By Sarah Tippett July 2, 2025
Running a business has never been easy, and the COVID-19 pandemic made things even harder for employers across the country. To help businesses keep employees on payroll, Congress created the Employee Retention Credit, often called the ERC.
Although the credit was designed for wages paid in 2020 and 2021, many companies today are still discovering they qualify. If you’re thinking about claiming employee retention credit or exploring an ERC filing service, you’ve come to the right place.
This guide will walk you through everything you need to know about employee retention credit claims, the ERC application process, and how to get ERC tax refund help before the deadlines pass.
What Is the Employee Retention Credit?
The Employee Retention Credit is a refundable payroll tax credit introduced in 2020. It was created to support employers who continued paying staff during the pandemic, even when operations were limited or revenue declined.
Here’s what you should know:
- In 2020, the credit equaled 50% of qualified wages, up to $5,000 per employee for the year.
- In 2021, the percentage increased to 70%, providing up to $7,000 per employee per quarter.
- The credit applied to wages paid between March 13, 2020, and September 30, 2021 (for most employers).
The ERC has helped thousands of businesses recover financially. Even today, companies that didn’t file initially can still submit employee retention credit claims by amending prior tax filings.
Why ERC Matters in 2024 and Beyond
You might wonder why so many businesses are talking about ERC now, years after the program ended. The answer is simple: the IRS allows retroactive claims.
That means if you didn’t claim the credit when you filed your original payroll taxes, you can still go back and submit an amended return. In fact, ERC eligibility 2024 is a critical topic because time is running out to file.
Many companies are only just realizing they qualify—and often for significant refunds. With help from an experienced ERC filing service, you can still secure the funds you earned.
Who Is Eligible for the Employee Retention Credit?
ERC eligibility 2024 depends on two main criteria:
1. Business Impact
Your business had to meet at least one of these conditions:
- Full or partial suspension of operations due to a government order (such as capacity limits, shutdowns, or curfews).
- A significant decline in gross receipts:
- For 2020: At least a 50% drop compared to the same quarter in 2019.
- For 2021: At least a 20% drop compared to the same quarter in 2019.
2. Employee Count
- In 2020: Employers with 100 or fewer full-time employees could count all wages.
- In 2021: The threshold increased to 500 employees.
If you’re unsure whether your business qualifies, a consultation with a professional ERC filing service can help you confirm your ERC eligibility 2024.
How Much Can You Claim?
The amount varies depending on wages and the year:
- 2020:
- Up to $5,000 per employee for the entire year.
- 2021:
- Up to $7,000 per employee per quarter, totaling $21,000 per employee.
Imagine you have 10 employees—your refund could be more than $200,000. That’s why it’s so important to claim employee retention credit if you qualify.
The ERC Application Process Explained
Filing for the ERC is different from claiming other credits. Here’s how the ERC application process typically works:
Step 1: Determine Eligibility
Start by confirming you meet the criteria, including:
- Documented revenue declines.
- Records of government restrictions.
- Proof of qualifying wages.
This step is critical. Many businesses work with an ERC filing service to avoid mistakes.
Step 2: Collect Documentation
You will need:
- Payroll records from March 2020 to September 2021.
- Quarterly revenue comparisons.
- PPP loan forgiveness documentation (if applicable).
Organizing this paperwork makes it easier to prepare your employee retention credit claims.
Step 3: Calculate the Credit
Next, figure out the total credit based on:
- Qualified wages per employee.
- The applicable percentage for the year.
Errors here can lead to delays or rejections, which is why professional ERC tax refund help is so valuable.
Step 4: File Form 941-X
You’ll use IRS Form 941-X to amend prior payroll returns. This form must be completed carefully to avoid issues.
Step 5: Wait for the Refund
After submission, the IRS will process your claim. Refunds often take several months due to backlogs.
Why Use an ERC Filing Service?
While you can file on your own, many businesses prefer hiring an ERC filing service because:
- Rules are complex and often change.
- The paperwork is detailed.
- Mistakes can result in delays or audits.
