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How is Employee Retention Credit Reported on Tax Returns? 

 October 25, 2023

By  Jace W Campbell, CPA

How is Employee Retention Credit Reported on Tax Returns

The Employee Retention Credit (ERTC) is a topic that every responsible business owner must familiarize themselves with… especially in these uncertain times. If you’ve landed on this blog post, it’s safe to assume that you have a vested interest in knowing how is employee retention credit reported on tax return.

Understanding the Employee Retention Credit

Before we dive into reporting the ERTC on your tax return, let’s ensure we’re all on the same page about what exactly the ERTC is… To put it succinctly, the Employee Retention Tax Credit (ERTC) is a refundable tax credit designed for businesses who retain their employees during times of financial difficulty.

Qualifying for ERTC: A Deeper Look

Understanding the Employee Retention Tax Credit (ERTC) and qualifying for it are two different things. The process of qualification can be intricate, necessitating meticulous attention to details and accurate application of rules… But fret not, this section is here to guide you through it.

An important point I’d like to invite you to consider is the role of an ERTC firm in helping you determine your qualification status… Many businesses turn to such firms for guidance, given the complexities involved. However, choosing your ERTC advisory firm should not be a rushed decision.

At JWC ERTC Advisory, we prioritize creating a smooth path for you to quickly understand whether pursuing the ERTC is worth your time and effort. Our unique “ERTC Online Qualification Tool” stands testament to this commitment. Unlike many so-called ‘fast-qualification’ tools that simply act as contact forms triggering incessant phone calls and emails, our tool provides real value by giving concrete answers about your potential qualification for the ERTC.

The main goal of this blog post and our services at JWC ERTC Advisory is to expedite your exploration of ERTC. After going through this information, there are typically two paths:

1. You understand why you may legitimately qualify for these credits and are ready to engage in a deeper discussion with our team about your situation.

2. You recognize that you do not qualify. In this case, we’ve saved you time and effort from unnecessary phone calls or worse – erroneously claiming ERC with another firm only to face penalties from the IRS later on.

For more detailed information about the ERTC, we offer an intensive video consultation – think of it as a Crash Course in ERTC for business owners… Initially planned as a 10-minute briefing, my passion for explaining these credits resulted in a comprehensive 25-minute deep-dive into the world of ERTCs. This session is especially beneficial for understanding the complex concept of “Full or Partial Suspension of Operations” – a critical determinant for ERTC eligibility.

In conclusion, qualifying for ERTC requires an intricate understanding of many factors… However, with the right guidance and tools, it can be a streamlined process. Whether you qualify or not, knowing is half the battle won – and we at JWC ERTC Advisory are here to help you fight that battle confidently and knowledgeably.

Deceptions and Misconceptions About ERTC

The realm of ERTCs isn’t free from falsehoods and deceptive practices either… As with any financial matter, it’s crucial to remain vigilant and well-informed about potential lies and deceptions employed by firms enticing businesses to sign up for their services.

Also read: Who Gets the Employee Retention Credit: Employers or Employees?

Reporting ERTC on Your Tax Return: What You Need to Know

When it comes to the matter of how is employee retention credit reported on tax return, we’re stepping into a complex realm that necessitates a clear understanding… But before we delve into the details, I’d like to emphasize an important point: You are ultimately responsible for these tax credit claims. Don’t let any so-called ERTC “expert” convince you otherwise.

While you may have already gained varying degrees of knowledge about the ERTC—perhaps through some independent Googling or as a CPA looking for the best ways to serve your clients—it’s crucial to fully understand how these credits work and how they should be reported on your tax return.

First, let’s address the basic question – what exactly is the Employee Retention Credit? The ERTC is a refundable tax credit for employers, both businesses and non-profit organizations, who retained their W-2 employees on payroll during certain periods of economic hardship caused by COVID-19. The intricacies of this program could fill dozens of pages with complex information – so, instead, I’ll provide an overview that’s detailed enough for you to grasp its core principles…

The key thing about reporting ERTCs on your tax return is knowing if you qualify. Most types of businesses and non-profit organizations in the US can claim the Employee Retention Credits as long as they had W-2 employees on payroll during specified periods and paid payroll taxes on those employees. Understanding these qualification criteria—and how they apply to your unique situation—is paramount.

Unfortunately, not all firms offering advice about claiming these credits are truthful… Some may use lies and deceptions just to entice you to sign up for their services. So beware! Always remember: Knowledge is power when it comes to understanding and leveraging programs like the ERTC.

To report your qualified wages for ERTC on your federal employment tax return (Form 941), you’ll need to complete lines 11c through 11g and line 13d… Filling out these sections will involve calculating your total qualified wages, healthcare expenses, and the credit amount for which you’re eligible.

As a responsible business owner or CPA looking to serve your clients efficiently and ethically, gaining a solid understanding of how is employee retention credit reported on tax return can give you an advantage. This knowledge will enable you to navigate the process smoothly and confidently, ensuring that you or your clients take full advantage of the ERTC program while staying within the bounds of legality.

Also read: How to Record Employee Retention Credit in QuickBooks?

Why Choose JWC ERTC Advisory CPA?

Finally, we arrive at an equally essential part of our discussion – choosing an advisory service to guide you through claiming your credits… This decision can make or break your experience with applying for and receiving your rightfully earned credits.

IRS Crackdown On ERC Promoters

As a responsible business owner or CPA looking to most efficiently and ethically serve your clients, you must be aware of the recent crackdown by the IRS on ERC promoters… The aim is to curb ERTC fraud, a measure that underscores the importance of working with an advisory firm like JWC ERTC Advisory CPA.

Benefits of Working With JWC ERTC Advisory CPA

Here’s where the dimensions of fear, uncertainty, and gain come into play… As professionals in this field, we at JWC ERTC Advisory understand these emotions and cater to them by offering our expertise, transparency, and a commitment to your business’s financial well-being.

This post aims to educate prospective clients about the Employee Retention Tax Credit, providing context for those who are skeptical or uncertain about their eligibility for credits. However, do not let this keep you from absorbing every bit of information available. After all, you are ultimately responsible for your tax credit claims – so why not ensure you’re making informed decisions?

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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