Are All Small Businesses Eligible for ERTC? 

 January 7, 2024

By  Jace W Campbell, CPA

Small Businesses Eligible for ERTC

Let’s address the Primary Question: Are all small businesses eligible for ERTC? Well… the answer is not as straightforward as one might hope. The eligibility for the Employee Retention Tax Credit (ERTC) is determined by several criteria set forth by the IRS. According to information found on IRS.gov, the chief criterion is the existence of a “full or partial suspension of operations.” But, what does that truly mean? To put it simply, if your business was impacted by COVID-19 related orders or guidelines resulting in a decrease in your ability to conduct business as usual, you may be eligible..

However, each business’s circumstances are unique and should be carefully evaluated. That’s where we, as JWC ERTC Advisory CPA, come in… We can help you navigate these intricate regulations, providing you with a thorough assessment of your eligibility for the ERTC.

How Confident Are You In Your ERTC Eligibility?

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

The Ultimate Guide to ERTC

Before we delve deeper into specific conditions that could impact your eligibility, let’s take a moment to examine what exactly the ERTC is. Derived from our “Ultimate Guide to ERTC“, it is a refundable tax credit under the CARES Act designed to encourage businesses to keep employees on their payroll despite experiencing economic hardship related to COVID-19. To qualify, businesses must meet certain criteria… including experiencing a significant decline in gross receipts during a calendar quarter compared to 2019.

Now, one common query we encounter while assisting clients with ERTC is about qualifying wages. The answer? The IRS states that “Qualifying wages are based on the average number of a business’s employees in 2019.” Therefore… even if your business saw drastic fluctuations in staffing throughout 2020 due to the pandemic, your qualifying wage determination is based on your average staffing level from the preceding year.

Another frequent question is whether business owners can count their own wages for the credit. This aspect depends on how the business is structured… Sole proprietors, partners in a partnership, and 2% shareholders in an S-corporation aren’t able to claim their own wages. However, C-corporations and certain LLCs may be able to include the wages of owners in the calculation.

Also read: How do you apply for ERC?

Why Choose JWC ERTC Advisory?

Now you may be wondering… With all this complexity, how do I ensure that I am receiving accurate and comprehensive information? The answer is simple: find a trusted partner. We believe that JWC ERTC Advisory stands out in this respect. With a commitment to honesty, integrity, and clear communication, we aim to guide you through the ERTC process with precision and clarity.

We understand that trust is the most valuable commodity. It’s not just about providing a service; it’s about building relationships… guiding our clients past fear and uncertainty, towards informed decision-making. We believe that an informed client is a successful client…

In addition to guidance, we offer a rigorous review process for ERTC applications. If you have previously applied for ERTC but have concerns about your eligibility, JWC ERTC Advisory can provide an independent review of your case. This service ensures that you’ve correctly interpreted the guidelines and are rightfully claiming your credits.

Beware of ERTC Fraud

A final note to consider in your journey towards ERTC is the recent crackdown by the IRS on fraudulent ERC promoters. The IRS is stepping up its efforts to curb ERTC fraud… which makes it even more crucial to ensure your eligibility before claiming these credits.

Working with JWC ERTC Advisory, you are working with a team dedicated to upholding the highest standards of integrity and accuracy. We prioritize compliance with IRS regulations while ensuring that our clients receive all the credits they are entitled to. Ultimately, choosing us as your partner in ERTC eligibility and application not only alleviates fear and uncertainty, but it also sets you up for potential financial gain.

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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