When it comes to filing your taxes, the quickest way to get your refund is to file online and receive it via direct deposit. But what if you need to file an amended form 941? How long will it take to get your payroll tax refund?According to the IRS, amended forms 941s that have already been filed should receive a refund 10 to 14 months after the filing date. For those who have just filed or recently filed, the wait could be up to 16 months or more. The good news is that if you have payroll tax deposits from your employees' withholding from other quarters, you can keep those salaries withheld for the amount you are entitled to receive the Employee Retention Credit (ERC).
The rest of the tax credit was issued by means of an IRS check within 45 days after the end of the quarter. To make this happen, the IRS had to hire and train an entirely new team of agents. The Employee Retention Credit under the CARES Act encourages companies to keep employees on their payroll. As a result, the IRS has hundreds of thousands of amended Form 941 applications pending. 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.
All eligible PayNortheast payroll customers received their refunds from the IRS employee retention tax credit several weeks after the end of each quarter. Unfortunately, online tracking and access to information for taxpayers does not provide any information on the processing time of ERC refund requests in amended payroll tax returns. Despite this, employers who qualify for the ERC should still consider filing a modified payroll tax return to apply for the benefit.