Experian - ERC Member Update 

As you may know; your AFA Member Savings Program has partnered with Experian to provide Employee Retention Credit services for our members. We chose Experian for their long standing expertise in working with government on various tax credit programs, expertise and preferred member pricing. As you may have heard; the ERC Program has revised program expectations recently and although the additional processing time is unfortunate; the overall thrust of the changes are understandable and positive.

Unlike Experian; the industry has gotten out of hand with the ‘promoters’ that have been filing claims with no regard for the law or their clients. We are really happy about everything the IRS has said, except the additional delay. This doesn’t change the process that much because the IRS is backlogged already. We suspect they will continue to process claims, but just hold the payments until the end of the year.

The good news is that our process was and still is fundamentally supported by ERC statute and IRS guidance. The IRS is still required by law to receive claims and abide by their own safe harbor notices for processing. That said, it’s going to take them a little longer to process claims.  

Background and why apply for the ERC?

As you may already be aware, the Employee Retention Credit program (ERC) is a refundable tax credit based on wages and healthcare costs. Eligible employers may be able to receive up to $5,000 per employee in 2020 and up to $7,000 per employee for each qualifying quarter of 2021. You can qualify based on your W2 employee count, and your participation in the PPP loan program does NOT disqualify you.

Many industries were significantly impacted by the COVID-19 pandemic. As part of the CARES Act, the Employee Retention Credit provides a refundable tax credit for businesses that either experienced a significant reduction in revenue OR whose operations were suspended due to government orders.Even if you do not meet the specific revenue reduction threshold, you may qualify due to temporary shutdowns, modifications, travel restriction or social distancing requirements.

FYI - The deadline to submit the 2020 refund claim is 4/15/24, and the deadline for 2021 is 4/15/25.
We are recommending that members file as soon as possible so as to be in the front of the line when they finally get caught up. 
  
You can have an Experian Representative contact you by registering your interest at https://tinyurl.com/mwrux4de.