By Tiffany Henning, originally shared by HR Ministry Solutions
The What:
- The Employee Retention Credit (ERC) applies to wages paid from March 13, 2020 through Dec. 31, 2021
- Credit can be claimed retroactively
- Organizations can receive up to 70 percent of the first $10,000 of qualified wages paid per employee in each qualifying quarter
The Who:
- A full or partial shutdown of operations as a result of a government order due to COVID-19 during 2020 or 2021
- A gross receipts decline of more than 50 percent during a 2020 or 2021 calendar quarter, when compared to the same quarter in the prior year
- A “recovery startup” business that was launched after Feb. 15, 2020, for which the average annual gross receipts do not exceed $1 million
The How:
1. Determine if your church or ministry qualifies
2. Check out the details here: https://www.irs.gov/coronavirus/employee-retention-credit
3. Pull all your payroll data from 2020 and 2021
4. Claim the credit on your quarterly Form 941 tax filings
5. Get extra help from MinistryWorks: https://www.ministryworks.com/resources/articles/covid-19-payroll-resources/about-erc
More details on the church and the ERC: https://www.churchlawandtax.com/web/2021/may-2021/employee-retention-credit-churches.html
