Are Client Employers Responsible For Avoiding A "Double Benefit" With Respect To The Employee Retention Credit And The Credit Under Section 45S Of The Code? - #69 ERC IRS Notice 2021-20

Question #69:
Are client employers responsible for avoiding a “double benefit” with respect to the employee retention credit and the credit under section 45S of the Code?

Found under the M. Special Issues for Employers: Use of Third-Party Payers section of the Employee Retention Credit (ERC) IRS Notice 2021-20 with updated guidance to help business owners follow the current ERC rules.

The answer to question #69, Are client employers responsible for avoiding a “double benefit” with respect to the employee retention credit and the credit under section 45S of the Code?, can be found below.

Table of Contents

ERC IRS Notice 2021-20 Question #69:

M. Special Issues for Employers: Use of Third-Party Payers

Are client employers responsible for avoiding a “double benefit” with respect to the employee retention credit and the credit under section 45S of the Code?

Yes. The client employer is responsible for avoiding a “double benefit” with respect to the employee retention credit and the credit under section 45S of the Code. The client employer cannot use wages that were used to claim the employee retention credit and reported by the third-party payer on the client employer’s behalf to claim the section 45S credit on its income tax return.

For more information about the Employee Retention Credit (ERC) IRS Notice 2021-20, visit the Internal Revenue Service (IRS) Department of the Treasury, official IRS.gov tax website.

Conclusion and Summary on Are client employers responsible for avoiding a “double benefit” with respect to the employee retention credit and the credit under section 45S of the Code? – #69 ERC IRS Notice 2021-20

The answer to Question #69: “Are client employers responsible for avoiding a “double benefit” with respect to the employee retention credit and the credit under section 45S of the Code?” was answered in detail above. It was found under section “M. Special Issues for Employers: Use of Third-Party Payers in IRS Notice 2021-20.

Leave a comment below if you have further questions on the Employee Retention Credit (ERC) or for clarifications on Are client employers responsible for avoiding a “double benefit” with respect to the employee retention credit and the credit under section 45S of the Code?

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Cover Image Credit: Irs.gov / IRS Notice 2021-20 / Disaster Loan Advisors.

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Mark Monroe

Senior Advisor, Employee Retention Tax Credit (ERC / ERTC) Division at Disaster Loan Advisors™

Mark Monroe is one of the distinguished Senior Advisors of the Employee Retention Tax Credit (ERC / ERTC) Division at Disaster Loan Advisors™, bringing deep expertise and a proven track record in helping businesses safely navigate and maximize benefits from the ERC Tax Credit, for those businesses that do qualify. His role involves a sophisticated understanding of the tax credit’s legislative framework and the updated changes of intricacies involved in securing these critical financial advantages for companies affected by past tax year economic challenges.

As a leading dedicated member of the Tax and Accounting Team at Disaster Loan Advisors™, Mark focuses on unlocking the ERC Tax Credit's potential for eligible firms that qualify, providing strategic advice, and detailed guidance to ensure substantial financial recovery and growth. His methodical approach to client engagement includes comprehensive deep-dive analysis, customized consultation and guidance, and a commitment to achieving tangible results for each business served.

Disaster Loan Advisors™ (DLA) offers a comprehensive suite of services designed to navigate the complexities of the Employee Retention Tax Credit (ERC) program, ensuring that qualified businesses leverage the maximum possible benefit with minimum hassle. Unlike some firms that charge exorbitant contingency or percentage-based fees (often between 10% to 30% of your ERC refund), DLA operates on a fair and reasonable, transparent flat-fee structure that aligns with the IRS's guidelines.

If you are looking for an ERC Company that believes in providing professional ERC Services and value for small business owners, in exchange for a fair, reasonable, and ethical fee for the amount of work required, Disaster Loan Advisors™ is a good fit for you. STAY SAFE. STAY COMPLIANT. KEEP MORE OF YOUR REFUND.™

Employee Retention Tax Credit ERC, ERTC, IRS + SBA News

Are Client Employers Responsible For Avoiding A “Double Benefit” With Respect To The Employee Retention Credit And The Credit Under Section 45S Of The Code? – #69 ERC IRS Notice 2021-20