The Employee Retention Tax Credit (ERTC) is a federal tax credit designed to help businesses retain their employees during the COVID-19 pandemic. The credit is available to employers who have experienced a significant decline in gross receipts due to the pandemic. Employers can claim the credit for wages paid to employees between March 12, 2020 and December 31, 2020. The credit is equal to 50% of qualified wages paid up to $10,000 per employee for the year.
For employers who have already claimed the ERTC, understanding the refund status is important. The IRS has provided guidance on how employers can check the status of their ERTC refund. Here are some tips for employers who are trying to determine their ERTC refund status:
Check Your Tax Return
The first step in determining your ERTC refund status is to check your tax return. If you have already filed your taxes for the year, you should be able to see if you have claimed the ERTC on your return. If you have claimed the credit, you should also be able to see if it has been approved or denied by the IRS.
Check Your Bank Account
If you have already filed your taxes and claimed the ERTC, you should also check your bank account to see if the refund has been deposited. The IRS typically deposits refunds within 21 days of filing, so if it has been more than 21 days since you filed your return, you should check your bank account to see if the refund has been deposited.
Check Your IRS Account
If you have not yet filed your taxes or if it has been more than 21 days since you filed your return, you can also check your IRS account to see if your ERTC refund has been approved or denied. To do this, log into your IRS account and look for a message regarding your ERTC refund status. If you do not have an IRS account, you can create one by visiting the IRS website.
Contact the IRS
If you are still unable to determine your ERTC refund status after checking your tax return, bank account, and IRS account, then it may be necessary to contact the IRS directly. You can contact the IRS by phone or by mail. When contacting the IRS, make sure to have all of your relevant information ready so that they can help you as quickly as possible.
The Employee Retention Tax Credit is a valuable tax credit that can help businesses retain their employees during the COVID-19 pandemic. Understanding the refund status of this credit is important for employers who have already claimed it. By checking their tax return, bank account, and IRS account, employers can determine their ERTC refund status quickly and easily.