PEO Risk Management:

ERC Claims

ERC Strategies for PEOs:

Review, Remediate, Defend, & Monetize

ERC Audit Defense Services for PEO customers

ERC Audit Defense warranties  made available for PEO customers that claimed ERC. 

Overview

  • IRS Representation and Defense services
  • ERC claim reviews and risk scoring
  • PEO tools to calculate and allocate ERC claim related IRS interest
  • Team of ERC specialized CPAs, attorneys, operators, technologists, and IRS audit defense experts

PEO Collects monthly service fees

PEO collects monthly fees from customers enrolled in the ERC Audit Defense program as part of the customer’s normal payroll funding process.

Overview

  • Ongoing monitoring of legislative, administrative, and judicial events related to the ERC program 
  • Ongoing ERC claim risk assessments
  • Ongoing efforts to remediate deficient claims and strengthen eligiblity assessments

 

IRS ERC Audit Window:  6 Years

Customers are likely to continue ERC Audit Defense services throughout the IRS audit period, which for ERC payroll refund claims is expected to be six (6) years from the date IRS processes the ERC claim.

Overview

  • Communication strategy to inform and educate PEO customers
  • ERC Audit Defense product as a customer retention tool

PEO keeps a Revenue Share

Revenue share from collected ERC Audit Defense fees are:

  • Calculated as a percentage of gross ERC Audit Defense revenues
  • Net remaining ERC Audit Defense fees remitted to us by PEO
  • PEO Revenue Share is monthly recurring in nature

Overview

  • ERC Audit Defense revenue share produces a material increase to  PEO EBITDA.  PEO has no direct offsetting costs

 

 

Since its inception, the Employee Retention Credit (ERC) program has been difficult to understand, and the IRS has struggled to provide consistent, reliable guidance.  ERC was created by Congress to aid businesses in surviving and recovering from the financial stress created by pandemic-era government.  We’re here to help, regardless of what stage your PEO’s ERC program may (or may not) be in.

At Issue: Most PEOs maintain only some, but not all the records required to substantiate client company eligibility for the Employee Retention Credit (ERC) program.  This puts PEOs at risk.  In accordance with a PEO’s liability under the IRS Code and applicable regulations, the PEO’s client company and the PEO will each be liable for employment taxes owed because of any improper ERC claim for employment taxes reported on the federal employment tax return filed by the PEO claiming the credit.  This means PEO exposure to ERC claims is inclusive of interest and penalties.

Value Proposition

 The value of a strategic agreement with Get Refunds Inc. (GRI):

IRS Representation & Defense

Manage ERC Claims for PEO Customers

The initial contact between a Taxpayer and the IRS is critical. Without proper representation and strategy, the likelihood of a desirable outcome is significantly diminished.  The IRS ERC examination process can be costly and prolonged. ERC tax disputes need to be carefully managed through the IRS audit process, the Appeals Office, and where necessary if a reasonable settlement cannot be met, litigation.  Our ERC Claims Management service bridges the process gaps between you, your customers, and the IRS. Here’s how:

  • We professionally defend covered federal payroll tax audit or notices from the time of the first notice to its completion (subject to limitations and exclusions).
  • This includes any audit that arises during the period when an active ERC Audit Defense agreement is in place.
  • All scheduling of appointments, telephone calls and correspondence are handled by a team of audit representatives that we assign as needed to defend your customer, a small business employer (SBE).
  • We meet and correspond with the IRS auditors and customers to defend them through the highest level of appeals.
  • In the event of a financial settlement with the IRS, we pay amounts owed to the IRS related to the ERC payroll refund claim for SBEs with strong claims. For all other claims we provide our full representation and defense services but have no obligation to pay the IRS on behalf of the SBE or PEO.

IRS Interest Paid

Calculate Interest Owed on ERC Claims for PEO Customers

ERC claims are treated by the IRS as overpayment balances. IRS is obligated to compute and pay interest on overpayment balances. Interest computations for overpayment balances are complex.

  • IRS sets interest rates to calculate interest on overpayment balances.
  • Daily compounding rates are impacted by changes in Federal short-term rates, the legal structure of the taxpayer, the size of the ERC claim, and whether interest compounding occurs over a leap year for a given Form 941, Employer’s Quarterly Federal Tax Return.

After the IRS processes the ERC, the PEO is responsible for making sure each Customer receives any overpayment (the ERC refund) owed. Our IRS Interest Calculation service bridges the process gaps between you, your ERC claims, your Customers, and the IRS. Here’s how:

  • We provide the tools required to calculate interest owed to the PEO by the IRS for overpayment balances related to ERC claims.
  • We provide the tools required for the PEO to calculate interest related to each Customer’s ERC payroll refund.
  • We provide the tools required to generate Customer statements to support IRS interest earned on ERC claims.

ERC Claims

Calculate ERC for PEO Customers that have not yet claimed ERC

The deadline for taxpayers to claim ERC for payroll taxes paid in 2021 is April 15, 2025. Legislation is pending to change ERC program filing deadlines. PEOs have an obligation to submit Customer ERC claims regardless of any contemplated legislative changes to the ERC Program or public opinions. Our ERC Claim Preparation service makes available tax professionals with demonstrated ERC claim preparation services.