Re-Employment Number.  This is the state unemployment tax each company is required to pay on every employee. Generally, at 2.7% to start.
  • We were taught to go to the website and fill out the application for the client. On the last page it clearly states that anyone other than the owner signing this is committing a federal offense.
  • Time after time our clients end up getting tax notices and bills from the DOR because something was done improperly. None of the Sales Reps are qualified to do this.  Only the business owner or a CPA with a power of attorney should sign this.  Yet we do so we can rush and get the client to run payroll.  WE ARE UNDER MAJOR PRESSURE. QUOTA, QUOTA, QUOTA!
  • This is not a local problem at all. This is a nation-wide problem. Every Employee does this and the VP’s and DVP’s just kind of pretend like it doesn’t go on.  I was taught by my former VP Dean Gross.   This costs our clients a lot of money by doing things wrong.
  • Forging Signatures on the Department of Revenue State Re-employment applications. Better known as (SUI) apps.
  • Who does this? All ADP E.S. Small Business Division Sales Reps. Thousands of ADP sales reps are taught how to fill out a DOR SUI application by one of their Mentors, direct bosses or another associate who has some sort of seniority.
  • What is SUI? This is the Re-employment tax every business has to pay on their employees for the first $7,000 of wages.  It is also their only controllable tax.
  • Why do we sign them? So, we can have a complete order when we turn it into our implementation team.  The implementation team is our internal team who puts together all of our new client orders.
  • This includes their balances if previously with another payroll company, Employee Information, Signed Sales Order, Voided Business Check and their SUI application.
  • Without any of these pieces it will be rejected and kicked back to the employee. This means that the Sales Rep may not hit is quota and or get his commission if it’s not done by a specific date.
  • Filling out SUI apps is so common it doesn’t even seem illegal. Anytime there ever is a concern if this is illegal or not it is pretty much brushed under the rug.  With the VP’s and higher ups just pretending like it doesn’t happen.
  • When I would ask my sales exec or above if it were illegal, they never answered. Ever! I asked ADP’s legal counsel with no response, ADP HR with no response until the second to last phone call by the team investigating my case did the Head Security HR Investigator yell at me that this is a FEDERAL OFFENSE.
  • The next phone call I was fired by an HR associate with something completely unrelated to any of this. All while my active investigation with the SEC, our HR, and FINRA was taking place.
  • Who’s harmed and why? Our Business Payroll clients get tax notices from the DOR all of the time. With penalties, fees, questions etc.  Most often times due to an ADP Sales Rep filling out the form wrong.  Thus, thousands of ADP clients getting fined and owing money to the DOR they shouldn’t have.  All because we are taught this way and pressured from our direct bosses to sell, sell, sell and make sure we hit quota, or not get paid our commission check.
  • With the whole weight of the team’s quota on our direct supervisors pay this can create some very unethical decisions and actions to be made.