How Long Does The ERC Process Take And When Can I Expect My Refund?

In many ways, in many parts of the country, the COVID crisis seems over. But for many businesses out there, you’re still feeling the impact of working to keep your people on payroll and maintain the steady business you had going before the public health crisis hit in March of 2020.

For those not already aware, the Employee Retention Credit (ERC) is a tax credit offered by the US government to small businesses that have been impacted by the COVID-19 pandemic. Designed to help businesses retain their employees and keep them on payroll during and through the pandemic. Many businesses have applied for the ERC to help them stay afloat during these difficult times.

Maybe the most common question businesses have is how long does the ERC process take? And how long does it take to get the money? The average processing time for a new filing with DUB Financial is around three weeks from the day when a business owner completes the eligibility questionnaire to the day their claim is filed with the IRS. Then, the filing goes to the IRS, where it takes several months to process and issue the checks. But how long, exactly?

The answer to this question is not as simple as you might think. The ERC process can take anywhere from a few weeks to several months, depending on various factors. The first factor is the size of the application. If a business has a simple application, with few employees, the process may take only a few weeks. However, if a business has a more complex application with many employees, the process may take several months at the IRS.

Another factor that can impact the length of the ERC process is the backlog of applications. Since the ERC is still a relatively new program, many businesses have applied for it at the same time, overwhelming the system. This backlog has sometimes caused delays in processing applications, which means that it can take longer to get the money.

The length of time it takes to get the money also varies depending on the specifics of the application. Once the return is processed, the IRS will issue a refund check or apply the credit to outstanding tax payments.

It is important to note that the ERC process is constantly evolving. The government has made significant changes to the program over the past two years, which has impacted the length of the process. For example, in March 2021, the government extended the ERC program until the end of 2021 and expanded the eligibility criteria. These changes have led to an increase in the number of applications and a longer processing time.

So, what can businesses do to speed up the ERC process and get their money faster?

Ensure your application is complete and accurate. This includes providing all necessary documentation, such as payroll records and PPP information. If the application is incomplete or inaccurate, it will be rejected, which will delay the process.

Stay up to date on the program’s policies and guidelines. Changes in eligibility criteria or application requirements can impact the length of the process. By staying informed and making necessary adjustments to their application, businesses can speed up the process.

Finally, engage an expert to help guide you through the process. Groups like DUB Financial have taken many customers through the system and know the process inside out, which can help streamline your path. Professionals like us have experience working with the ERC program and can help businesses navigate the application process. We can also help businesses ensure their application is complete and accurate, reducing the likelihood of rejection or delay. Here at DUB Financial, we offer a smooth, streamlined filing process to get your claim to the IRS as expeditiously as possible. Then the process goes to their hands, and that step can vary widely in the amount of time it takes.