SOMA School District Not Involved in Alleged Payroll Scam
The South Orange-Maplewood school district was not defrauded of payroll taxes in the scam allegedly run by Ameripay.
Over the weekend, the Star-Ledger reported that 14 school districts, a dozen municipalities and one county were caught in an alleged payroll tax scam by Ameripay, a now defunct payroll firm. The South Orange-Maplewood school district was listed among those 14 school districts.
However, in a statement issued this afternoon, school district officials stated, "The school district employed Ameripay only to process payroll and to print checks. The disbursement of funds has always been handled in-district. The district does not use a third party for this purpose as was done by the municipalities and school districts who were cited as being defrauded. The district's funds were never at risk. At the time of the allegations against Ameripay, the district's payroll processing was immediately converted to a new payroll processing company."
Long story short: The South Orange-Maplewood school district was not defrauded and does not owe the IRS any back payroll taxes.
Ameripay is reported to have defrauded more than 300 clients of at least $8.5 million in payroll taxes that were to have been paid to the IRS, according to a Securities and Exchange Commission complaint.