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Don't Make These Mistakes When Claiming ERTC Through ADP®

Employees Claimed

3,000+ employees

Credits Computed

$25,000,000+

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ADP® Continues To Cost Clients Money with ERTC Mistakes

First let me clear, we are not trying to bash ADP. They are an excellent payroll service provider and alleviate payroll stress for tens (if not  hundreds) of thousands of employers across the country.

However, in their effort to automate the ERTC process for their clients, they are misapplying the legislation and costing you money.

Let me explain . . .

ADP explains to you that if your revenue is down by 20% in any quarter of 2021 vs the same quarter in 2019, then you are eligible for Employee Retention Tax Credits in that quarter. They ask you to confirm your eligibility and then they can apply for credits equal to 70% of your wages paid in that quarter.

Furthermore, they ask you to tell them when you are using Payroll Protection Program (PPP) funds. If you tell them you are using PPP funds beginning on February 15th, then they will turn off your ERTC claims until those funds are "exhausted".

Coffee and Calculator

And this is where it all goes wrong . . .

Ultimately, this leads to one of three mistakes:

  1. 1
    Over-Claim: The owner of this business has an interest in other businesses and the proper aggregation rules were not applied in determining eligibility. If you're claiming credits that you are not eligible for . . . see: Penalties & Interest.
  2. 2
    Under-Claim: While you are not allowed to "double-dip" with PPP Funds, flipping a switch off & on does not maximize your eligible ERTC qualifying wages. We should be breaking down qualifying wages on a per employeeper day basis, and ensuring we are utilizing PPP funds to their maximize while also freeing other wages to be utilized for ERTC.
  3. 3
    Over- or Under-Claim: ADP (and to be fair, they aren't the only one) is basing this 70% off of when wages are paid . . . but that is NOT how ERTC defines qualifying wages. Qualifying wages are based on when wages are earned. If you pay someone on July 5th, for a pay period that includes June - then wages on that July 5th paycheck should be ERTC qualifying wages for Q2.

    Based on how ADP executes this, it could mean that you are over- or under-claiming credits at the beginning or end of a qualifying period. Either way - it is costing you money.
Calculating

And Let's Not Forget About Audits

In the spirit of candor, ADP is likely executing the ERTC credits in this way because it is the safest method (for them).

It certainly doens't maximize your claims, but you also can't say "you guys left me to fend for myself when the tax man cometh".

Because look . . . it's easy for you to prove that you did not double-dip ERTC qualifying wages with wages already paid with PPP funds if ADP has not claimed ERTC for any of the period that you said you were using PPP funds.

Because of how this is being explained, many clients are telling us "I used my PPP funds during these 5 weeks of April so I could claim ERTC the rest of the quarter."

But these are fungible dollars.

The allocation of PPP usage can be documented for any wages paid during that 24-week Covered Period. To not do so is simply leaving money on the table.

If you want to MAXIMIZE your Employee Retention Tax Credits, while staying compliant and well-documented in the event of an audit . . . I invite you to see what our firm has to offer.  ERTC's are literally all that we do - and we do it quite well.

Why Choose JWC?

  • Guaranteed to Maximize Your Refundable Credits
  • So Easy That Your Entire Commitment is 15 Minutes
  • No Upfront Fees - We Don't Get Paid, Till You Get Paid
  • Audit-Proof Documentation for IRS Support 
  • No Other CPA Firm Specializes Solely in Employee Retention Credits 

You won't find us preparing income taxes, compiling financial statements or providing attestation services of any kind.

Your current CPA is fully capable of executing those things wonderfully.

When you engage us, rest assured that you've hired the best CPA Firm to lock in this one-time opportunity to claim your unclaimed stimulus money.

TimeSheets

Learn How Dr. Henry Claimed An Additional $102,250 In Federal Stimulus Dollars

Having already received $123,876 from PPP Loans, Dr. Henry thought he had tapped out all the federal stimulus.

But we found another $102,250 in unclaimed funds that are his to spend however he likes.

Payroll . . . PPE . . . real estate . . . cyptocurrency . . . whatever he wants.
This is not tied to future payroll expenditures.

Download this Special Report to learn how every business owner can quickly claim thousands more in Employee Retention Tax Credits - and get a nice payday in the mail courtesy of the U.S. Treasury.

Frequent Questions

This seems too good to be true . . . can you explain this in more detail?

You're asking a CPA to explain something in more detail? That's dangerous.

