Everything To Know About ERC Processing Times

Thought Leadership by KBKG

Navigating the process of using the employee retention credit can be tricky, even once you’ve reached the stage of waiting for a refund. If you’ve been waiting for yours, you may be wondering “How do I check the status of my ERC refund?” Let’s look at how you can do that and what factors may add to your processing time.

Table of Contents:

How Do I Check the Status of My ERC Refund?

The longer you wait for your money, the more you’re likely to search for ways to check the status of Employee Retention Tax Credit (ERC or ERTC) refunds. To get an update on your ERC tax credit, you will need to go through the IRS.

There are two options when you want to know “Can I check the status of my ERC refund?” You can either call the IRS helpline or use the IRS website. In both instances, it’s a good idea to have all of your necessary information ready, including your tax return information, employer ID number and Social Security number, if needed.

This can be a tedious process since IRS hold times can get lengthy. Once you get through to a representative or submit your information through the website, be patient. You should expect delays and the average current wait time is significantly longer than two months.

How Long Is the Wait Time To Receive ERC Refunds?

Now that you have the answer to “How do I check the status of my ERC refund?” you’ll probably want to know how long it will take to get your money. Unfortunately, average wait times can vary significantly.

In the early days of the program, the estimated time for receiving ERC refunds was about two months or less. Since then, backlogs at the IRS have led to longer wait times. The agency is working to process all of the claims it has, but you should expect delays.

COVID-19 and ERC Claims

Congress implemented the Employee Retention Credit as a way to help businesses that suffered during the COVID-19 pandemic, and as you can imagine, there was a lot of demand. Millions of companies filed claims for 2020 and 2021 because of shutdowns and operating restrictions. The widespread need meant there were many more claims, so the entire process is moving more slowly.

Hand Processing Returns

The way the IRS handles retroactive filings for companies looking to claim the ERC also contributes to longer wait times. Trained IRS staff must hand-process claims that are made on amended payroll returns. Additionally, the IRS has had staffing issues in recent years, compounding the delays.

What Are the Benefits of Getting Help With My ERC Refund?

In addition to “How do I check the status of my ERC refund?” another major question business owners may want to know is “Can I get my refund any faster?” The answer could depend on where you are in the process. If you’ve already filed, you just have to wait on the process to play out. For businesses that need to file or amend their filings, getting the right guidance from tax professionals at KBKG can make the process smoother and potentially faster.

Your tax preparer will be able to help you avoid obstacles that would slow down your refund. They can make sure you are eligible to file and for which years you could get a refund. They can also make sure all documents are in order so you don’t have to amend the filing later, another issue that could slow down your return.

How Do I Check the Status of My ERC Refund, and How Do I Plan Ahead?

Most companies need all of the income they can get, including tax credits. If wondering “How do I check the status of my ERC refund?” has caused you stress, let KBKG help you. Our team can make sure everything is in order to potentially reduce wait times. Reach out to us today to find out how.

KBKG is providing the following services to assist with ERC:

    • Determine if the employer qualifies, and if so, for which quarters,
    • Determine which employee wages qualify
    • Calculate credits, including analysis of PPP interplay, and
    • Reconcile actual credits with advance credits requested
    • Prepare reconciled data for Form 941-X
    • Prepare documentation supporting a business’ qualifications

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