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ADP SmartCompliance

Score8.4 out of 10

328 Reviews and Ratings

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What is ADP SmartCompliance?

ADP SmartCompliance is a tax and regulatory compliance platform for midsize or larger companies using an ERP or non-ADP platform for HR and HRMS services.

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Top Performing Features

  • Tax Exemption Processing

    Ability to generate, track, exemption certificates from sales invoices.

    Category average: 8.1

  • Compliance Administration Management

    Ability to facilitate tax preparation, filing, and tax remittances across local, state, and federal jurisdictions.

    Category average: 8.2

  • Tax Data Reporting

    Ability to export transaction data for tax filing.

    Category average: 8.3

Areas for Improvement

  • Complex Tax Scenario Management

    Ability to automate handling of tax holidays and other anomalies.

    Category average: 7.1

  • Geolocation for Tax Assessment

    Ability to use geolocation, which is more precise than zip codes, for mapping taxes to specific jurisdictions.

    Category average: 8.6

  • 3rd-Party Software Integrations

    Pre-built integrations with various systems such as ERP, ecommerce, CRM, invoicing and billing, accounting, and procurement applications.

    Category average: 7.9

ADP SmartCompliance - The Quickest Way to Worry Free Payroll Management

Use Cases and Deployment Scope

We use ADP Smart Compliance for control of our employment taxes; it helps us to automate payroll tax filing, deposits, and returns as well as to actively track legislation changes. The wage garnishment option is also used for judgment withholding and/or arrears child support. It helps us streamline notices and payment updates to courts and creditors.

Pros

  • Court reporting
  • Tracking of PTO
  • Updates law changes regarding withholding

Cons

  • The time-out is FAR too quick
  • Slow tax filings for certain states
  • Integration with Workday is fair to poor

Return on Investment

  • Reduced exposure to audits by impeccable updates to new tax laws
  • Reduces double work and cross-checking needed in manual tax submissions
  • Document management for wage impact is a HUGE plus

Alternatives Considered

Mitratech Mineral, TriNet HR Plus, Infor Governance, Risk and Compliance and CRM People

Other Software Used

Aqore, Darkscope Cyber Threat Sentinel, Emagia Accounts Receivable Automation Software, Followup CRM, ADP Enterprise HR

Just a Little Touch of ADP SmartCompliance

Use Cases and Deployment Scope

We use ADP SmartCompliance for payroll taxes. It resolves tax issues by researching the tax notices that we upload to ADP SmartCompliance & if a payment is needed they send they payment as well. If there are additional steps we have to take in order to help resolve the tax notice ADP SmartCompliance notifies us and tell us what is needing to be done.

Pros

  • Address Locator
  • Mapping/setup of jurisdictions
  • Researching and resolve tax issues
  • Communicate

Cons

  • Resolving issues in a timely manner
  • Maintenance on website
  • Address locator

Return on Investment

  • Quarterly filings
  • Annual filings
  • Improved locator for addresses

Alternatives Considered

Simple File Upload

Other Software Used

Simple File Upload

Usability

ADP User.

Use Cases and Deployment Scope

We use SmartCompliance for tax, garnishments, pay cards, and year-end functions.

Pros

  • Provides tax records.
  • Mapping jurisdictions.
  • Garnishment disclosures.

Cons

  • Notices for the customer to contact the tax agency. It would be beneficial before that is being asked of the client for ADP to provide some context what steps they have already taken proactively to try to resolve. Seems like a lot gets put on the paying customer instead of ADP trying to resolve on the customer's behalf.
  • Help articles could be more user-friendly.
  • Compliance for state specific laws and regulations could be better communicated. Such as new OT, FMLA, Required Taxes by state.

Return on Investment

  • Has increased time spent on tax-related issues.
  • Decreased manual work for process and managing garnishments.
  • ADP Wisley is a very streamlined service with minimal issues.

Alternatives Considered

The Work Number, by Equifax, Identity Solutions and from Experian Partner Solutions

Other Software Used

The Work Number, by Equifax, BSI Compliance Manager, Workday Workforce Management

ADP Smart Compliance - Trusted partner with Payroll Tax.

Use Cases and Deployment Scope

We use ADP for filing all of our tax returns and W-2s. We are in all 50 states and have multiple companies, and ADP is a trusted source in handling all of our payroll tax needs. ADP also helps with compliance by providing information for the ever-changing requirements of Federal, state, and local jurisdictions. ADP also handles many of our agency questions/corrections.

