Watch CBSN Live

"We want our money back": Small business owners scrambling after MyPayrollHR closure

Small business owners were left scrambling after the sudden closure of a popular payroll company, called MyPayrollHR, and the millions of dollars that disappeared with it. FBI agents on Monday raided CEO Michael Mann's upstate New York home in a search for answers about what happened. No arrests were made. 

The Hometown Diner in Rindge, New Hampshire, is closed on Tuesdays — that's when owner Bonnie Rosengrant pays her 23 employees. Today was the first time in days she was able to do that.

"It was very hard because I know a lot of my employees are paycheck to paycheck," she said.

On September 5, Rosengrant was shocked to learn none of her employees had been paid because MyPayrollHR had folded. Her employees and tens of thousands of others across the country were left without a deposit in their accounts. 

"It was very emotional. We're a small business so every penny counts," Rosengrant said.

Bonnie Rosengrant CBS News

MyPayrollHR was an online service that handled payroll for small companies. It was holding nearly $35 million in wages when it closed. Images from the Daily Mail show an FBI raid Monday on the upstate New York home of the company's CEO.

The mysterious collapse of MyPayrollHR impacted some 4,000 businesses across the country, from exercise companies in Chicago to animal rescue shelters in Nashville to fire departments in Florida.  

Rosegrant is desperate to find out what happened to the more than $30,000 that is missing.

"We want our money back," she said.

View CBS News In
CBS News App Open
Chrome Safari Continue
Be the first to know
Get browser notifications for breaking news, live events, and exclusive reporting.