Since 1890, the University of Chicago has forged its own path, paving the way for new schools of thought and a transformative education for students and laying the groundwork for breakthroughs across the sciences, medicine, economics, law, business, history, culture and the arts and humanistic inquiry. The university is home to approximately 15,000 students, including 5,000 undergraduate and 10,000 graduate students.
We knew the support was here, and after trying another option, we realized that ADP is the better choice, especially with the right account manager leading the way.
Anige Gleghorn,
Payroll Manager
University of Chicago
| Challenge | ADP capability | What we did | Result |
|---|---|---|---|
| The payroll team lacked a streamlined way to manage payroll tax processing after switching vendors. | ADP SmartCompliance | Restored payroll tax processing through ADP SmartCompliance Employment Tax after the university returned from an alternative provider. | Restored confidence that payroll taxes and reporting were compliant after a year with a competitor. |
| Manual verification and unclear reporting increased administrative burden for payroll tax compliance. | ADP SmartCompliance | Centralized clear reporting and issue resolution in the ADP SmartCompliance portal for employment tax workflows. | Made it easier to find and fix issues using clear, straightforward reports. |
| Limited visibility into audit reports made payroll tax compliance harder to manage. | ADP SmartCompliance | Provided audit-friendly reports and greater control through ADP SmartCompliance with support from a trusted account manager. | Improved visibility and control over payroll tax compliance workflows. |
| University-specific payroll tax complexity required knowledgeable support for Illinois taxes and foreign employee populations | ADP SmartCompliance | Supported the university with an account manager familiar with Illinois taxes, university payroll nuances and foreign employee populations without Social Security numbers. | Improved support for complex higher education payroll tax needs including Forms W-2 corrections, amendments and overpayments. |
| A tight reactivation timeline created risk for returning to ADP at the start of the calendar year. | ADP SmartCompliance | Guided the university through a fast, organized reactivation outside the standard implementation window. | Completed a seamless transition back to ADP aligned with the university’s compliance calendar. |
| Payroll tax compliance workflows required too much staff capacity. | ADP SmartCompliance | Streamlined employment tax workflows through ADP SmartCompliance and ADP employment tax expertise. | Reduced payroll tax staffing needs from two full-time people to one and improved compliance confidence. |
| Tracking changing payroll tax laws and local rules increased compliance burden. | ADP SmartCompliance | Helped monitor employment tax and legislative changes through ADP SmartCompliance services and employment tax expertise. | Saved time for the payroll team and increased confidence in payroll tax compliance. |
Business challenges
The University of Chicago switched to a different vendor for payroll tax processing, believing it would be better, despite the higher cost. They quickly found out this wasn’t the case and came back to ADP after just a year with the other vendor. Returning to ADP gave the University of Chicago the confidence it needed that it was compliant with its payroll taxes and reporting, which had been lacking with the previous provider.
Switching from ADP created more work, not less
The University of Chicago initially partnered with ADP to handle its payroll taxes in 2015, when it transitioned to Workday for payroll and HR management. Previously, the university managed payroll and payroll tax remittance internally through a homegrown system operated by specialists.
Angie explained that the subsequent move away from ADP in 2021 was driven by a desire for a more integrated and less manual solution, aiming for a “hands-off” experience. The payroll team believed that switching to the new payroll tax provider would reduce their workload and streamline processes. However, they quickly discovered that the opposite was true. Beyond the additional workload, the lack of clarity in reports and the pressure to approve filings without complete visibility made compliance a nerve-wracking experience.
A return to ADP and ADP SmartCompliance
After a year away, the university returned to ADP in early 2023, because the alternative provider’s offering turned out to be more expensive, and it did not deliver the simplicity they had anticipated. So, Angie returned, driven by the strength and reliability of the ADP SmartCompliance platform and the support of a trusted account manager. The decision to switch back was motivated by the realization that “the grass isn’t always greener.” Angie emphasized that “it was more expensive and just as much work,” leading them to conclude that returning to ADP would restore better control, accuracy and compliance.
How can universities reduce manual work in payroll tax compliance?
Universities can reduce manual work in payroll tax compliance by centralizing reporting, filings and issue resolution in a dedicated compliance platform. The University of Chicago, a higher education institution with 25,000 employees, returned to ADP SmartCompliance Employment Tax after a competing provider required the payroll team to verify everything and run reports themselves. With ADP, the reports were clearer and issues were easier to find and fix. This approach is especially useful for higher education payroll teams that manage complex worker populations and need more visibility without adding staff.
How does ADP help higher education employers manage employment tax compliance?
ADP helps higher education employers manage employment tax compliance by combining technology, reporting and employment tax expertise in one support model. The University of Chicago used ADP SmartCompliance Employment Tax alongside Workday payroll, gaining clearer reports, stronger audit tools and support from an account manager who understood Illinois taxes, university nuances and foreign employee populations without Social Security numbers. For universities with complex compliance needs, employment tax support can reduce the burden of tracking changing tax laws and local rules internally.
What results can universities see after improving payroll tax workflows?
Universities can see meaningful efficiency gains and greater compliance confidence when payroll tax workflows become clearer and easier to manage. The University of Chicago returned to ADP SmartCompliance after a year with another provider and reported that its payroll tax process went from needing two full-time people to just one. The payroll team also gained clearer reporting, better audit visibility and more confidence that payroll taxes and reporting were compliant. For large higher education employers, those improvements can turn payroll tax compliance from a stressful manual process into a more manageable operating model.
What should universities consider before switching payroll tax providers?
Universities should consider whether a new payroll tax provider will truly reduce work or simply shift more verification, reporting and compliance responsibility back to the internal payroll team. The University of Chicago switched from ADP to another payroll tax provider expecting a more hands-off experience but found the alternative more expensive and just as much work. After returning to ADP SmartCompliance, the university regained clearer reports, stronger audit tools and better control. For higher education employers, provider evaluation should include visibility, support expertise and implementation reliability, not only integration claims.
