The Employee Retention Credit (ERC) is a major provision of the CARES Act enacted in March 2020 that allows businesses to have their payroll taxes paid for in part by the federal government. Businesses can use these funds to keep their employees on the payroll and pay a portion of their wages in an attempt to keep their businesses afloat during the economic downturn brought about by COVID-19. The ERC offers a refund to qualified employers, and many of them are eager to understand the associated ERC refund processing time so they may understand when they can expect to receive those funds.
How to check the status of ERC refunds
Businesses that have applied for the ERC may check their ERC refund status by logging into their IRS account. From there, businesses should select ‘My Account’ and look for ‘Payment Status.’ If the payments have been processed, the ERC refund status will include information about when the refund was sent, when it was received, and additional payment details from the IRS.
If the ERC refund status is unavailable, businesses should contact the IRS directly. The IRS can provide more detailed information about the status of the refund and can help resolve any issues preventing the refund from being processed.
Businesses should also be aware that the IRS may take up to 21 days to process the refund. If the refund has not been received after 21 days, businesses should contact the IRS to inquire about the status of the refund.
How long will it take to receive my company’s refund?
The length of time of the refund processing time depends largely on how quickly the forms were filled out and how accurate they were. Additionally, there may be additional refund delays because of the increased amount of paper processing due to the pandemic. Generally, the ERC refund timeline can take anywhere between 4-6 weeks or longer to process.
It is important to note that the refund processing time may vary depending on the requested refund type. For example, if the refund is for a large amount of money, it may take longer to process than a smaller refund. Additionally, if the refund is for a complex transaction, it may take longer to process than a simpler refund.
ERC processing has been slowed by paper processing
Due to remote working in 2020, the processing times for ERC claims have been delayed due to the influx of paper processing. Additionally, IRS staff have been available through staffing has been reduced due to social distancing measures due to the Coronavirus pandemic. These increased safety regulations have slowed the processing time for documents, which has slowed the rate at which refunds can be released.
The IRS has implemented additional measures to help speed up the process, such as increasing the number of staff available to process documents and providing additional resources to help taxpayers understand the process. Additionally, the IRS has implemented a system to allow taxpayers to track the status of their refund, so they can be aware of when their refund is expected to arrive.
Is there any way to get my refund faster?
The best way to ensure a fast refund is to file all forms with accurate information promptly. This includes invoices, contracts, and other material relevant to the application process. Furthermore, it is important to stay on top of any problems or questions to handle them quickly so that refunds are not further delayed.
It is also important to be aware of any deadlines that may be associated with the refund process. Missing a deadline can cause delays in the refund process, so it is important to be aware of any deadlines and ensure all paperwork is submitted before the deadline.
Finally, it is important to be patient and follow up with the relevant authorities if the refund takes longer than expected. This can help to ensure that any issues are addressed quickly and that the refund is processed as soon as possible.
Don’t pass up your chance to receive the ERC
Eligible businesses should take all necessary steps and devote their full attention to filing their application correctly. While all extra effort can’t speed up processing time on behalf of the IRS, filling out all necessary materials correctly and quickly will ensure no refund delays on behalf of your business – leading to an end result of faster refund processing time.
It is important to note that the ERC is only available to businesses that meet certain criteria. To be eligible, businesses must have experienced a significant decline in gross receipts due to the COVID-19 pandemic. Additionally, businesses must have been in operation before February 15, 2020, and must have filed or paid taxes to the IRS in the past.