Domain name parking company hits payment glitches with outsourced provider.
Just a few months after outsourcing its publishers’ payments through Paychex, domain parking company DomainSponsor has brought its payments back in house.
DomainSponsor had some glitches with the transition to Paychex. Some publishers received their past two payments made out to their contact person rather than the company name. This was only a problem if the contact was an employee of a larger company; otherwise it just required two check endorsements for banks to cash the payments correctly. The other problem is if the 1099 record keeping is off, which would mean the contact’s information is sent to the IRS at the end of the year. DomainSponsor should be able to adjust accordingly for tax purposes and this shouldn’t be a problem.
ACH payments will also be affected. Customers who moved to ACH will now receive payments as bank wires.
DomainSponsor announced the change on its web site:
Moving away from Paychex
As you already know, we migrated to the Paychex system a few months back to handle publisher payouts. We experienced some issues, as a result of which we have decided to bring the payment process back in house.
In interim, we will switch publishers that were transitioned to Direct Deposit (ACH) method back to ‘Wire’; and the minimum payment threshold will continue to be maintained at $1000.
We would like to continue to offer the benefits of Direct Deposit to our US Publishers (like lower minimum payment thresholds and lower/no transaction fees); and are actively looking for the correct solution of offering ACH.
We apologize for any inconvenience that this may have caused.
Thanks, DSSupport
Jeremy says
This figures…I had nothing but problems with Paychex when I switched my company over to them to process my payroll. The service was so so but the issues on the tax side of things and errors on the checks drove me crazy! I kept them for 2 months and finally went to another company…a good one…and haven’t had an issue since.
Mike says
Jeremy, you’re crazy. Did you ever stop to consider you may be one of those owners who must find fault in the industry leader to feel more intellectually superior? If I was Paychex I would be pointing my finger at you saying ‘there lays the fault with an impossible to please client’. Take my comments as you will, but I have worked far to long in the service industry to believe a company like Paychex would let their service slip and errors grow to a point to make them a…bad…company. Thank you.
Johnny B. Good says
Sounds to me more like Mike has gone crazy from working in the service industry. 🙂
What a strange response for a rather benign post from Jeremy. “Intellectually Superior”? I know what you mean by that. You see folks do it with Parking Companies, Credit Cards, etc…, but how did you ever gleam that from his post? That makes no sense.
I’ve had a ton of problems with payroll companies, check processing companies, etc… but never worked with PayChex. I do know the industries are rife with problems based on my own personal experience.
Johnny B. Good
Andrew says
Wow, I didn’t really expect many responses to this article, let alone heated ones!
I use Paychex right now for my business, after having used ADP for a while. I’m a satisfied customer right now.
But I’ve come to believe that almost all large company have major communications breakdowns that lead to poor customer service. Like the credit card company that transferred me 4 times just so I could tell them their web site wasn’t working. Or the bank that couldn’t tell me why I had an added charge on my checking account for a couple days. Too many ‘specialized’ representatives that don’t have the power to do much or see much without transfering you to another ‘specialist’.
Brian Reeves says
As a representative of the largest and best payroll provider in North America I have to comment. I have been working in the industry for almost two years now and have found that most clients that leave ADP for paychex noticed a huge difference and returned within a year. Paychex has built their business on the 17 to 35 employee companies. Give the premium company another chance.
Chad says
It blows my mind when I see people say that the customer service of ADP and Paychex is horrible. How do you think these two companies became the largest payroll companies? By having bad customer service???
Kirsten says
I have had nothing but problems with Paychex. Their customer service is awful. I have had 5 different reps in the last 6 months. They continually make mistakes. I too think Mike’s comment is utterly ridiculous. He must have a vested interest in Paychex to make such a blanket statement like that. On a more productive note, what payroll companies would people recommend?
me says
I have worked for Paychex and they suck. Virtually everything they do is shady and sleazy right down to how they became one of the supposed top 100 companies to work for. They canvas who they send that survey to and trust me it does NOT go to the majority of people that leave within a year. They overwork you with too many clients which is why NO ONE gets good customer service, it is all about volume, the manager’s bonuses go up the more they keep headcount down. Trust me on this, I not only worked there but then dated a Branch Manager for a year who clued me in on all their sleazy business tactics.
Jordan says
We have had big problems with Paychex because of the poor customer service. They don’t integrate payroll, services, 401(k), etc. So… you are constantly talking to the next 20 something who could care less and your business suffers as a result. We have moves our business elsewhere…