Understanding the Process

The Employee Retention Credit (ERC) is a provision of the CARES Act that provides a refundable tax credit to businesses affected by COVID-19 in the form of a check sent by the IRS. It was designed to reward businesses who kept W-2 employees employed during the COVID-19 pandemic.s. But the process from  approval to fund disbursement can be daunting especially after the September 14, 2023 announcement from the IRS that they will be slowing down the processing of ERC filings as well as the disbursement of ERC checks.Let’s demystify it and, while we’re at it, highlight a service that can expedite this process for you, namely Finance ERC (financeerc.com).

The ERC Filing Approval Process

Step 1: Determine Eligibility

The first step in the process is to determine if your business is eligible for the ERC. To qualify, your business must have been fully or partially suspended due to government orders related to COVID-19, or experienced a significant decline in gross receipts compared to 2019 or had supply chain issues.

Step 2: Apply for the ERC

Once you’ve determined that your business is eligible, the next step is to apply for the ERC. This involves filling out and submitting IRS Form 7200 and Form 941. It’s crucial to ensure that these forms are filled out correctly to avoid any delays in the loan approval process.

Step 3: Wait for Approval

After submitting the necessary forms, you’ll need to wait for approval. The IRS will review your application and determine whether you’re eligible for the ERC.

The Fund Disbursement Process

Once your ERC filing is approved, the next phase is fund disbursement. Here’s how it works:

Step 4: Calculate Your Credit

The amount of your ERC is based on a percentage of qualifying wages paid to employees. You’ll need to calculate this amount and report it on your federal employment tax returns.

Step 5: Receive Your Funds

Once your credit has been calculated and reported, the IRS will process your claim and issue a credit or refund. This can be applied to offset future payroll tax liabilities, or you can request a refund in the form of a check from the IRS.

Expedite the Process with Finance ERC

The entire process from ERC approval to fund disbursement can take a few months to over a year. That’s where Finance ERC (financeerc.com) comes in. They specialize in helping businesses get their ERC monies due paid upfront, eliminating the wait and reducing the stress associated with not knowing when your ERC refund will arrive.

In conclusion, while the process from ERC filing approval to receiving your ERC refund check from the IRS can seem overwhelming, understanding each step can make it more manageable. And with services like Finance ERC at your disposal, you can navigate this process with greater ease and confidence.