Earlier this month the New York State Senate announced new protections for workers in New York state. The Senate has come to an agreement on a package of four bills that cite hefty penalties for employers intentionally misappropriating payroll funds. The bills were introduced after the massive MyPayrollHR scandal which left thousands of employees without paychecks.
The widespread theft alleges that approximately $70 million in payroll funds were stolen by the CEO of the company. Specifically, the legislation empowers employees to take civil action and receive tax credits, ensures employees’ funds are not improperly withdrawn, and launches a study into the payroll services industry.
Senator David Carlucci said, “We must update our laws to protect New Yorkers’ hard-earned money and hold unscrupulous payroll companies accountable.”
WHAT YOU SHOULD DO
Considering a payroll provider for your business? Here’s what you need to consider:
- Be sure your payroll provider has a crime bond in place which protects an employer’s payroll funds from any type of theft.
- Determine the specific services provided and look for a company offering a comprehensive portfolio of services that includes, PTO, Employee Onboarding, benefit deductions and more.
- Find out if they are innovative and go beyond mere employee payments and if they can coordinate tax compliance for your business. When choosing a provider, inquire about federal and state tax requirements.
- Security is paramount. Ask how sensitive data is managed and protected and how they keep private information private.
Many payroll companies charge fees each time payroll is processed. And if your company is like most, paying employees twice each month – costs could add up. Fingercheck, not only meets all of the standards mentioned in this article but only charges a single, low monthly regardless of a pay cycle. For a small company, eliminating that extra fee result in significant savings.