The payroll services company MyPayrollHR unexpectedly shut down in September 2019 and $30 million in clients’ payroll money went missing along with it. Most of the money has since been returned to the employees who were missing checks, according to The National Automated Clearing House Association.
The owner of MyPayrollHR, Michael Mann, was charged with $70 million in bank fraud, The Wall Street Journal reported. His home was raided by the FBI on Sept. 16, 2019 in search of evidence. Mann reportedly told authorities that he had created companies solely to be used in the fraud but that MyPayrollHR wasn’t one of those fake companies.
New York State Governor Andrew Cuomo called on the Department of Financial Services to investigate the company as well. The FBI is currently asking anyone with information or anyone who thinks they may have suffered a financial loss due to MyPayrollHR to come forward and help with the investigation.
The investigation into MyPayrollHR prompted a deeper look into the payroll industry in general, and the DFS subsequently sent subpoenas to dozens of payroll processors during the first week in October 2019, the WSJ reported. The MyPayrollHR website was no longer working as of October and it is unclear what will happen to the data of those who had been using the company’s services.
Customer complaints to the Better Business Bureau that came after the company shut down detailed the experiences some customers had. (The company is not accredited by the BBB.) Customers said that their most recent payroll taxes were not filed and that their employees had their direct deposit pay reversed and removed from their accounts. Former customers also noted that there was no way to contact the company to sort out their next steps.
What Was MyPayrollHR?
MyPayrollHR provided payroll, time and labor management, and human resources solutions for businesses looking to streamline these tasks. Through a combination of software and services, MyPayrollHR gave customers on-demand access to payroll and HR functions in one place.
While MyPayrollHR worked with a variety of businesses, they specialized in the payroll and HR needs of businesses in the franchise operation, along with staffing agencies, home health care, and care facilities industries. They provided services for both independent contractors and full-time employees. Mann has said that the services MyPayrollHR had been offering were legitimate and real.
According to reviewers on the Better Business Bureau, clients who had been using MyPayrollHR to do their payroll for them were scrambling to find another processor before the following payday. Now that MyPayrollHR is no longer a viable option, alternatives are much needed to get vital business functions like tax management, adhering to a payroll schedule, and tracking employee time can get back on track. Below are some of our recommendations for payroll service providers that may prove more reliable than MyPayrollHR.
Our first MyPayrollHR alternative, Checkmate Payroll, offers a full suite of payroll, scheduling, benefits tracking, onboarding and offboarding options. The major difference between Checkmate and MyPayrollHR is that you can create an a la carte plan with the services you need, but without any services you don’t want.
Checkmate Payroll Services was started in 1994 in New Hampshire and now offers more services than they originally did and offers them in more than 40 states. They don’t provide pricing on their website but you can request a quote online if you’re curious about what their services would cost you. You can pick and choose which features you need for your business and view demos of some of them online, if you want an idea of how they work.
However, Checkmate Payroll has a limited roster of industries they serve. The work with the government, as well as industries including health care, hospitality, nonprofit, campaign, and grocery among a few others.
If you like to stick with the most well-established companies, ADP Payroll might be a good alternative for you. ADP, short for Automatic Data Processing, works with more than 600,000 businesses for payroll specifically.
ADP offers a small business package made specifically for businesses with less than 49 employees. It offers a lot of the same options MyPayrollHR did, like time and attendance tracking and tax filing, but in addition also provides unemployment insurance management and compliance. Because ADP is a payroll giant, it’s also incredibly scalable for your business as it grows, which is good to consider if you’re hoping to expand.
Square Payroll is a great option for business owners looking to start from the ground up with all new systems. Square is probably best known for their point of sale systems but they also offer payroll services.
Those POS services can link up with Square Payroll to run payroll for any employees and contractors you may have. Square Payroll offers timecard syncing that can take the time your employees clock in and out and sync that information with the payroll app to help you calculate paychecks. This syncing makes your work easier as a business owner. Square Payroll does some of the other tasks you look for in a payroll software, as well, like tax filing and direct deposits.
This alternative, Gusto Payroll, offers you several levels of service to choose from, so you’re using the product best suited for your small business. The tiers of their service are Gusto Core, Complete, and Concierge. Gusto also has a new option for contractor-only employers, who simply pay the $6/employee rate and no base price.
The Core version of the service comes with all of the basics you’d likely need like payroll, health benefits administration, and PTO tracking. You can also try it out for a month before committing to paying for it. The next level up, Gusto Complete costs a bit more but comes with more features like administrative permissions.
The highest level of Gusto, the Concierge version, offers you further human resources features like access to certified HR professionals. If these plans aren’t enough variety, you can always go for the Gusto add-ons that are available from the service, like adding health savings accounts and commuter benefits to your plan.
Paychex Payroll offers products for small, midsize, and large businesses. If you don’t need the complete Paychex offerings, you can opt for their small business option, Paychex Flex, which is available to businesses with 49 or fewer employees. The service offers you solutions for payroll, taxes, HR management, and more.
It’s cloud-based so you can access it anywhere anytime you need to and the setup is quick to get you up and running is fairly quick as well. They offer add-ons that you can opt in to, should you need additional resources like hiring services and employee onboarding.
Some of the best things about Paychex include that it’s quick and easy to set up and that it’s scalable, so it can offer you short and long-term solutions for your payroll needs. If you’re looking for a MyPayrollHR alternative and need one fast, this could be a great option for you.
For a limited time only, Paychex is offering 3 months free payroll; so if you’re thinking of refreshing your payroll services in 2020, now is a great time to get Paychex.
Unfortunately, MyPayrollHR is no longer a viable option for you and your business when it comes to payroll services. However, there are still plenty of other reputable options available to you. Most of them come with HR tools that can help you with time tracking and scheduling, along with managing direct deposit, calculating paychecks, and more.
If you suffered financial loss or were a victim of MyPayrollHR, you can report your experience to the FBI to aid in their investigation of the former company’s wrong-doings. The options listed above are some of the viable payroll companies you can migrate your payroll to, so that you can continue to pay your employees on time, without worrying about money being removed from their accounts again, as it may have when using MyPayrollHR for payroll services. Hopefully, these resources can help reestablish equilibrium to your business after this unexpected upset.