How to Report Employee Retention Credit on 1120s? 

 October 9, 2023

By  Jace W Campbell, CPA

How to Report Employee Retention Credit on 1120s form

Understanding the concept of the Employee Retention Tax Credit (ERTC) is critical for every business owner and CPA, especially when figuring out how to report it on the 1120s form…The process can be intricate, but we aim to simplify it for you in this guide. Whether you are a newbie trying to get a grasp of ERTC or an experienced CPA seeking ways to better serve your clients, let’s delve into the essential information that will empower you…

What is the Employee Retention Tax Credit (ERTC)?

The Employee Retention Credit is a relief program offered by the government to support businesses during the challenging times of the pandemic… It’s a tax credit available for businesses that retained their employees during this period. However, explaining it fully would entail dozens of pages filled with dry and tedious text. So, instead, I’ll aim to break it down with enough detail so you can understand the gist.

Eligibility Criteria for ERTC

Almost every type of business and non-profit organization in America qualifies for Employee Retention Credits, provided they had W-2 employees on payroll during the pandemic and paid payroll taxes on these employees… This applies regardless of whether they faced closure or experienced a significant reduction in gross receipts due to COVID-19.

Reporting ERTC on 1120s

Navigating how exactly to report your Employee Retention Credit on your 1120s can be complex… Yet, understanding these nuances and how they apply uniquely to your situation is crucial as you are ultimately accountable for these tax credit claims. Though there might be several self-proclaimed “experts” offering advice on ERTC claims, gaining fundamental knowledge yourself will allow you to make informed decisions.

Beware Of Deceptive Practices

In recent times, there’s been an upswing in the number of firms using lies and deception to lure businesses into signing up for ERTC services… As a responsible business owner or CPA, it is essential to scrutinize such offers critically and understand that not all are genuine. It’s also worth noting the IRS has begun cracking down on ERC promoters involved in fraudulent activities.

Read more: Are These ERTC Cold Calls Just a Scam?

Why Choose JWC ERTC Advisory CPA

In these uncertain times, working with a trusted partner like JWC ERTC Advisory CPA can alleviate fear and provide assurance… We’re not just another ERC firm; our approach is grounded in ethics and efficiency. We offer an independent eligibility review for taxpayers who have previously filed for ERTC but have questions or skepticism about their eligibility. By partnering with us, you gain more than just tax advisory – you gain a reliable partner dedicated to ensuring your best interests are at heart.

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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