Can the Self-Employed Claim ERTC? 

 October 6, 2023

By  Jace W Campbell, CPA

Can the Self-Employed Claim ERTC

The Employee Retention Credit… it’s a tax provision aimed at encouraging employers to keep employees on their payroll during periods of economic downturn. Introduced as part of the CARES Act in 2020, it provides a refundable tax credit against certain employment taxes equal to 50 percent of qualified wages an eligible employer pays to employees after March 12, 2020, and before January 1, 2021.

However… there’s more to it than that simple explanation. The program has multiple intricacies that could fill volumes of tedious text. Instead, I’ll focus on providing a thorough yet digestible understanding.

Also read: Can Churches Claim the Employee Retention Credit?

Qualifying for the ERTC as a self-employed individual

Now, you may be wondering… how does one qualify for this credit? More specifically, can a self-employed individual qualify for the ERTC? The answer is a bit complex.

Self-employed individuals generally are not considered “employers” under tax law and hence may not be eligible for the ERTC. However, they might qualify if they have other employees on their payroll. According to IRS guidelines… if a self-employed person also has employees and meets other eligibility criteria related to business operations and revenue loss due to COVID-19 restrictions or slowdowns, then they could potentially claim this credit.

Unraveling Deceptive Practices Around ERTC

Navigating through the intricacies of tax laws can be daunting enough without misinformation muddying the waters…

Unfortunately, some firms resort to spreading lies and deceptions about the ERTC in order to lure prospective clients into signing up for their services. These deceptive practices can range from promising guaranteed credits despite ineligibility or suggesting that they can circumvent IRS regulations…

To protect yourself from falling into these traps… it’s essential to remain informed about the ERTC and its qualifying criteria. And don’t forget… you are ultimately responsible for any tax credit claims made on your behalf.

How Can JWC ERTC Advisory CPA Help?

Now that you understand the basics of employee retention credit and the potential pitfalls, let’s consider how an expert like JWC ERTC Advisory CPA can assist you…

In a world filled with uncertainty, misinformation, and complex tax laws, JWC provides a beacon of clarity. Their expertise extends far beyond just understanding tax codes – they can guide you through the intricacies of eligibility criteria, help identify potential credits and prepare necessary documentation for filing…

Importantly… they conduct independent eligibility reviews for taxpayers who have previously filed for ERTC but harbor doubts or questions about their claims.

Also read: Can Nonprofits Claim the ERTC?

The IRS Crackdown on ERTC Fraud

Recent news from authoritative sources like IRS.gov and Treasury.gov has shed light on a growing concern – fraud related to the Employee Retention Credit…

The IRS is tightening its grip on ERC promoters who misuse the program for financial gain. It has become increasingly vigilant in curbing ERTC fraud, putting both fraudulent promoters and uninformed taxpayers at risk of penalties.

By engaging with a reputable firm like JWC ERTC Advisory CPA, not only do you gain access to comprehensive knowledge about the ERTC but also safeguard yourself against potential legal repercussions.Remember… knowledge is power when it comes to navigating complex tax regulations. So whether you’re just beginning your research or already deep into understanding the specifics of ERTC, this guide aims to offer valuable insight to support your journey. And should you decide to explore this further..JWC ERTC Advisory CPA stands ready to assist.

Jace W Campbell, CPA

Jace founded JWC ERTC Advisory CPA in March 2021 as the nation's first and only public accounting firm focused solely on ERC . . . and nothing else. He has personally signed over 9,000 ERTC claims and is proud to be executing these claims conservatively, and how intended by Congress.

He has a passion for educating clients so they can make the best decision for themselves.  If you read articles and watch videos that Jace produced in 2021, his approach is the same now as it was then.

While other firms pivot their messaging to comply with new IRS guidance, Jace continues preaching the same conservative principles that have helped clients recover hundreds of millions . . . while sleeping easy at night.

related posts:

Can You Claim Employee Retention Credit in 2023?

Can You Claim the Employee Retention Credit in 2022?

Employee Retention Credit Scams: What You Need to Know

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