By Sarah Tippett July 2, 2025
The past few years have been tough on businesses of all sizes. Whether you run a local shop, a restaurant, or a growing company, you’ve likely faced unprecedented challenges.
Fortunately, federal relief programs helped ease the burden, and one of the most valuable is the Employee Retention Credit (ERC). This refundable tax credit has returned billions of dollars to businesses that kept employees on payroll during the pandemic.
If you haven’t filed yet—or you’re not sure if you qualify—this article explains everything you need to know about employee retention credit claims, how to use an ERC filing service, and where to get ERC tax refund help.
What Is the Employee Retention Credit?
The Employee Retention Credit was created by the CARES Act in March 2020. Its purpose was simple: encourage employers to retain employees during COVID-related shutdowns or downturns.
Here are the basics:
- 2020 Credit: Up to 50% of qualified wages (up to $10,000 per employee), capped at $5,000 per worker for the year.
- 2021 Credit: Up to 70% of qualified wages per quarter, capped at $7,000 per worker per quarter (up to $21,000 annually).
Unlike a loan, you don’t pay the ERC back. It’s a refundable tax credit—meaning if you qualify, the IRS will send you money.
Businesses that file now do so retroactively. Even in 2024, you can still claim employee retention credit for prior quarters as long as you meet deadlines.
Why Is ERC Still Important in 2024?
Some business owners think they missed their chance. But the truth is, you may still have time.
The IRS allows you to amend your payroll tax returns for up to three years after the original due date. This means many companies remain eligible to file employee retention credit claims this year.
That’s why ERC eligibility 2024 is such an important topic. If you qualify and don’t file before the deadlines, you’re leaving money on the table—sometimes tens or hundreds of thousands of dollars.
Who Qualifies for the ERC?
ERC eligibility 2024 can feel confusing, but here’s a simple way to think about it:
1. Your Business Was Impacted
You must have experienced one of these:
- A government order caused a full or partial suspension of business operations (shutdowns, reduced capacity, restricted hours).
- A significant decline in gross receipts compared to 2019:
- 50% or more in 2020 quarters.
- 20% or more in 2021 quarters.
2. You Paid Wages to Employees
You must have paid qualifying wages to employees during the period in question. The number of employees determines which wages count:
- 2020: If you had 100 or fewer employees, all wages qualify.
- 2021: The threshold increased to 500 employees.
3. You Didn’t Double-Dip
You can’t use the same wages for both Paycheck Protection Program (PPP) forgiveness and ERC.
If you meet these conditions, you likely qualify to claim employee retention credit.
How Much Can You Receive?
Here’s a quick example:
- A business with 10 employees who earned $10,000 each in Q1 2021 could receive:
- 70% x $10,000 = $7,000 per employee.
- Total: $70,000 for that quarter alone.
Multiply this across multiple quarters, and your potential refund can grow quickly. This is why working with a professional ERC filing service can be so beneficial—they help calculate your maximum allowable credit.
The ERC Application Process: How It Works
Navigating the ERC application process takes careful documentation and accurate filing. Here’s a step-by-step overview:
Step 1: Confirm Eligibility
Before you do anything, determine which quarters you qualify for. This involves:
- Reviewing financial statements to show revenue decline.
- Documenting any government restrictions.
Many businesses rely on ERC tax refund help at this stage to avoid errors.
Step 2: Gather Records
You’ll need:
- Payroll reports.
- Tax filings (Forms 941).
- PPP loan documentation.
- Any notices of government-mandated shutdowns.
Organizing this upfront makes the next steps smoother.
Step 3: Calculate the Credit
This step involves multiplying eligible wages by the appropriate percentage. For example:
- 2020: 50%
- 2021: 70%
Then, subtract any amounts used for PPP forgiveness or other credits.
An experienced ERC filing service uses specialized tools and expertise to ensure nothing is missed.
Step 4: Prepare and File Forms
To claim your refund, you must submit Form 941-X for each quarter you’re amending.
Because this form adjusts prior payroll tax filings, accuracy is crucial.
