Keeping up with state and local taxes is tough for any business to do without help. For Digicom Electronics, a manufacturer of custom equipment for medical, military and aerospace companies, it was becoming expensive, too. After tiring of the fees and penalties, President Mo Ohady decided to look for help.

Here's the story, in Mo's own words.

We Were Constantly Paying Fees for Penalties

We were doing payroll through a local accountant and keeping up with local tax requirements through California's Employment Development Department, but you have to be a specialist in payroll to keep track of all the regulation and tax changes. Even then, mistakes can happen, and those mistakes can lead to penalties and interest.

We were constantly paying fees for penalties and interest for errors. It was a very difficult experience until someone asked me, "Why don't you try to outsource this work?"

We considered running payroll through our banks, but they aren't as well-known and experienced as ADP®, and that was important to us. ADP was — and still is — one of the biggest payroll-processing entities in the market, so we decided to try them out.

It's Well Worth the Investment

Soon after we got set up, we stopped having the pains we were experiencing before. The integration of ADP's programs has been, by far, the best thing for our payroll processing.

That integration took place 15 years ago. We started out small with only basic payroll entry, but over the years I've seen ADP's offerings become much more sophisticated, as they now include comprehensive programs for HR and healthcare services that are well worth the investment.

Using ADP has absolutely affected our bottom line. Payroll is just about the largest expense for any organization, and your time is too valuable to be spent on the smallest details of the process. I always tell people — anyone who has to do payroll — to use ADP.

Company Vitals

  • Name: Digicom Electronics
  • Industry: Electronics Manufacturing Services
  • Established: 1982
  • Owner: Mo Ohady
  • Employees: 32
  • Headquarters: Oakland, California
  • Website: Digicom.org
  • Business Challenge: Keeping up with ever-shifting local and state taxes was time-consuming and costly.
  • How ADP Helped: RUN Powered by ADP® automatically calculates and withholds the right local, state and federal taxes for the business.

Read more small business client stories

40 Dreams Catering: Saving Money Without Sacrificing Service

Airtech Automotive: Fueling Growth by Automating Payroll

Tags: Small Business Payroll Payroll Processing Outsourcing Risk and Compliance Small Business Articles Payroll Payroll Administration Payroll Taxes Manufacturing