A Critical Opportunity for Schools
Educational institutions—public schools, private academies, colleges, and universities—faced
unprecedented disruption during the COVID-19 pandemic. The Employee Retention Credit (ERC), a
refundable payroll tax credit from the 2020 CARES Act, offers a final chance to recoup funds for keeping
staff employed in 2021. While the program ended in September 2021, retroactive claims for that year
are still open via amended payroll tax returns. The deadline? April 15, 2025—just over a month. For
cash-strapped institutions, this is a lifeline you can’t ignore.
The Financial Boost You Need
For 2021, the ERC delivers up to $7,000 per employee per quarter, capping at $28,000 per staff member
for the year. Imagine a small college with 50 employees—that’s potentially $1.4 million to offset budget
cuts, retain faculty, or upgrade facilities. Unlike the Paycheck Protection Program (PPP), claimed by
many schools, the ERC requires no repayment. A 2020 rule change even lets you pair ERC with PPP for
2021, provided wages aren’t double-dipped, amplifying relief for institutions that leaned on both.
Qualifying in 2021: Easier Than You Think
Eligibility for 2021 hinges on two criteria: a 20% drop in gross receipts in any quarter compared to 2019,
or a government-ordered full/partial suspension of operations. Educational institutions often hit the
suspension mark—think campus closures, hybrid learning mandates, or bans on large gatherings. A
university shifting to online classes or a K-12 school facing capacity limits likely qualifies. Gross receipts
include tuition, grants, and donations, so even if enrollment held, restricted operations could seal the
deal. Tax-exempt status under 501(c)(3) doesn’t disqualify you—nonprofits thrive here.
Act Before the April Deadline
The clock’s ticking: Form 941-X for 2021 quarters must be filed by April 15, 2025. The 2020 window
closed last April, making 2021 your last shot. IRS delays—90 to 180 days—stem from a 400,000-claim
backlog and fraud crackdowns; new claims were halted until December 31, 2024, but 2021 retroactive
filings remain live. Submit now, and funds could arrive by summer 2025—delay, and you’re locked out.
With budgets stretched thin, this isn’t a chance to squander.
Steer Clear of Scams
Fraud’s a real risk—IRS audits spiked after shady promoters pushed fake ERC claims. Watch for red flags:
blanket wage claims without suspension proof, “supply chain” excuses, or unsigned returns from
vendors taking 20% cuts. Educational institutions should partner with trusted accountants, not pop-up
firms. Document everything—payroll logs, closure orders, revenue dips—and store it four years post-
claim for audits.
Secure Your Staff’s Future Now
The ERC isn’t just cash—it’s stability for your educators and staff who weathered the storm. With April
15, 2025, fast approaching, rally your finance team, verify 2021 eligibility, and file Form 941-X. Don’t let
bureaucracy or hesitation cost you millions—secure those funds before the deadline slams shut.
