Computer glitch causes big headaches

EAST PROVIDENCE, R.I. (WPRI) - An Attleboro businessman thought he hit the jackpot, his company's 401k plan doubled in value in just months.

Not only had his 401k doubled in size, so did the amount of employees he supposedly had working for him. The company he hired to handle his payroll and 401k plan, had somehow sent him information he should never have seen.

Dominick Deluca hired a large payroll company to help handle payroll.

"I'm good at selling, I'm good at managing my company, I'm not good a payroll and 401ks so I needed a company that can incorporate both," said Deluca.

Dominick's noticed a stunning change in his company's 401k account.

"I went in and the first thing I noticed was I had twice the amount of money I was supposed to have," said Deluca.

Dominick's company's 401k account for 3 employees doubled in value to a whopping $576,000. Not only that, the payroll company had also added employees to his account!

"I drilled down, and I noticed I had 21 employees, and I thought I don't have 21 employees."

Not only did he have their names, he also had access to their personal information, including social security numbers.

"It was outrageous! The first thing you think about is what about my social security number? Is it safe?"

Dominick said he immediately contacted the payroll service company.

He expected the company would immediately remove the names and social security numbers from his account, but they didn't.
Eyewitness News contacted the payroll service and left a detailed message.

Hours later, Dominick got a call from the company. He was told a computer glitch somehow added his company to a closed account that still had a list of names and social security numbers.
They have since been removed. So, what are the repercussions of this?

"For that data to be wrong, I'm concerned with tax liabilities because that's all non taxable income and a mistake like that could cost me thousands in legal fees later on just to rectify it!"