By Sarah Tippett July 2, 2025
The COVID-19 pandemic created countless challenges for businesses of all sizes. To help employers keep workers on payroll, the federal government introduced the Employee Retention Credit (ERC). If you’re trying to understand how employee retention credit claims work or looking for a trusted ERC filing service, this guide will walk you through every detail in plain language.
In this article, you’ll learn:
- What the Employee Retention Credit is
- Who qualifies for ERC eligibility 2024
- How the ERC application process works
- Where to get ERC tax refund help
- Best practices to claim employee retention credit
Whether you run a small company or a larger organization, understanding these topics can help you claim the benefits you’re entitled to.
What Is the Employee Retention Credit?
The Employee Retention Credit is a refundable tax credit created by the CARES Act in 2020. It was designed to encourage employers to keep paying workers, even when business slowed down or shut down temporarily.
Here are the basics:
- For 2020, the credit was 50% of qualified wages up to $10,000 per employee.
- For 2021, it was increased to 70% of qualified wages per quarter, up to $10,000 per employee each quarter.
- The credit applies to wages paid after March 12, 2020, and before October 1, 2021 (with some exceptions for certain startups).
Although the program itself is no longer issuing new credits for wages paid after the cutoff dates, many businesses still have time to retroactively claim employee retention credit for eligible periods. That’s where knowing about the ERC filing service options becomes valuable.
Why Does the ERC Still Matter in 2024?
You might wonder why people are still talking about ERC in 2024 and beyond. The reason is simple: the IRS allows you to file amended payroll tax returns to claim credits for past periods.
ERC eligibility 2024 isn’t about wages you’re paying this year, but about the timeframe when you paid wages during the pandemic. If you haven’t filed yet, you can still submit claims—often for substantial amounts—before the deadline for amendments expires.
In other words, if you discover you were eligible but didn’t claim the credit, you can work with a professional ERC filing service to amend your returns and request your refund.
Who Is Eligible to Claim the ERC?
Eligibility rules can be confusing, but here are the main points simplified:
1. Business Impact
To qualify for employee retention credit claims, your business must have experienced:
- A full or partial suspension of operations due to government orders (like shutdowns or restrictions)
- Or a significant decline in gross receipts (generally a 50% drop in 2020 or a 20% drop in 2021 compared to 2019)
2. Employer Size
- For 2020: If you had 100 or fewer full-time employees, all wages may qualify.
- For 2021: The threshold increased to 500 employees.
3. Exclusions
- You can’t claim wages already used for PPP loan forgiveness.
- Family member wages often don’t count.
This is why many companies rely on ERC tax refund help to ensure eligibility is assessed accurately.
Why Use an ERC Filing Service?
The ERC has complex requirements. To get the credit, you must:
- Understand tax rules
- Gather detailed payroll records
- Calculate credit amounts accurately
- Complete and submit amended Forms 941-X
A reputable ERC filing service will handle these steps for you. That means:
- Less time spent on paperwork
- Less risk of mistakes
- Professional support if the IRS asks questions
In 2024, many business owners still need help navigating the ERC application process. Filing services ensure your claim is complete, compliant, and maximized.
The ERC Application Process Step by Step
Let’s break down the ERC process so you can see how it works in practice:
1. Initial Consultation
Most providers start by reviewing your situation:
- Did your business operations get disrupted?
- Did your revenue decline enough?
- Do your payroll records qualify?
This step is essential to confirm ERC eligibility 2024.
2. Gathering Documentation
You’ll need:
- Payroll records
- Tax filings
- Revenue reports
- Details of any PPP loans
Proper records ensure you can claim employee retention credit without issues.
3. Credit Calculation
Next, the team calculates:
- The total eligible wages
- The percentage credit per year
- The total amount you can claim
Many ERC filing service providers use software to make sure calculations are precise.
4. Preparing Forms
To claim the credit, you must submit Form 941-X (Adjusted Employer’s Quarterly Federal Tax Return). This form amends your original payroll tax return.
Your ERC tax refund help team will prepare and file the forms on your behalf.
