When Will I Find Out if My ERC Application Is Approved?

You know about the Employee Retention Credit (ERC) — AKA the payroll tax refund — that can put hundreds of thousands of dollars back into your business. In fact, hopefully, you’ve already done some homework on the process (if you haven’t, check out our ERC Q&A blog to get going), so what now?

Whether you are applying yourself or with an ERC expert like Innovation Refunds (IR), you may be wondering when you’ll actually receive your cold, hard cash. Below, we’ll run through the process as well as the time frames for each step so you can be confident you’re making the best decisions for your business.

Step 1: Fill Out Your ERC Application

The time it takes to fill out your application can depend on who you’re working with as well as what information is required. At Innovations Refunds, we ask for:

  • Contact Information
  • Company Information
  • Covid-19 Information
  • Payroll Information
  • PPP Information (If Applicable)

Our ERC application form takes around twelve minutes to complete.

Step 2: Find Out if You Qualify & Gather Documents

While you can check if you qualify for yourself, one of the benefits of working with IR is that we do it for you. The ERC refund does span 2020 through the first three quarters of 2021, but there are slightly different IRS regulations for these two years.

ERC Application Qualification Guidelines and Time Frame

2020 ERC qualification guidelines:

  • You had 100 or fewer employees on your payroll.
  • You kept employees on your payroll.
  • Your business was, at least, partially shut down because of a government order OR
  • Your business’s revenue declined by 50% or more during any quarter when compared to the same quarter in 2019.

2021 ERC qualification guidelines:

  • You had 500 or fewer employees on your payroll.
  • You kept employees on your payroll.
  • Your business was, at least, partially shut down because of a government order OR
  • Your revenue declined by at least 20% for any of the first three quarters of 2021 when compared to the same quarter in 2019.

Once you fill out your ERC application with Innovation Refunds, you’ll know immediately if you most likely qualify. Our ERC experts will determine (without a doubt) if you qualify after a careful review of your application and uploaded documents.

ERC Required Documentation Uploads

For the Innovations Refunds team to file your ERC claim with the IRS, you’ll first need to upload the required documentation.

Required business documentation uploads:

  • IRS Form 941: Employer’s Quarterly Federal Tax Return
  • Monthly Payroll Ledger
  • Monthly Group Healthcare Statement
  • PP1 & PPP2 Loan Forgiveness Applications
  • Government Order To Shutdown or Suspend Operations

If applicable, you may need to show that your business operations were compromised due to the pandemic. You are in charge of how quickly IR receives your documents and can begin processing your claim request.

Step 3: Filing Your ERC Claim With the IRS

Filing with the IRS can take some time because it’s crucial to make sure all forms are filled out correctly so the IRS accepts your ERC claim. If you work with the careful ERC experts at Innovation Refunds, you can expect your claim to be filed in four to six weeks. Innovation Refunds has your back during the entire process — with no upfront cost, an ERC specialist assigned to you, and guaranteed audit protection.

Step 4: Wait for Your ERC Application Approval

Once the IRS has received your ERC documentation, it could take anywhere from six to nine months to be issued your refund.

IRS delays are caused by:

  • The changes in procedures at the IRS to address COVID-19 safety protocols, including IRS employees working remotely.
  • The sheer volume of refund requests.
  • Shortage of IRS employees to process requests

Luckily, the IRS has announced its intention to hire more employees. Hopefully, these plans will help speed up the process. If you’re using Innovation Refunds to file your ERC refund, we’ll be by your side every step of the way. We’ll keep you updated and be available to answer any questions during this time (and any other time of course!).

From the ERC Application to Money in Your Pocket

Innovation Refunds takes four to six weeks to process your ERC application because we do what it takes to get your money from the IRS the first time we file. While doing it yourself or throwing the process in the lap of your own CPA is an option, Innovation Refunds empowers small and medium-sized businesses just like yours through a successful ERC refund process. Plus, this is our only job. Once you have uploaded your documents, we will stay on it until your claim is filed; allowing you to focus on running your business.

If you kept employees on your payroll for 2020 and 2021, your business probably qualifies for the payroll tax rebate. Ready to get your business growing? Qualify me today.

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