Step 5: Monitor Your Claim
After filing, the IRS reviews your submission. Processing times often range from 6 to 12 months. Your provider should help you track progress and respond to any IRS inquiries.
Why Use an ERC Filing Service?
While you can technically handle ERC claims yourself, here’s why most business owners prefer using an ERC filing service:
- Accuracy: Professionals are less likely to make costly mistakes.
- Compliance: ERC rules have evolved over time. A dedicated team stays current on IRS guidance.
- Time Savings: You don’t have to spend weeks assembling records and filling out forms.
- Audit Support: If the IRS asks questions, you’ll have experts on your side.
In other words, ERC tax refund help makes a complex process manageable and stress-free.
How to Choose an ERC Filing Service
Not every provider offers the same level of quality or transparency. Here are tips to help you choose wisely:
- Experience: Look for a team with extensive ERC experience, not just general tax knowledge.
- Clear Fees: Reputable services are upfront about costs. Be cautious if someone demands large fees before any work.
- Full Support: A good provider helps with every step, from eligibility verification to audit assistance.
- Strong Reviews: Check testimonials or ask for references.
A trustworthy partner ensures your employee retention credit claims are thorough and compliant.
Common Myths About ERC
There’s a lot of misinformation about ERC. Let’s clear up a few myths:
Myth 1: You Can’t Claim ERC If You Got a PPP Loan
Reality: You can claim both—just not for the same wages.
Myth 2: ERC Is a Loan You Must Repay
Reality: It’s a refundable credit. You keep the money.
Myth 3: It’s Too Late to File
Reality: Many businesses still have time under ERC eligibility 2024.
Myth 4: Small Businesses Don’t Qualify
Reality: Even solo entrepreneurs with employees can qualify.
How Long Do Refunds Take?
Currently, processing times can be lengthy—often 6–12 months. That’s why starting the ERC application process now is smart. The sooner you file, the sooner you’ll see your refund.
The Deadline for Filing
The deadlines for retroactive claims are clear:
- 2020 Claims: Must be filed by April 15, 2024.
- 2021 Claims: Must be filed by April 15, 2025.
If you wait too long, your opportunity to claim employee retention credit will expire.
Real-World Examples
Here are a few examples of how the ERC has helped real businesses:
- A Midwest Restaurant: Claimed $280,000 to cover operating costs during COVID restrictions.
- A Medical Practice: Received $150,000 in credits after initially thinking they didn’t qualify.
- A Small Manufacturer: Secured $400,000 thanks to expert ERC filing service guidance.
These success stories show the importance of getting help early.
Tips to Prepare for Filing
Ready to get started? Here’s a checklist:
✅ Gather all payroll records from March 2020–September 2021.
✅ Compile revenue reports comparing each quarter to 2019.
✅ Document any government restrictions that impacted operations.
✅ Identify which wages were used for PPP forgiveness.
✅ Connect with a qualified ERC tax refund help team.
FAQs About Employee Retention Credit Claims
Can I file ERC claims on my own?
Yes, but many business owners prefer professional assistance to avoid errors.
Is there a limit to how much I can claim?
No fixed cap, but credits are based on wages paid and the number of eligible quarters.
What happens if the IRS audits my claim?
With a reputable ERC filing service, you’ll have support to respond.
How will I receive my refund?
Typically by paper check mailed to your business address.
Why You Should Act Now
Even if you’re busy running your company, delaying could cost you thousands. Here’s why it’s smart to start now:
- The IRS is still backlogged—filing early helps secure your place in line.
- As deadlines approach, more businesses rush to file, increasing wait times.
- You deserve to receive the credits you’ve earned.
Final Thoughts
The Employee Retention Credit was designed to support employers during one of the most challenging periods in recent history. If you paid wages to employees while enduring shutdowns or revenue declines, you may qualify for significant refunds.
By working with an experienced ERC filing service, you can confidently navigate the ERC application process, confirm your ERC eligibility 2024, and claim employee retention credit without stress.
Don’t wait until the deadlines pass. Reach out to a trusted ERC tax refund help provider today and discover how much you’re entitled to reclaim.