Here we are again: Fraud. Lives disrupted. An FBI investigation.

This time, a New York State-based payroll company is accused of diverting $35 million from employee accounts . As the details come together, it’s worth asking how you can protect yourself.

Why might a business trust a payroll company in the first place?

Trusting a company to handle huge chunks of change (along with your reputation) ain’t no small thing. So why would employers process payroll through a third party?

While paying people may seem like a simple task, it can actually be very complicated, time-consuming, and laden with risk. In many cases, employers hand off payroll to third-party companies to avoid having to navigate the minefield of laws governing taxes, family leave, and other regulations that come with running a business and paying employees. Outsourcing payroll is a way for companies to mitigate risks and offload a time-consuming, labor-intensive task to a company that specializes in that area. It’s like having a whole HR team without having to hire an internal HR team.

How could $35 million just disappear?

When businesses outsource payroll, they send a sum to cover all expenses (including payroll and taxes) to the payroll company who then distributes the paychecks.

A simple typo could lead to an employee receiving extra pay. In that case, a payroll company has the authority to retroactively cancel the check or even withdraw the overage from the account directly. It seems in this case, the company not only withdrew funds specified for legitimate paychecks, but went even further by withdrawing higher amounts than the original paychecks. The result: $35 million in missing funds.

If the investigation confirms the surface facts of this case, this is one egregious scandal. The offending company has since shuttered its doors and scrubbed social media accounts, leaving individuals scrambling for answers and companies figuring out how to pay their employees.

That. Sucks. So how do I find a reputable company?

Good question. Employers trust payroll companies to manage huge sums of money and, as this case shows, problems can have cascading effects. If the money doesn’t make it into an employee’s account or shows up late, said employee may face overdraft/late fees. From there, the frustration and time to fix the problems only build. What’s worse: even if they’ve hired a payroll company, employers can still be held responsible for payroll issues. So yeah, you could say it’s pretty important to get it right. It’s worth doing your due diligence to make sure you’re dealing with a legitimate company.

Here are some factors to consider:

Longevity: A company that’s been around for 30 years without scandal is a good sign. Chances are they’re not running a long game of doing the hard work to build a solid reputation and systems that work just to defraud people later.

Security measures: Payroll companies have HUGE amounts of personally identifiable information (PII) running through their systems on a daily basis. With that level of info, they must have rock solid security measures in place. Make sure your company:

• Encrypts everything at multiple levels
• Treats all sensitive information as Personally Identifiable Information (PII) and in accordance with HIPAA recommendations
• Doesn’t allow any sensitive data to go offshore
• Has regular third-party security checks and an annual penetration test
• Has a redundancy system that backs up and saves data if something goes wrong

Insurance/guarantees: Even once you’ve done the work of ensuring the above, you still want to find out exactly who is on the hook if a mistake does happen. If a payroll company doesn’t submit payroll taxes on time, for example, the company could be held responsible. You need some assurance that if the payroll company messes something up, it will also clean it up.

Ask questions: Corrupt behaviors tend to start with warning signs. If you think something may be awry, start asking questions or hire someone to look into it.

Bottom line

Most of this kind of fraud, while incredibly frustrating and costly, is highly preventable. As usual, the best approach for protecting yourself is preventing problems in the first place. Any cost or perceived hassle of doing your research and hiring a reputable company ( ) in the first place pales in comparison to the potential cost of lax research.

About PayReel:

At PayReel , we minimize the time and effort it takes to get you ready for your project. Rely on PayReel to assume all of the risk associated with worker classification and get back to the business at hand. We make sure everyone gets paid quickly and easily and have Client Relationship Managers on call around the clock to answer your questions. All you have to do is call 303-526-4900 or email us. The PayReel team makes video production, live events, media, and entertainment payroll easier, faster, and seamless.

The post When a payroll company steals—and what you can do to protect yourself appeared first on PayReel .

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Laws around worker classification are getting extra attention right now. Some people are even expressing concern that proposed changes threaten free press . We thought it was high time to address some of the myths that get businesses in trouble. Read to the end for the super good news!

Worker classification myth #1:

After a certain amount of time working for you, an independent contractor must be reclassified as an employee.

