How Long Does it Take to Get an ERC Refund 941x?

The Internal Revenue Service (IRS) has recently released information regarding the expected processing time for revised Form 941 refunds. According to the IRS, those who have already filed the form can expect to receive their refund between 6 and 10 months from the filing date. However, those who are submitting the application now or who have already filed it may have to wait up to 16 months or more. Electronic forms 941 are generally processed within one month, while paper forms take 3 to 4 months. If you have already filed your Form 941 request and have yet to receive a refund, it is time to contact the IRS or seek professional help in reviewing the form for potential errors.

Companies that used PayNortheast as their payroll provider had the option of an instant tax credit that provided a portion of the Employee Retention Tax Credit (ERC) refund each time payroll was processed. The ERC is a payroll tax credit that has resulted in significant refunds for many businesses. Unfortunately, the IRS's online tracking and access systems do not provide any information on the processing time of ERC refund requests in amended payroll tax returns. Fortunately, PayNortheast customers were able to take advantage of an instant tax credit that provided a portion of their ERC refund each time payroll was processed. This gave them a clear advantage over companies that were still waiting for reimbursement. Legislative changes also allowed many employers to retroactively request ERC on amended payroll tax returns, which must be filed on paper and processed by hand by specially trained IRS personnel. While this was intended to provide funding to compensate for employee-related costs (and, therefore, maintain jobs), the inevitable staff shortfall (such as the one suffered by the Small Business Administration due to the Paycheck Protection Program) means that employers will not receive their funds until long after the crisis has abated. In conclusion, those who have already filed their Form 941 request can expect a refund between 6 and 10 months from the filing date.

Companies that used PayNortheast as their payroll provider had an advantage in receiving their Employee Retention Tax Credit refunds sooner than other businesses.