The fallout continues after a Clifton Park payroll company suddenly shut down, affecting thousands of small businesses and their employees in the Capital Region and across the nation.
MyPayrollHR is a payroll processing company used by businesses nationwide. Last Thursday, it closed suddenly and told clients that they'd need to find alternative methods to pay employees.
After this, a California-based financial services company that worked with MyPayrollHR began withdrawing paychecks once, and in some cases *twice from employee bank accounts who received deposits from MyPayRollHR. This left employees with low or even negative bank balances.
Who is affected?
MyPayrollHR had 4,000 clients. Most of those small businesses, and their thousands of employees, are now feeling the impact.
According to the Times Union, the entire staff of the Troy restaurant "The Shop" has quit, due in part to the owner's handling if the payroll crisis.
Spectrum News spoke with Robert Coan, the owner of senior home care company Visiting Angels, who has been going door to door to deliver cash and paper checks to his 40 employees who have been struggling to buy groceries and pay for gas for the last several days.
"When the caregivers aren't receiving their paychecks and they're not high wage earners in the first place, it's extremely devastating to their families," Coan said. "Many of them do live check to check, and when you take two checks out of their bank account and they never received a single check, this is the big problem."
What happens next?
It is still unclear what caused the sudden closure of MyPayrollHR. Governor Andrew Cuomo has asked the Department of Financial Services to launch an investigation.
The Better Business Bureau is encouraging those impacted to file a claim, and the Capital Region Chamber says it has resources available for those who have been impacted locally.