July 22, 2021
We know a lot of ministries were significantly impacted by COVID-19 in 2020 and may still be feeling the effects today. Most ministry leaders don’t realize there is funding available to non-profit employers including churches, schools, colleges, and camps.
Our agency wants to make sure you're aware that your ministry may qualify for up to $33,000 per employee through the Employee Retention Credit (ERC). Below are some highlights about the credit and guidance on where to start to see if your ministry is eligible.
What is the ERC?
The Employee Retention Credit (ERC) is a fully refundable payroll tax credit for eligible employers. It was initially created by the 2020 CARES Act to encourage businesses to keep employees on their payroll during widespread business interruptions caused by the pandemic.
The Tax Relief Act of 2020 makes the ERC available to employers even if they received PPP loans, as long as PPP funds are not used to calculate the credit. The American Rescue Plan Act of 2021 extended the ERC through December 31, 2021.
Eligible organizations can receive a tax credit of up to $5,000 per qualified employee in 2020 and up to $28,000 per qualified employee in 2021.
Note: This tax credit cannot be claimed for pastors and clergy, because they are exempt from the federal employment taxes (FICA), upon which the credit is based.
Does My Ministry Qualify?
Eligible employers include businesses and tax-exempt organizations that experienced EITHER ONE of these situations:
Seek the Credit for Your Ministry
Check out the Ministry Guide to Claiming the Employee Retention Credit on the MinistryWorks® website to learn more about how to qualify. If you qualify, the MinistryWorks team can also help your ministry claim the credit. They’ve already helped more than 400 ministries. On average, the organizations they’ve helped are claiming about $93,000.
MinistryWorks by Brotherhood Mutual is a payroll and payroll tax-filing service created to help churches and related ministries save time and money so they can focus on building the Kingdom.
*The above blog post is intended to be helpful, but does not constitute legal advice nor tax advice, and is not a substitute for legal advice from a licensed attorney or tax advisor in your area.
*We encourage you to consult with a licensed attorney and/or tax advisor in your jurisdiction to determine how local, state and federal law applies to your specific circumstance.
Most ministry leaders don’t realize there is funding available to non-profit employers including churches, schools, colleges, and camps. This post includes some highlights about the credit and guidance on where to start to see if your ministry is eligible.
April is National Child Abuse Prevention Month. Though child abuse may not be something you could ever imagine happening within your ministry, sexual abuse of a minor is one of the top five reasons churches end up in court, according to Church Law & Tax. Studies also show that a child is much more likely to be sexually abused by a trusted adult than a stranger.
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Organizations that obtained Paycheck Protection Program (PPP) funding through the CARES Act can have their loans forgiven, turning them into grants. To qualify, each borrower must file a forgiveness application with its PPP lender, proving that it followed the rules. If your church, school, college, or camp meets all the criteria, 100% of its loan can be forgiven.
Learn about the CARES Act and two loans for which ministries may be eligible, since Congress authorized additional funding April 23.
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Technology helps make the day-to-day operations of running a ministry easier to manage, but it also opens the door for a whole new set of risks. Take steps to protect your people and your ministry’s assets.
The first Sunday in February is a big day for sports fans. In fact, many Americans view Super Bowl Sunday as a national holiday. Friends and families will gather this year to watch the big game, enjoy delicious snacks, and of course, critique the commercials that go along with game day.
Recently, we learned about two major overseas incidents involving pastors on mission trips. The first incident involved a pastor being hit by a motorcycle while running. The second was a bus accident involving two pastors. The runner and one of the two bus passengers sustained extensive injuries.
Last month, the IRS announced that its initiating hundreds of church exams to test compliance with the Affordable Care Act (ACA). While many provisions only apply to churches with 50 or more full-time equivalent employees (FTEs), even smaller churches could potentially violate provisions applicable to health benefit plans with as few as 2 plan participants.
July 4th is synonymous with food, fun, and fireworks. If your church is planning an event this Independence Day, remember to keep a focus on safety, so that everyone can have fun.
National Insurance Awareness Day falls on June 28 this year to remind people everywhere that insurance is vital to their companies and ministries.
Do you use commercial vehicles that transport more than 15 passengers or carry cargo from one state to another as part of your ministry? If so, you are required to register with the Federal Motor Carrier Safety Administration (FMCSA) and obtain a USDOT number.
There’s a new scam in town, and ministries and other organizations collecting donations are the primary target. If your ministry collects tithes or donations, you could be targeted by scammers practicing donation overpayment fraud.
For the first time in its 13 years of influenza monitoring, the U.S. Centers for Disease Control and Prevention is reporting that every state in the continental U.S. is seeing widespread flu activity. Get tips on how to keep your congregation healthy this flu season.
Snow skiing. Camping. Whitewater rafting. A youth group trip can give students an exciting diversion from their weekly routines, as well as an opportunity to strengthen healthy friendships. Off-site activities may challenge your students to step outside of their comfort zones a bit, but this can bring about a positive result.