How to Check Status of Employee Retention Credit Refund?

The Employee Retention Credit (ERC) was introduced in 2020 as part of the Coronavirus Aid, Relief, and Economic Security (CARES) Act to help businesses affected by the pandemic. The ERC provides businesses with a refundable credit against certain payroll taxes for wages paid to employees from March 12, 2020 to January 1, 2021. If you have applied for this credit, you may be wondering how to check the status of your refund. In this article, we will provide step-by-step instructions on how to check the status of your Employee Retention Credit refund.

Checking the Status of an Employee Retention Credit Refund

The Employee Retention Credit (ERC) is a refundable tax credit that was established under the Coronavirus Aid, Relief, and Economic Security (CARES) Act of 2020. The credit is available to employers that have been affected by the COVID-19 pandemic and helps to offset the costs of retaining employees. Eligible employers can receive a refundable tax credit of up to $5,000 per employee for wages paid between March 12, 2020, and December 31, 2020. If an employer has applied for the ERC and is expecting a refund, they may be wondering how to check the status of that refund. This article will provide an overview of the process for checking the status of an ERC refund.

Checking the Status of an ERC Refund Through the IRS Website

The first step in checking the status of an ERC refund is to visit the IRS website. On the website, there is a “Where’s My Refund?” tool that can be used to track your refund. To use this tool, you will need to enter your Social Security Number, the filing status you used on your tax return, and the exact refund amount. Once you have entered this information, the tool will provide an update on the status of your refund.

Checking the Status of an ERC Refund Through the U.S. Postal Service

If you have not yet received your ERC refund, you can also check the status of your refund through the U.S. Postal Service. To do this, you will need to enter your Social Security Number and the exact refund amount on the USPS website. Once you have entered this information, the website will provide an update on the status of your refund.

Contacting the IRS If You Have Not Received Your ERC Refund

If you have not received your ERC refund after using the IRS and USPS websites to check the status of your refund, you may need to contact the IRS directly. The IRS can be contacted by phone or mail, and you will need to provide your Social Security Number and the exact refund amount. Once you have provided this information, the IRS will provide an update on the status of your refund.

Conclusion

If you have applied for an Employee Retention Credit refund and are expecting a refund, you can check the status of your refund through the IRS website, the U.S. Postal Service website, or by contacting the IRS directly. By following these steps, you can ensure that you receive your refund in a timely manner.

Frequently Asked Questions

What is the Employee Retention Credit?

The Employee Retention Credit is a refundable tax credit that is available to employers who are experiencing financial hardship due to the COVID-19 pandemic. The credit is based on the employer’s qualified wages paid to employees and is available for the 2020 and 2021 tax years. Employers may be eligible for a refundable tax credit of up to $5,000 per employee.

What is the process for claiming the Employee Retention Credit?

The process for claiming the Employee Retention Credit involves filing Form 941, Employer’s Quarterly Federal Tax Return, with the IRS. Employers must complete the form to claim the credit and must include the amount of wages paid to each employee and the associated tax credit. The employer must also include the amount of wages paid to employees for the quarter on which the credit is being claimed.

How can an employer check the status of their Employee Retention Credit refund?

An employer can check the status of their Employee Retention Credit refund by logging into the IRS website and navigating to the “Where’s My Refund” page. Here, the employer can enter their Social Security number and the refund amount they are expecting. The page will then provide an update on the status of the refund.

What information is needed to check the status of an Employee Retention Credit refund?

To check the status of an Employee Retention Credit refund, an employer needs to provide their Social Security number and the amount of the refund they are expecting. This information can be found on the Form 941 that was filed with the IRS.

How long does it typically take for an employer to receive their Employee Retention Credit refund?

The amount of time it takes for an employer to receive their Employee Retention Credit refund can vary, but typically the IRS will issue the refund within 21 days of the employer filing their Form 941. The refund is usually issued in the form of a check or direct deposit.

Are there any other resources available to employers regarding the Employee Retention Credit?

Yes, there are other resources available to employers regarding the Employee Retention Credit. The IRS has a dedicated page on their website that provides information on eligibility, how to calculate the credit, and how to claim the credit. Additionally, the Small Business Administration offers resources for employers to learn more about the credit and how it can be utilized to help their business.

How To Check Employee Retention Credit Refund Status?

In conclusion, checking the status of your employee retention credit refund can be a daunting task. However, by utilizing the resources provided by the IRS, you can make sure that your refund is processed quickly and accurately. By staying organized and keeping up with the information provided by the IRS, you can ensure that you get the refund that you are entitled to in a timely manner.