PODCAST: Be Cautious on the Employee Retention Credit (ERC)

Employee Retention Credit (ERC) Qualification Caution and Expert Guidance

Written by Jeff Dvorachek

June 23, 2023

Welcome to the latest episode of Tax Insights, where we explore the Employee Retention Credit (ERC). Discover the qualifying criteria, potential pitfalls with third-party companies, and the importance of seeking expert guidance. Join Jeff from Hawkins Ash CPAs in this informative podcast episode.



The Tax Insights podcast episode on the employee retention credit offers valuable insights and cautionary advice for business owners navigating this complex aspect of tax law. By understanding the qualification criteria, being wary of third-party companies, seeking professional guidance, and discerning ineligible offers, businesses can make informed decisions and avoid potential pitfalls. Remember, when it comes to the ERC, knowledge and expert guidance are the keys to making the right choices for your business’s financial health.


Navigating the Employee Retention Credit: Cautionary Insights for Business Owners

The latest episode of the Tax Insights podcast, presented by Hawkins Ash CPAs, delves into an important topic for business owners and managers: the employee retention credit (ERC). Hosted by Jeff Dvorachek from Hawkins Ash, the episode sheds light on the key aspects of the ERC and offers cautionary insights for businesses considering this credit opportunity.

Understanding Qualification Criteria:

To qualify for the ERC, businesses must demonstrate a substantial decrease in sales. This decline can be measured by analyzing a specific quarter in 2020 or one of the first three quarters of 2021 against the corresponding period in 2019. The IRS primarily uses this decrease in revenue as the qualifying factor.

Beware of Third-Party Companies:

One crucial point highlighted by the IRS and in the podcast is the cautionary tale of third-party companies that inundate businesses with promises of qualifying for the ERC. These companies often fail to properly assess eligibility and instead, blanket businesses with letters, calls, and messages, seeking a share of the credit as their fee. However, the integrity of their claims should be thoroughly examined, as the IRS has explicitly stated that not all businesses will qualify.

Seek Professional Guidance:

In order to make an informed decision regarding the ERC, it is highly recommended that business owners consult with reputable accounting firms like Hawkins Ash CPAs. These experts have the necessary knowledge and experience to accurately assess eligibility and guide businesses through the complexities of the ERC. By relying on professional advice, companies can avoid costly mistakes and make the most of potential opportunities.

Discerning Ineligible Offers:

Businesses that determine they do not qualify for the ERC should be cautious of official-looking letters or forms that arrive, demanding immediate action. The podcast advises such businesses to disregard these communications, as they are likely unrelated to their eligibility. Responding to these offers can result in wasted time and unnecessary expenses.

Connect with the Experts:

To connect with Jeff and the team at Hawkins Ash CPAs, business owners can visit the firm’s website and explore the CPA-HQ section. This is an excellent resource for accessing further information, scheduling consultations, and benefiting from the expertise of professionals who can assist with various tax-related matters.

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Jeff Dvorachek
As a partner, I have thorough experience providing tax services to individuals, privately held businesses, nonprofit entities and estates and trusts. I also provide compilation and review services.

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