--- title: "May Compliance Updates: Employer Penalty Relief for Employee Retention Credit Claims" description: Everything HR and payroll professionals and employers will need to stay up-to-date, including legislative decisions and developments and more. image: https://blog.proliant.com/hubfs/-%203%20-%20Blog%20Images/proliant-compliance-updates.jpg --- [![Proliant - Print Logo - No Strokes](https://blog.proliant.com/hubfs/01%20-%20Website/Logos/Proliant%20-%20Print%20Logo%20-%20No%20Strokes.svg "Proliant - Print Logo - No Strokes")](https://www.proliant.com) [Request Meeting](https://www.proliant.com/request-meeting) ** ** **Payroll** **Talent** **Workforce Management** **Benefits** **Platform** **Integrations** **ProLiant Mobile** Your employees can stay connected. **Anytime, anywhere**. ![proliant-mobile-mockup-mega-menu](https://blog.proliant.com/hubfs/01%20-%20Website/4%20-%20Main%20Pages/Home/proliant-mobile-mockup-mega-menu.png "proliant-mobile-mockup-mega-menu") [![Proliant - Print Logo - No Strokes](https://blog.proliant.com/hubfs/01%20-%20Website/Logos/Proliant%20-%20Print%20Logo%20-%20No%20Strokes.svg "Proliant - Print Logo - No Strokes")](https://www.proliant.com) [Request Meeting](https://www.proliant.com/request-meeting) ** ** **Payroll** **Talent** **Workforce Management** **Benefits** **Platform** **Integrations** **ProLiant Mobile** Your employees can stay connected. **Anytime, anywhere**. ![proliant-mobile-mockup-mega-menu](https://blog.proliant.com/hubfs/01%20-%20Website/4%20-%20Main%20Pages/Home/proliant-mobile-mockup-mega-menu.png "proliant-mobile-mockup-mega-menu") Search **Menu** ** ** [Request Meeting](https://www.proliant.com/request-meeting) ![](https://blog.proliant.com/hubfs/-%203%20-%20Blog%20Images/proliant-compliance-updates.jpg) # May Compliance Updates: Employer Penalty Relief for Employee Retention Credit Claims [![ProLiant](https://blog.proliant.com/hubfs/Logos/Color%20Proliant/P%20logo%20Glassdoor.jpg)](https://blog.proliant.com/compliance-updates/author/proliant) Written by [ProLiant](https://blog.proliant.com/compliance-updates/author/proliant) May 25, 2022 11:02:21 AM ## **IRS Reminder: Employer Penalty Relief for Employee Retention Credit Claims** The IRS has issued a reminder to employers regarding penalty relief for failure to pay taxes related to employee retention credit (ERC) claims. Taxpayers that claimed the ERC retroactively and filed an amended income tax return reducing their deduction for the ERC qualified wages paid or incurred in the tax year for which the ERC is retroactively claimed have an increased income tax liability, but may not yet have received their ERC refund.  The IRS is reminding taxpayers that they may be eligible for relief from penalties for failing to pay their taxes if they can show reasonable cause and not willful neglect for the failure to pay. In general, taxpayers may also qualify for administrative relief from penalties for failing to pay on time under the IRS’s First Time Penalty Abatement program if the taxpayer:  1. Did not previously have to file a return or had no penalties for the three prior tax years 2. Filed all currently required returns or filed an extension of time to file and 3. Paid, or arranged to pay, any tax due. [Click here](https://www.irs.gov/newsroom/irs-reminds-employers-of-penalty-relief-related-to-claims-for-the-employee-retention-credit) for more information.  ## **IRS Notices to Help Payers Correct Backup Withholding Errors Being Sent This Month** Beginning in mid-April 2022, the IRS began sending notices to financial institutions, businesses or payers who filed certain types of information returns that do not match IRS records.  