Payroll company’s sudden closure causing problems for Tucson employees

Payroll Problem PKG

TUCSON, Ariz. (KOLD News 13) - Imagine learning your paycheck was pulled right out of your bank account.

Todd Porter woke up to that alert on his cell phone last week.

“You just think the worst,” said Porter, a manager at Meineke on Broadway Boulevard. “My entire paycheck from the week prior, to the penny, had been withdrawn as an ACH charge."

The franchise Porter works for uses MyPayrollHR to handle it’s accounts. The New York-based company closed it’s doors on Thursday, Sept. 5, leaving hundreds of businesses and their employees with more questions than answers.

KOLD News 13 called the support line for MyPayrollHR Sunday. A voicemail said the office was closed and to call back on the next business day.

Porter said the company pulled his paycheck from his direct deposit account not once, but twice. He said he is now having issues, along with other employees, with banks and local credit unions for the fraudulent activity.

“I called the bank and they reversed it, that was on the fifth. They reversed it on the sixth and then it came out again,” Porter said.

"We had already written checks, we spent money out of there and they took that," said his wife, Robin.

Porter shared an email from MyPayrollHR last week, alerting the company’s client that it would no longer be processing payroll accounts. In part, it said:

“We regret to inform you that due to unforeseen circumstances, we are no longer able to process any further payroll transactions. Please find alternative methods for processing your payroll.”

“The email basically told our employer that you know, whatever’s money been taken you’re going to have to figure out how to pay your people,” said Porter. “Yeah, that’s basically what that email said, you’re basically S-O-L”

Porter said his employer decide to provide paper checks to all employees on Friday so they would have money available to use while dealing with the issue.

“They could go and either cash at the bank or go somewhere and have money because some of them, you know, they’re in the negatives," said Porter. "So if this money wouldn’t of went into the bank, it would’ve went negative and they wouldn’t have anything.”

New York Governor Andrew Cuomo called for the Department of Financial Services to investigate “this company’s irresponsible actions” Friday, Sept. 6th. The statement said, in part:

“The sudden and unexplained shutdown of MyPayrollHR in Clifton Park is disturbing and completely unacceptable. Its reckless actions have left employees across the state and the nation with negative bank accounts and forced businesses who depend on its payroll services to scramble to find ways to compensate their employees.”

Thousands of miles away from the company’s now closed headquarters, the Porters worry they face a long fight ahead with their finances. They hope the company will be held accountable for causing problems for thousands of bank accounts.

“The biggest thing is, you’ve got this on your mind. No matter what, you can tell your employees ‘guys, don’t think about it, lets just do our jobs and get through it.’ But that’s hard to do," said Porter. “Try to keep your day normal and do your job, but it’s really hard to knowing that you’ve got this in the back of your mind, am I going to get an alert any moment they pulled it again?”

Governor Cuomo encourages consumers who believe they may have been affected to file a complaint at www.dfs.ny.gov/complaint or call (212) 480-6400 or toll-free (800) 342-3736 (Monday through Friday, 8:30 AM to 4:30 PM).

KOLD News 13 reached out to the New York Attorney General’s Office for a statement Sunday. We did not immediately hear back.

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