The time needed to receive reimbursement from the ERC will vary from company to company. 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. Companies that used PayNortheast as their payroll provider could choose an instant tax credit that provided a portion of the employee retention tax credit each time the payroll was processed. 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 already received the refund of the employee retention tax credit by using the instant tax credit offered by the IRS through the PayNortheast payroll service. By filing Form 7200, companies could get their ERTC reimbursement faster and use it to help offset the cost of keeping employees on the payroll during these difficult times.