After Employer.com acquired the bankrupt accounting startup Bench in a fire sale late last year, CEO Jesse Tinsley publicly assured customers that their prepaid services would be honored.
“We’re honoring all prepaid Bench services even though we will not have the revenue from that directly ourselves,” Tinsley stated in an interview with founder and investor Julian Weisser.
However, some Bench customers say they’re now being asked to pay again for services they had already covered.
Lawsuit Alleges Misrepresentation
On Tuesday, Qorum, a former Bench client, filed a lawsuit claiming the company demanded additional payment for its 2023 tax return, despite having already paid for the service under the previous ownership.
The lawsuit alleges that “Defendant Jesse Tinsley made negligent misrepresentations when he falsely stated that Employer.com would honor prepaid Bench services.”
Another customer, who wished to remain anonymous, was surprised to learn they needed to renew their subscription to access their completed accounting books. They had paid for the service two years ago but were informed by a Bench representative that “Bench 2.0” was not responsible for prior commitments, and Employer.com could not complete unpaid work.
Employer.com Denies the Claims
Employer.com’s Chief Marketing Officer, Matt Charney, denied allegations that the company was charging customers for services they had already paid for.
“We have been, and are, honoring prepaid services for our customers,” Charney stated.
He also claimed that Qorum’s 2023 tax return was delivered without requiring further payment. However, Qorum’s founder, Andrew Pietra, disagreed, stating that he had to renew his subscription before receiving the tax return.
Bench’s Troubled Past and Acquisition
Before its acquisition, Bench had burned through $135 million in funding while attempting to replace human bookkeepers with artificial intelligence. This led to major delays and a backlog of unfinished books, according to former employees.
Several Bench customers also reported receiving notifications from Employer.com prompting them to click a consent button, which, in effect, waived their right to refunds on prepaid services.
When Bench abruptly shut down on December 26 last year, many customers were left with incomplete books and unfiled tax returns. Less than 72 hours later, Employer.com announced its acquisition of the struggling fintech.
According to Canadian bankruptcy filings, Employer.com acquired Bench for $9 million.
A Collapse Driven by Financial Instability
Bench’s downfall was largely due to a liquidity crisis. The National Bank of Canada, which had already extended $51 million in credit, declined to provide an additional $7.7 million in December 2024. Without the funds to sustain operations, Bench was forced to shut down.
Ironically, it was news of the company’s abrupt collapse that led to its acquisition. Bench had previously sought buyers but failed to attract serious interest, according to court filings.
What’s Next for Bench Customers?
The allegations from former customers raise concerns about how Employer.com is handling Bench’s obligations. While the company insists it is honoring prepaid services, legal disputes and customer complaints suggest otherwise.
As the lawsuit unfolds, Bench users who prepaid for services will be watching closely to see if Employer.com lives up to its commitments—or if more customers will step forward with similar claims.
