By Sarah Tippett July 2, 2025
Running a business isn’t easy. Even in the best of times, it takes hard work to keep operations running smoothly. During the COVID-19 pandemic, countless companies struggled to stay afloat. To help, the U.S. government created several relief programs, and one of the most impactful was the Employee Retention Credit (ERC).
If you’re like many business owners, you may have heard of the ERC but aren’t sure exactly how it works—or whether you can still claim it in 2024. This guide will walk you step-by-step through employee retention credit claims, explain why using an ERC filing service makes sense, and show you where to get ERC tax refund help so you don’t miss out.
What Is the Employee Retention Credit?
The Employee Retention Credit is a refundable tax credit designed to help businesses that kept employees on payroll during the pandemic. Unlike a loan, it does not need to be repaid.
Here’s a simplified breakdown:
- 2020: You could claim 50% of qualified wages up to $10,000 per employee per year (max credit: $5,000 per worker).
- 2021: The credit increased to 70% of qualified wages up to $10,000 per employee per quarter (max credit: $21,000 per worker).
Businesses can still file amended returns and claim employee retention credit retroactively if they qualify. That’s why understanding ERC eligibility 2024 is so important.
Why Is ERC Still Relevant in 2024?
Although the program ended for most wages paid after September 2021, the IRS allows retroactive claims for up to three years after your original payroll tax filing.
Here’s why it matters:
- If you didn’t claim the credit when you filed your payroll taxes, you can amend returns to get a refund.
- Many companies didn’t realize they qualified—especially those who also received PPP loans.
- There are still billions of dollars unclaimed nationwide.
This is why more and more businesses are using a professional ERC filing service to handle claims accurately before time runs out.
Who Qualifies for the Employee Retention Credit?
ERC eligibility 2024 depends on two main factors:
1. Business Impact
You must have experienced at least one of these situations:
- A full or partial shutdown because of a government order (like forced closures or restricted operations).
- A significant decline in gross receipts:
- 50% drop in any 2020 quarter compared to 2019.
- 20% drop in any 2021 quarter compared to 2019.
2. Wages Paid to Employees
- For 2020: If you had 100 or fewer employees, all wages qualify.
- For 2021: That threshold increased to 500 employees.
Important: You can’t use the same wages for both PPP forgiveness and ERC. This is one reason ERC tax refund help is so valuable—experts can sort out these details.
How Much Can You Get From an ERC Claim?
Your refund can be significant. Here’s an example:
If you had 8 employees in 2021 who earned at least $10,000 each quarter:
- 8 employees × $7,000 per quarter × 3 quarters = $168,000 credit
Even smaller teams can see refunds worth tens of thousands of dollars. Using a trusted ERC filing service ensures you capture the maximum eligible amount.
The ERC Application Process Explained
Filing for the ERC can be time-consuming and technical. Here’s a simple look at the ERC application process:
Step 1: Eligibility Review
Before you file anything, you need to confirm which quarters you qualify for. This involves:
- Reviewing gross receipts and comparing them to 2019.
- Documenting any shutdowns.
- Identifying which wages were used for PPP forgiveness.
Step 2: Gather Records
You’ll need:
- Payroll reports for each quarter.
- Tax forms (941 filings).
- PPP loan documents.
- Proof of government orders, if applicable.
Many business owners rely on ERC tax refund help during this stage to avoid missing information.
Step 3: Calculate the Credit
This step is tricky. You must:
- Tally eligible wages.
- Apply the correct credit percentage (50% or 70%).
- Remove wages used for other credits.
Errors here can lead to rejections or delays.
Step 4: Complete Forms
You file Form 941-X for each quarter you’re amending. This form is used to adjust previously reported payroll taxes.
Step 5: Monitor Refund Status
Once submitted, the IRS reviews your claim. Refunds typically arrive within 6–12 months, depending on processing times.
Why Work With an ERC Filing Service?
Even though you can technically do it yourself, most business owners don’t want to risk costly mistakes. Here’s why a professional ERC filing service is worth considering:
- Expertise: ERC rules are complex and have changed over time.
- Time Savings: Gathering and organizing records can take weeks.
