During the pandemic many churches received federal Paycheck Protection Program (PPP) grants to help them during a financially challenging time. Many of our congregations still struggle to rebound from the pandemic. But there is another program, Employee Retention Credits (ERC), that can help churches recover employment costs; and we are ready to help your congregation find out if it qualifies.
The Eastern PA Conference is alerting churches that may qualify for the credits because they retained lay employees and continued to pay FICA/social security taxes during the COVID-19 pandemic. Those that paid healthcare premiums for clergy during the pandemic may also qualify for credits. The Conference Treasurer’s office sent a letter this week to about 35 churches that may likely be eligible for substantial ERC dollars. And the conference will present information about the opportunity via a Zoom meeting on Thursday, June 15 at 7:00 p.m.
We are partnering with an agency to help churches determine if they qualify and to complete the necessary application. Many eligible churches have received significant ERC funds, some up to $100,000 and more. Contact Brian Roberts broberts@gnjumc.org, who can help congregations find out if they qualify. Time is running out for this program, and a delay may mean that your congregation will lose out on this opportunity.
Zoom meeting re: ERC opportunity: Thursday, June 15 at 7:00 p.m.
Access information:
Link: https://gnjumc.zoom.us/j/82326234531?pwd=RHVzc3E5TjRlSUlLdkhYMDdsdzlxdz09.
Meeting ID: 823 2623 4531. Password: 655.
One tap mobile: +16468769923,,82326234531# US (New York)
Dial by your location: +1 646 876 9923 US (New York)
More details about ERC opportunity
Churches that experienced significant declines in quarterly gross receipts, or that had to fully or partially suspend their operations due to a government order, may be entitled to the credit. Eligible churches can claim the credits on amended employment tax returns for payment of social security taxes/FICA on part-time or full-time lay employees, or for paying healthcare premiums for clergy from March 13, 2020, to Dec. 31, 2021. Even churches that don’t file tax returns may be eligible to apply.
“The EPA Conference is working with a consultant, who helped both the Florida and Greater New Jersey conferences, to assist churches with determining eligibility and applying for Employee Retention Credits,” writes EPA Chief Financial Officer/Treasurer Jo Fielding in her letter to 35 churches. “The sunset of the first applicable quarter is June 30. So, we urge immediate action. However, even if you miss the first quarter, you may still be eligible for future quarters.”
The Greater New Jersey Conference has promoted this opportunity to its churches and now is helping EPA do the same. As of May 31, 19 GNJ churches received nearly $700,000 (ranging from $8,500 to over $100,000 each); and over 30 more are working through the process, reported Rob Zuckerman, GNJ Chief Financial Officer/Treasurer.
“We have been promoting this opportunity to our churches for some time now,” he said. “There’s more money out there for churches if they will pursue this.”
Kristen Labbe (kristen.labbe@CLAconnect.com), a principal at CLA (CliftonLarsonAllen LLP), is helping GNJ churches and will now work to help EPA churches determine their eligibility and apply for the funds if qualified. For EPA, the up-front cost to determine eligibility is now $500, due to the growing number of clients now taking advantage of this opportunity. (This up-front cost does not apply to GNJ churches.)
That is why Fielding has written to churches who may have the best chance to qualify for the credit because of their payments of FICA taxes for lay employees or healthcare premiums for clergy during the COVID-19 pandemic. All churches are able to seek eligibility if they wish. Additional costs for churches that receive ERC funds are paid from a portion of those funds.
Zuckerman and the Rev. Brian Roberts, Executive Director of GNJ’s United Methodist Stewardship Foundation, carefully vetted CLA. Roberts and Labbe will present information and answer questions during the June 15 EPA orientation meeting and will assist churches that need help or more information.
To learn more about the ERC for your church, read “Employee Retention Credit: Worth a Second Look for Your Church” (March 1, 2023). Also see Wespath’s “IRS Tax Credits (Employee Retention Credit)—Applies to Churches.”
ERC opportunity Zoom meeting access information:
Thursday, June 15 at 7:00 p.m.
Link: https://gnjumc.zoom.us/j/82326234531?pwd=RHVzc3E5TjRlSUlLdkhYMDdsdzlxdz09.
Meeting ID: 823 2623 4531. Password: 655.
One tap mobile: +16468769923,,82326234531# US (New York)
Dial by your location: +1 646 876 9923 US (New York)