How Long Does It Take for the ERC To Be Approved?

July 24, 2023
Dayes Law Firm

The Employee Retention Credit (ERC) can bring serious relief to eligible employers that lost revenue or closed their doors during the COVID-19 pandemic. If you qualify, you could claim up to $7,000 per employee per quarter (up to $21,000 per worker) for 2021.

You’re far from alone if you’ve applied for the Employee Retention Tax Credit but are still waiting on ERC tax credit approval. Thousands of other businesses have applied, too, which means it could take the IRS a long time to process your claim.

When Will the IRS Send Your Credit?

If you filled out Form 941-X perfectly, the IRS could give you an update on your refund in as little as four weeks. The average ERC tax credit approval time is six to eight weeks. Once you’re approved, the IRS will deposit the funds into your bank account or send you a check in the mail.

In some cases, you may need to wait several months to see your refund. IRS offices nationwide closed down during the pandemic, so it’s taking agents longer than normal to process returns and deal with the backlog of paperwork for ERC tax credit approval.

How To Check Your Refund Status

If it’s been a few months since you applied for the ERC and still have nothing to show for it, you may want to call the IRS to check on your refund status. This won’t make the IRS move any faster, but an agent could tell you how much longer it might take to process your claim so you at least have a frame of reference. They can also inform you of any problems with your application.

Call the IRS Help Line at (800) 829-4933 to check your refund status. It’s open from Monday to Friday, 7am through 7pm.

When you call, have your tax return information, Social Security number, and employer ID number ready. The agent you talk to will need this information to figure out what’s going on with your claim.

If the IRS puts you on hold for more than 30 minutes, you might want to call back at a later time. Certain times, such as after work, will have higher call volumes than others. It’s smart to call as early in the morning as you can. With luck, yours will be one of the first calls the IRS answers.

Do You Qualify for the Employee Retention Tax Credit (ERTC)?

It’s not uncommon for businesses to try and claim the ERC even when they don’t qualify for it. So, if you’ve been checking your mailbox and there’s still no sign of your refund, it’s possible your business doesn’t qualify.

To qualify, business owners must meet at least one of the following requirements:

  • You saw at least a 50% drop in gross receipts in 2020 or at least a 20% decline in gross receipts for 2021
  • You had to partially or totally close down your business because the government ordered you to do so

You could qualify even if your business took out a Paycheck Protection Program (PPP) loan. However, you can’t claim the ERC for qualified wages you had forgiven by a PPP loan.

Call Dayes Law Firm PC if You Have Questions About the ERC

Waiting for your ERC refund can be tough, especially if you’re depending on that money to help your business stay afloat. Want to know more about ERC tax credit approval times or find out whether your business qualifies for the credit? Reach out to Dayes Law Firm PC at (866) 257-1223 for a free consultation today.