Just download this Special Report.

In it we explain:

  • how this new Stimulus Money came to be;
  • why every dental practice owner qualifies for a refund; and,
  • show an example of Dr. Henry who got back over $100k after already receiving two PPP loans.

How much can I expect to get back?

Big picture answer: the American Rescue Plan Act of 2021 (signed March 11, 2021) authorizes up to $33,000 in refunds per employee, but that amount varies substantially based on no less than a dozen factors - timing of revenue declines, receipt of PPP loans & forgiveness, turnover of employees, etc etc.

Realistically, there is no reasonable answer for how much you can expect back until we run a few numbers. We've helped some clients get back $2,000 per employee, while other businesses are expecting the full $33,000 per employee.

If you would like a ballpark estimate, check out our ERTC Calulator. It is the most accurate tax credit estimator available online right now. We've seen other tools that ask just for # of employees, average wages per employee, and PPP loan amounts. If you come across these, BUYER BEWARE: these high level inputs will result in an inaccurate estimate that may greatly over- or under-estimate your refund.

For our tool, you'll need more detailed information such as quarterly revenue back to Q1 2019, headcount by quarter, and W-3 wages paid for 2020.

Want the simplest answer? Just call us at (512) 790-7880 and speak with a CPA for a no-cost assessment of your situation.

How do I get started?

Since maximizing your Employee Retention Tax Credits is all we do, we've made this incredibly easy to start. In fact, we've streamlined this process and will only require about 15 minutes of your time - from start to finish.

  1. Jump on the phone so we can answer any questions and get you an engagement letter.
  2. Connect us with your team members who can provide us payroll reports and quarterly filings.
  3. And we'll take it from there. Within days you'll receive an Executive Summary and the amended Federal Returns to sign.

It really is that simple.

How much does this cost?

This costs you nothing out of pocket.

Our fees are based on a percentage of what we recover for you . . . and you don't even pay us until you get a refund check from the Department of Treasury.

(Did I mention how good it feels cashing a check from the Treasury that is not a result of you overpaying income taxes last year?)

Why shouldn't I let my payroll service handle this?

Your Payroll Service does an excellent job of executing the fundamentals of paying your employees, paying your employment taxes and filing your quarterly reports.

But computing your ERTC credits requires visibility into your P&L and PPP forgiveness applications. Not only that, but the complex requirements around eligibility and allocating ERTC credits at the employee-level while accounting for annual and quarterly qualifying wage caps and . . . well, you can probably tell why Payroll Services are not offering to do all of this for you.

The Payroll Services that we’ve worked with so far are happy to provide the payroll registers that we need to perform the allocations. And they are happy to file the Amended Form 941-X with the IRS on our client’s behalf.

But that’s the extent of it.

In fact, most wise Payroll Services are asking clients to sign an indemnification waiver before submitting a Form 941-X because the Payroll Service can take no responsibility for the accuracy of the ERTC credits you are claiming.

For them to involve themselves in the intricacies of this calculation, it is a liability and beyond their scope of services.

Why can't my tax accountant handle this?

You don't see a general surgeon for a heart transplant.

Even though a general surgeon is technically licensed to perform a heart transplant - when you need the job done right the first time, by someone who is experience and has focused their training on the most important thing for you in that moment . . . you see a cardiothoracic surgeon.

When you need income tax return preparation, you see a CPA who is experienced and focused their continuing education on income taxes.

When you need to maximize your Employee Retention Tax Credits related to COVID stimulusare both licensed to they are Cardiothoracic surgeons specialize in heart transpGP's, just because your dental license permits you to offer orthodontics doesn't mean you should figure out how to treatment plan orthodontics in your spare time. And especially not when it is the only time you'll ever do it. And . . . "spare time" . . . really? Who has that?

The same can be said for the CPA that handles your income taxes. He or she most likely only prepares your Federal and State Income Tax Returns. However, ERTC credits are claimed against Employment Taxes on Form 941, which is often handled by your payroll service.

The complexity of the ERTC program is a beast unto itself and every tax accountant we’ve talked to has said they are focused on income taxes and "they'll figure this out later".

Let's face it, your CPA is already in a crunch for time getting returns prepared. They are short-staffed (like most businesses) and it will be many months before they have time to "figure this out".

Preserve your relationship with your CPA, avoid putting them in the awkward position of "is it done yet?" and let our ERTC experts get the job done right the first time, and quickly.