How Long Does the ERC Refund Process Take?
Many small to medium-sized businesses suffered from the impact of COVID-19. If the pandemic negatively impacted your business, it could potentially receive hundreds of thousands of dollars back if it meets IRS eligibility requirements.
We're referring to a payroll tax refund that was created to help struggling businesses retain employees, get back on their feet, and thrive. The payroll tax refund is called the Employee Retention Credit (ERC) — also known as the Employee Retention Tax Credit (ERTC) — and was originally part of the Coronavirus Aid, Relief, and Economic Security Act (CARES Act) legislation that was renewed, modified, and extended under the Taxpayer Certainty and Disaster Tax Relief Act of 2020. It was later extended again as part of the Consolidated Appropriations Act of 2021.
The ERC is not a loan. It's capital you can use to help your business overcome hardships caused by the pandemic. But how long does the ERC refund process take? Read on to learn more about what you can expect.
ERC Refund Steps and Time Estimates
The first step is to fill out our intake form to see if your business qualifies for ERC assistance. It takes less than 8 minutes to complete and will determine if your business may be eligible.
ERC qualifications and required documents
Before we can help you submit your business's claim, you'll need to know what the ERC refund qualifications are. Since the legislation covers all of 2020 and the first three quarters of 2021 — with slightly different regulations and deduction amounts available — it's crucial that you're aware of your company's full eligibility status.
Gathering documents for your business's ERC claim
Make sure you have the following documents ready to upload:
- Quarterly Profit & Loss Statements
- IRS Forms 941
- Monthly Payroll Ledgers
- Monthly Group Healthcare Statements
- PPP1 Loan Forgiveness Application (Form 3508)
- PPP2 Loan Forgiveness Application (Form 3508EZ)
If you have any questions about uploading your documents, you can check the Document Upload Checklist.
File with the IRS: depends on them
When you work with Innovation Refunds, we'll help:
- Determine your company's potential eligibility
- Check for missing information
- Verify the correct documents are in order
- Estimate the credit amounts
- Submit your business's claim
This time can vary depending on a number of factors, but it typically takes us four to six weeks to complete all steps and submit your company's claim.
Once your business's claim has been filed with the IRS, it could take anywhere from 5 to 8 months for them to process it. It's important to note that the IRS is experiencing ERC refund delays due to the pandemic and an increased number of ERC claims.
While none of us are thrilled about the delays, the sooner the IRS has your ERC claim, the faster they can begin processing it. Once the IRS has your company's claim, you can check the ERC refund status by calling the IRS at (877) 777-4778. When you call the IRS, make sure to have your Social Security number, employer identification number, and tax return information on hand.
The ERC Starts with Taking the Next Step Today
If you feel overwhelmed thinking about the ERC, you're not alone. That's why we've built a team of highly qualified refund specialists, independent tax attorneys, and CPAs to help make the process as easy as possible.
At Innovation Refunds, we do the behind-the-scenes work so you can focus on running your business. With extensive knowledge of tax code and ERC nuances, our independent tax attorneys are well-versed in the steps needed to file a successful ERC claim for eligible businesses.
Instead of doing everything on your own and risking a rejected ERC claim, consider working with an ERC originator like Innovation Refunds to make it our mission to get businesses the ERC refund they are eligible for. To take the next step, fill out our intake form.