When Will the Employee Retention Credit Be Paid? 

 October 21, 2023

By  Jace W Campbell, CPA

When Will the Employee Retention Credit Be Paid

The Employee Retention Tax Credit (ERTC) is a government incentive aimed at helping businesses navigate through periods of financial turbulence. It is a refundable tax credit intended to support businesses that choose to retain their employees during challenging times. The ERTC was primarily instituted in response to the COVID-19 pandemic, recognizing the unprecedented economic hardships faced by many companies.

When Will the Employee Retention Credit Be Paid?

The IRS is currently under a moratorium on processing new claims for the Employee Retention Credit (ERC). This moratorium was announced in October 2023, and is expected to last through at least December 2023.

How Does One Qualify for the ERTC?

Qualifying for the Employee Retention Tax Credit (ERTC) can seem intricate, but essentially, it involves two main criteria. Firstly, your business must have experienced a significant disruption of operations due to governmental orders related to COVID-19… This does not merely refer to complete shutdowns; if your business had to significantly modify its operations in compliance with such orders, and these modifications resulted in more than a nominal impact on your business, you might be eligible… However, this is determined based on the unique facts and circumstances of each taxpayer. It’s crucial to assess whether these changes have impeded your ability to serve your customers at the same level as before the pandemic.

Secondly, there should be a substantial decline in gross receipts – typically more than 50% compared to the same quarter in 2019… This forms an important benchmark when qualifying for ERTC. Now, you might wonder about the specific time frames that determine this eligibility. The qualifying period for ERTC are those exact dates when your business meets either of these two criteria. If qualifying based on a significant decline in gross receipts, then all wages plus health insurance premiums paid during that entire quarter will be included.

However, if you’re qualifying due to full or partial suspension of operations, only those dates during which governmental orders were effective and caused more than nominal impact will count as the qualified period… If either condition ceases to hold true during a particular period, then that period will no longer be considered eligible.

One frequently asked question is whether businesses that received Paycheck Protection Program (PPP) funds can claim ERTC. The answer is yes; however, it’s important to note that double-dipping is not allowed… You cannot use the same wages for both PPP loan forgiveness and ERTC claims.

Understanding these nuances can feel overwhelming… Yet armed with accurate information about what it entails and how one qualifies, this process can become significantly less daunting. Remember, each business situation is unique and thus should be evaluated on a case-by-case basis.

Also read: What are IRS Rules for the Employee Retention Credit?

Deceptive Tactics Used by Some Firms

Unfortunately, not all information about the ERTC is presented honestly and ethically. Some firms resort to deceptive tactics to entice business owners into signing up for their services… Be aware that you, as the taxpayer, bear ultimate responsibility for any claim made towards this credit.

Deciding If You Should Apply

Determining whether or not you should apply for the ERTC can seem like an uphill task. The complexity and nuances involved might feel overwhelming, but with the right information and understanding of how one qualifies, this decision-making process can be streamlined.

In fact, if you haven’t yet chosen your ERTC firm, we invite you to explore an engagement with us at JWC ERTC Advisory CPA. Our primary goal is to help you navigate through this complex journey smoothly… We do this by providing a quick assessment that lets you know if it’s worth your time and effort to pursue further or if you don’t qualify, saving you from unnecessary hassle.

To ensure transparency and efficiency in this process, we’ve developed the first ever “ERTC Online Qualification Tool“. This unique tool differs from most conventional ERTC calculators which are often nothing more than contact forms disguised as useful tools. These generic forms typically only gather basic lead generation questions – name, number of employees, industry – without offering any concrete insights on whether or not you qualify for ERTC.

Our tool is designed to provide meaningful insights rather than simply serving as a gateway for incessant phone calls and emails. It’s our belief that your time is valuable and shouldn’t be wasted on irrelevant communications.

Beyond this initial qualification tool, we also offer an Enhanced Restrictions Survey document. This comprehensive document serves multiple purposes: It educates about the criteria for qualifying based on “full or partial suspension of operations”; it provides common reasons clients believe they qualify along with illustrative examples; and most importantly, it allows you to present your specific business facts to support your qualification.

Some may find this document lengthy or tedious. However, remember that providing such extensive documentation is mandatory – either now or when facing an IRS audit. And trust us when we say that it’s better done now… because retrospective documentation during an IRS audit could be too late.

In summary, deciding to apply for the ERTC can seem daunting… However, with JWC ERTC Advisory CPA on your side, equipped with innovative tools and resources, this process becomes much simpler and more transparent.

JWC ERTC Advisory CPA: Your Trusted Guide

As an esteemed authority on ERTC matters, we at JWC ERTC Advisory CPA are dedicated to providing comprehensive guidance and assistance in navigating through this complex process. With stringent IRS crackdowns on ERTC fraud underway… our commitment lies in providing honest and ethical advice tailored specifically towards your unique circumstances.

Why Choose JWC ERTC Advisory CPA?

Choosing JWC ERTC Advisory CPA means working with professionals who understand the nuances of ERTC. We offer an independent eligibility review for those who have previously filed for the credit and are unsure or skeptical about their eligibility… By partnering with us, you can alleviate any fears and uncertainties, knowing that you’re on a secure path towards achieving potential gains from this tax credit. In summary, the Employee Retention Tax Credit (ERTC) can be a significant lifeline for businesses experiencing economic hardship. However, it’s crucial to navigate this process with care.. by ensuring you have accurate information and trusted guidance to make the right decisions for your business.

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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