Payroll Companies vs. Employers: Who is Liable for Errors when Filing for the ERC?
Did you know that many employers are getting more money (in addition to PPP Loans) from the Employee Retention Credit (ERC)? If you’re an employer, it pays to see if you qualify.
How You Can Get More Cash Back with the ERC
Eligible employers are allowed to claim multiple ERC credits. The ERC funding was issued specifically to help you keep your employees on the payroll. Employers who experienced economic hardship due to the COVID-19 pandemic between March 2020 and December 2021 can claim a credit for each quarter in which they qualify.
For example, if a company had 10 employees during 2021 and qualified for the ERC in two quarters, the company could receive up to $140,000! Check out our previous article Take Advantage of the Employee Retention Credit (ERC) to learn more.
Your Payroll Company May Not Know About Certain IRS Requirements
The process for calculating ERC’s can be risky for anyone who doesn’t know how to navigate the IRS. There are some hard and fast rules that apply. You might think that it’s best to turn to your payroll processing company to handle this refund, but we’d recommend being cautious about taking this approach. This is a time when it pays to hire a professional.
While major payroll companies may be able to assist with the process, the majority do not verify if the wages provided meet IRS qualifications. The employer is solely responsible and fully liable for this, and unfortunately, this expectation isn’t always transparent. While the IRS has stated there are “no penalties” for miscalculations on the ERC, what happens when an employer is granted too much money due to a miscalculation? Uncle Sam may not add penalties, but it’s likely that he’ll want his money back.
We Can Handle the ERC Process for You
At Oracle Profitability, our mission is to make your business more profitable and we see the ERC as a clear opportunity for entrepreneurs. We understand these processes and have helped dozens of businesses successfully navigate the ERC. This allows you to have peace of mind that the credit is processed correctly and the future of your business is safe and secure. We offer full-service ERC calculation, review, amendment, and submittal, and have already helped clients get back anywhere from $15,000 to $350,000 with the ERC. See if your business qualifies, book a free consultation today.