Payroll You Can Trust: What the Interlogic Outsourcing, Inc (IOI) Lawsuit Means For Payroll Outsourcing
Last week, news broke that sent shockwaves through the world of payroll, leaving businesses that outsource their payroll confused and nervous. Fortunately, Netchex clients have nothing to worry about.
According to a federal lawsuit, Interlogic Outsourcing, Inc (IOI), a payroll processing company serving over 6,000 clients nationwide, is accused of initiating wire transfers worth $122 million without having the money to cover said transactions.
The civil suit filed by KeyBank of Cleveland states that IOI CEO Najeeb Khan knew there were insufficient funds to cover the transfers, but proceeded anyway, making his actions and those perpetrated in the name of IOI as “willful breaches and fraudulent conduct.”
“While we can’t comment on the details as the investigation continues, we believe that this is an isolated incident,” said Jeff Kew, a spokesman for KeyBank.
As KeyBank assures its clients and shareholders that this was an isolated incident, it is also crucial for customers of other payroll process companies, including Netchex, to understand that as well. This type of misleading (and illegal) financial dealing is not common or tolerated within the payroll industry.
While we understand the uneasy feeling it might give others who outsource payroll processing, Netchex goes to great lengths to ensure our clients’ payrolls are processed quickly and accurately, while following ALL local, federal, and industry mandates.
“Trust is a major component in our relationship with clients,” states Will Boudreaux, co-founder and CEO of Netchex. “With payroll processing, clients entrust us not only with their business’ finances, but also their employees’ well-being. It is something we take very seriously and would never do anything to jeopardize.”
At Netchex, we are also aware of the difficult situation this puts the customers of IOI. Should any need our service, the Netchex team is here to help with a quick turnaround payroll process and transition, backed by award-winning customer service and support.
We offer flexible pay options depending on your needs, including unlimited direct deposit, live checks, and paycards. With almost two decades of industry experience and satisfaction, Netchex is a company you can trust and depend on for your payroll services and more.
Netchex is the leading HCM partner helping you improve workforce management and optimizing benefits for your employees. Our powerful, yet user-friendly technology simplifies the business of HR and bring self-service features to your company to provide more independence for your team.
Talk to us to find out how to put Netchex to work for your company. Take a look at our full suite of HCM solutions that grow with your business, including payroll, compliance, HR, benefits administration, and time & attendance, backed by experts and the best technology in the industry.