Employee Retention Tax Credit
Employee Retention Tax Credit (ERTC) rules make tax refunds available for churches that paid employee wages and/or health insurance in 2020 and 2021. Get up to $26,000 per employee for your ministry.
The Employee Retention Tax Credit (ERTC) program is available from Q2 2020 – Q3 2021. Even though this time has passed, this does not impact the ability of your church to claim ERTC retroactively.
Fill out the survey to the right to find out if your ministry is eligible.
Definitions and Frequently Asked Questions can be found at the bottom of the page.
At the end of the survey, you’ll also have an opportunity to schedule a no-cost, no commitment appointment to learn about how your ministry can go about claiming the credit.
Does Your Church Qualify?
What is considered gross receipts?
Gross receipts include the organization’s investment income, including from dividends, rents, and royalties, as well as the gross amount received as contributions, gifts, grants, and similar amounts, and the gross amount received as dues or assessments from members or affiliated organizations.
What is considered a full or partial suspension of operations?
This includes State or local mandated gathering limitations or in-person attendance restrictions.
Some examples include:
– Only a certain amount of people can be in one room/building at a time
– Attendance is limited to a specific percentage of full capacity
– Closure of your ministry gathering space (Example: your church meets at a local elementary school or theater and the government mandates prohibit gatherings in those places)
We were subject to government gathering restrictions but we didn’t have a drop in giving. Are we eligible?
In order to be eligible in a quarter, you only need to meet one of the criteria (suspension of operations OR gross receipts decline). You do not need to meet both criteria. You can also mix and match the criteria. (For instance, some quarters could be eligible based on the suspension test, while others could be eligible on gross receipts decline).
We received PPP loan funds, can we participate in the Employee Retention Credit program too?
Originally, you could only do one or the other. However, in late 2020 Congress passed the Consolidated Appropriations Act which allows organizations to participate in both.
Are clergy eligible?
Due to how the IRS code was written, clergy wages/housing allowance are not eligible wages. However, if the church pays into a group-sponsored health insurance plan their clergy staff, those amounts can be used in the ERTC calculation
Is there a minimum number employees required to participate?
You only need 1 employee on staff to qualify. Full-time and part-time employees are eligible.
How long does it take to receive the funds?
Currently, the average processing time we’re seeing from the IRS is 6-8 months from when the forms are filed.
Do I really need to take the survey? Can’t I just talk to someone?
The survey is designed to give your ministry an initial idea on whether or not you’re eligible. If you’d like to skip that, just click the link below to schedule a no-cost, no obligation appointment to learn more about the ERTC and our filing services
Learn More About the ERTC