Understanding the Employee Retention Credit (ERTC) Deadline in 2023 

 January 8, 2024

By  Jace W Campbell, CPA

ERTC Deadline in 2023

When it comes to claiming your tax credits, having a clear understanding of the Employee Retention Credit (ERTC) is crucial. This federal program, though often described as intricate and tedious, could potentially result in substantial savings for your business or non-profit organization… if navigated correctly. It’s important to understand these intricacies as they apply to your unique situation. Why? Because, ultimately, you are responsible for these tax credit claims.

What is the Employee Retention Credit?

The Employee Retention Credit… is a complex program that could consume countless pages in explanation. To simplify, it is a federal initiative designed to provide financial relief for businesses and non-profit organizations that retained W-2 employees during the COVID-19 pandemic. While I will provide a detailed overview, it’s crucial not to use this information as a substitute for professional advice…but rather as a springboard to dig deeper into understanding the ERTC and how it can benefit your business.

How Confident Are You In Your ERTC Eligibility?

Watch Our Video Explaining the Fraud We’ve Seen From National ERC Promoters

Expanded Eligibility for the Employee Retention Credit

In the face of ongoing economic challenges, the Employee Retention Credit (ERTC) can be a vital lifeline for many businesses and non-profit organizations. However, claiming these tax credits isn’t as simple as meeting the basic requirements of having had W-2 employees on payroll during the pandemic and having paid payroll taxes on those employees. Understanding the intricacies of ERTC eligibility is paramount. While there are numerous “experts” offering advice on ERTC claims, understanding these complexities will empower you to make informed decisions about your unique situation…After all, you are ultimately responsible for your own tax credit claims.

The Qualifying Period for Employee Retention Tax Credit

The key to unlocking the ERTC lies in the qualifying period – a specific span during which your business meets one or two criteria: a significant decline in gross receipts, or a full or partial suspension of operations due to government-mandated shutdowns. These periods are not uniform for all businesses… They rely on specific conditions unique to your operations. For instance, if you’re qualifying for a quarter due to a significant decline in gross receipts, then all wages plus health insurance premiums paid throughout that entire quarter could be included in your claim.

But what if you’re qualifying due to a full or partial suspension of operations? In that case, you only qualify for those dates when the governmental order was in effect and you were more than nominally impacted. Whenever either of these conditions is no longer true, you are no longer in the qualified period.

ERTC and PPP Interactions

When it comes to federal relief programs, overlapping benefits are often an area of concern for businesses. If you’ve received Paycheck Protection Program (PPP) loans, you might be wondering if you can still claim the ERTC. The answer is nuanced and largely depends on specific parameters… It’s a delicate balancing act that involves strategic planning and careful documentation to ensure compliance with federal guidelines. This interplay between ERTC and PPP underscores the importance of seeking professional guidance when navigating these complex federal programs.

Also read: What is The Difference Between PPP and ERTC?

Beware of ERTC Misinformation

In your quest to understand the ERTC, you may encounter various firms promising easy access to these credits. However, it’s crucial to approach such promises with skepticism… After all, knowledge is power when it comes to understanding and leveraging programs like the ERTC. Always remember – you are the final gatekeeper and decision-maker when it comes to your tax credit claims.

Navigating the ERTC with JWC ERTC Advisory CPA

In the wake of increased scrutiny from the IRS on ERC promoters and ongoing efforts to curb ERTC fraud, it becomes increasingly clear why you should engage a reputable firm like JWC ERTC Advisory CPA. With an extensive understanding of ERTC regulations, our team can guide you through the complex process… ensuring that your claims are both valid and maximized.

Why Choose JWC ERTC Advisory CPA

In these uncertain times, having an experienced advisor by your side can make all the difference. At JWC ERTC Advisory CPA, we provide an independent eligibility review for taxpayers who have previously filed for ERTC but have questions or are skeptical of their eligibility for the credits. Our goal is to ensure you feel confident in your understanding of the ERTC…and in the steps you take towards claiming 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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