Let me guess—your business worked with a PEO (Professional Employer Organization) like ADP, Paychex, Insperity, or TriNet. Maybe they filed your Employee Retention Credit (ERC) for you. And now you’re waiting… and waiting… and waiting some more for that IRS check to hit.
But here’s the kicker: you don’t have to wait.
You can still sell your ERC filed through a PEO—and get your cash now instead of 6–12 months from now.
Let me break it down for you like I would for one of my clients—no fluff, just facts and a game plan.
What Is the ERC, and Why Is a PEO Involved?
A Quick Recap of the ERC
The ERC was a lifeline during COVID—a refundable payroll tax credit of up to $26,000 per employee. Businesses that retained staff during shutdowns or saw major revenue dips qualified.
Now, if you use a PEO, you don’t file payroll taxes yourself. The PEO files a consolidated 941 on behalf of multiple clients. This makes things easier—until it doesn’t.
Why PEOs Complicate the ERC Process
Here’s the rub: The IRS technically sees the PEO as the employer of record. So when they file, it’s bundled with hundreds (sometimes thousands) of other clients.
Translation? You get zero visibility into where your ERC claim is, how much was claimed, or when (or if) the IRS will release it.
That’s where the idea of selling your ERC filed through a PEO becomes attractive.
Yes, You Still Own That ERC Credit
I’ve had people tell me, “My PEO filed the credit—do I even have the right to sell it?”
Short answer? Yes. 100%.
Even if your PEO submitted the paperwork, the ERC belongs to your business. It’s your employees, your wages, your eligibility. You funded those payroll taxes—not the PEO.
Here’s how one of my clients—a logistics company in Texas—sold their ERC for nearly $800,000 even though Paychex had filed on their behalf. It took some documentation, a few strategic calls, and a valuation. But they had the funds within 21 days.
Here’s How to Sell Your ERC Filed Through a PEO
Step 1: Confirm Your PEO Filed the ERC
Don’t assume. Get it in writing. You’ll need:
A copy of Form 941 (and Schedule R) showing your company’s line item.
Any correspondence or breakdowns from the PEO indicating how much was claimed.
If your PEO gives you the runaround, escalate. You’re entitled to that data—it’s part of your tax position.
Step 2: Gather Your Supporting Docs
No buyer is cutting a check without seeing the goods. You’ll need:
Payroll records (usually from your PEO portal)
Gross receipts for 2019–2021
Evidence of shutdowns or supply chain disruptions (emails, notices, etc.)
The total ERC amount claimed
Clean documentation = higher offer. Sloppy records = discount city.
Step 3: Get a Quote From a Buyer (Like a Fund or Broker)
There are buyers (like my firm and others) actively purchasing ERC claims—including those filed through PEOs. They’ll review your docs and give you a quote—usually 75%–90% of the expected credit, depending on:
How clean your documentation is
The PEO’s track record (some are slow to remit)
Whether the claim has been approved or is still pending
I’ve seen cases where businesses with ERCs stuck in ADP’s pipeline were still able to liquidate for 85 cents on the dollar.
Step 4: Sign a Purchase Agreement and Get Paid
Once you accept an offer, it’s like any asset sale:
You sign a purchase/sale agreement
The buyer wires you funds (sometimes in stages)
They step into your shoes and receive the credit once it’s issued
Why Sell Your ERC Now?
I’ll keep it real: if your business is flush with cash, you might want to wait.
But if you’re dealing with:
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Tight cash flow
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Expansion plans
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Paying down high-interest debt
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Delays from your PEO (hello, 9-month IRS timelines)
Then selling your ERC filed through a PEO isn’t just smart—it’s necessary.
Time is money. And the longer you wait on Uncle Sam and your PEO to get it together, the more opportunities you miss.
Common Questions I Get From Business Owners
Do I need my PEO’s permission to sell my ERC?
No. The ERC is your company’s property. You might need documentation from the PEO, but they can’t block the sale.
What if my PEO hasn’t even filed yet?
You can still sell a receivable as long as the buyer understands it’s pre-submission. They may discount the value, but it’s doable.
Will the IRS flag this?
No. ERC sales are typically done by assignment of proceeds. It doesn’t change your eligibility or increase audit risk.
How fast can I get paid?
I’ve seen deals close in 7–30 days depending on how prepared the seller is.
Final Takeaway:
You can wait around and hope your PEO and the IRS move faster…
Or you can get funded this month by clinking ERC Buyout or this link https://icarus-fund.com/erc-buyouts/
The choice is yours.