Pros

  • Timely tax payments which are processed through transmition of our periodic files.
  • The reports provided to help in the quarterly balancing process. Additionally, we are able to transmit files early (prior to quarter end) which provides more time.
  • The reports that are available showing our company profiles and account numbers.
  • ADP works well with integrating Smart Compliance and SAP.
  • The IPay Admin website for W-2c makes the process easy. The reports are great when balancing to the amendment files that have been sent. It's a good process.
  • ADP does a good job with issuing our W-2s. The reports are good and easy to use for balancing. Being able to create test W-2s each quarter is helpful.

Cons

  • I struggle with balancing the invoices and the funding at times.
  • I would like to have more time to implement the quarterly changes in SAP. We get these updates a few weeks before the close of the quarter, and when there are big changes, it takes time to test on our end.
  • There are multiple log-ons AND websites when using the different modules with ADP. For example, Smart Compliance, the Year End website, and the IPay Admin site that is used for W-2cs. If there could be one login and one website, it would be much easier.
  • The lay out of the data in the excel download report for the W-2s difficult to manipulate when trying to look at a specific item (for example Box 1 FIT wages).
  • The Excel download of some of the quarterly reports is cumbersome and requires manipulation to make it easier to balance.

Return on Investment

  • It is easy to work with ADP and they are very responsive when we have questions or problems.
  • Positive because of peace of mind.

Other Software Used

SAP SuccessFactors HCM

ADP Employment Tax through ADP SmartCompliance--an honest review

Use Cases and Deployment Scope

We use ADP SmartCompliance as part of their Employment Tax service, which is limited to paying payroll tax and filing tax returns on our behalf. This includes year-end W-2s and 1099-Rs.

Pros

  • The vast majority of returns are filed on time and are accurate.
  • The vast majority of payments are made on time and are accurate.
  • Our one-stop account representative is highly responsive.
  • The tax locator tool is extremely helpful for determining local tax liabilities in particular from work and resident addresses.
  • There are a number of reports offered that help with reconciliation.
  • W-2c Manager makes W-2c processing a breeze.
  • Automatic posting of W-2s and W-2c's (and 1099-Rs) online in iPay portal for easy employee access is a nice feature.

Cons

  • Amended returns can be extremely difficult to find and work with, especially Q4 because everything, including W-2c's, are lumped together in one PDF with all other jurisdictions.
  • We have a lot of unusual tax situations. Employment Tax has limited capability to adjust to some of these needs, which has resulted in a few significant penalties.
  • Employment Tax does not readily allow any adjustments. For the most part, which is sent to them is exactly what is processed, even if some adjustments are needed in between from time to time. In other words, we have lack of control in what is processed and paid.
  • Invoicing system regularly requires overpayment of taxes in certain situations, which many times means waiting for the jurisdiction to refund and ties up cash. Such required overpayments are many times non-negotiable.
  • Employment Tax system is inflexible (more so than their full-service, I'm told) and forcing the system to not charge for taxes we are not liable can take a long time. The worst example is that we are not responsible for Massachusetts' EMAC, but the system automatically assumed we were liable, paid it and charged us for two years before a workaround could be found. Tweaking programming on the back end in their system to account for things like this is never an option.
  • Not all returns are available in ADP SmartCompliance but must be requested separately and sent by our rep.
  • The entire ADP system is slow enough that responding to jurisdiction notices in time to avoid penalties can be problematic.
  • From time to time, returns are inaccurate and/or not filed at all. Rarely payments are skipped but it has happened. ADP usually takes care of late penalties if they are small and 100% their fault but larger penalties can be difficult to negotiate.
  • A .txt file extra character sent to ADP SmartCompliance can result in only partial data being sent to a jurisdiction but we receive confirmation that the entire file was sent.
  • Employment Tax will not file mandatory FLI reporting when SUI reporting is not required, so we have to do that ourselves.
  • Details behind service invoice line items are not always transparent.

Return on Investment

  • No real change in workload or time saved from when we paid and filed ourselves because we choose to validate returns amounts to ensure accuracy. If anything, we overall spend more time with tax than we did before when doing this work manually.
  • Compliance risk is a wash compared to when we were filing ourselves.
  • There is less up-front rush such as quarter-end to get returns out but workload is spread out over time as we validate after the fact without the same time pressure.
  • Loss of control of what gets sent out in the returns has caused significant stress.
  • The assurance that the vast majority of returns and payments are correct and on time is a wonderful benefit.
  • Employee satisfaction has increased by having a large provider house W-2s online for ease in individual tax return preparation.

Other Software Used

Oracle Fusion Cloud HCM