NAPEO SOUNDS ALARM AS IRS ERTC BACKLOG NOW TOPS ONE MILLION
ALEXANDRIA, Va., May 2, 2023 /PRNewswire/ -- The ballooning backlog of Employee Retention Credit (ERTC) applications reached a grim milestone last week, despite recent commitments from IRS Commissioner Daniel Werfel to double efforts to get small and mid-sized businesses this vital money.
- According to the IRS, the backlog of outstanding Forms 941-X —the application used by small businesses to claim the ERTC— now tops one million, a 641% increase since August.
- "This staggering figure indicates the true severity of this crisis," said National Association of Professional Employer Organizations (NAPEO) President and CEO Pat Cleary.
- A sampling of only 15% of NAPEO members found that 13,631 small business PEO clients are waiting for the IRS to approve roughly $3 billion worth of ERTC credits.
- NAPEO, PEOs, and small business PEO clients remain in active communication with lawmakers and regulators to clear this backlog.