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. Ensure you capitalize on this opportunity before it’s too late.

Understanding the Employee Retention Credit (ERC)

The ERC is a refundable tax credit established to support businesses that retained employees during the COVID-19 pandemic. For the 2021 tax year, eligible businesses may claim up to $7,000 per employee per quarter for the first three quarters—potentially amounting to $21,000 per employee for the year.

For example, a business with 10 qualifying employees could receive up to $210,000 in refundable tax credits. These funds can provide essential financial relief, helping businesses reinvest in operations, cover expenses, and enhance stability.

Eligibility Criteria for the 2021 ERC

Businesses may qualify for the ERC if they meet one of the following criteria for Q1, Q2, or Q3 of 2021:

• Significant Decline in Gross Receipts – A decline of at least 20% in gross receipts compared to the same quarter in 2019.

• Full or Partial Suspension of Operations – A business was subject to a government-mandated shutdown due to COVID-19 regulations, significantly impacting operations.

• New Businesses (Recovery Start-Up Businesses) – Businesses that commenced operations after February 15, 2020, may qualify for a credit of up to $100,000.

Why Immediate Action Is Essential

The ERC is claimed by filing an amended payroll tax return (Form 941-X) for the applicable quarters. The deadline to file for 2021 ERC claims is April 15, 2025—and time is of the essence.

Many businesses have misunderstood or overlooked this credit, assuming they are ineligible or that the filing period has expired. Even if your business received a Paycheck Protection Program (PPP) loan, you may still qualify for the ERC—provided the same wages are not used for both programs.

Take Action Now to Maximize Your Refund

If your business qualifies for the 2021 ERC, substantial financial relief may be available. Given the IRS backlog in processing amended payroll tax returns, early filing is strongly recommended to avoid unnecessary delays.

Seek Professional Guidance

Navigating the ERC filing process can be complex, but you do not have to manage it alone. A tax professional can help ensure compliance, maximize your eligible credit, and accurately file the necessary documentation.

Don’t miss this crucial opportunity. Initiate the filing process today to claim the ERC before the April 15, 2025 deadline.