1. Businesses processing payroll through Rippling wired money to Rippling's account as SVB
2. Rippling would now normally use that money to pay the businesses employees.
3. Before that could happen, SVB went upside-down. Some of the money may be lost, the rest is frozen.
4. The businesses owe their employees their pay, but may not have enough money to simply pay for payroll a second time.
5. Rippling owes the money to the businesses (respectively, has an obligation towards the businesses to pay their payroll), but may not have the money to do so after some amount of funds just disappeared and another larger amount just got frozen for an unknown amount of time.
6. Employees of these businesses won't be receiving their pay on time, and may not be able to receive it at all if the money they're supposed to be paid with is gone and neither their employer nor Rippling can afford to cover the loss and goes bankrupt.
Edit: based on a tweet linked elsewhere in this thread, Rippling is putting up its own money to make sure payroll goes through, so it should indeed just be one business day of delay + possibly additional small delays because some companies didn't make the necessary adjustments to keep future payroll runs working.
If I understand it correctly:
1. Businesses processing payroll through Rippling wired money to Rippling's account as SVB
2. Rippling would now normally use that money to pay the businesses employees.
3. Before that could happen, SVB went upside-down. Some of the money may be lost, the rest is frozen.
4. The businesses owe their employees their pay, but may not have enough money to simply pay for payroll a second time.
5. Rippling owes the money to the businesses (respectively, has an obligation towards the businesses to pay their payroll), but may not have the money to do so after some amount of funds just disappeared and another larger amount just got frozen for an unknown amount of time.
6. Employees of these businesses won't be receiving their pay on time, and may not be able to receive it at all if the money they're supposed to be paid with is gone and neither their employer nor Rippling can afford to cover the loss and goes bankrupt.
Edit: based on a tweet linked elsewhere in this thread, Rippling is putting up its own money to make sure payroll goes through, so it should indeed just be one business day of delay + possibly additional small delays because some companies didn't make the necessary adjustments to keep future payroll runs working.