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Payroll

Ernst & Young Has Major Payroll ‘Error’: Employees’ Paychecks Reversed

EY blamed its payroll vendor for the reversal of payroll funds from employees’ accounts on Tuesday.

By Rick Sobey, Boston Herald (TNS)

Ernst & Young employees who got their paychecks last week suddenly discovered that the funds were reversed from their bank accounts, as the accountant giant on Tuesday worked with its payroll vendor to fix the issue.

One of the “Big Four” accounting firms, with offices in Boston and Cambridge, blamed its payroll vendor ADP for the reversal of payroll funds from employees’ accounts.

“Our payroll vendor erroneously reversed EY’s July 15 payroll impacting our US employees and we are urgently working with them to correct the error,” Ernst & Young said in a statement on Tuesday.

“Late fees, penalties or other charges they may have incurred as a result of this error will be covered,” the accounting firm added.

Employees on Tuesday received a message from corporate, informing them about the reversal of payroll funds from their bank account.

“Please accept our sincere apology for the inconvenience,” the company wrote to employees.

ADP in a statement confirmed that the payroll vendor had an error that caused a payment reversal for a “group of U.S. employees of one of our clients.”

“At this time, we have resolved the error and have completed processing with our banking partners,” ADP added. “All transactions are expected to process by end of business day today (Tuesday). Availability of funds is dependent on each employee’s personal banking provider.”

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