The time it takes to receive reimbursement from the Employee Retention Credit (ERC) will vary from company to company. Many businesses have had to lay off staff or reduce their hours, making the ERC an increasingly important tool. The pandemic has highlighted the importance of this credit, and many companies are now using it to help retain their workers. To understand how to process an ERC application, some knowledge and experience is required.
In the past, it could take four to six weeks for you to receive the employee retention tax credit reward. The IRS has attributed the delays to the high volume of ERTC requests and to the complexity of the credit. The report also suggests continuous and reinforced scrutiny of larger credits, which undoubtedly increases the delay in processing times. The credit is designed to encourage companies to keep employees on the payroll during periods of economic hardship.
As businesses across the country continue to deal with the consequences of COVID-19, many are taking advantage of the employee retention tax credit (ERTC). Fortunately, there are ways to check the status of your employee retention tax credit. With outbreaks and pandemics becoming more frequent, ERTC and similar programs such as the Check Protection Program (PPP) are likely to play an even greater role in helping companies keep their workers employed. The IRS website has a page dedicated to ERTC, which includes a link to a specific phone number for questions about the credit.
For many people, ERC reimbursement is an essential source of income that helps cover living costs. Many companies have already received their refund from the IRS employee retention tax credit by using the instant tax credit offered by PayNortheast payroll service. All eligible PayNortheast payroll customers received their refunds from the IRS employee retention tax credit several weeks after the end of each quarter, giving them a clear advantage over companies that were still waiting for their refund. In addition, credit has also been expanded in recent months to cover a wider range of companies and employees.