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According to a report from KrebsOnSecurity, a cloud-based payroll company has suddenly shut down this week, leaving hundreds of thousands of employees without a pay check.
MyPayrollHR, headquartered in New York, is reported to have disappeared with nearly $ 35 million in corporate client salaries, directly affecting employees who received direct deposits every two weeks. According to the report, not only money payroll funds disappeared, but also that of employees.
In some cases, employees were missing funds from two pay periods.
Now, as the FBI requests information, companies are struggling with ways to find the resources to cover them.
In a message sent to approximately 4,000 customers, MyPayrollHR announced that it would close its virtual doors. Companies that relied on the company to process payroll payments were instructed to find an alternative way to provide these services.
Cachet Financial Services, which has facilitated payments to MyPayrollHR's employee accounts over the past 12 years, said MyPayrollHR owed it $ 26 million.
Competing data processing companies, such as Automatic Data Processing, Inc., quickly offered their services. "ADP is here to help you and prepare for your quick and easy transition," the company tweeted.
Cachet Financial Services did not return FOX Business's comment request at the time of publication.
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