Pay reversed from EY staff accounts, due to error

Employees at Ernst & Young (EY), US, were in for a shock when their paycheques were suddenly reversed, due to some error in their payroll deposits.

The employees had received their paycheques a week ago, but then suddenly found that the funds had been reversed from their accounts.

However, the accounting company worked with its payroll vendor, ADP, to fix the problem. The employees soon started seeing their funds reappear in their accounts.

The payrolls for EY’s US employees were originally deposited on 15 July, but due to some error, they were reversed. The Company has reportedly offered to cover any charges or expenses incurred by employees due to the payment error, such as late fee, penalty or others.

While the exact number of employees impacted by the error, or the amount that EY may shell out to cover late fee and other charges is not known yet, what is certain is that only the workforce in the US was affected. Media reports claim that about 55,000 employees were impacted, at a time when inflation in the country has reached 9.1 per cent, the highest in over 40 years.

Of late, EY has been considering splitting its business into auditing and consulting. The proposal hasn’t gone down well with the partners of the firm, especially when it is working towards an initial public offering (IPO) of its consulting arm.