How Employers Can Save $1,000 Per Employee Using Tax Credits

In today’s economy, every dollar counts. Whether you’re managing a quick-service restaurant, leading a home health agency, or running a fast-growing startup, finding ways to cut costs without cutting corners is the key to staying competitive. If you’ve never taken full advantage of the employee retention tax credit (ERTC), you’re leaving serious money on the table—possibly $1,000 or more per employee annually.

Here’s the good news: this isn’t some complex tax loophole only accessible to large corporations. With the right strategy and compliance partner, small- and mid-sized businesses can now unlock real savings while boosting employee satisfaction and loyalty.

At section125group, we’re on a mission to show you how. And it starts with our upcoming webinar, “Reduce Taxes & Retain Top Talent” This free, online event will show you exactly how tax credits like ERTC can fuel your business growth without increasing your payroll budget.

Let’s break down how it works—and why now is the time to act.

What Is the Employee Retention Tax Credit (ERTC)?

The Employee Retention Tax Credit is a government-backed incentive designed to help businesses keep workers employed during difficult times. Originally introduced under the CARES Act, it allows eligible employers to receive a refundable payroll tax credit for qualified wages paid to employees.

In simple terms: if you retained employees during tough economic periods or continued operations during COVID-19 disruptions, you may be entitled to significant tax refunds, often between $600 and $1,000 per employee annually.

Even if your business didn’t claim ERTC before, there’s still time. And that’s where section125group steps in—with compliant, risk-free employee retention solutions tailored to your industry.

Why Is This Relevant in 2025?

While ERTC was heavily talked about during the pandemic, many business owners missed out on these savings due to:

• Confusion over eligibility.
  
• Fear of compliance mistakes.
  
• Lack of expert guidance.
  
  

But updated regulations and new employee retention tax credit updates have made it easier than ever to claim the credit, even retroactively.

In 2025, many businesses are still eligible to claim refunds from past tax years, and the savings are real. According to IRS guidelines, amended filings for qualified wages paid during 2020 and 2021 are still accepted. That means there’s still a window of opportunity to reclaim thousands of dollars—if you know how to do it properly.

This is exactly what we’ll cover in our upcoming free webinar, designed specifically for:

• Starting firms
  
• Quick-service restaurants
  
• Home health and staffing companies
  
• Franchise operators
  
  

The Math Behind the Savings

Let’s put the numbers into perspective. A restaurant with 30 employees may qualify for:

• $600–$1,000 per employee annually in tax credits.
  
• That’s $18,000–$30,000 in potential savings per year.
  
  

For staffing agencies, those numbers are even higher due to frequent workforce rotations. Whether you’re employing full-time staff or managing part-time shifts, these credits can add up fast and go straight back into your business.

When paired with section125group’s compliant benefits planning, your business can reinvest these savings into:

• Hiring and training talent.
  
• Expanding operations.
  
• Offering better perks and health options.
  
• Staying competitive in a high-turnover market.
  
  

Where Most Businesses Miss Out

It’s easy to assume you’re too small or not eligible. That’s exactly the myth our webinar is designed to debunk.

Here’s where many employers lose out:

1. Thinking the credit expired
   
   • The truth: You can still file amended returns for qualified quarters.
     
     
2. Believing PPP disqualified them
   
   • Many businesses that received PPP loans may still qualify for ERTC.
     
     
3. Trying to self-file without expert help
   
   • Filing incorrectly or missing IRS requirements can delay or disqualify your refund.
     
     

That’s why it’s critical to get advice from trusted compliance professionals who specialise in employee benefit tax strategies. And that’s exactly what section125group offers.

How Does Employee Retention Credit Affect Tax Return?

This is one of the top questions business owners ask—and for good reason. Nobody wants a surprise when tax season hits.

Here’s a quick breakdown:

• The ERTC is not considered taxable income, but it does require an adjustment to wage deductions on your tax return.
  
• If claimed retroactively, it’s processed as a refund from the IRS, not as a direct deduction from your business income.
  
• There may be impacts on prior tax filings, which is why accurate documentation and expert filing support are key.
  
  

Our webinar will walk you through how to make these adjustments correctly and legally—no guessing games.

What to Expect in the Webinar

Our upcoming free webinar, “Reduce Taxes & Retain Top Talent,” is designed to give employers a step-by-step roadmap for using tax credits to:

• Save up to $1,000 per employee annually.
  
• Avoid common ERTC filing mistakes.
  
• Learn how to apply updated IRS guidance to past wages.
  
• Pair tax credits with benefit strategies for long-term retention.
  
  

Details:

• Time: Join at Noon CST and Join at 3:00 PM CST

• Date: Wednesday, June 11th, 2025
  
• Location: 100% online – join from anywhere.
  
  

This event is especially timely for restaurants, staffing agencies, and franchise-based businesses where turnover is high and margins are tight. The more employees you have, the more you can potentially save.