Submitted via IRC for SoyCow2718
NY Payroll Company Vanishes With $35 Million
This communique came after employees at companies that depend on MyPayrollHR to receive direct deposits of their bi-weekly payroll payments discovered their bank accounts were instead debited for the amounts they would normally expect to accrue in a given pay period.
To make matters worse, many of those employees found their accounts had been dinged for two payroll periods — a month’s worth of wages —leaving their bank accounts dangerously in the red.
The remainder of this post is a deep-dive into what we know so far about what transpired, and how such an occurrence might be prevented in the future for other payroll processing firms.
(Score: 1) by khallow on Friday September 13 2019, @11:54PM
Because people make mistakes. If someone from the payroll company transfers $10k by accident instead of your $5k paycheck, they can move the erroneous amount out immediately without causing a fuss.
It's always a part of their contract.
The bank would always have that explicit permission from the account holder because the bank wants to cover their ass as well.