The IRS sends these notices twice a year. The first notice is sent in September and/or October and a second mailing goes out April of the following year. The notices inform payers that the information return is missing a Taxpayer Identification Number (TIN), has an incorrect name or a combination of both. Each notice has a list of payees, or the persons receiving certain types of income payments, with identified TIN issues. Payers need to compare the accounts listed on the notice with their account records and correct or update their records, if necessary. This can also include correcting backup withholding on payments made to payees. The notices also inform payers that they are responsible for backup withholding. [Click here](https://www.irs.gov/newsroom/irs-notices-cp2100-and-2100a-to-help-payers-correct-backup-withholding-errors-will-go-out-in-april-2022) for more information.  ## **Employers Face New Employment Challenges Due to Remote Work** Payroll professionals and consultants are warning employers to be aware of the extra-legal and payroll obligations as a result of new remote workplaces.  This includes: - State and local taxes; - Expense reimbursements; and - Business registration **State and Local Taxes** A remote employee’s tax obligation in a new jurisdiction or state needs to be considered by employers. On the other hand, employers should also notify employees or any loss of benefits due to working in another state.  **Expense Reimbursements** Certain states require employers to reimburse employees for work-related expenses incurred while working remotely. In certain states, the employer must reimburse the employee for the entire cost of the expenses even if the cost of the trip exceeds the employer allowance.  **Business Registration** Employers may be required to register their business in those states where they have employees located. This includes the possibility of having to obtain relevant state business licenses and make contributions to a state unemployment insurance fund. [Click here](https://news.bloombergtax.com/payroll/remote-workforces-create-new-employment-challenges-for-employers) for more information. ### About ProLiant *ProLiant puts the human in human resources. We provide a fully integrated, cloud-based HCM solution that simplifies payroll and HR processes. The company serves small to large clients in multiple industries in all 50 states and is committed to providing the highest quality customer service in the industry.* ### Subscribe to Blog - [Recent](https://blog.proliant.com/compliance-updates/may-compliance-updates#recent) - [Topics](https://blog.proliant.com/compliance-updates/may-compliance-updates#topics) - [Archive](https://blog.proliant.com/compliance-updates/may-compliance-updates#archive) - [Benefits Administration (1)](https://blog.proliant.com/compliance-updates/tag/benefits-administration) - [Compliance (11)](https://blog.proliant.com/compliance-updates/tag/compliance) - [Industry News (2)](https://blog.proliant.com/compliance-updates/tag/industry-news) - [Tax Services (1)](https://blog.proliant.com/compliance-updates/tag/tax-services) [More...](https://blog.proliant.com/compliance-updates/may-compliance-updates#) - [June 2026 (1)](https://blog.proliant.com/compliance-updates/archive/2026/06) - [May 2026 (1)](https://blog.proliant.com/compliance-updates/archive/2026/05) - [April 2026 (1)](https://blog.proliant.com/compliance-updates/archive/2026/04) - [March 2026 (1)](https://blog.proliant.com/compliance-updates/archive/2026/03) - [February 2026 (1)](https://blog.proliant.com/compliance-updates/archive/2026/02) - [January 2026 (1)](https://blog.proliant.com/compliance-updates/archive/2026/01) - [December 2025 (1)](https://blog.proliant.com/compliance-updates/archive/2025/12) - [October 2025 (1)](https://blog.proliant.com/compliance-updates/archive/2025/10) - [September 2025 (1)](https://blog.proliant.com/compliance-updates/archive/2025/09) - [August 2025 (1)](https://blog.proliant.com/compliance-updates/archive/2025/08) - [July 2025 (1)](https://blog.proliant.com/compliance-updates/archive/2025/07) - [May 2025 (1)](https://blog.proliant.com/compliance-updates/archive/2025/05) - [April 2025 (1)](https://blog.proliant.com/compliance-updates/archive/2025/04) - [March 2025 (1)](https://blog.proliant.com/compliance-updates/archive/2025/03) - [February 2025 (1)](https://blog.proliant.com/compliance-updates/archive/2025/02) - [January 2025 (1)](https://blog.proliant.com/compliance-updates/archive/2025/01) - [December 2024 (1)](https://blog.proliant.com/compliance-updates/archive/2024/12) - [November 2024 (1)](https://blog.proliant.com/compliance-updates/archive/2024/11) - [October 2024 (1)](https://blog.proliant.com/compliance-updates/archive/2024/10) - [September 2024 (1)](https://blog.proliant.com/compliance-updates/archive/2024/09) - [August 2024 (1)](https://blog.proliant.com/compliance-updates/archive/2024/08) - [July 2024 (1)](https://blog.proliant.com/compliance-updates/archive/2024/07) - [June 2024 (1)](https://blog.proliant.com/compliance-updates/archive/2024/06) - [May 2024 (1)](https://blog.proliant.com/compliance-updates/archive/2024/05) - [April 2024 (1)](https://blog.proliant.com/compliance-updates/archive/2024/04) - [March 2024 (1)](https://blog.proliant.com/compliance-updates/archive/2024/03) - [February 2024 (1)](https://blog.proliant.com/compliance-updates/archive/2024/02) - [January 2024 (2)](https://blog.proliant.com/compliance-updates/archive/2024/01) - [December 2023 (1)](https://blog.proliant.com/compliance-updates/archive/2023/12) - [October 2023 (1)](https://blog.proliant.com/compliance-updates/archive/2023/10) - [September 2023 (1)](https://blog.proliant.com/compliance-updates/archive/2023/09) - [August 2023 (2)](https://blog.proliant.com/compliance-updates/archive/2023/08) - [July 2023 (2)](https://blog.proliant.com/compliance-updates/archive/2023/07) - [June 2023 (1)](https://blog.proliant.com/compliance-updates/archive/2023/06) - [May 2023 (1)](https://blog.proliant.com/compliance-updates/archive/2023/05) - [April 2023 (1)](https://blog.proliant.com/compliance-updates/archive/2023/04) - [February 2023 (2)](https://blog.proliant.com/compliance-updates/archive/2023/02) - [January 2023 (5)](https://blog.proliant.com/compliance-updates/archive/2023/01) - [December 2022 (3)](https://blog.proliant.com/compliance-updates/archive/2022/12) - [November 2022 (5)](https://blog.proliant.com/compliance-updates/archive/2022/11) - [October 2022 (5)](https://blog.proliant.com/compliance-updates/archive/2022/10) - [September 2022 (3)](https://blog.proliant.com/compliance-updates/archive/2022/09) - [August 2022 (1)](https://blog.proliant.com/compliance-updates/archive/2022/08) - [July 2022 (1)](https://blog.proliant.com/compliance-updates/archive/2022/07) - [May 2022 (2)](https://blog.proliant.com/compliance-updates/archive/2022/05) - [September 2019 (1)](https://blog.proliant.com/compliance-updates/archive/2019/09) - [August 2019 (2)](https://blog.proliant.com/compliance-updates/archive/2019/08) - [May 2019 (2)](https://blog.proliant.com/compliance-updates/archive/2019/05) - [March 2019 (1)](https://blog.proliant.com/compliance-updates/archive/2019/03) - [January 2019 (2)](https://blog.proliant.com/compliance-updates/archive/2019/01) - [December 2018 (1)](https://blog.proliant.com/compliance-updates/archive/2018/12) - [September 2018 (1)](https://blog.proliant.com/compliance-updates/archive/2018/09) - [August 2018 (1)](https://blog.proliant.com/compliance-updates/archive/2018/08) - [June 