How MyPayrollHR’s Closure Impacted IntellaPro
by Ed Daugherty
October 21, 2019
As you know, IntellaPro and all our employees were recently impacted by the sudden closure of payroll processing company MyPayrollHR. As one of 400 other victim companies and in the spirit of transparency, we wanted to take a moment to share our account of the last few weeks.
It is a standard practice for staffing firms such as ours to engage with payroll processing companies. They make sure our employees get paid and take care of the administrative and legal work associated with that so we can focus on our expertise. IntellaPro was a client of MyPayrollHR for a couple of years for this purpose. We never had a single issue with them. Since we vet everyone we work with, we knew they had a clean record and there was no indication that they were to close so suddenly.
In early September, MyPayrollHR closed without warning and left millions in payroll unaccounted for. Cachet, an ACH processing firm responsible for transferring money from employers’ business bank accounts directly to its payroll holding bank account and then to employees such as ours, reversed pay deposits in order to recoup monies that MyPayrollHR allegedly stole from them. This is what led to our employees having one, and in some cases, two, direct deposit payments withdrawn from their bank accounts without our knowledge or consent.
IntellaPro will always do what’s right for our employees, knowing that they have expenses and rely on their pay. That’s why we immediately worked through the night to use our own safety net of savings to pay employees what they deserved. In a couple days, this cost us of hundreds of thousands of dollars which we are seeking to recoup from the parties responsible. We set up a task force that has worked hard for weeks on end, sometimes spending hours on the phone with employees and their banks and other times accompanying our employees into their banks in person to try and get those withdrawn direct deposits back. We also filed appropriate paperwork with the FBI and Attorney General. The owner of MyPayrollHR has since been charged with fraud, and IntellaPro ensures that no additional employee direct deposit payments will be affected.
While it’s been a difficult few weeks, I am proud of what we’ve done to make things right for those who count on us. IntellaPro is about people, and I would like to personally extend a heartfelt thank you to all our employees. You’ve patiently stood by our side, and we will always have your back in situations like this. I’m happy to report we are out of the woods and the future is brighter than ever.
If you would like to discuss this further or believe you are still experiencing a problem with your pay, please feel free to contact me directly at Ed@intellapro.com or 305.712.7703.
Thank you again.
COO & Co-Founder