Complaints

The complaint text that is displayed might not represent all complaints filed with BBB. Some consumers may elect to not publish the details of their complaints, some complaints may not meet BBB's standards for publication, or BBB may display a portion of complaints when a high volume is received for a particular business.

• Initial Complaint

  Date:07/27/2023

  Type:Order Issues
  Status:

  AnsweredMore info

  Complaint statuses

  Resolved:

  The complainant verified the issue was resolved to their satisfaction.

  Unresolved:

  The business responded to the dispute but failed to make a good faith effort to resolve it.

  Answered:

  The business addressed the issues within the complaint, but the consumer either a) did not accept the response, OR b) did not notify BBB as to their satisfaction.

  Unanswered:

  The business failed to respond to the dispute.

  Unpursuable:

  BBB is unable to locate the business.

  Home Work Solutions (HWS) is a company that does payroll required for “nanny tax” regulations for home care workers. We had homecare workers provided by ********, a company based in Venice, FL and those employees were paid directly through HWS. Here are the complaints: • ******** has a non-transparent, “back room” agreement with HWS whereby a “fee” is charged each week in addition to the employee payroll. Part of this fee is for handling of the payroll by HWS and the other part is a fee going to ********. A breakdown of the fees between HWS and ******** was not provided. Per HWS, the fee is set by ******** and is reportedly based on “x” amount of dollars per hour. However, a review of all weekly fees going back to the date the contract was signed (3/19/21) showed that the fee is actually a fixed percentage of the amount being paid to the employee each week. This percentage number can simply be derived by dividing the fee each week by the amount paid to the employees each week. From 3/19/21 to 5/27/22 the fee was approximately 15%. From 6/2/22 to 5/19/23 the fee was approximately 25%. From 5/26/23 to 6/23/23 the fee was approximately 33%. If the fee charged was truly based on the “number of hours worked”, the fee would be a variable dollar amount each week and not a specific percentage of the payroll amount. Proof that the rate is actually a fixed percentage was sent to HWS on 7/7/23 with no response. • Section 5 of the HWS contract states that “HWS reserves the right to change the terms, conditions and fees for the service at any time. HWS will provide 30 days’ notice of any material change including fees. Notice will be provided in writing or electronically". Copies of notification of past rate changes was requested and a copy of an email sent by ******** on 5/2/22 (not HWS as the contract stated) with rate change information was sent . This email showed a rate increase from $5.25/hour to $8.50 /hour on 5/2/22. Based on the information in bullet point one above, this is also when the rate correspondently changed from approximately 15% to 25%. The rate changed again on 5/26/23 from 25% to 33% without any prior notification by either HWS or ********. A request was made in writing to HWS to either provide notification of the rate change OR refund the difference between the 25 and 33% fee rate ($214.40). There was no response from HWS. In conclusion, when a fiduciary company has unlimited access to a person’s checking account, you cannot arbitrability withdraw money when the rates increase without proper notification. Also, you can’t claim that an hourly rate is being charged when it has been proven that the fee is actually a percentage of total hourly wages.

  Business Response

  Date: 08/04/2023

  HWS is the payroll processor and did not charge the client a fee on behalf of HWS.  HWS Fees for service are billed directly to ******** on a quarterly basis.  Any fees charged to the ******* account were those expressly pursuant to terms of the ********* agreement with HWS Partner ********, and always disclosed on the weekly Cash Requirements Document posted to the online portal each week.  Communication about fee increase imposed by ******** (dated 5/2/2022), as well as a response to ********************** complaints presented by ******** are both included here.  In multiple communications throughout June and July of 2023, ****************** has been provided answers to his questions, explanations of fees, and proof of notification.  Full email history can be provided if required.

  Business Response

  Date: 08/04/2023

  HomeWork Solution’s (HWS) agreement with ******** is no secret and was disclosed to Client prior to their enrollment.  In fact, ******** introduced Client to HWS and Client had to review and sign HWS’s service agreement before HWS would begin processing payroll for Client.
  
  HWS has an agreement with ******** wherein HWS provides payroll processing on behalf of ********’s clients who enroll with HWS, and then bills ******** quarterly for this service.  As part of this service, and out of convenience for the Client, HWS collects the fee set and charged by ********, then remits these fees to ******** on a weekly basis.  This provides the client with one weekly Cash Requirements Document (Invoice) showing the total of all expenses for the week, and one matching transaction for that amount on their chosen bank account.  The client does not need to pay separate invoices for payroll and ******** services, but all costs are disclosed and broken down in detail.
  
