Los Angeles, CA, November 28, 2025
As businesses adapt to the post-pandemic landscape, many are missing out on the Employee Retention Credit (ERC), a vital financial resource designed to support employers who retained workers during the COVID-19 crisis. This article highlights eligibility, claims processing challenges, and the critical steps needed to secure this refundable tax credit before the official claim period closed on April 15, 2025.
Missed Opportunities: The Employee Retention Credit Explained
Businesses may still benefit from this pandemic-era tax credit
Los Angeles, CA – As businesses continue to navigate their post-pandemic recovery, many may inadvertently overlook substantial financial resources available through the Employee Retention Credit (ERC). Established under the Coronavirus Aid, Relief, and Economic Security (CARES) Act, the ERC was designed to support employers who successfully retained employees during the tumultuous economic landscape of COVID-19.
The ERC offers a refundable tax credit to eligible employers, yet a significant number may have failed to claim it, risking the loss of potentially vital assistance. This situation underscores the importance of understanding available resources, especially as smaller businesses strive to thrive in a challenging environment.
The Employee Retention Credit: What You Need to Know
The ERC is part of a broader set of relief measures designed to help businesses weather financial challenges during the pandemic. It provides a means for businesses to obtain funds that could support their workforce while maintaining operations. However, due to the complexities of the program, confusion may lead businesses to miss out on these critical funds.
Understanding Eligibility
To qualify for the ERC, businesses must have experienced a significant decline in gross receipts or have been subject to full or partial suspension of operations due to government orders related to COVID-19. This regulatory framework is essential for protecting taxpayer resources, but it can complicate the claim process.
Claims Processing Challenges
The IRS has reported a significant backlog of over 597,000 unprocessed ERC claims as of April 2025. This backlog is largely attributed to complexities within the program and an uptick in fraudulent claims, prompting the IRS to implement stricter compliance measures. As a result, businesses seeking to submit claims should proceed with caution, ensuring that all submissions are accurate and well-documented.
Steps for Claiming the ERC
For businesses eager to claim the ERC, it’s pivotal to understand the proper procedures. Employers can submit applications by filing specific forms with the IRS. Consulting official guidelines and enlisting the help of trusted tax professionals can enhance the chances of successful claims, thereby maximizing potential benefits without risking penalties or the need to repay funds.
Deadline Awareness
The ERC claim period officially closed on April 15, 2025. Businesses that have not yet filed should act quickly to secure available funds, keeping in mind that processing times may still be extended due to the existing backlog. Prompt action could provide essential financial resources for businesses striving to maintain stability amidst economic fluctuations.
Conclusion
The Employee Retention Credit represents a valuable lifeline for many businesses that retained employees through the pandemic. As local entrepreneurs continue to show remarkable resilience, it is critical for eligible businesses to understand the parameters and processes associated with this tax credit. Staying engaged in the economic landscape and supporting local initiatives can foster growth in the Baltimore MD business community.
Frequently Asked Questions (FAQ)
What is the Employee Retention Credit (ERC)?
The ERC is a refundable tax credit established under the CARES Act to encourage employers to retain employees during the COVID-19 pandemic. It provides financial relief to businesses that continued to pay employees despite experiencing financial hardships due to the pandemic.
Who is eligible for the ERC?
Eligibility criteria for the ERC include businesses that experienced a significant decline in gross receipts or were subject to full or partial suspension of operations due to government orders related to COVID-19. Specific requirements can be found in the IRS’s official guidelines.
How can businesses claim the ERC?
Businesses can claim the ERC by filing the appropriate forms with the IRS. It’s recommended to consult the IRS’s official guidelines and consider seeking advice from trusted tax professionals to ensure accurate and compliant claims.
What should businesses be aware of when claiming the ERC?
Businesses should be cautious of fraudulent schemes and ensure that all claims are accurate and comply with IRS requirements. The IRS has implemented stricter compliance measures due to an influx of fraudulent claims, which has extended processing times.
Is the ERC still available for claims?
The ERC claim period officially closed on April 15, 2025. Businesses that have not yet filed are encouraged to do so promptly to secure any eligible funds, as processing times may be extended due to the backlog of claims.
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Key Features of the Employee Retention Credit (ERC)
| Feature | Description |
|---|---|
| Purpose | Provide financial relief to businesses that retained employees during the COVID-19 pandemic. |
| Eligibility | Businesses that experienced a significant decline in gross receipts or were subject to full or partial suspension of operations due to government orders related to COVID-19. |
| Claim Period | Officially closed on April 15, 2025. Businesses that have not yet filed are encouraged to do so promptly. |
| Claim Process | File the appropriate forms with the IRS. Consult the IRS’s official guidelines and consider seeking advice from trusted tax professionals to ensure accurate and compliant claims. |
| Compliance | Be cautious of fraudulent schemes. Ensure all claims are accurate and comply with IRS requirements to avoid potential penalties or the need to repay funds. |
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Author: STAFF HERE BALTIMORE WRITER
The BALTIMORE STAFF WRITER represents the experienced team at HEREBaltimore.com, your go-to source for actionable local news and information in Baltimore, Baltimore County, and beyond. Specializing in "news you can use," we cover essential topics like product reviews for personal and business needs, local business directories, politics, real estate trends, neighborhood insights, and state news affecting the area—with deep expertise drawn from years of dedicated reporting and strong community input, including local press releases and business updates. We deliver top reporting on high-value events such as the Baltimore Book Festival, Preakness Stakes, and Artscape. Our coverage extends to key organizations like the Baltimore Chamber of Commerce and Visit Baltimore, plus leading businesses in shipping and healthcare that power the local economy such as the Port of Baltimore and Johns Hopkins Medicine. As part of the broader HERE network, we provide comprehensive, credible insights into Maryland's dynamic landscape.
