Yes, churches and other religious organizations may be eligible to receive the Employee Retention Credit (ERC).
If they have been affected by government-mandated limitations on the number of people allowed to gather or have seen a significant decrease in their gross receipts.
Churches and not-for-profit organizations can qualify for the ERC tax credit, if they meet certain criteria. To be eligible, nonprofit organizations must:
- Have experienced a significant decline in gross receipts compared to a prior year quarter. A significant decline is defined as a decline of 20% or more in gross receipts.
- Have operations fully or partially suspended due to a government order related to COVID-19.
- What Nonprofits Need to Know about the Employee Retention Tax Credit (ERTC)
The COVID-19 pandemic has had a significant impact on many organizations, including nonprofit organizations and churches. In an effort to provide some relief to struggling businesses and nonprofits, the U.S….
- Internal Revenue Service (IRS)
- The CARES Act
- American Institute of CPAs
- National Federation of Independent Business (NFIB)
- FAQs: Employee Retention Credit under the CARES Act
Internal Revenue Service (IRS)
- Employee Retention Tax Credit: What You Need to Know
U.S. Department of the Treasury