  The ******** Fee is set in terms of $/hr of care provided.  The fee set by ******** was $5.25/hr as of March 2021, then increased to $8.50/hr on May 15, 2022.  Client was notified of this change to ********’s fee by ******** on 5/2/2022. 
  
  Despite Client’s statement that HWS charges as fee as a percentage of gross pay, this is false.  HWS system is set to charge the ******** fee in $/hr.  It just so happens that when a pay rate is fixed, $/hr also results in a consistent fee as a % of gross pay.  For instance, a fee of $5/hr for a caregiver with a rate of pay of $20/hr will ALWAYS result in Fees being 25% of gross pay because $5 is 25% of $20, and both are charged for every hour worked.  HWS repeatedly responded to client by email and phone to explain this during June and July of 2023, but client would not accept that explanation.
  
  Client was provided with weekly Cash Requirement Documents detailing full costs of payroll, hours worked by employee, and disclosing all fees collected on behalf of ********.  At no point over the multiple years HWS provided services to this client did client notify HWS of any concerns or discrepancies with their payroll or the fees charged.
  
  HWS stands by all actions related to this account.  HWS has processed only the fees to be collected pursuant to the client’s agreement with ******** and the partnership agreement between HWS and ********.  Client has been notified of all fees, has been provided all documentation, and still persists in demanding money from HWS and threatens public shaming of the company if HWS does not pay.  HWS will not be blackmailed when our actions have been appropriate.

  Customer Answer

  Date: 08/23/2023

  [To assist us in bringing this matter to a close, you must give us a reason why you are rejecting the response. If no reason is received your complaint will be closed as Answered]
  
   Complaint: ********
  
  I am rejecting this response because:

  From: ***** * ******* <************@comcast.net>
  Date: Tue, Aug 22, 2023 at 4:13 PM
  Subject: Re: Your Complaint #********
  To: ***** ****** <*******@mybbb.org>
  
  ******, 
  
  As with previous correspondence with HWS, they “pick and chose” the items that they want to respond to and ignore the main points.  If they would address the main points, there would have been no need to discuss this on the BBB.   Below is a portion of the original complaint which was neither never addressed in the BBB response nor in previous requests directly from HWS:
  
  The rate changed again on 5/26/23 from 25% to 33% without any prior notification by either HWS or ********. A request was made in writing to HWS to either provide notification of the rate change that was sent to me OR refund the difference between the 25 and 33% fee rate ($214.40). There was no response from HWS. 
  
  Regards,
  
  ***** ******* 

  Business Response

  Date: 08/25/2023

  The client is complaining about a fee charged for services through a third Party (********), not for fees charged by HomeWork Solutions.  Homework Solutions is timply the payment processor for the fees owed by client to ******** as per their service agreement and the notifications of fee increases provided to client by ********.  All fees collected from this client have been distributed to third party (********) as per our standard procedure.   HomeWork Solutions has never charged client directly for services provided, and instead has always billed the third party (********) for the services provided to client. If this cleint is seeking a refund for fees, that request shoudl be directed to Third party (********).

  The client's statement that HWS has not responded to complaints is false.  Via email and phone calls throughout June and July of 2023, HomeWork Solutions has repeatedly tried to explain to the client that we have never billed him for our services, and that it was *******'s fees which were increased, with notification provided by ********.  The client has simply refused to accept that explanation.  Again, HWS holds no money from this client.  All Fees were those charged by ********, and Homework Solutions was simply the the processing vehicle for collection of those fees. ******** holds all money collected as fees, and ******* did provide notice of fee increase.

  Customer Answer

  Date: 08/29/2023

  [To assist us in bringing this matter to a close, you must give us a reason why you are rejecting the response. If no reason is received your complaint will be closed as Answered]
  
   Complaint: ********
  
  The statement that I am complaining about a fee charged is false.  It is understood that both ******** and HWS splits a fee for their services.  I am complaining about a fee increase in May, 2023 without proper notification.   HWS is correct that prior notification of a fee increase was given but that was for the previous fee increase on 3/I9/22.  The complaint is that no notification was given for the most recent fee increase which occurred in May, 2023.   I have repeatedly asked for proof of notification and the nothing was ever submitted.  The reason?  Because no notification was ever given.

  Since it is obvious that this company is not going to abide by the terms of their contract (notification by HWS of any fee changes), I am closing this case.
  
  Regards,
  
  ***** *******