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posted by Fnord666 on Friday September 13 2019, @10:56AM   Printer-friendly
from the who-needs-a-payroll dept.

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.


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  • (Score: 1) by khallow on Friday September 13 2019, @11:54PM

    by khallow (3766) Subscriber Badge on Friday September 13 2019, @11:54PM (#893907) Journal

    The question is: Why were they even able to withdraw money from the employees' bank accounts

    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 was not part of their contract

    It's always a part of their contract.

    And clearly the bank should not have allowed them to withdraw money without explicit permission by the account holder.

    The bank would always have that explicit permission from the account holder because the bank wants to cover their ass as well.