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NAPEO Responds to Plan to Crackdown on ERTC

| 12/28/2023

In response to a recent article in Politico Tax Pro which revealed that “tax writers are privately considering a crackdown on the Employee Retention Credit to help defray the cost of a long-sought tax bill expanding the child credit,” Casey Clark, president & CEO of the National Association of Professional Employer Organizations (NAPEO), issued the following statement: 

“Punishing small businesses for the federal government’s failure to police its own programs is bad policy. Ending the ERTC program before fulfilling obligations to reimburse American small business owners would penalize legitimate claimants for the government’s inability to police its own programs, leaving thousands of small business owners on the hook for liabilities our federal government is obligated to repay. This should raise eyebrows in every congressional district and on both sides of the aisle.  

“Retroactively ending this program to fund other government programs is a nonstarter for America's small businesses, many of which have waited more than three years for the IRS to process their legitimate tax credit filings. The IRS should process the outstanding ERTC claims and work with Congress to ensure that those who have committed fraud or enriched themselves off questionable claims are held accountable."

About NAPEO:

The National Association of Professional Employer Organizations (NAPEO) is the Voice of the PEO Industry, with a membership of 300 PEOs of all sizes and 250 industry service partners. PEOs provide payroll, benefits, regulatory compliance assistance, and other HR services to small and mid-sized companies. Through PEOs, the employees of small businesses gain access to employee benefits such as 401(k) plans; health, dental, life, and other insurance; dependent care; and other benefits typically provided by large companies. PEOs provide services to between 156,000 to 180,000 businesses employing between 2.7 and 3.4 million people and generate between $136 and $156 billion in gross revenues annually. For more information about the PEO industry and NAPEO, please visit


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Kerry Carruthers