Who Gets the Employee Retention Credit: Employers or Employees? 

 October 23, 2023

By  Jace W Campbell, CPA

Who Gets the Employee Retention Credit

There’s a particular question that seems to constantly hang in the air when it comes to the Employee Retention Credit (ERC).Who is actually eligible to claim it? Before we dive into that, it’s essential to understand what exactly the ERC is. The Employee Retention Credit is a relief effort program with many intricate facets, all of which would take numerous pages to fully explore…And let’s be honest, it would make for quite the dry read. So, in an attempt to spare you from slogging through countless lines of mind-numbing text, I’ll aim to break it down in a simple yet informative manner…Enough for you to get the gist of it.

Eligibility Criteria for Employee Retention Credit

So, who exactly qualifies for the ERC? The answer is clear cut…almost every type of business and non-profit organization in the United States. This applies as long as these organizations had W-2 employees on their payroll during the pandemic period and paid payroll taxes on those employees. That sounds straightforward enough, right? But let’s delve a little deeper.

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

Qualification for the Employee Retention Tax Credit: What You Need to Know

Being eligible for the Employee Retention Tax Credit (ERTC) is one thing…Qualifying for it is another. There are certain guidelines set by authoritative sources such as IRS.gov and Treasury.gov which need to be strictly followed. Remember, taxpayers are always responsible for their own tax filings. So it’s paramount that you take these guidelines seriously.

However, the landscape of these regulations is not static. As legislation evolves, so do the requirements for ERTC qualification. Staying up-to-date with this information becomes crucial, particularly for business owners and CPAs serving clients… It empowers them to navigate this process efficiently and ethically, even in the face of rampant misinformation and fraud.

This isn’t an endeavor to take lightly… There are firms peddling erroneous information about how ERTC works. They may dangle the promise of “free” money with no risk, but their interests don’t align with yours… The Internal Revenue Service has been abundantly clear… You are ultimately responsible for your own tax filings. This is why it’s critical to understand what ERTC is and how it came into existence before making any decisions about claiming these credits.

The aim here is not just to educate but to help you move quickly to the next stage in your exploration of ERTC. Essentially, there are two paths from here:

1. You understand why you may legitimately qualify for these credits and are ready to talk with someone to further assess your situation.

2. You recognize that you don’t qualify, thus saving yourself a phone call with us or another firm or even better, preventing yourself from erroneously claiming ERC with another firm…Only to be hit by the IRS with penalties and interest years later.

Understanding ERTC also involves defining some key elements like Full or Partial Suspension of Operations. Grasping these elements is crucial to ensure you qualify ethically and correctly for the ERTC.

In essence, gaining knowledge about the Employee Retention Tax Credit (ERTC) is your shield against potential pitfalls…It’s your first line of defense against dubious claims and the first step towards making an informed decision. Remember, knowledge is power, especially when it comes to your tax filings.

Dangers of Misinformation about ERTC

Here’s a word of caution.Beware of firms using lies and deception to entice you to sign up for ERTC claims. Misinformation can lead to detrimental consequences such as heavy penalties or legal trouble. As such, understanding these intricacies and how they apply to your unique situation is paramount, as you’re ultimately responsible for these tax credit claims. You might come across many self-proclaimed “experts” out there offering advice on ERTC claims…But remember, knowledge is power when it comes to understanding and leveraging programs like the ERTC.

Also read: When Will Employee Retention Credit be Paid?

JWC ERTC Advisory: Your Trusted Guide

Navigating the complex landscape of tax credits can feel overwhelming…That’s where JWC ERTC Advisory steps in. We’re not just another ERC firm. Our focus is on providing clear, accurate information while prioritizing client service. The aim? To arm you with the knowledge needed to make informed decisions about your ERTC claims. And as the IRS steps up its efforts to curb ERTC fraud, aligning with a trusted advisory like JWC ERTC becomes even more essential.

Why Choose JWC ERTC Advisory CPA?

In times of fear and uncertainty, JWC ERTC Advisory CPA brings you peace of mind. We provide an independent eligibility review for taxpayers who have previously filed for ERTC but have questions or are skeptical about their eligibility for the credits. By doing so, we help you avoid potential pitfalls while maximizing your gains from the Employee Retention Credit program. So why not take that next step of discovery with us? After all, knowledge is power, and we’re here to help you harness it.

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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