The ERC is a tax credit, NOT a loan – it does not have to be repaid or used in any specific way. Even though churches do not pay taxes, they are still eligible to receive the ERC for keeping employees during the pandemic.

Unlike the PPP, there are no stipulations on how to spend the money, which means you can put these funds toward ministry.

Yes! Many churches think they are ineligible because they must meet all criteria. However, all churches and nonprofits are eligible if they meet just one of the following criteria:

• Fully or partially suspended operations by a governmental order (many churches in many states experienced this), or
• Experienced a significant decline in gross receipts during a calendar quarter when compared to the same quarter in 2019

Yes! Before the Consolidated Appropriations Act 2021, the CARES Act prohibited organizations from obtaining a PPP loan and claiming the Employee Retention Credit (ERC) simultaneously. However, the provision was repealed retroactively to March 12, 2020, with the signing of the Consolidated Appropriations Act on December 27, 2020. This repeal means you can now claim the ERC while receiving total forgiveness on your PPP loan(s). Many churches have already taken advantage of this opportunity.

You can access these credits by refiling your church’s 941s. However, refiling is a complicated process. To ensure compliance and proper utilization of these benefits, our specialist will gather the appropriate documentation and information from you to file these on your behalf.

It is essential to proceed with caution, as “double-dipping” between these programs is not allowed. You cannot consider wages or benefits used to secure forgiveness on your PPP loan(s) for the ERC.

While it is possible to apply for the ERC yourself, there is room for error that can result in costly repayments, interest, and penalties. Due to the complicated nature of these forms and the risk of penalties, we strongly advise using a professional.

It will take about 15 minutes to complete the survey to determine eligibility. Once we determine your eligibility, we will need some documents from you to see how much you are eligible for. You can expect to spend less than half a day’s work on this and receive thousands of dollars for ministry!

Many factors go into the calculation, which requires a thorough assessment. Recent churches we’ve worked with have encountered significant returns. 

Here are some sample calculations:

• 8 employees (6 eligible) = $30,000 + $42,000 = $72,000
• 15 employees (11 eligible) = $55,000 + $77,000 = $132,000
• 25 employees (20 eligible) = $100,000 + $140,000 = $240,000

Once the amended 941s are submitted, receiving the credit can take up to 9 months. However, we have seen some churches receive the credit within three months.

The IRS refunds these tax credits by check. You will receive a check for each eligible quarter.

We charge 10% of the refund received. However, you only have to pay once the refund is received. Beware of scams that try to get you to pay upfront before you have received your refund.

The filing deadline for the 2020 quarters is 2024, and for the 2021 quarters is 2025. However, the IRS is considering shortening the deadline due to the demand for these credits. Now is the time to see if you are eligible!