It’s true that rules can be complicated and vary from state to state. Still, this perception overly complicates the issue. We think this myth likely comes from one-time best practices wrongly interpreted as hard and fast rules. Wherever the myth comes from, we’ve seen clients build all sorts of policies to get around the supposed law. We’ve seen them hire workers for six months, drop them for a period of time, and then rehire them, for example. Some companies even refuse to rehire independent contractors after working with them for a certain amount of time because they’re afraid they’ll have to provide all of the benefits associated with hiring an employee. Not only are these policies time consuming, they can hurt businesses that rely on trustworthy freelancers.

There is a fine line between an employee and an independent contractor and laws surrounding worker classification are confusing. Still, we’ve seen companies get unnecessarily complicated—going to great lengths to comply with nonexistent rules. We think it’s time for everyone to bust the myth and bust free from self-imposed restrictions.

Here’s the liberating truth: If you find a good contractor and want to use them over and over, you can. There are rules, which vary by location, but there are also legal ways to keep your best people working for you.

Worker classification myth #2: I don’t need to waste my brain space on this

Maybe this one persists not because of misinformation but simply because we want to believe it. Sort of like the 5-second rule? Both are bogus, btw.

When laws change frequently, big money is on the line , and rules are complicated/vary from state to state, it’s tempting to ignore the issue until it shows up on your doorstep dressed in red with a pitchfork and horns. So.much.braining.

Sorry to burst your bubble, but even if you’re not in California, this thing affects you. That’s not only because other states, including New York and Michigan , are thinking about making changes too, but also because every state has its own rules. These rules can affect everything from the price you pay on a ride-sharing app to where and how you get your haircut .

The consequences for businesses who don’t comply can be damaging to your reputation and pocketbook (fines, fees, and lawsuits, oh my!).

The truth that can save your brain (along with your wallet and your reputation):

No matter where you are, you cannot afford to ignore worker classification rules, but here’s another happy truth: If you don’t want to/can’t get into the nitty gritty details yourself, you can rely on a qualified partner ( ) to do it for you. Reach out to our team of experts on all things freelance. Get away from the burden of onboarding, payrolling and classifying your workers and focus on what you love.

The post Mythbusters: Two truths and two lies about worker classification appeared first on PayReel .

To view our Partner blog, click here

Shark Tank is legendary for the sharks’ personalities, the on-air humbling of would-be entrepreneurs just a little too big for their britches, and of course the on-air deals that make millions for all involved. The best pitches, like this one , identify the problem and solution in just a few sentences, but the pitch alone isn’t everything. The pitchers who are most effective—whether making a deal on set or building a business when they leave it—demonstrate the following principles.

Five principles from the Shark Tank

Story sells

Despite identifying a myriad of issues with the product, Barbara Corcoran invested in a line of swimsuits, not because the business was perfect, but because one of the entrepreneurial hopefuls told a compelling story . The story wasn’t about the swimsuits or about business at all—it was all about love and persistence. It demonstrated some of the qualities that make a good businessperson. Watching it all play out, it seems clear story was the kicker in striking the deal. Being able to communicate your business quickly and effectively is a plus, whether you’re on the proverbial elevator or in a room full of potential investors, but in many cases, the real product is you and your story.

Poise under pressure pays dividends

Watch how this one  goes down. Entrepreneur Jeremy Brandt quickly gets four nos for his “Hire Santa” business. Had this elf buckled under pressure when all but Mr. Wonderful declined, he wouldn’t have been in position to negotiate and get the deal he wanted…and with a shark who had already bowed out. Barbara Corcoran—Brandt’s first pick—said she didn’t feel there was room for an investor in his business. Still, after Brandt confidently negotiated with Mr. Wonderful and Daymond John, she swooped in at the end and offered him the deal he really wanted. He was clearly prepared to negotiate and his poise paid off.

No doesn’t mean never

Check out the story of Doorbot/Ring . Every shark passed on investing in the product. These are the pros. There’s never an easier time to give up than when the so-called experts decline involvement. And yet the Doorbot became Ring and went on to become a booming product in the booming business of home security. A no doesn’t always mean it’s over. To bring in another example, JK Rowling got “loads of rejections ” before finally landing her Harry Potter franchise with Bloomsbury. Persistence pays off. A “no” may simply mean it’s not the right time or the right team, but not necessarily that it’s not the right product.

