Lawsuits Mount Against Payroll Firms Over Pandemic Credits (1)

A growing number of businesses in recent weeks are suing the payroll companies that filed their employee retention tax credit claims, alleging they’re not receiving some or all of their owed refunds.

For example, American Steel Inc. filed a proposed class action complaint in August against Vensure Employer Services Inc., an Arizona payroll company, alleging that Vensure didn’t pay the interest from the IRS owed to its clients.

The same month, Protect-US Inc., a California-based security guard business, filed a federal breach of contract complaint against Innoworks Employment Services Inc. The complaint alleged the payroll company withdrew Protect-US’s tax credit ...