- Professionals maximize your credit while keeping your claim compliant.
When you use a trusted service, you save time and reduce risk.
How to Choose ERC Tax Refund Help
Not all providers are equal. Here are tips to find the right partner:
- Experience: Look for firms with a proven track record.
- Transparent Pricing: Avoid large upfront fees.
- Audit Support: Make sure they help if the IRS reviews your claim.
- Client Reviews: Check testimonials and case studies.
Selecting the right ERC filing service makes all the difference in your success.
Common Questions About ERC Claims
1. Can I claim ERC if I got a PPP loan?
Yes, but you can’t use the same wages for both programs.
2. How long do I have to file?
- 2020 claims: Until April 15, 2024.
- 2021 claims: Until April 15, 2025.
3. Is ERC a loan I have to repay?
No. The ERC is a refundable credit, not a loan.
4. What records are needed?
You must document wages, revenue declines, and government restrictions.
5. What if I made a mistake on my claim?
You can correct errors by filing another Form 941-X or working with your ERC filing service.
Why You Shouldn’t Wait
Time is running out to claim employee retention credit. If you wait too long, you’ll miss out. Filing early helps:
- Avoid IRS processing delays.
- Get your refund sooner.
- Reduce the risk of missing documentation deadlines.
With the April 2025 deadline approaching, ERC eligibility 2024 is more important than ever.
Tips to Prepare for Your ERC Claim
If you’re ready to move forward, here’s what you can do:
- Gather Payroll Records
Have complete payroll reports for each eligible quarter. - Collect Revenue Data
Prepare financial statements comparing 2019 to 2020 and 2021. - Identify Government Restrictions
Document any shutdown orders or mandates. - Review PPP Forgiveness
Note which wages were used for PPP forgiveness. - Consult an Expert
Schedule a call with an ERC tax refund help provider to verify eligibility.
Success Stories from Real Businesses
Here are examples of how ERC has helped:
- Construction Company in Florida: Claimed over $300,000 in credits, using the funds to hire new staff.
- Medical Practice in Arizona: Secured $150,000 in refunds to invest in updated equipment.
- Retail Store in Michigan: Received $250,000 in credits despite initial uncertainty about eligibility.
These stories show the value of partnering with a trusted ERC filing service.
Avoiding ERC Scams
Unfortunately, some bad actors have taken advantage of the ERC’s popularity. Watch out for:
- Promises of massive refunds without documentation.
- Pressure to pay large upfront fees.
- Lack of transparency about fees and processes.
Legitimate ERC filing service providers will:
- Explain eligibility clearly.
- Provide written agreements.
- Support you during audits.
What Happens After You File?
Once your claim is submitted:
- The IRS reviews your documents.
- They may request additional records.
- If approved, you’ll receive a paper check or direct deposit refund.
Be prepared to wait 6–12 months for your refund, though some claims process faster.
The Benefits of Working with Experts
Here are just a few reasons to use professional ERC tax refund help:
- Accuracy: Correct calculations and forms.
- Confidence: Know your claim is compliant.
- Support: Assistance if the IRS asks questions.
- Speed: Faster preparation means quicker filing.
By trusting experts, you can focus on your business while they handle the details.
Final Checklist Before Filing
Here’s a quick recap of what you need:
✅ Payroll records for all eligible quarters
✅ Quarterly revenue comparisons
✅ Documentation of shutdowns or restrictions
✅ PPP loan forgiveness details
✅ A qualified ERC filing service to prepare and submit your claim
Final Thoughts
The Employee Retention Credit has been a lifeline for businesses across America. If you haven’t yet filed your employee retention credit claims, now is the time.
Whether you’re a restaurant, manufacturer, or professional service firm, you may be eligible for substantial refunds.
With deadlines approaching, don’t wait to get help. An experienced ERC filing service can guide you through the process, confirm your ERC eligibility 2024, and make sure you claim employee retention credit before the opportunity disappears.
If you have questions, reach out to a qualified ERC specialist. With the right help, you can secure the credits your business earned—and deserves.