2018 (2)](https://blog.proliant.com/compliance-updates/archive/2018/06) - [August 2017 (1)](https://blog.proliant.com/compliance-updates/archive/2017/08) - [April 2017 (1)](https://blog.proliant.com/compliance-updates/archive/2017/04) - [July 2016 (1)](https://blog.proliant.com/compliance-updates/archive/2016/07) - [December 2015 (1)](https://blog.proliant.com/compliance-updates/archive/2015/12) - [August 2015 (2)](https://blog.proliant.com/compliance-updates/archive/2015/08) [More...](https://blog.proliant.com/compliance-updates/may-compliance-updates#) Previous Story [← April Compliance Updates: EEO-1 Reporting Is Now Open](https://blog.proliant.com/compliance-updates/april-compliance-updates) [** ](https://blog.proliant.com/compliance-updates) Next Story [June Compliance Updates: California and Minnesota to Increase Minimum Wage →](https://blog.proliant.com/compliance-updates/june-2022-compliance-updates) ** ## No Comments Yet Let us know what you think [![proliant-white-logo-no-strokes](https://blog.proliant.com/hs-fs/hubfs/0%20-%20Proliant%20Branding/ProLiant%20Logos/proliant-white-logo-no-strokes.png?width=205&height=40&name=proliant-white-logo-no-strokes.png "proliant-white-logo-no-strokes")](https://www.proliant.com/) **Headquarters** 1100 Abernathy Road, Suite 850 Atlanta, GA 30328 877.896.9523 [Need Help?](https://www.proliant.com/contact-us) [Login](https://www.readypayonline.com/Proliant/Login/Login.aspx?) Copyright © 2022 Proliant, Inc. All Rights Reserved. #### Solutions [Applicant Tracking & Recruitment](https://www.proliant.com/applicant-tracking-recruitment) [Time & Labor Management](https://www.proliant.com/time-labor-management) [HR & Benefits Administration](https://www.proliant.com/hr-benefits-administration) [Employee Onboarding](https://www.proliant.com/onboarding) [Online Payroll Services](https://www.proliant.com/payroll-services) [Payroll Tax Services](https://www.proliant.com/payroll-tax-services) [Performance Management](https://www.proliant.com/performance-management) [ReadyPay Today](https://www.proliant.com/readypaytoday) [Learning Management System](https://www.proliant.com/learning-management-system) #### Who We Serve [Your Industry](https://www.proliant.com/your-industry) [Integrations](https://www.proliant.com/integrations) [Partners](https://www.proliant.com/partners) #### Why Proliant [About Us](https://www.proliant.com/about-us) [News](https://blog.proliant.com/inthenews) [Careers](https://www.proliant.com/careers) [Automation](https://www.proliant.com/payroll-automation) [Workflows](https://www.proliant.com/hr-workflows) [Services](https://www.proliant.com/services) #### Legal [Legal](https://www.proliant.com/legal-notices) [Terms](https://www.proliant.com/terms-of-use) [Privacy](https://www.proliant.com/privacy-policy) [Form 1095-C Notice](https://www.proliant.com/employee-1095c-notice) ```json { "@context" : "https://schema.org", "@type" : "BlogPosting", "author" : { "@type" : "Person", "name" : "ProLiant", "url" : "https://blog.proliant.com/compliance-updates/author/proliant" }, "dateModified" : "2023-10-26T21:21:13.496Z", "datePublished" : "2022-05-25T15:02:21.000Z", "headline" : "May Compliance Updates: Employer Penalty Relief for Employee Retention Credit Claims", "image" : [ "https://blog.proliant.com/hubfs/-%203%20-%20Blog%20Images/proliant-compliance-updates.jpg" ], "mainEntityOfPage" : { "@id" : "https://blog.proliant.com/compliance-updates/may-compliance-updates", "@type" : "WebPage" }, "publisher" : { "@type" : "Organization", "logo" : { "@type" : "ImageObject", "url" : "https://blog.proliant.com/hubfs/00%20-%20Proliant%20Branding/ProLiant%20Logos/Proliant%20-%20Web%20Logo.svg" }, "name" : "ProLiant, Inc." } } ```