Significant IRS Changes Propel ERC Refunds for 230,000 U.S. Businesses

Vensure Employer Solutions has recently announced a groundbreaking advancement in the processing of Employee Retention Credit (ERC) claims, aimed at facilitating quicker access to much-needed funds for businesses across the United States. This significant development comes as a result of Vensure's direct engagement with the Internal Revenue Service (IRS), which has led to a bifurcated approach in the processing of ERC claims. This method allows for approved claims to be paid out while disputed portions are sent through the appropriate appeals process.

The changes address a major bottleneck that has frustrated many businesses, particularly those represented by Professional Employer Organizations (PEOs). Prior to this new approach, the IRS grouped ERC claims together, meaning that a single audit could stall payments for hundreds of applicants simultaneously. This led to unnecessary delays for over 500 PEOs serving around 230,000 businesses nationwide. Many claims have been pending since early 2021, causing significant cash flow issues for these businesses.

Kara Childress, President and CFO of VensureHR, expressed the urgency of these changes, stating, "From the beginning, we saw that the process was creating unnecessary barriers for businesses that had done everything right." The new bifurcation approach allows the IRS to release approved claims swiftly while only isolating those that require further review. As a result, this strategy clears a path for cash flow to businesses crippled by years of delays, enabling them to invest in growth without the worry of additional debts or delays in hiring.

This advocacy effort builds on Vensure's commitment to improving conditions for small and mid-sized businesses. In 2025, Vensure actively engaged with policymakers in Washington, D.C., to address the significant backlog of nearly 600,000 unprocessed ERC claims and to push for expedited relief for companies waiting for these critical funds. With the new bifurcation process now in place, businesses and PEOs can expect more clarity and speed in the ERC claims process, a much-needed change that enhances their financial operations and overall stability.

Vensure Employer Solutions stands as a leader in the HR technology and services sector. With a reputation for advocating for meaningful improvements in the industry, they strive to support the needs of businesses both large and small. Headquartered in Chandler, Arizona, Vensure provides a full suite of HR services, which includes HR technology and managed services aimed at facilitating smoother operations. They work with over 161,000 businesses throughout all 50 states and in more than 175 countries, overseeing payroll processing that totals over $153 billion annually.

These new developments signify a crucial step forward, underscoring Vensure's role as an industry advocate committed to driving solutions that deliver tangible results for companies nationwide. With the successful implementation of the bifurcation approach for ERC claims processing, businesses can better navigate their financial landscapes, focusing on growth and stability rather than prolonged waiting for essential funding.

Topics Financial Services & Investing)

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