ADP acquired us as a client in mid 2007 when they bought the portion of Intuit that had been our payroll processor. We are a small company, 7-10 employees. Recently I received an IRS notice saying I had failed to file my 2007 FUTA form. I contacted ADP. They said they had filed and would write the IRS and sent me a copy of the paperwork involved. The 940 form ADP filed showed all zero amounts. I contacted ADP and the associate said Intuit had told them we were FUTA exempt. I faxed them my 2006 Form 940 showing the FUTA payments filed by Intuit and regular payroll report showing the FUTA charge to us. At that point the associate said she would pass the information up to a supervisor and have the supervisor call me. After I called 3 more times, they put a "Floor Supervisor" on the phone. She insisted that Intuit had made the mistake, but offered to cut the ADP fee for filing an amended return in half ($50 instead of $100). I told her that was unacceptable to me, that I should not pay ADP ongoing fees to handle my payroll taxes and then have to pay to have them correct their mistake. My position is that they should not charge me to file an amended report and that they should cover the IRS penalty and interest. She faxed me the sheet that she said showed Intuit classified us as FUTA exempt. The sheet actually listed the tax types and rates that Intuit had used. The FUTA rate was listed as .00800 and the FUTA EXMPT rate was listed as .00000 (we have one exempt employee). When I called back and pointed that out, she offered to do the amended return without charging a fee, but refused to take responsibility for the IRS interest and penalties. Why would I pay for their "expertise" if I can't rely on it?
Anybody have suggestions on how I could pursue this problems and get ADP to cover the cost of their mistake?