Frost Law
Many Professional Employer Organizations (PEOs) rely solely on businesses’ assertions of eligibility when filing Employee Retention Credit (ERC) claims. This hands-off approach can lead to businesses either missing out on legitimate claims or, conversely, over claiming the credit, both of which carry significant financial and legal risks. Given the increasing scrutiny of ERC claims, businesses that used a PEO for filing should strongly consider seeking legal counsel.
PEOs have routinely failed to conduct in-depth analyses of their clients’ ERC eligibility, if any analysis is performed at all. Instead of performing a thorough review, they often accept businesses’ claims at face value without verifying key factors such as:
This lack of diligence has resulted in widespread miscalculations and potential compliance issues. If the IRS audits your claim, a poorly substantiated filing could result in penalties, interest, or even the requirement to return improperly received funds.
A major issue with PEOs is their failure to provide proper documentation to their clients. Many businesses that filed ERC claims through a PEO are unable to obtain:
Without these crucial documents, businesses may be left vulnerable if the IRS requests substantiation of their claims. If your PEO has not provided this information, it is critical to obtain a second opinion from a qualified legal professional.
If your business relied on a PEO to file ERC claims, it is in your best interest to conduct an independent review of your eligibility and filing accuracy. FrostLaw can help by providing a comprehensive analysis of your ERC claim, including:
Should the IRS scrutinize your ERC claim, you want to be fully prepared to provide substantiating documentation. Without proper records and calculations, your business may face unnecessary challenges in defending your claim.
Many PEOs such as Trinet, Insperity PEO, Oasis PEO, Paychex, ADP Total Source, Vensure, People PEO, Decision HR, Extensis HR, BBSI, Co Advantage, Optimum, Kimberly Group, Syndeo, Howard Leasing, Engage, FrankCrum, and JustWorks gather ERC eligibility by sending a short questionnaire to their clients. The PEO then relies upon the response sent in by the client to determine the dates in which they file claims for. The program itself and how eligibility is determined is rarely explained to the client which can cause the questionnaires to be misleading.
Given the risks associated with PEO handled ERC claims, taking a proactive approach is essential. Frost Law has experience in ERC compliance and can help ensure that your claims are accurate, properly documented, and defensible in the event of an IRS review. Contact us today at (410) 497-5947 or schedule a confidential consultation.
Many Professional Employer Organizations (PEOs) rely solely on businesses’ assertions of eligibility when filing Employee Retention Credit (ERC) claims. This hands-off approach can lead to businesses either missing out on legitimate claims or, conversely, over claiming the credit, both of which carry significant financial and legal risks. Given the increasing scrutiny of ERC claims, businesses that used a PEO for filing should strongly consider seeking legal counsel.
PEOs have routinely failed to conduct in-depth analyses of their clients’ ERC eligibility, if any analysis is performed at all. Instead of performing a thorough review, they often accept businesses’ claims at face value without verifying key factors such as:
This lack of diligence has resulted in widespread miscalculations and potential compliance issues. If the IRS audits your claim, a poorly substantiated filing could result in penalties, interest, or even the requirement to return improperly received funds.
A major issue with PEOs is their failure to provide proper documentation to their clients. Many businesses that filed ERC claims through a PEO are unable to obtain:
Without these crucial documents, businesses may be left vulnerable if the IRS requests substantiation of their claims. If your PEO has not provided this information, it is critical to obtain a second opinion from a qualified legal professional.
If your business relied on a PEO to file ERC claims, it is in your best interest to conduct an independent review of your eligibility and filing accuracy. FrostLaw can help by providing a comprehensive analysis of your ERC claim, including:
Should the IRS scrutinize your ERC claim, you want to be fully prepared to provide substantiating documentation. Without proper records and calculations, your business may face unnecessary challenges in defending your claim.
Many PEOs such as Trinet, Insperity PEO, Oasis PEO, Paychex, ADP Total Source, Vensure, People PEO, Decision HR, Extensis HR, BBSI, Co Advantage, Optimum, Kimberly Group, Syndeo, Howard Leasing, Engage, FrankCrum, and JustWorks gather ERC eligibility by sending a short questionnaire to their clients. The PEO then relies upon the response sent in by the client to determine the dates in which they file claims for. The program itself and how eligibility is determined is rarely explained to the client which can cause the questionnaires to be misleading.
Given the risks associated with PEO handled ERC claims, taking a proactive approach is essential. Frost Law has experience in ERC compliance and can help ensure that your claims are accurate, properly documented, and defensible in the event of an IRS review. Contact us today at (410) 497-5947 or schedule a confidential consultation.
