How to claim ERTC with ADP (or Run by ADP) 

 October 9, 2023

By  Jace W Campbell, CPA

How to claim ERTC with ADP (or Run by ADP)

The Employee Retention Credit (ERC) a powerful tax incentive that can potentially save businesses thousands of dollars. But how does it work, and who is eligible? This comprehensive guide will walk you through the ins and outs of the ERC, dispelling common misconceptions and helping you make an informed decision for your business.

Unpacking the Employee Retention Credit (ERC)

Introduced by the IRS as part of the CARES Act in response to the COVID-19 pandemic, the ERC is a fully refundable tax credit designed to encourage businesses to keep employees on their payroll. even if they’re unable to work due to COVID-19-related circumstances. However, it’s worth noting that navigating the intricacies of this tax credit can be complex.

Understanding Your Eligibility

Who exactly qualifies for this lucrative tax credit? First and foremost, businesses must have experienced either a complete or partial suspension of their operations due to government-mandated COVID-19 shutdown orders… Alternatively, businesses may also qualify if they’ve seen a significant drop in gross receipts. Determining your eligibility isn’t always straightforward though – many businesses have found it beneficial to seek expert advice in this area.

Also read: IRS Rules for the Employee Retention Credit

Claiming Your Employee Retention Credit with ADP

When it comes to claiming the Employee Retention Credit (ERC), many businesses are turning to ADP. As a trusted name in human resources management software, ADP has the tools and resources to simplify and expedite the process… Yet, while leveraging ADP’s capabilities can indeed smooth out some of the wrinkles, there are complexities within the ERC claim process that require special attention.

To be specific, ADP facilitates a streamlined application process by providing an integrated platform where businesses can track their employees’ hours worked, wages paid, and other relevant payroll data… These elements are crucial in determining the amount of credit that a business can claim. However, merely collecting and submitting this data isn’t always enough. The IRS guidelines for ERC claims involve intricate details relating to employee eligibility, qualifying quarters for maximum credit, interplay with other COVID-related benefits like PPP loans etc…

This is where specialist advice becomes invaluable. Navigating these complexities requires not only a deep understanding of tax laws but also an ability to interpret them in relation to individual business circumstances… Missteps or oversights could lead to underutilization of the credit or worse yet – run-ins with IRS audits. Hence, while ADP provides an excellent starting point for ERC claims, pairing it with expert advisory can help businesses fully capitalize on this opportunity and avoid potential pitfalls.

Navigating Challenges and Common Misconceptions

While beneficial, there are several misconceptions surrounding the ERC. Some believe it only applies to large corporations… others think they automatically qualify without meeting specific criteria. Moreover, recent IRS crackdowns on fraudulent ERC claims have made navigating these waters even more challenging.

Choosing the Right Advisory: JWC ERTC Advisory CPA

In light of these complexities, choosing the right advisory becomes paramount. Businesses need an advisor who understands not only the nuances of ERC but also the individual circumstances of their operations… Enter JWC ERTC Advisory CPA. We understand that each business is unique and we tailor our advice accordingly. Moreover, our deep understanding of ERC regulations positions us well to help businesses maximize their tax credits, all while ensuring compliance with IRS guidelines.

In times characterized by fear and uncertainty, making informed decisions is key. Our team can provide independent eligibility reviews for taxpayers who have previously filed for ERC but have questions or are skeptical about their eligibility… By partnering with us, you’ll gain not only financial benefits but also peace of mind.

Through this guide, we hope to have shed some light on the complexities surrounding employee retention credit ADP and related issues. As you consider your next steps, remember that expert guidance can make a world of difference… So why not take your next step of discovery with JWC ERTC Advisory CPA? Your bottom line might thank you for it.

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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