Binghamton, NY (WBNG Binghamton) - Senator Charles Schumer's Office is continuing to look into what can be done for Aeden Wateford's clients.
The payroll company failed to send clients tax money to the IRS and the IRS is holding the businesses responsible to pay what's owed.
A bill proposed by Senator Olympia Snowe in 2007 sought to protect businesses that fall victim to this type of scam.
Winn Manufacturing in Granville, New York, went through a similar case several years ago.
The owner says small businesses should be careful when trusting a payroll company.
"They need to deal with a company that does electronic transfers for taxes and they need to check that the transfers have been made at least on a quarterly basis," said Steve Winn, President of Winn Manufacturing Inc.
Winn says he continues to contact the IRS several times a year to make sure his address has not been changed by his payroll company.
He says working with a company that is bonded and uses electronic transfers helps him avoid getting scammed.