After payroll provider collapses, banks drain employee accounts
MyPayRollHR, a payroll processing provider with about 4,000 small to mid-sized business customers, suddenly closed late last week. In response, the banking system went haywire and began taking funds from employees at many of these firms. Previously deposited pay was removed from their personal banking accounts, or “reversed.” Not once, but twice and there are reports that these withdrawals happened continuously. The checking account of one employee of an animal rescue facility was pinged for nearly $1 million. Her account shows a negative $999,193.75.