Did you claim the Employee Retention Credit (ERC) to help support your business throughout the COVID-19 pandemic? If you are still waiting for your cash refund, you’re not alone. While the IRS is still working on processing existing claims (some dating back to 2020), IRS Commissioner Charles Rettig recently told House members in a hearing that the IRS expects its backlog of unprocessed work to be complete by the end of 2022.
The IRS plans to hire 10,000 workers to help address the backlog and plans to enter 2023 with normal inventories. The IRS cites employee attrition and the high number of claims due to the pandemic as some of the root causes of the significant delays in the processing of refunds.
If you have filed for the ERC but have not received your refund or any updates from the IRS, remain patient – we are seeing delays of up to twelve months, and in most cases six to ten months.
Unfamiliar with the ERC? The Employee Retention Credit (ERC) is a program created under the CARES ACT designed to encourage businesses to maintain their staff throughout this economic disruption. The ERC allows business owners to claim a cash refund of up to $26,000 per employee for qualified wages paid from March 13, 2020 through September 30, 2021.
To learn more about the Employee Retention Credit, check your eligibility or speak to one of our ERC advisors, please visit our ERC Resource Center.