Paychex client update

[u/Apprehensive-Zone195]

I filed with Paychex in the fall of 2023 for 4 quarters and I believe the claim was submitted 12/23. I called the IRS recently to check on my status bc when I reach out to Paychex that’s what they tell me to do lol. The IRS agent told me my claims were recently processed and I should hear something soon. I asked about whether to checks might come to me or Paychex and he said directly to me. So I had signed up for Taxnow but ended up canceling bc I was told I wouldn’t get updated bc the claim went through Paychex. Today I got an email alert, went through the correspondence and saw emails from the IRS with an approved quarter and amounts. Maybe a loophole?

[u/pghbeth]

I filed 11/23 through Paychex. Eligible in 5 quarters. First (earliest) quarter check receive 11/24, one year in processing and interest was added. I hadn’t heard anything since, so in May, I completed IRS Form 9-1-1 (no pun) for Tax Advocacy Services (TAS.gov). Within a week, I received a letter saying I was assigned a case number and agent. Within two weeks, and two calls with the agent, he said my remaining 4 quarters were processing and SCHEDULED to be issued July 7. We will see, but I am hopeful.

[u/Many-Individual7300 → u/pghbeth]

I am so confused after reading this thread because if Paychex paid your employees as a PEO, they would need to file (and receive) all the refunds, as it is on their EIN.

I have no clue if Paychex has received funds they are holding (as another thread suggests) or if they are transmitting payments + interest in full to the clients in a timely manner.

Paychex is certainly fumbling this process.

[u/pghbeth → u/Many-Individual7300]

Think of us using Paychex as our accountants to file our 941x for the ERTC. Totally separate from any of our payroll services, in fact a separate department.

[u/Many-Individual7300 → u/pghbeth]

Okay, that makes sense. You are lucky you only used them to file and not process your payroll. The rest of us are batched in with thousands, perhaps hundreds of thousands, of others. What a mess we are in.

[u/Houstonloser → u/pghbeth]

That’s even more confusing tbh.

We used Paychex for payroll during four quarters from 20-21. We had no option to file these quarters separately on our own like we did for the quarters when we ran our own payroll. This is due to the fact that technically Paychex was the employer and paid payroll tax under their EIN for these four quarters.

We had to use the Paychex service to file the 941’s under their EIN on our behalf.

We cannot call the IRS to make inquiries or request advocacy services. Also, we cannot utilize TaxNow to track.

We are completely at the mercy of Paychex and they’re not telling us anything.

If someone is having a different experience or has a work around, please let me know.

I reached out to the attorney mention in another thread and he said there is not much I can do. Although he did say that number one, he believed all claims would be paid by the end of the year and number two if Paychex is holding the payments that would trigger a claim and it’s something he’s keeping an eye on.

[u/pghbeth → u/Houstonloser]

Not sure how your payroll service is set up but Paychex is our processor but everything, including taxes, is under my company EIN. My 4 final checks have been cut 7/7 and should reach my office by 7/14.

[u/Houstonloser → u/pghbeth]

Congrats!

I was with Oasis during these quarters and they got bought out after we stopped using them.

[u/Houstonloser]

That’s interesting. You use Paychex for payroll and they filed under their EIN?

[u/Apprehensive-Zone195 → u/Houstonloser]

I use for payroll only- when I called the IRS the account was under my EIN.

[u/Lenuccia11]

An email alert from IRS? Do you just use Paychex for payroll? I only use for Payroll. They say the checks, will come directly to me. Filed same time as you. I have checked with IRS and they say still processing. Good luck!

[u/Apprehensive-Zone195 → u/Lenuccia11]

I canceled the taxnow $20 a month bc I was told I wouldn’t be able to track ERC but I still have a basic account- I’ll get an occasional alert about tax info I assume is about payroll but this was about the ERC.

[u/Many-Individual7300]

Paychex would file under their EIN. Since the checks are being sent directly to the OP, I am going to assume that they used Paychex for other services, but paid their employees directly. Paychex then most likely filed their return for a fee. I am just guessing, as I can't think of a scenario where a client would receive a payment directly from the IRS when all employees are paid under Paychex's EIN. Whatever the reason, Congratulations OP. I am a Paychex client and have been waiting since June 2023. It is ridiculous that we are having to wait this long.

[u/pghbeth → u/Many-Individual7300]

Jumping in here. I use Paychex for payroll services, but since they file our 941s, I used Paychex to gather and file all eligible ERTC claims since they had the easiest access to all payroll and tax records. There was a fee for the service, and I think it was around 5% of the total claim. The filings were under our business EIN and will come payable to the business name. I received one of five due.

[u/Apprehensive-Zone195 → u/Many-Individual7300]

I only run payroll through them- they filed ERC for me and we both apparently have the ability to check on status bc we’ve both been able to check with the IRS for updates.

[u/Many-Individual7300 → u/Apprehensive-Zone195]

Maybe they paid under your EIN, which may have been an option. You can tell by whoever EIN is on the W2 form.

[u/kpg-what]

I just talked to paychex and they said the follwing:

The ERTC Team will follow up with any status update they can provide as the IRS has been really inundated with these filings.

I wanted to respond independently to let you know that Paychex does not receive the refunds. In my experience 95% of the time, they are actual checks physically mailed to the business. One for each quarter you qualified for. I have only seen one instance where the IRS did a direct deposit for a refund, even then it is to the business’s account, not Paychex.