With the recent news of IOIPay’s alleged fraudulent activities and the abrupt closing of MyPayrollHR, I wanted to take a minute to assure Netchex clients and those reconsidering payroll outsourcing that your funds are safe with us.
Our clients can be confident that all funds transmitted to our partner bank for payroll related tax and benefits processing are used for those purposes only. We are governed by strict policies and oversight which have allowed us to confidently guarantee tax compliance to our clients for the last 16 years.
First, we have multiple checks and balances in place with dual authorization and a segregation of duties. At Netchex, we can’t have one point of failure – or one point of possible corruption – that can take down the entire system. No one person can initiate a transaction through our banking system. One team requests, another team approves. That’s true for multiple processes throughout our organization. These checks and balances ensure several levels of fraud prevention.
We make sure that all tax liabilities held on behalf of our clients are kept separate from our own operating accounts – we have separate banking relationships for each. And we ensure frequent and timely account balancing and reconciliation as another line of defense. Our team of professionals along with our bank, monitor accounts daily for discrepancies to ensure nothing slips through the cracks. Our bank, with whom we’ve had a great, long-standing relationship, performs exception reporting daily – looking for anything that falls outside the norm.
In terms of oversight, we have multiple annual audits of our financials and our internal controls and processes. These independent auditors are looking at way more than just how we transfer money. They review all of our documentation and procedures to find discrepancies, loopholes, or anything that could possibly allow fraud to occur. They ensure accurate balances and make recommendations on how we can establish tighter controls and become even more secure.
Finally, we encourage transparency. All Netchex clients have the ability to independently verify that their tax payments are being processed timely and correctly by registering with online systems like the Electronic Federal Tax Payment System.
We take our clients’ trust very seriously. It is vital to us, and we pride ourselves on the lengths we’ve gone to in order to protect our clients’ funds. We collaborate frequently with teams of experts and professionals to ensure we’re using the most updated, most secure procedures for handling our clients’ hard-earned money.
Louis Dubuc, Netchex CFO