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ERTC Updates for ADP TotalSource® Clients

At this time, the IRS is working to address a significant backlog, now nearly 1 million claims, in processing Form 941-x, which in turn is impacting tax filers’ from receiving their Employee Retention Tax Credits (ERTC). We understand how serious this backlog is and how critical receiving your ERTC funds is to your business. Our team of experts are actively advocating on behalf of our clients to help expedite the processing of their outstanding ERTC refunds and encouraging a quicker resolution so ERTCs are paid as soon as possible.

Important To Know:

  • ADP TotalSource does not provide an advance to clients on their tax credit funds. Any claims that ADP or similar providers are obligated to provide the ERTC funds to you prior to receipt of funding from the IRS are inaccurate.
  • ADP is not authorized to provide loans as we are not a licensed lending institution.
  • Once the IRS processes your employer’s Form 941-X that includes ERTC refund claims, they will proceed with crediting the ADP TotalSource tax account for the refund amount payable for that tax quarter in the order they are received from the IRS.
  • As soon as ADP TotalSource receives the ERTC refund corresponding to your company account, our service team will immediately contact you.

How We’re Supporting Our Clients:

  • We are actively in discussions with the IRS and have taken multiple actions along with the National Association of Professional Employer Organization (NAPEO) – a national organization that supports the PEO industry at the governmental level. These include:
    • Engaging in ongoing discussions with members of the IRS and the appropriate congressional committees and government officials to address the backlog, its impact and areas of potential resolution.
    • Working to ensure the ERTC backlog, and its impact on small businesses nationwide, is raised during key congressional hearings and other public policy meetings.
    • Supporting members of Congress who have sent numerous letters to the Treasury/IRS requesting immediate attention to reduce the backlog and supporting NAPEO with its submission of a series of letters to Treasury/IRS addressing the issue and proposing potential solutions.

While we recognize that a large number of refund claims remain outstanding, we are encouraged by recent commitments the IRS has noted in public hearings dedicating additional resources to resolve the backlog. We will continue to take these actions on behalf of our clients and will proceed with delivering funds to you as soon as the IRS takes the necessary actions to make such funds available.

For more information about this matter please reach out to your ADP TotalSource representative.