Payroll Company Shutdown Leaves Local Business Empty-Handed - NBC 7 San Diego

Payroll Company Shutdown Leaves Local Business Empty-Handed

The founder of FIT4MOM said MyPayrollHR still has the money that was supposed to pay her employees

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    NEWSLETTERS

    Payroll Company Shutdown Has Left Businesses Empty Handed

    One company had to use emergency funds to pay their employees. NBC 7's Gaby Rodriguez reports.

    (Published Monday, Sept. 9, 2019)

    Local businesses that relied on a nationwide payroll company were blindsided after the sudden shutdown of MyPayrollHR. 

    Lisa Druxman is the owner and founder of FIT4MOM, a fitness company with over 2,600 locations and over a thousand instructors. On what should have been the celebration of her business' 18th anniversary, Druxman is trying to get nearly six figures worth of money back from MyPayrollHR.

    Druxman entrusted the company to handle employee paychecks about five years ago. When MyPayrollHR suddenly shut down, employees came to Druxman looking for their expected paychecks.

    An email to Druxman from MyParollHR states, "Please find alternative methods for processing your payrolls. We are working to release any funds that are in transit."

    Druxman used the company's savings to pay her employees right after she found out they had not been paid. 

    "The frustrating part about all of this is that we feel we did everything right. We did our research, we talked to the Better Business Bureau, we got recommendations," said Druxman.

    Druxman said she spoke to law enforcement in New York who checked on MyPayrollHR's headquarters. They said the offices were desolate and completely emptied out.

    The National Automated Clearing House Association manages regulations for electronic money transactions and they said they are aware of the issue. They advise victims to contact their banks and flag MyPayrollHR as an unauthorized transaction. 

    Those impacted can also file a complaint through NACHA.

    "Right now I'm tired of complaining. I want my money back," Druxman said.