Initially, it may have taken four to six weeks for you to receive your employee retention tax credit reward. However, due to the backlog of applications filed with the IRS, this has dragged on for several months. Most employers can expect to receive their refund from the ERTC within six months to a year after filing their return. The 941 forms filed electronically had an IRS processing time of one month.
Original forms 941 filed on paper are generally processed within 3 to 4 months. If your Form 941 request that you originally filed hasn't been reimbursed, it's time to contact the IRS or ask a professional to review Form 941 for potential errors in your request. The returns that we were able to file electronically received their first-quarter checks in four to five weeks. Returns that were modified had to be made by mail, in accordance with the rules.
The IRS had originally told us that it would take four to five months. Most of them are taking even longer than that. This is just one example of how to process an employee retention credit application with a little knowledge and experience. As companies across the country continue to deal with the consequences of the COVID-19 pandemic, many are taking advantage of the employee retention tax credit (ERTC).
The credit is designed to encourage companies to keep employees on the payroll during periods of economic hardship. We can help you calculate credits, file 941-X to apply for employee retention credits, review pre-calculated credits, determine requirements for credits, assist with IRS audits to 941-X, and help you with letters from the IRS to help resolve delays in your credits. The employee retention credit is refundable, meaning that companies can receive a refund if they have already paid their taxes for the year. Many companies have been forced to lay off employees or reduce their working hours and, as a result, the employee retention tax credit has become an increasingly important tool for companies.
In addition, credit has also been expanded in recent months to cover a wider range of companies and employees. Fortunately, we have some answers to put your mind at ease and help you check the status of your employee retention tax credit. Fun virtual team-building activities The best employee recognition software platforms Truly amazing gifts for co-workers Ideas for corporate gifts Employees really want unique gifts for employees Corporate gift ideas that their customers and customers will love. As outbreaks and pandemics become more frequent, the employee retention tax credit 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 the employee retention credit, and the page includes a link to a specific phone number for questions about the credit. The employee retention credit under the CARES Act encourages companies to keep employees on their payroll. Quick background: If you haven't explored the employee retention credit (ERC), you may be eligible for a payroll tax credit that has resulted in significant refunds.