How Long Does it Take to Receive My ERC Refund?

In numerous regions across the country, the COVID crisis appears to be subsiding in many aspects. However, numerous businesses are still grappling with the repercussions of striving to retain their workforce and sustain their steady operations that were in place prior to the onset of the public health crisis in March 2020.

For those who may not be familiar, the Employee Retention Credit (ERC) is a tax credit provided by the US government to assist small businesses that have been adversely affected by the COVID-19 pandemic. Its purpose is to aid businesses in retaining their employees and keeping them on payroll throughout the pandemic. Many businesses have applied for the ERC to help them navigate these challenging times.

One of the most frequently asked questions by businesses is how long the ERC process takes and when they can expect to receive the funds. On average, the processing time for a new filing with ERC Refund is approximately one week, starting from the day the business owner completes the eligibility questionnaire to the day their claim is submitted to the IRS. Subsequently, the filing is sent to the IRS, where it takes several months to be processed and for the checks to be issued. However, the exact duration can vary. We offer an expedited payment option for an additional fee.

The answer to this question is not as straightforward as it may seem. The length of the ERC process can range from a few weeks to several months, depending on several factors. One determining factor is the size of the application. If a business has a simple application with only a few employees, the process might be completed within a few weeks. Conversely, if a business has a more complex application involving numerous employees, the process could take several months at the IRS.

Another aspect that can impact the duration of the ERC process is the backlog of applications. Since the ERC is still a relatively new program, a significant number of businesses have applied for it simultaneously, overwhelming the system. Consequently, this backlog has sometimes caused delays in processing applications, resulting in a longer waiting period for the funds.

The timeframe for receiving the funds also depends on the specifics of the application. Once the return is processed, the IRS will either issue a refund check or apply the credit to outstanding tax payments.

It's important to note that the ERC process is continuously evolving. The government has implemented substantial changes to the program over the past two years, which have influenced the duration of the process. For instance, in March 2021, the government extended the ERC program until the end of 2021 and expanded the eligibility criteria. These modifications have led to an increase in the number of applications and consequently extended the processing time.

What Can Businesses Do to Expedite The ERC Process and Receive Their ERC Refund Faster?

Firstly, it is crucial to ensure that your ERC application is complete and accurate. This involves providing all necessary documentation, such as payroll records and PPP information. Incomplete or inaccurate applications will be rejected, resulting in delays.

Staying updated on the ERC program's policies and guidelines is also essential. Changes in eligibility criteria or application requirements can affect the duration of the process. By remaining informed and making any necessary adjustments to their application, businesses can speed up the process.

Finally, engaging an ERC expert to assist in navigating the process can be beneficial. Professionals, such as ERC Refund, have extensive experience with the ERC program and can help businesses through the application process. We can ensure that the application is complete and accurate, reducing the chances of rejection or delay. Here at ERC Refund, we offer a streamlined filing process to promptly submit your claim to the IRS. Contact us today for your complimentary ERC estimate.