The IRS recently rolled out a supplemental claim process (IR-2024-246) to help businesses correct inaccurate Employee Retention Credit (ERC) claims, particularly those handled by third-party payroll providers. This new process is essential for companies that relied on services from employee leasing firms, certified professional employer organizations (CPEOs), professional employer organizations (PEOs), or Sec. 3504 agents to handle their payroll and tax filings.
If your business utilized a third-party provider for payroll services and later discovered that your ERC claim might have been inaccurate, this is the perfect time to act.
What Does This Mean for Your Business?
Many third-party payroll companies filed ERC claims for multiple clients, including businesses that might not have been eligible. If your business happens to be one of those ineligible ones, the IRS mandates that your payroll provider must take action to correct the claim.
The supplemental claim process allows payroll companies to withdraw claims for ineligible businesses while retaining those of clients who are still eligible.
Key Details to Keep in Mind
- Who is Affected: Businesses whose payroll provider filed ERC claims under their EIN for multiple clients.
- Action Needed: If your payroll provider filed an ERC claim for you and other clients, they can now remove ineligible claims without affecting your valid claims.
- Deadline: Supplemental claims must be submitted by November 22, 2024. Don’t delay correcting your claim to avoid penalties.
How Virtue CPAs Can Help
Navigating IRS regulations can be overwhelming, especially when you’ve relied on third-party payroll providers to file tax claims.
At Virtue CPAs, we specialize in ensuring businesses stay compliant with IRS guidelines while maximizing legitimate tax credits. Here’s how we can assist:
- ERC Review: Our experts will review your ERC claim to determine if any adjustments are needed, ensuring compliance and minimizing risk.
- Collaboration with Your Payroll Provider: We work directly with your third-party payer to ensure all supplemental claims are filed correctly and in a timely manner.
- Compliance & Risk Mitigation: We help your business stay compliant with the IRS, reducing the likelihood of audits and penalties.
Learn more about our specialized Federal, State, And Local Tax Compliance Services and streamlined Payroll Services to ensure your ERC benefits.
Get Expert Assistance Before It’s Too Late!
With the IRS setting a firm deadline of November 22, 2024, the time to correct your ERC claim is now. Our team at Virtue CPAs is here to provide expert guidance and help ensure your business is compliant with the latest IRS guidelines. Protect your business, avoid unnecessary penalties, and ensure that your valid ERC benefits are secure.
Contact us today to schedule your ERC claim review. Don’t wait until the last minute—reach out now to secure peace of mind and protect your bottom line!