The Employee Retention Tax Credit (ERTC) allows eligible businesses that suffered during the pandemic to apply for a tax refund. Like any other transaction involving sensitive data, the ERTC claims process may pose a threat to your company’s information security if you don’t take steps to protect it.

If you have specific questions about ERTC sensitive data and cybersecurity, the legal team at Dayes Law Firm can help you find answers. 

Here are tips on implementing a strong data security strategy to protect your organization, including your ERTC information.

Types of Data Security Threats

Sensitive private data surrounds every business: credit card numbers, employee payroll information, intellectual property, and company tax details, just to name a few examples. Threats to that information surround every business as well, from cyber attacks to copyright infringement.

Below are a few examples of dangers to your company’s ERTC sensitive data and cybersecurity in general: 

1. Within Your Organization

Your employees may accidentally or intentionally compromise sensitive information. They may lose their laptops, leave paperwork out in the open, or inadvertently download a virus. In some cases, they may even engage in the theft of digital information.

2. External Service Providers

Businesses often use convenient third-party vendors for things like payment processing, IT support, or filing ERTC claims. When selecting a service provider, take reasonable steps to choose one that takes data security seriously. Discuss your information security concerns openly and ask about the cybersecurity measures they implement.

3. Phishing, Ransomware, and Scams

Phishing and ransomware are cyber attacks that trick unsuspecting employees into clicking on links via email or text message. Phishing attacks hope the user will reveal sensitive data, while ransomware includes code that may encrypt files or lock down the computer system and demand money to release it. 

ERTC-specific scams also exist. These may arrive via text, email, phone calls promoting ERTC eligibility, or even via letters that look like official government correspondence. Beware of overly aggressive marketing, schemes that demand up-front payments, or companies offering instant eligibility answers.

Data Security Best Practices

The best way to safeguard sensitive data is to take proactive measures before anything happens. The following tips can help your organization strengthen its information security practices: 

1. Establish Internal Security Standards

Good security starts at the source: inside your company. Educate employees on typical scams, establish internet use guidelines, and encourage strong password practices. Take special care to protect sensitive data (including ERTC details) by instructing staff members to identify confidential information and by limiting who can access it. 

2. Make Use of Cybersecurity Technology

Your organization can take advantage of all kinds of digital security technologies on the market today. Using firewall security, encrypted WiFi networks, multi-factor authentication, and antivirus software programs can go a long way toward safeguarding your sensitive online data.

3. Stay on Top of Information Security

Having a company cybersecurity strategy is a good place to start, but data protection isn’t a one-and-done activity. You need to monitor for external cyber threats to your systems, regularly back up important digital information, and keep informed about new data security dangers and best practices.

Staying informed about ERTC requirements by working with a law firm with experience in ERTC claims can also help you avoid falling for tax credit scams.

Legal Help with ERTC Claims

ERTC sensitive data and cybersecurity are important considerations during the tax credit claims process. It is also crucial to understand ERTC eligibility and filing requirements. This can help you maximize your return and minimize the chance of penalties for incorrectly claimed credits.

For ERTC questions or assistance filing your claim, call a Dayes Law Firm ERC application and refund attorney at 800-503-2000.