First Priority Payroll (aka Priority Pay Payroll) failed to file tax remitances to the IRS for numerous months. This was discovered with a hefty IRS penalty notice. It should be noted that they failed to properly pay the IRS in previous instances, but it was for much smaller amounts, and they quickly paid the taxes and the penalties/interest. In this situation, they agreed to pay the unpaid taxes but were unwilling to pay the penalties and interest. It should also be noted that the contractual agreement (through them and Ceridian) stated that they would cover any/all penalties and interest, so this was in clear violation. Furthermore, the FAQ section of their site additionally states it.

In any case, they referred me to their attorney the second I asked about the unpaid penalties/interest. I left messages with the attorney that have gone unanswered. Further inquiries to the president and tax department (via Email and phone) of First Priority Pay have since gone unanswered. Recently, a notice has shown up on their site stating that the acquisition by ADP has been completed. One must wonder if they have since shirked off all responsibility and that ADP should be confronted, or what? I'm curious if anyone else has considered legal action against this company.

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6 Updates & Rebuttals

Mark

Queenstown,
Maryland,
United States of America

First Priority Payroll

#2Author of original report

Wed, March 31, 2010

I wanted to provide an update regarding recent events. Since my last post, I have received two official letters from their attorney. The real emphasis is that they're allegedly unwilling to handle any individual reimbursements at this time, and that their insurance company, The Hartford, is working with them on the claims so far. It may be worth trying to file a claim through The Hartford, we have not gone this course of action yet. It was only when warning them about a possible civil suit that we started getting these letters. Also important is that it appears that they're unwilling to pay anyone back until they settle their suit against their formal employees that allegedly embezzled $600k+.

What is concerning is what I'm speculating that they're going to do. I'm fearful that they're going to try to win this suit, recoup their losses, and then file for bankruptcy. At that juncture, all of us small companies are screwed out of our money.

One point to the last post, they have paid the previously unpaid taxes to the IRS and the state, they're just unwilling to pay the associated penalties and interest as they are contractually bound to do. If you're out of penalties and interest that they withdrew from your account, I'd call them non-stop until I go through to someone. I'd start at extension 400 and work my way up until I reached someone!

Any class action suits preparing out there? If so, please chime in. There's no shortage of impacted companies that would love to team up.

anonymous

Rockaway,
New Jersey,
USA

Jerry Carter strikes again

#3General Comment

Wed, March 31, 2010

We have been hit by First Priority Pay also. We are looking at over $250,000 in unpaid taxes to the IRS. Can't wait to find out what we owe the state. There has never been an offer to pay the taxes. Would love to join in a class action suit against them. Contact Northwest Construction to discuss

Don Ward

Levittown,
Pennsylvania,
United States of America

First Priority Pay took our money & never paid the IRS

#4Consumer Comment

Sat, March 27, 2010

We have shared a similar experience with First Priority Pay. We received a notice from the IRS last week stating our company payroll tax returns for 2009 have not been filed. Furthermore, a check sent to them by First Priority Pay for our fourth quarter tax liability posted NSF. The IRS made it clear to me that we are responsible. I found an article that serveral employees embezzled $600,000. in the last quarter of 2009. So what can we do? Here is the link to the report (((Redacted)))
Thanks Don W

CLICK here to see why Rip-off Report, as a matter of policy, deleted either a phone number, link or e-mail address from this Report.

piggy

marlboro,
New Jersey,
United States of America

Jerry Carter DA Office Hudson County NJ

#5General Comment

Sat, March 13, 2010

Dear Mark, Queenstown Maryland,

I am so sorry you are going thru this, I'm sorry I'm going thru this. I think we've lost about 10-15 thousand. I'm going to the hoboken nj police department tomorrow and I will contact the District Attorney's office in Hudson County on Monday.

It seems that is what many people have done. The attorney General's office for NJ also has received many complaints and I'm sending my information to them as well. I have an attorney who is looking into the matter.

Spoke to the IRS today. My accountant said they will work with us and come up with a payment plan.Of course you have to file some forms with the fraud dept. of the IRS, and from what it sounds like will all the fraud reports on the internet with this company, we won't be the first to report this.

Good Luck, keep me posted, I'll do the same. Anyone else care to chime in?

Mark

Queenstown,
Maryland,
United States of America

First Priority Pay Payroll's Attorney

#6Author of original report

Sat, March 13, 2010

So, First Priority Pay repeatedly would not further discuss the tax issue and instead insisted that I spoke to their attorney, (((REDACTED))). It is my belief that I am being screened from speaking with Mr. K. I called on numerous occasions, and the receptionist would ask who I was. The times that I didn't specify why I was calling, she'd click over (obviously talk to him), click back and ask why I was calling, I would tell her, then she'd click back (to relay it to him), then click back and say that he was too busy to talk to me and I should leave a voicemail. This happened on a few occasions. Other times I was directed to his voicemail right off the bat. In any case, I left numerous voicemails, and multiple Emails to his direct address, as well as an Email from my attorney, all to no response.

I was so peeved that I called First Priority Pay back and told Jerry Carter's assistant that the attorney they refer their customers to was being unresponsive. After a half hour on hold, Jerry actually answered the phone and insisted that I go through the attorney, that all the attorney was really trying to do was provide materials to the customers to try to appeal the penalties and interest to the IRS and have them dropped. I informed him that we've already appealed to the IRS and provided copies of the letter he sent with regards to the embezzlement, as well as our entire dialog with them, only to have our appeal rejected because companies are on the hook for their tax payments. He claimed that he'd personally talk to Mr. K and someone would get back to me soon about resolving the issue. Of course, this has not happened yet. I won't hold my breath, I'll suffocate.

If anyone is organizing a class action lawsuit, please provide your attorney's contact info. At this point, I'm extremely interested. While I'm the least litigious person I know, they're leaving us with no choice. I cannot stand to see my business negatively impacted by those who find it inconvenient to honor a contract that is very explicit in its obligations to the client.

CLICK here to see why Rip-off Report, as a matter of policy, deleted either a phone number, link or e-mail address from this Report.

piggy

marlboro,
New Jersey,
United States of America