Can You Trust Your Payroll Provider? Why the IOI Lawsuit Has Businesses on Edge

What Happened?

KeyBank recently filed a lawsuit against Interlogic Outsourcing, Inc., accusing the company and its owner and CEO, Najeeb Khan of “willful breaches of fraudulent conduct.” The accusations stem from a $122 Million wire transfer that was initiated by IOI, despite not having the funds to cover the transaction. The IOI payroll lawsuit has brought light to potential risks involved with outsourcing payroll and HR functions.

Who is Affected?

Interlogic Outsourcing, Inc. processes payroll for over 6,000 clients across the country. Since the IOI payroll lawsuit was announced, a few have publicly expressed concern over unpaid taxes, as well as undelivered payroll liabilities to employees. An email one client received from IOI explained that there has been “a temporary interruption in file processing” and that “Any funds provided to our banks for future payroll and related tax and benefit processing will be used for those purposes only.”

Should You Worry?

As a Time & Pay client, you can be confident that all funds provided to our bank for ALL payroll related tax and benefit processing are used for THOSE PURPOSES ONLY. The following policies have allowed us to confidently guarantee payroll tax compliance to our customers for over 26 years:

  • All tax liabilities that Time & Pay files on behalf of our clients are kept separate from our operating accounts.
  • All of our accounts, including our payroll tax accounts, are regularly audited to ensure accurate balances.
  • All Time & Pay clients can verify that their taxes are being filed through the Electronic Federal Tax Payment System.

If you are a current IOI payroll client, and would like to explore a more reliable option, contact us for more information.

Author: Andy Scheu
Andy was just six years old when his father started Time & Pay and has watched it grow from a one-man show to an organization with more 15 employees, helping over 800 companies across the country. He was honored to become a part of Time & Pay in 2010 as an account executive and began growing their customer base in the Chattanooga, TN area. Now acting as Director of Marketing and Sales, Andy works to ensure that Time & Pay remains loyal to the mission established by its founder over 25 years ago..."to be the provider by choice of quality, cost effective Payroll, Timekeeping and HR solutions to businesses, that will maximize customer satisfaction, while maintaining our profitability.”

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