Humility is better than the best product

In the same video (above) at minute 1:30, Copa Di Vino’s owner James Martin brings wine by the cup—along with a whole lot of attitude—onto the show. Not just once, but twice. While every shark liked the product, nobody liked the man behind it. He admittedly came back the second time simply to gloat. He smugly sipped wine while playing coy with offers from the sharks. It was very off-putting. The old adage that people want to do business with people like they like is true. Each shark groaned at the thought of doing with business with him. Barbara Corcoran said, “He would’ve ruined our lives.” No matter how great your product or service, it behooves you not to be a total pain in the ass.

Do your due diligence

This is probably the least glamorous part of the whole thing (which is why it happens off-air) but even after striking a deal, the sharks do their research before putting their signatures on anything. They research entrepreneurs’ claims thoroughly and do their due diligence before moving forward. You better believe they also make sure business dealings are clean, worker classification is airtight, etc. This stuff—the unsexy, totally-necessary detail stuff about doing business? This is PayReel’s bread and butter. We know the laws and rules so clients can get back to doing what they do best.

The post Live from the Shark Tank: Principles to do business by appeared first on PayReel .

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Today, we’re introducing you to our CRM team. If you come to us with a problem, this is the team most likely to stop at nothing to make sure you leave with a solution. Better yet, we’ll do our best to keep you from having any problems in the first place.

Meet our fearless leader:

Brittney Clark

Most likely to wear flip flops. Year-round. In Colorado.

Brittney has been with the company for a year and a half. She started as a Client Relationship Manager and is now leading the team of eight, making sure things get done correctly and on time. Fun fact: Brittney sews her twin 5-year-old daughters’ clothes and is particular about pens (RSVP brand in blue ink, thank you very much).

Meet our client relationship managers:

Our account managers take care of customer service, run payroll, and work directly with employees.

Sadie Black

Most likely to be a stand-up comedian.

Sadie is a problem solver among problem solvers. She’s a go-getter who thrives on fixing the “unfixable.” She’s outspoken, energetic, and the first one to brighten up Monday with a funny joke. 

Liz Kendrick

Most likely to climb all the 14ers in Colorado.

This girl has a document and a color code for everything. You could look at her files today and know how she does all processes and procedures. She grew up in Aspen and returns to the mountains every chance she gets. She has 3 big dogs that love the outdoors as much as she does and if she decides to conquer all 58 mountains over 14K feet in Colorado, you better believe she’ll have an organized system to accomplish the task. 

Michael Harder

Most likely to start a brewery.

Michael is a fun-loving, super friendly guy who just recently moved to Denver from Iowa. He’s a fast learner and an asset to the team. 

Elizabeth Lewis

Most likely to be in a choir.

This one is a gimme because Elizabeth is actually in her church choir. She also sings her way through workdays, lighting up the office with “Joy” by For King and Country. That seems about right for her happy, cheery personality. 

Michelle Bowersox

Most likely to talk to animals.

Michelle is our team encyclopedia. Who needs Google? If you need an answer, just find Michelle. She’s also the Mama Bear of the team and of her two dogs—Jack Daniel and Dakota—and a cat named Glitter.

Meet our Payroll Specialist and newest team member:

Phalla Holton

The post Meet the Client Relationship Management team: Most likely to turn a problem into a solution appeared first on PayReel .

To view our Partner blog, click here

Summer! It’s a time for slowing down long enough to sip lemonade on the front porch or get lost in a book oceanside. And of course, long, scorching days and short evenings filled with thunderstorms mean we have also officially entered the season of hunkering down indoors to binge-watch our favorite TV shows.

Here are four sizzling summer hits

Stranger Things 3

America’s freedom isn’t the only thing to celebrate this Independence Day. July 4th, Netflix releases the third season of the fan favorite show, Stranger Things. Rumor has it that season three brings even more special effects as well as twists and turns. Always staying on brand to remind us of all the magic and fear of childhood, this season will take place during the summer with the tagline promise that “One summer can change everything.” Eight episodes will be released at once so prepare to binge.

