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Payroll Processing Companies Charge Excessive or Illegal Fees

Posted by Brad Ponder | May 02, 2023 | 0 Comments

Payroll processing companies are businesses that provide services to businesses to help them with their payroll needs. These services can include calculating and depositing employee wages, withholding taxes, and providing employee benefits.

While payroll processing companies can be a valuable service for businesses, some companies have been accused of charging excessive or illegal fees. These fees can add up quickly, and can put a strain on a business's finances.

There are a number of different types of fees that payroll processing companies can charge. Some of the most common fees include:

  • Setup fees: These fees are charged when a business first signs up with a payroll processing company.
  • Monthly fees: These fees are charged on a monthly basis, and are typically based on the number of employees that a business has.
  • Transaction fees: These fees are charged for each time that a payroll transaction is processed.
  • Late fees: These fees are charged if a business fails to pay its payroll processing bill on time.

Some payroll processing companies have been accused of charging excessive or illegal fees. In some cases, these fees have been so high that they have put a strain on businesses' finances. In other cases, the fees have been illegal, and have violated state or federal law.

If you are considering using a payroll processing company, it is important to do your research and compare different companies. You should also be sure to read the company's fee schedule carefully, and make sure that you understand all of the fees that you will be charged.

If you believe that a payroll processing company has charged you excessive or illegal fees, you should contact the company directly to try to resolve the issue. If the company is unwilling to work with you, you should contact an experienced law firm to discuss your options.

Here are some tips for avoiding excessive or illegal payroll processing fees:

  • Get multiple quotes from different companies.
  • Read the company's fee schedule carefully.
  • Make sure that you understand all of the fees that you will be charged.
  • Ask about any additional fees that may be incurred.
  • Be prepared to switch to a different company if you are not satisfied with the fees.

By following these tips, you can help to ensure that you are not charged excessive or illegal fees by a payroll processing company.

About the Author

Brad Ponder

Brad specializes in complex litigation, including class actions and mass torts in both state and federal court. He represents consumer and business owners in a variety of lawsuits, including class actions and high-stakes litigation against major corporations. 


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