Bench Charging Issues: Customers Report Duplicate Billing

Employer.com and Allegations of Unfulfilled Promises to Former Bench Customers

Following the acquisition of the financially distressed accounting startup Bench late last year, Employer.com’s CEO, Jesse Tinsley, publicly committed to upholding existing customer payment arrangements.

Tinsley communicated this pledge via LinkedIn and other platforms, assuring customers that prepaid services would be honored despite the acquisition not directly generating revenue for Employer.com. This commitment was initially made during an interview with Bench’s founder and investor, Julian Weisser.

Customer Complaints Emerge

However, reports have surfaced indicating that some former Bench customers are now facing charges to access services – such as bookkeeping and tax returns – for which they had already remitted payment.

A legal action was initiated on Tuesday by Bench customer Qorum, alleging that they were required to pay a fee to obtain their 2023 tax return, despite having previously fulfilled their financial obligations under Bench’s prior ownership.

The lawsuit specifically claims that Jesse Tinsley engaged in negligent misrepresentation by falsely asserting that Employer.com would honor all previously prepaid Bench services.

Another customer, wishing to remain anonymous, expressed surprise upon being informed that a subscription renewal was necessary to complete accounting work that had been paid for two years prior. This information was conveyed through documented correspondence reviewed by TechCrunch.

A representative from Bench reportedly stated that the newly formed “Bench 2.0” operates independently of prior commitments, and that Employer.com was not obligated to assume responsibility for outstanding work.

Employer.com Disputes Claims

Matt Charney, Employer.com’s Chief Marketing Officer, firmly refutes the allegations that Bench is imposing charges for services already paid for. He asserts that the company has consistently honored prepaid services for its customer base.

Charney further stated that the 2023 tax return in question was delivered to Qorum without any additional payment requirement. However, Qorum’s founder, Andrew Pietra, contends that continued subscription was a prerequisite for receiving the return.

Background on Bench’s Financial Struggles

Prior to its acquisition, Bench had expended $135 million and encountered difficulties in leveraging artificial intelligence to effectively replace human bookkeepers.

This resulted in significant delays and a substantial backlog of incomplete bookkeeping tasks, as reported by former employees.

TechCrunch previously reported that Employer.com had sent notifications to customers, prompting them to consent to forfeiting refunds on prepaid services.

A considerable number of bookkeeping tasks and tax returns remained unfinished when Bench ceased operations abruptly on December 26th of the previous year.

Employer.com, a U.S.-based company, announced its intention to acquire the Canadian fintech firm within 72 hours of the shutdown.

Details of the Acquisition and Bench’s Collapse

Bankruptcy filings in Canada reveal that Employer.com purchased Bench for a sum of $9 million.

Bench’s sudden failure stemmed from a liquidity crisis following the National Bank of Canada’s refusal to extend an additional $7.7 million in credit in December 2024. The NBC had previously provided $51 million USD in credit facilities to the struggling startup.

Interestingly, the news of Bench’s impending closure ultimately facilitated its acquisition. Prior attempts to find a buyer had been unsuccessful, as noted in the bankruptcy filings.