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Business Types: Churches and Non-Profit Organizations
Business Types: Churches and Non-Profit Organizations

ERC for churches and non-profits.. How does it work?

Updated over a year ago

The Employee Retention Credit is available to churches and non-profit organizations that:

  • were affected by government orders imposing capacity restrictions on services and other gatherings

  • that suffered significant declines in gross receipts.

Make sure that churches who are looking to apply for the ERC, do in fact have W2 employees on payroll.

"Section 2301 of the CARES Act, as originally enacted, provides for an employee retention credit for eligible employers, including tax-exempt organizations, that pay qualified wages, including certain health plan expenses, to some or all employees after March 12, 2020, and before January 1, 2021" (Notice 2021-49, p. 2, "II. BACKGROUND ON SECTION 2301 OF THE CARES ACT AND SECTION 3134 OF THE CODE").

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