Big Little Lies

The Monterey Five are back and trying to cope with life after covering up a murder. Their lies, trauma, and conscience catch up to them in this sizzling summer hit. Hollywood legend Meryl Streep joins the cast as Nicole Kidman’s mother-in-law who will stop at nothing to uncover the truth behind her son’s death. There has never before been a show filled with such a strong female cast. The performances are riveting, often painful and always truthful. If you missed them, you can catch up on the first two episodes now on HBO GO and OnDemand.

Snowfall

The return of Snowfallhas everyone talking this summer after co-creator John Singleton’s unexpected death in April. Singleton left his mark on Hollywood creating powerful films as both producer and director. His success led to the hit drama that tells the story of the crack cocaine epidemic that emerged in the 1980s. Singleton leaves behind a legacy of controversial films which force viewers to contemplate tough issues like racism, prejudice, and the culture and hardships of underprivileged black youths in America. Snowfallpiggybacks off these themes while resonating with a modern America. The third season premiers on FX July 10th and will stay true to the voice and tone Singleton helped to define in this breakout series.

Surprise Sleeper Hit?

Danny McBride returns to HBO with a new comedy that is sure to strike a chord with American viewers. Always one to push the envelope, this one will likely incite some backlash, but the trailer alone is enough to conjure up some laughs. We don’t recommend this show for everyone, but if it sparks your curiosity you can catch the not-so-family-friendly trailer here .

The post Most Anticipated Shows of the Summer appeared first on PayReel .

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Everyone can see opportunities, but successful people act on them. With a 2-year-old, a newborn, and a home under construction, Heidi McLean had every reason not to fill the need she saw in her world. But instead of making excuses, she went for it—starting a business that connected the film crews she knew from her freelance news work with the companies that needed them. Crew Connection started with just Heidi, incorporated a month later and hired its first employee within a year. When the need for contingent workforce management became clear, PayReel rose to meet it. Together, the sister companies employ about 20 full-time employees and consistently rank among the top Colorado Companies to Watch.

A few decades of experience provide some great tips for anyone looking to grow personally or professionally:

Be persistent

If it seems overwhelming at first and at many points after, that’s because it is. Take small steps. It doesn’t matter if you’re moving slowly, just as long as you’re moving forward.

Be flexible

Sometimes progress is painfully slow, and sometimes growth happens so fast you have to scramble to keep up. Every stage of life and business brings its own challenges (or opportunities). The sooner you accept that there will be endless challenges, the better. Just grow with it.

Be willing to evolve

The minute you settle for what is, you get behind and lose the joy of pursuing what could be. Crew Connection couldn’t get too comfortable operating with the phone lines and fax machines of its inception. With the launch of CrewCloud —which offers customizable online crewing—the business has evolved for the digital age. Being industry pioneers is hard, but a lot of fun.

Surround yourself with the right team

The luxury of being able to shut up is a direct result of being surrounded by advisors and team members who are smarter than you and whose strengths function well together.

Attitude is the ultimate trump card

For team dynamics, attitude trumps everything. If you have to choose between working with someone inexperienced with a positive outlook or one with all the training, but a sour demeanor, the choice is easy. You can develop skills, but a bad attitude is like poison—deadly and difficult to remove. Once it’s in the system, things go downhill fast.

THANK YOU for 30 amazing years.

About PayReel:

At PayReel , we minimize the time and effort it takes to get you ready for your project. Rely on PayReel to assume all of the risk associated with worker classification and get back to the business at hand. We make sure everyone gets paid quickly and easily and have Client Relationship Managers on call around the clock to answer your questions. All you have to do is call 303-526-4900 or email us. The PayReel team makes live event, corporate media, and brand management payroll easier, faster, and seamless.

About Crew Connection

Crew Connection puts a world of international video and production service providers at your fingertips. In just a few clicks you can search, chat with, and book vetted crews local to your shoot—all on your own schedule. Rely on Crew Connection’s team of media experts to organize the crews and gear you need for multi-day and multi-location video projects anywhere in the world. Our professional crew coordinators are on call around the clock if you ever need live assistance. Sign up on CrewConnection.com , call us at 720-531-9000, or shoot us an email at info@crewconnection.com.

The post 30 years and 5 lessons appeared first on PayReel .

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