If your business has not yet claimed the 2021 Employee Retention Credit (ERC), time is running out. The deadline to file for this valuable tax credit is April 15, 2025, and many businesses still qualify without realizing it. Here’s what you need to know to maximize your benefits before it’s too late.

What Is the Employee Retention Credit (ERC)?

The ERC is a refundable tax credit designed to help businesses that retained employees during the COVID-19 pandemic. If eligible, your business could claim up to $7,000 per employee per quarter for the first three quarters of 2021—up to $21,000 per employee in total. Learn more from the IRS.

For example, if your business qualifies and has 10 eligible employees, you could receive up to $210,000 in refundable tax credits. This is real money that could significantly boost your company’s cash flow.

Does Your Business Qualify?

Your business may qualify for the 2021 ERC if it meets at least one of the following criteria for Q1,

Q2, or Q3 of 2021:

1. Significant Decline in Gross Receipts – Your business experienced a 20% or greater decline in gross receipts compared to the same quarter in 2019. See IRS guidance.
2. Full or Partial Suspension of Operations – Your business faced federal, state, or local government-ordered restrictions that partially or fully suspended your operations due to COVID-19. Find out more from the IRS.
3. Recovery Startup Businesses – If your business was established after February 15, 2020, and meets other eligibility criteria, you could qualify for a credit of up to $100,000 regardless of revenue changes. IRS details on startup eligibility.

Why You Must Act Now

The ERC is claimed by filing an amended payroll tax return (Form 941-X) for the applicable quarters. While the deadline to file is April 15, 2025, waiting too long could result in processing delays or missing out on valuable funds altogether. Instructions for filing Form 941-X.

Many businesses assume they don’t qualify or that it’s too late to apply. However, even if you received a Paycheck Protection Program (PPP) loan, you may still be eligible for the ERC—as long as you don’t use the same wages for both programs. IRS clarification on ERC and PPP.

Don’t Leave Money on the Table – Take Action Today!

If your business qualifies, the ERC could provide a substantial financial boost. With the deadline approaching, it’s essential to begin the filing process as soon as possible.

If you’d like to discuss your eligibility or need assistance in filing your ERC claim, contact us today:

Don’t let this opportunity slip away—take action now and claim what your business is entitled to!