(KXNET) — A new way for people to take your money has surfaced.
In 2020, the CARES Act introduced the Employee Retention Credit, also known as the ERC, in order to help businesses offset the cost of keeping staff employed during the pandemic.
But Mike Schmitz, a certified public account, contacted KX News to tell us that some firms are offering to apply for those Employee Retention Credits on behalf of your business so you don’t have to.
Those who are taking them up on the offer are winding up paying up to ten times the amount they should have.
“Some of the forms have calculated the credit but they won’t file or sign off on the return,” Schmitz explained, “and have told the client that the client needs to sign the return. They just say, ‘here are the numbers to put in’ without necessarily providing the support.”
Schmitz says if a firm asks for 20-25%, that is a red flag.