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April 10, 2023 | General ERC Info

Employee Retention Tax Credit for Churches and Synagogues

The COVID-19 pandemic has had a significant impact on the global economy, and religous organizations are no exception. To help mitigate the impact of the pandemic on nonprofits and their employees, the US government introduced the Employee Retention Tax Credit (ERTC) as part of the Coronavirus Aid, Relief, and Economic Security (CARES) Act in March […]

Employee Retention Tax Credit for Churches and Synagogues

The COVID-19 pandemic has had a significant impact on the global economy, and religous organizations are no exception. To help mitigate the impact of the pandemic on nonprofits and their employees, the US government introduced the Employee Retention Tax Credit (ERTC) as part of the Coronavirus Aid, Relief, and Economic Security (CARES) Act in March 2020.

The ERTC is designed to incentivize employers to keep their employees on payroll during the pandemic by providing a refund of up to $26,000 per employee. Churches and Synagogues are eligible for this tax credit, provided they meet certain criteria. In this blog post, we will discuss the ERTC in detail, including the eligibility criteria and how they can claim the tax credit.

Eligibility Criteria for Churches and Synagogues

Churches and synagogues that have had to fully or partially suspend operations due to a government order related to the COVID-19 pandemic or that have seen a significant decline in gross receipts compared to the same quarter in the prior year are eligible for the ERTC.

The tax credit applies to both full-time and part-time employees, and it covers all wages paid from March 13, 2020, through December 31, 2020. Additionally, the tax credit is available to churches and synagogues that have 500 or fewer full-time employees.

How to Calculate the ERTC for Churches and Synagogues

The ERTC is calculated the same way for a nonprofit organization as a for-profit organization. However, since there are no owners of a non-profit organization, there are no W-2 employees that will need to be excluded from ERC.

How to Claim the ERTC for Nonprofits

It’s important to note that the ERTC is subject to various limitations and restrictions, including wage caps and other eligibility requirements. Therefore, it’s essential to seek the guidance of a tax professional to ensure that your church or synagogue complies with all the necessary regulations and maximizes the benefits of this tax credit.

You can contact our team today to confirm your eligibility and begin the filing process.