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$ 35 million disappears when the payroll company suddenly closes



A cloud-based payroll firm abruptly shut down operations this week, leaving hundreds of thousands of employees without paychecks, according to a report by KrebsOnSecurity.

New York-based MyPayrollHR reportedly disappeared with nearly $ 35 million in payroll from client companies, directly affecting employees who had received direct deposits from the company each week. Not only did money disappear from payroll, but also money belonging to employees, according to the report.

In some cases, employees lacked funds from two pay periods.

Now, as the FBI asks for information, companies don't have to fight to find the resources to cover them.

In a message sent to about 4,000 clients, MyPayrollHR said it would close virtual doors. Companies that relied on the firm to process payroll payments were instructed to find another means of providing such services.

Cachet Financial Services, which simplified payments to employee accounts for MyPayrollHR over the past 1

2 years, said it was owed $ 26 million by MyPayrollHR.

Competing data processing companies such as Automatic Data Processing, Inc. quickly offered their services. "ADP is here to help and prepare to make your transition quick and easy," the company tweeted.

Cachet Financial Services did not return FOX Business & # 39; s comment request at the time of publication.

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