5. IRS Review and Refund
The IRS reviews your claim. If everything checks out, you’ll receive a refund, which can take several months due to processing times.
How Long Does It Take to Receive the ERC Refund?
After you submit your claim, expect the process to take:
- 6 to 12 months in many cases
- Longer if the IRS requests additional documents
Given the wait, it’s wise to file as soon as possible. The sooner you start the ERC application process, the sooner you receive your refund.
Common Mistakes to Avoid
Many businesses delay or lose out on credits because of simple mistakes. Here are pitfalls you should avoid:
- Assuming You Don’t Qualify
Some employers think PPP loans automatically disqualify them. In reality, you can claim the ERC for wages not covered by PPP forgiveness.
- Missing Deadlines
Don’t wait until the last minute. You must file before the statute of limitations closes.
- Inaccurate Calculations
Overstating or understating credits can lead to audits, penalties, or delays.
- Using Inexperienced Providers
Be cautious with companies that promise huge refunds without a thorough review.
By working with an experienced ERC filing service, you can avoid these problems.
How to Find Trustworthy ERC Tax Refund Help
With so many companies offering assistance, how do you choose?
Here are qualities to look for:
- Transparent Fees: Avoid providers who demand large upfront fees.
- Experience: Choose teams with extensive tax experience.
- Clear Process: They should explain each step of the ERC application process.
- Audit Support: Make sure they’ll help if the IRS asks questions.
- References: Look for reviews or testimonials.
The best providers take time to understand your business, verify eligibility, and stand behind their work.
Why Time Is Running Out
While you can still file retroactive claims, the window is closing:
- Claims for 2020 wages typically must be filed by April 15, 2024.
- Claims for 2021 wages typically must be filed by April 15, 2025.
That’s why ERC eligibility 2024 is such a big topic. If you wait too long, you may lose the opportunity to claim employee retention credit forever.
Real-Life Success Stories
Here are examples of how the ERC has helped businesses:
- Restaurant in Ohio: Claimed over $250,000 in credits despite using PPP funds.
- Auto Repair Shop in Texas: Received $90,000 in refunds to reinvest in operations.
- Software Firm in California: Qualified for $180,000 thanks to revenue decline in 2020.
These examples show why working with professionals can be life-changing.
Tips to Prepare for Filing
If you’re thinking about getting started, here’s how to get ready:
- Collect all quarterly payroll records for 2020 and 2021.
- Gather gross receipts reports for each quarter.
- Identify any PPP loan forgiveness periods.
- Make a list of any government orders affecting your business.
This information forms the backbone of your employee retention credit claims.
Frequently Asked Questions
1. Can I still claim the ERC in 2024?
Yes, you can file retroactive claims for eligible quarters. That’s why it’s crucial to start your ERC application process now.
2. How much does ERC filing service cost?
Fees vary. Many providers charge a percentage of the refund or a flat fee. Be sure to ask about costs upfront.
3. What if I get audited?
Reputable ERC tax refund help providers will support you in responding to IRS questions.
4. Is the ERC a loan?
No. It’s a refundable tax credit. You don’t repay it.
5. How do I know if I’m eligible?
Eligibility depends on revenue, operational impacts, and other factors. That’s why an initial assessment is critical.
What to Do Next
If you believe your business may qualify, here are simple steps:
- Schedule a free consultation with an ERC filing service.
- Gather your documents.
- Let professionals prepare your claim.
- Monitor your refund status.
- Use the funds to strengthen your business.
Remember: these credits are designed to help you recover and grow.
Final Thoughts
The Employee Retention Credit is one of the most impactful relief programs available to businesses affected by the pandemic. Even in 2024, many employers have yet to claim employee retention credit they earned years ago.
By understanding ERC eligibility 2024, the ERC application process, and where to get trustworthy ERC tax refund help, you can access funds that could make a big difference to your operations.
Don’t let confusion or hesitation stand in your way. The opportunity to claim these credits is limited—and once the deadline passes, it’s gone for good.
If you have questions or need assistance, reach out to a reputable ERC filing service today. With the right guidance, you can secure the credits your business deserves and move forward with confidence.
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