- Accuracy: Mistakes on forms can cause delays or audits.
- Audit Support: If the IRS has questions, you’ll have representation.
- Peace of Mind: You know your claim is handled properly.
When you invest in ERC tax refund help, you’re protecting your business from risk while maximizing your credit.
How to Choose the Right ERC Tax Refund Help
Not all ERC providers are the same. Some firms have popped up overnight with little experience.
Here’s how to choose a reliable team:
✅ Clear Fees – Look for transparent pricing with no huge upfront charges.
✅ Experience – Choose providers with a track record of successful employee retention credit claims.
✅ Audit Support – Make sure they’ll help you if questions arise.
✅ Documentation Help – The best services assist you in gathering and organizing records.
✅ Positive Reviews – Check testimonials or ask for references.
A qualified ERC filing service can be the difference between a smooth refund and months of frustration.
Common Mistakes to Avoid When Filing ERC Claims
Here are some common pitfalls businesses make:
- Assuming PPP Disqualifies You – You can claim ERC even if you had a PPP loan (just not on the same wages).
- Using Incomplete Records – Missing documents can lead to rejections.
- Overstating Wages – This can trigger audits or penalties.
- Waiting Too Long – The filing deadlines are approaching fast.
Avoiding these mistakes is why many companies invest in professional ERC tax refund help.
How Long Do You Have to File?
There are firm deadlines to submit amended claims:
- 2020 Wages – Must be filed by April 15, 2024.
- 2021 Wages – Must be filed by April 15, 2025.
If you wait too long, you’ll lose the right to claim employee retention credit forever.
How Long Does It Take to Receive the Refund?
Right now, the IRS is dealing with backlogs. Typical timelines are:
- 6–12 months for most refunds.
- Longer if your claim requires additional verification.
That’s why starting the ERC application process today is wise.
Frequently Asked Questions About ERC
Q: Can I still file if my business closed?
Yes, as long as you had employees and paid qualifying wages during eligible quarters.
Q: What if I already filed payroll taxes?
You submit amended returns using Form 941-X.
Q: Is the ERC a loan?
No. It’s a refundable tax credit—you don’t repay it.
Q: Can any accountant help me?
Some general accountants don’t specialize in ERC. It’s best to work with a dedicated ERC filing service.
Success Stories: Real Companies That Benefited
Retail Store in New York:
Claimed over $200,000 after assuming PPP made them ineligible.
Manufacturer in Ohio:
Recovered $450,000 in credits with the help of professional ERC tax refund help.
Restaurant in Texas:
Secured $125,000 by filing retroactive claims before the deadline.
These examples show why it pays to review your ERC eligibility 2024.
Tips to Prepare for Filing
Here’s a checklist to get ready:
✅ Gather all payroll records from March 2020 through September 2021.
✅ Compile revenue reports comparing 2019 to 2020 and 2021.
✅ Collect PPP forgiveness documentation.
✅ Find copies of any government orders affecting your business.
✅ Connect with an experienced ERC filing service.
Why You Shouldn’t Wait
Delaying your claim can mean:
- Losing access to funds you’re entitled to.
- Missing the deadline permanently.
- Facing longer IRS processing times.
The sooner you start your ERC application process, the sooner you’ll receive your refund.
The Benefits of ERC Tax Refund Help
Here’s how working with experts helps:
- Maximized Credits – Ensure you claim everything you’re entitled to.
- Less Stress – Professionals handle the details.
- Fewer Errors – Accurate filings mean fewer delays.
- Support During Audits – You’ll have representation if questions arise.
Choosing the right ERC filing service can save you time, money, and headaches.
Final Thoughts
The Employee Retention Credit was created to help businesses survive the worst days of the pandemic. If you paid employees during that time, you may be owed thousands—or even hundreds of thousands—of dollars.
Even in 2024, you still have time to claim employee retention credit for eligible quarters, but deadlines are quickly approaching.
Don’t leave money unclaimed. Talk to a qualified ERC filing service, confirm your ERC eligibility 2024, and get the ERC tax refund help you need to secure the funds your business deserves.
With the right guidance, the process is easier than you think—and the rewards can make a big difference.