How Can S Corp Owners Claim ERTC? 

 October 29, 2023

By  Jace W Campbell, CPA

Employee Retention Credit For S Corp Owner

Navigating through tax regulations can be a complex task… especially for S Corp Owners looking to take advantage of the Employee Retention Tax Credit (ERTC). The ERTC was designed to offer financial relief to businesses that retained their employees during the pandemic. However, understanding how to claim it correctly is essential to avoid potential pitfalls…

Understanding ERTC: An Overview

The ERTC is not a recent development… In fact, it was created as part of the Coronavirus Aid, Relief, and Economic Security (CARES) Act. This act was designed to provide aid to businesses impacted by the pandemic. While it may seem straightforward, understanding who can claim the ERTC, how it is calculated, and how it impacts other forms of federal relief is crucial

Who can claim Employee Retention Tax Credits? Almost every type of business and non-profit organization in the US can claim the ERTC as long as they had W-2 employees on payroll during the pandemic and paid payroll taxes on those employees. This is one of the most common questions people ask when researching ERTC, but it’s only a part of the bigger picture…

Claiming ERTC as an S Corp Owner: A Closer Look

So, how can S Corp Owners claim ERTC? On the surface, it may seem like a labyrinth of tax language and legal jargon, but it’s not as daunting as it might sound. The key to unlocking the puzzle is understanding the qualifications stipulated in the CARES Act – like experiencing a significant decrease in gross receipts or being subjected to government orders that led to a partial or full suspension of your business operations – you are eligible to apply for ERTC.

Let’s take this step by step… You might have read about various firms offering easy ways to claim the ERTC, citing situations like supply chain disruptions or hiring difficulties due to the pandemic as eligible scenarios. While it’s true that these situations were commonplace during the pandemic, they’re not necessarily grounds for ERTC eligibility.

Understanding Your Responsibility

It’s easy to be swayed by these narratives… It’s tempting to simply check a box on a form indicating how your business was impacted by the pandemic and sit back, waiting for your refund check. But it’s essential to remember that claiming these tax credits isn’t just about ticking boxes and filling out forms.

Understanding these intricacies and how they apply to your unique situation is paramount. After all, you’re ultimately responsible for these tax credit claims. And this responsibility extends beyond just submitting the paperwork – it also involves defending your claim if the IRS chooses to audit your filings.

Also read: IRS Rules for the Employee Retention Credit

IRS Audits and Your Role

Imagine the scene… The IRS has selected your claim for an audit. They ask you how you determined that you qualified for ERTC, and you point them towards the firm you hired. That might seem like a solid plan now, but what happens if that firm’s interpretations of ERTC eligibility don’t align with those

ERTC and Tax Responsibility

There are numerous firms out there peddling misinformation about how ERTC works. Despite their marketing claims, it’s important to understand that your interests may not necessarily align with theirs… They might promise risk-free money or dangle expertise as bait, but as the IRS clearly stipulates – the taxpayer is always responsible for their own tax filings…

Avoiding ERTC Fraud: The Role of JWC ERTC Advisory CPA

The recent crackdown by the IRS on ERC promoters and the increasing efforts to curb ERTC fraud calls for caution. Engaging a reputable advisory firm such as JWC ERTC Advisory CPA can make a significant difference… As a licensed CPA firm, we not only guide you through the process of claiming your credits but also warn you about potential frauds.

Also read: How Do I Check the Status of My ERC Refund?

Why Choose JWC ERTC Advisory CPA?

Why engage JWC ERTC Advisory CPA? It’s simple… In an environment filled with fear and uncertainty, we offer assurance and potential gain. Whether you’re applying for ERTC for the first time or questioning your previous filings, our independent eligibility review can provide clarity…

Remember, making informed decisions about ERTC doesn’t just rest on understanding the basics of how it works, but also knowing who to trust in the process. With JWC ERTC Advisory CPA, you get more than just guidance – you gain a partner in navigating this journey.

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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