Employee Retention Credits (ERC) have been a game-changer for businesses across the United States, yet thousands of eligible companies have not claimed the refunds they deserve. Created to reward employers who kept their staff during difficult economic times, these refundable payroll tax credits can put substantial money back into your business—without the obligation to repay it. In 2025, the opportunity to claim Employee Retention Credits is still alive, but time is running out.
Understanding Employee Retention Credits
Employee Retention Credits are refundable tax credits calculated based on qualified wages and certain health insurance costs paid to employees during eligible periods. The program applied to wages paid in 2020 and 2021, but businesses still have the chance to claim retroactively.
Why They’re Called “Hidden” Opportunities
Many companies assume they don’t qualify for Employee Retention Credits due to misconceptions about eligibility, PPP loans, or revenue requirements. In reality, thousands of businesses that initially dismissed the program are now recovering tens or even hundreds of thousands of dollars.
How Employee Retention Credits Work
For 2020, businesses could claim 50% of up to $10,000 in qualified wages per employee for the year—worth a maximum of $5,000 per employee. In 2021, the benefit jumped to 70% of up to $10,000 per employee per quarter, allowing up to $26,000 per employee in total refunds.
Key Eligibility Requirements
- Government-Ordered Shutdowns: Partial or full suspension of operations due to COVID-19 mandates.
- Revenue Declines: A significant drop in gross receipts compared to the same quarter in 2019.
Finding Missed Opportunities in Employee Retention Credits
Some employers who already filed claims may have left money on the table by:
- Not including all eligible quarters
- Excluding employer-paid health insurance from the calculation
- Incorrectly disqualifying themselves because of PPP loans
Revisiting Your Eligibility
A professional ERC review can identify overlooked wage periods and expenses that increase your refund.
Filing Retroactive Claims for Employee Retention Credits
Even though the program ended for new wages in 2021, you can still file amended payroll tax returns (Form 941-X) to claim your credits. The IRS generally allows three years from the original filing date, meaning deadlines are approaching for 2020 claims in 2024 and early 2025, while 2021 claims extend into 2025 and 2026.
Step-by-Step to Unlock Refunds
- Review Financials: Determine which quarters meet the eligibility criteria.
- Calculate Credits: Include both wages and qualified health plan expenses.
- File Amended Returns: Submit Form 941-X for each qualifying quarter.
- Receive Your Refund: The IRS sends a check for the refundable portion.
Overcoming Common Myths About Employee Retention Credits
- Myth 1: You can’t claim ERC if you had a PPP loan. Truth: You can, just not on the same wages.
- Myth 2: Only small businesses qualify. Truth: Larger employers may qualify for certain wages, too.
- Myth 3: The process is too complicated. Truth: With the right guidance, claims can be straightforward.
Why Now Is the Time to Act
Waiting too long risks missing the deadlines entirely. Filing early helps avoid delays, ensures proper documentation, and maximizes the refund you can claim from Employee Retention Credits.
Working With Experts to Unlock Your Refund
Navigating the IRS rules, wage allocation, and documentation can be challenging. A specialist in Employee Retention Credits can help you uncover missed opportunities, avoid costly mistakes, and secure the highest refund possible.
Conclusion
Employee Retention Credits represent a powerful but often overlooked source of financial relief. Businesses across industries are still unlocking hidden refunds worth thousands per employee—but only if they take action before the deadlines. At [PURCHASE TAX CREDITS], we specialize in helping companies identify eligibility, file complete claims, and recover the maximum refund available. Don’t leave money unclaimed—review your eligibility today and unlock the Employee Retention Credits your business deserves.