The Employee Retention Credit (ERC) is a great way for employers to receive financial assistance during the COVID-19 pandemic. But how long does it take to get your money? Generally, employers can expect to receive their refund from the ERTC within eight to ten weeks after filing their return. In our experience, it takes approximately nine months to receive a refund from the IRS after filing a modified Form 941X. The ERC credits are calculated based on the qualifying wages paid to employees during their status as an eligible employer.
Businesses can still apply for the ERC by filing an amended Form 941X (Quarterly Federal Payroll Tax Return) for the quarters in which the company was an eligible employer. From now on, this is the only way to apply for the ERC. Although one of the objectives of the ERC was to provide funding to compensate for employee expenses (and, therefore, maintain employment), the inevitable staff deficit means that companies will not receive payments until long after the crisis has passed, and that there will be a further delay in ERC emails. Disaster loan counselors can help your business with the complex and confusing Employee Retention Credit (ERC) and Employee Retention Tax Credit (ERTC) program.
Instead, employers must reduce wage deductions on their income tax return for the tax year in which they are an eligible employer for the purposes of the ERC. For more information on the Employee Retention Credit, visit Cherry Bekaert's ERC Guidance Center or contact Martin Karamon.