The IRS recently announced that it is pausing acceptance of new Employee Retention Credit submissions through at least the end of the year. The reason for this pause is to prevent fraud and manage the backlog of nearly 600,000 pending applications.
 
Unfortunately, the ERC has been targeted by less than reputable companies and the IRS is seeing some fraudulent applications. This is why WRA is working with Adesso Capital—an established, reputable, vetted company that many other state restaurant associations are working with as well. Adesso's experts are well-versed with all aspects of the ERC and specialize in working with restaurants. So far Adesso has helped Wisconsin restaurants claim nearly $12 million in ERC dollars through our partnership.
 
What Does This Pause Mean for Restaurants?

• If you’ve already received your ERC, no action is required at this point.
• If you submitted your ERC paperwork before September 14, 2023, and you haven’t received your tax credit yet, the IRS will continue to process these claims. However, processing times are expected to slow. This is part of the backlog that they are trying to clear.
• If you are working on an ERC submission, do not stop the process. Continue preparing everything so your submission is ready to go as soon as the IRS resumes accepting ERC filings.
• If you haven’t filed yet, we recommend that you speak to the experts at Adesso to determine if you’re eligible to apply, and if you are, start your paperwork so Adesso can submit it as soon as the IRS resumes accepting ERC filings. According to the IRS, the ERC is not going away with this pause, and submissions can be filed through April 15, 2025 (NOTE: the amount you can claim will reduce on April 15, 2024 from $26,000 to $5,000). Start your eligibility evaluation process here.

Learn More

• Read Adesso’s statement on this development here.
• We encourage you to reach out with your questions - particularly if you have a pending ERC submission or are wondering if you qualify. Visit the WRA ERC portal or call WRA at 608.270.9950.
• Don’t hesitate to email WRA's Dawn Faris or call her at 608.444.9481 if you have questions about Adesso or the ERC.

Over the last few years, as food, labor and property costs have increased, a new trend has emerged to help offset the cost of accepting credit cards called Surcharging. By now, you might have experienced this practice in restaurants and retail stores, but there still lies confusion around the Surcharging rules and who enforces them.

In the State of Wisconsin, it is legal to charge a surcharge to credit cards as long as the customer is notified in writing prior to checking out. It is against card brand rules to add a surcharge to sales completed by debit card, regardless of using the debit card or credit card network. You must also apply the same surcharge amount to all cards and cannot offer a cash discount in conjunction with surcharging. In short, it must be one or the other across the board.

What changed?
Starting April 15, 2023, Visa imposed a maximum of 3% surcharge rule for all credit cards to help recoup some or all of the card processing costs.  Visa’s decision to reduce this from 4% to 3% is due in part to an increase in surcharge related violations and confusion around the rules.

What would happen if we chose not to follow card brand rules?
Visa employs secret shoppers as well as a public facing document for violation reporting. If caught, a cease and desist letter is sent, followed by fines up to $10,000 PER OCCURENCE. If the business or business owner continually repeats the offense, Visa can remove their ability to accept Visa cards permanently.

What actions do you need to take? 
If you are currently surcharging, ensure your point of sale can detect debit vs credit cards so that a surcharge is not mistakenly added to a debit card. Also, ensure that your surcharge does not exceed 3% to the customer. 

Finally, update your in store and/or menu signage to reflect this change and create transparency for the customer. 

Special thanks to Heartland Payment Systems for providing this information.
 
Questions? Email or call the AskWRA Team at 608.270.9950