Have you filed for employee retention credit (ERC) but haven’t received your refund yet? Maybe you’re wondering if it will ever arrive.
The truth is the IRS is struggling to process thousands of ERC refunds. Processing these tax credits takes months, and it’s difficult to check on your refund status.
This has left many businesses waiting and wondering about their ERC refunds. If you’re playing the waiting game, we can help!
Here’s what you should know about ERC refund processing time and your refund.
Checking the Status of ERC Refunds
If you’ve filed for this tax credit, you’re probably wondering — how long does it take to get an ERC refund? To check the status of your employee retention credit, you should contact the IRS.
You can either call the IRS helpline or visit their website. When you contact them, be sure to have your employer ID number, Social Security number, and tax return information handy.
The IRS needs this information to determine your ERC status. After contacting the IRS, you will receive a notification about your refund status in approximately four weeks.
If you don’t receive notice of your refund within four weeks, you may want to file Form 8849 (Claim for Refund of Excise Taxes). You cannot expedite the refund process.
Phone calls to the IRS often lead to long hold times. Sometimes callers are not able to get through by phone. But don’t let the delays and difficulties stop you from pursuing a return.
The ERC credit is a welcome benefit and relief that helps employers retain valuable workers. It’s helping to keep businesses running during difficult times.
It’s important to note that checking the status of your refund will not help you receive your refund any sooner.
How Long Until I Get My ERC Refund?
The good news is the ERC refund typically takes 6-8 weeks to process after employers have filed for it.
Just keep in mind that the waiting time for ERC refunds varies from business to business. Early on in the process, refunds took four to six weeks. Due to a huge backlog of claims, the wait time has lengthened.
When in doubt, check your ERC refund verification.
COVID-19 and ERTC
There’s no doubt the COVID-19 pandemic had a huge effect on businesses around the country. Employers were forced to make changes, cut hours, and lay off employees.
As a result, the employee retention credit has become a helpful financial supplement that businesses can use to retain workers. The IRS has expanded the credit to cover a wider range of employees and businesses.
As outbreaks and pandemics become more common, the ERC and other programs such as the Paycheck Protection Program (PPP) are playing vital roles in keeping businesses moving forward.
The ERC is refundable. That means a business is eligible to receive a refund if they have paid taxes for the year.
The high demand and complexity of the credit have created delays, leaving businesses around the country waiting for these refunds.
The IRS suggests that you shouldn’t file a second return to claim the same refund. This will not speed up the refund process and may cause further delays.
Timeline Slowed by Paper Processing
Legislative changes allow employers to file retroactively for business tax credits on amended payroll returns. These must be hand-processed by highly trained IRS staff.
Like many employers, the IRS has also struggled with staff issues due to COVID-19. This, along with the huge demand for ERC, has created a backlog of returns claiming ERC refunds.
Consult an ERC Filing Service
Many people aren’t aware of the ERC or how to file a claim. This is where an ERC filing service can help.
Using a credible filing service may help you get your refund sooner to keep your business running. They can help you calculate your tax credit and provide helpful information about filing for and receiving your ERC refund.
A knowledgeable filing service can let you know if you’re eligible for an ERT refund and help you claim it on time.
What to Expect
How you file your taxes plays a role in determining your ERC refund. Filing your taxes online is the quickest option. It allows you to receive your refund via direct deposit.
Taxpayers choosing this option may receive their refund sooner, although it’s not guaranteed. You could receive your refund 21 days after filing your 2022 taxes in 2023.
This means you could receive your refund three weeks after the IRS receives your return. It may take several days for your bank to have these funds available to you.
Don’t Pass Up Your Chance for ERC
Despite the extended ERTC processing time, these business tax credits are valuable tools for business owners and their employees. You should not pass up the opportunity to file an amended payroll tax return for ERC benefits.
Although the IRS is slow in processing the returns, they are being processed every day. For many people, the ERC refunds provide an essential income boost to help manage the high cost of living during difficult times.
Make sure you file for the ERC credit correctly. The best way to do this is through a dedicated ERTC processing service.
Understanding the ERC Refund Processing Time
COVID-19 was devastating for many small business owners in the U.S. It’s been a struggle for many employees who either lost their jobs or had to quit working for health concerns.
The IRS initiated ERC refunds to address these issues. If you’re waiting for your tax credit, the ERC refund processing time is slow. But don’t give up!
If you’re wondering if you’re eligible for an ERC refund, we can help. Find out if your business might be eligible for a grant of up to $26,000 per employee.
Contact ERC Today to learn more!