DHS to Offset Employee Retention Credits from Care Center Rates

The Department of Human Services (DHS) recently informed us that they intend to offset the revenue from the federal Employee Retention Credit (ERC) from care center costs based on the wages and taxes used in the ERC application. That means that some care centers will see reductions in their rate for the rate year that started this Jan. 1. DHS auditors have begun requesting detailed information from care centers that have applied for the ERC to determine these offsets.