How Long Does the ERC Refund Process Take?

Many small to medium-sized businesses suffered from the effects of COVID-19. If your business was negatively impacted by the pandemic, you could get hundreds of thousands of dollars back into your business.

No, it’s not the tooth fairy on steroids, it’s a payroll tax refund specifically meant to help struggling businesses 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.

Although getting your ERC from the IRS is a challenging process, thousands of business owners have already successfully submitted their claims to the IRS.

So, why did they do it? The ERC is not a loan. This is actual money you can use to help your business in whatever way you see fit. But how long does the ERC refund process take? Read on to get the breakdown.

ERC Refund Steps and Time Estimates

The first step is to fill out our application for a payroll tax rebate. That’s the easy part, as it takes about 12 minutes to complete and will tell you if you’re eligible for the Employee Retention Credit. The rest of the process and average waiting times are:

Understand ERC Qualifications and Gather Documents: Depends on You

Before we can help you submit your claim to the IRS, you’ll need to know what the ERC refund qualifications are, both for your business and for submitting the required documents. 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 full eligibility status to get your maximum refund. The time it takes for this step is entirely up to you, so make sure you check it out soon because the window of opportunity for claiming your full ERC refund is closing.

Gathering Your Documents for the ERC Refund

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 reach out to our team!

File With the IRS: Depends on Them

If you have an ERC expert helping you obtain your ERC refund, they will need some time to work their magic.

With Innovation Refunds (IR) as your expert ERC help, we would:

  • Determine your eligibility
  • Check for missing information
  • Verify accuracy
  • Calculate the credit amounts
  • Submit your claim on your behalf

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 claim.

Once your claim has been filed with the IRS, it could take anywhere from 6 to 9 months to be issued a refund. The IRS is experiencing ERC refund delays due to also being impacted by the pandemic, as well as an increased number of businesses filing their claim.

While none of us are thrilled about the delays, the sooner the IRS has your employee retention credit claim, the faster they can begin processing it. Once the IRS has your claim, you can check the ERC refund status by calling the IRS at (877) 777-4778.

Getting Your ERC Refund is Easier With Help

The process of getting your money is complicated, but it’s worth it. The good news is: Innovation Refunds (IR) has a team of ERC experts, CPAs, lawyers, and tax professionals ready to make sure your claim won’t get denied.

We’re here to work with you to get your ERC refund in your hands as soon as possible. To get started, fill out the 12-minute application form today.

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