The IRS recently announced that it will open a new, supplemental claim process to help third-party payers, such as employee leasing companies, and their clients resolve incorrect claims for the employee retention credit (ERC).
According to the IRS, third-party payers handle clients' payroll and tax reporting duties and report and pay clients' federal employment taxes under the third-party payer's employer identification number (EIN). These payers include certified professional employer organizations, professional employer organizations and Sec. 3504 agents.
Some of these payers filed ERC claims for multiple employers. When a third-party payer's client determines it is ineligible for the ERC and wants to resolve their claim, the IRS says it is the third-party payer's responsibility to correct it.
The supplemental claim process lets a third-party payer that filed a prior claim with multiple clients withdraw only the claims of some clients while maintaining the claims of the qualifying clients. Read more.