Employee Retention Credit: What Is It? 

 October 9, 2023

By  Jace W Campbell, CPA

Employee Retention Credit: What Is It?

The Employee Retention Tax Credit (ERTC) is a significant element of financial relief, designed with businesses in mind during times of economic hardship. At its core, it is a refundable tax credit… specifically targeted at those who chose to retain their employees despite financially turbulent times. The primary motivation for this credit was recognizing and alleviating the struggles many businesses faced during exceptional circumstances like the COVID-19 pandemic…

How does one qualify for the Employee Retention Tax Credit?

Qualifying for the Employee Retention Tax Credit (ERTC) can indeed appear daunting at first glance… However, it is essential to unravel this process to fully exploit its potential benefits. Not only should businesses comprehend what ERTC is, but they should also familiarize themselves with how qualification works…

The Pathway to Qualification

The journey towards qualifying for ERTC begins with a crucial step – Eligibility Confirmation. Here, businesses engage in comprehensive consultations with legal and financial experts to assess their unique circumstances… In doing so, they explore the multifaceted aspects of ERTC and ascertain their qualification status. This vital stage ensures that no resources are expended prematurely…

Following confirmation of eligibility, businesses transition to Documentation Collection, the second step. At this stage, they provide necessary paperwork required for accurate ERTC calculations. By ensuring legitimate qualification beforehand, businesses safeguard their confidential information from unnecessary exposure.

Imagine these steps as lanes on a streamlined expressway called The Direct Check Expressway – an avenue designed for efficiency and trust. Much like this metaphorical road bypasses traditional lockboxes and delivers directly to your doorstep, our ERTC qualification process eliminates unnecessary bureaucracy and provides direct results.

Also read: How is Employee Retention Credit Reported on Tax Returns?

Deciding Your Next Move

Understanding whether you qualify for these credits or not is pivotal as it determines your subsequent course of action… If you recognize that you may legitimately qualify for these credits and wish to delve deeper into your situation, we’re ready to assist. Conversely, if you find that you don’t qualify, it saves you precious time and resources from erroneously claiming ERC through another firm and potentially facing IRS penalties in the future…

Dive Deeper into ERTC

For a more extensive understanding of the ERTC process including a closer look at key aspects such as defining the Full or Partial Suspension of Operations among other topics, our video consultation serves as a comprehensive guide… Though initially intended as a 10-minute overview, it extends to 25 minutes because of our passionate approach in explaining these credits…

In essence, understanding how one qualifies for the Employee Retention Tax Credit is an intricate yet vital process. By unraveling its complexities, businesses can leverage this financial relief instrument to its maximum potential… And remember, we’re here to help navigate through every step of this journey.

Navigating Misconceptions about ERTC

Navigating the maze of misinformation surrounding the Employee Retention Tax Credit (ERTC) can be challenging… Various firms employ misconceptions and deceptions to lure business owners into signing up for their services. Hence, it’s crucial that taxpayers stay well-informed about these tactics… This knowledge is key in making sound decisions regarding any assistance they might need when claiming these credits.

Also read: Is the Employee Retention Tax Credit a Real Thing?

The Misalignment of Interests

There are firms out there making dubious claims about their expertise in handling ERTC. They dangle the tempting carrot of “free” money with no risk, seemingly a perfect proposition… But here lies the trap. Despite their convincing pitches and promises, remember one fundamental truth — your interests may not align with theirs…

The Internal Revenue Service (IRS) has made it abundantly clear that the taxpayer is always responsible for their own tax filings. Therefore, businesses must tread carefully while dealing with firms peddling half-truths about ERTC… As a licensed CPA owner registered with the State Board of Accountancy in Texas, I am duty-bound to highlight this rampant fraud in my industry.

The Myths and Deceptions

Many vendors make grandiose boasts of having former IRS commissioners on their Board of Advisors or bragging about a 100% audit success rate. Some even resort to displaying big brand names across their ads. Yet, we all know that at this point, prior to audits being in full swing, these claims hold little weight.

A common myth you might encounter from vendors trying to win your business is that “almost everyone qualifies”. Many ERTC firms rushed into this line of work over the past year employ this phrase or similar hooks… Their goal remains simple — sign you up, get your refunds, collect their fees, and disappear long before IRS audits commence.

For instance, one prevalent myth circulating is: “If you claimed PPP, then you can now claim ERTC”. Such generalized statements only serve to muddy the waters.

Unmasking the Truth

Understanding the basics of ERTC and its origins is crucial for decision-making. Likewise, knowing how your business qualifies for these credits… is equally important. It’s also key to keep an eye out for common misconceptions and deceptive tactics used by certain firms. In doing so, you safeguard your interests while navigating the path towards claiming these valuable credits…

Engaging with JWC ERTC Advisory CPA

Given the complexity of understanding and applying for the ERTC, businesses may find themselves in need of expert guidance… This is where JWC ERTC Advisory CPA steps in. With our wealth of experience and knowledge in handling such claims, we provide an invaluable service tailored specifically for your needs.

It’s worth noting that even if you’ve previously filed for ERTC but have lingering questions or doubts about your eligibility, we at JWC ERTC Advisory CPA offer independent eligibility reviews… This gives you peace of mind and assurance in your pursuit of these credits.

Addressing IRS Crackdowns on ERC Promoters

Recently, there has been an increased focus by the IRS on cracking down on ERC promoters… This is part of a broader effort to curb ERTC fraud and ensure that the benefits reach those who truly need them.

It’s in this context that we at JWC ERTC Advisory CPA emphasize our difference from other ERC firms. Not only do we prioritize your business needs, but we also adhere strictly to ethical practices and standards… ensuring that your claim is legitimate and compliant with all regulations.

The Benefits of Partnering with JWC ERTC Advisory

Working with us provides distinct advantages in navigating the complexities of claiming ERTC. By addressing the dimensions of fear, uncertainty, and gain, we ensure you feel confident in pursuing these credits…

Fear and uncertainty can be significant barriers for businesses when it comes to applying for credits like the ERTC. However, our expertise helps mitigate these concerns… providing clarity and reassurance throughout the process.

Ultimately, our goal at JWC ERTC Advisory CPA is not only to guide you through claiming these credits but also to equip you with knowledge about the process… So whether you’re a seasoned business owner or a CPA looking for efficient ways to serve your clients, our comprehensive guide can serve as an invaluable resource.

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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