Friday, November 26, 2010

MasterTax, LLC - ADP Acquisition (Yes, yester-month's news)

Better late than never... I thought a splash of information on the acquisition of MasterTax by ADP in October might be in order.

Cynical thoughts....  It couldn't be more annoying to be an independent payroll service bureau who has been fighting off the ADP reps for years to end up standing naked in front of the enemy, pardon, 'worthy competition', as their client list is potentially thrown across the battlefield by an ally.  As you can see in PTM's published reaction to this acquisition, they anticipated an influx of Payroll Service Bureaus moving onto their tax management service as a result of this sale.

MasterTax has provided a great service for folks for many years, and I wish them well.  The part that might frighten an independent bureau is reflected in this statement from ADP's press release, “We look forward to leveraging our combined expertise in tax and compliance services, as well as introducing MasterTax’s clients to ADP’s broad offering of proven solutions.

Ouch.

It is a huge annoyance for a payroll service bureau to switch from one outsourced tax service to another - expensive too.  If I were in their shoes, I would make a call to ADP and ask them if they plan to offer their payroll services to my client list gleaned from MasterTax's records... and get it in writing.

2 comments:

  1. A little bird whispered in my ear that a MasterTax representative with an @adp.com email address was soliciting business from their payroll service bureau. In classic ADP sales-rep fashion, they didn't really have a clue about what the service bureau did, just wanted to set an appointment to stop by the office when they were in town.

    Hmmm....

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    Replies
    1. Logan, have you come across of a potential replacement for MasterTax?

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