Do You Work with PEOs? Yes! ERC Refunds for Clients Who Work with PEOs

Our clients often work with PEOs, which are companies specializing in payroll management. Our CPAs work alongside PEOs, we handle everything except for the actual filing, as the Form 941 belongs to the PEO.

Each business operating under a PEO has a specific schedule for filing 941, which determines when we can file or amend returns for companies working with a PEO. The IRS acknowledges this and has given directions to the PEO regarding their obligation to file this form on behalf of their clients.

However, PEOs typically do not want to handle the work required to substantiate, qualify, and calculate the ERC tax credit using form 941x. This is where we come in - we provide the necessary ERC calculations to your PEO so they can amend your tax returns accordingly.

Requirements for Filing ERC When Working with a PEO

Once we receive your information and calculate your ERC tax credit, your business can claim the ERC tax credit through a third-party payer, such as a PEO, CPEO, or other service provider. The good news is that this is possible due to the IRS Notice 2021-20, which provides crucial guidance on the process of claiming the ERC.

According to this guidance, a PEO must gather all necessary information from the client to ensure accurate ERC claims, including any other tax credits that have been claimed, such as emergency paid sick leave, family leave, or paid family medical leave. Additionally, it is important to report whether you received a PPP loan, although this does not necessarily disqualify you from claiming the ERC, as we have discussed before.

Certainly, ERC funding can be obtained by employers who work with a PEO, but meeting specific qualifications is necessary. Nevertheless, when you rely on our CPAs, the ERC refund experts, you can rest assured that we have carefully gone through every detail to guarantee that your business receives the highest possible ERC benefits that you are entitled to. Do not hesitate, contact us right away to claim your ERC tax credit.