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ERTC: The Three-Step Process to Claim Your Refund What Is the Employee Retention Tax Credit Refund? The Employee Retention Tax Credit refund aims to encourage businesses to keep workers employed through the pandemic’s impact. Businesses have maintained a consistent employment rate despite the major losses faced during the pandemic, simply due to the ERTC’s numerous benefits. The ERTC helps eligible businesses claim a tax credit for a certain portion of their employee’s wages. In the case of a refundable tax credit, the credit amount is more than the employer’s taxes. Thus, the employer can receive the excess as a refund. Take the example of an eligible business qualified for a tax credit worth $12,000. However, the business only owes $5000 in taxes. In this case, the employer can receive a refund of $7000 in cash from the government. This can help businesses survive the pandemic’s negative impact and use the extra help to revive their businesses. However, the eligibility criteria and certain restrictions can vary according to the business type or the state legislation. Since navigating the IRS complexities can be hard, consulting a professional who can take you through the most difficult parts of the employee retention tax credit refund is advisable.