Churches Navigating the Complexities of Employee Retention Tax Credits
employee retention tax credit requirements
The introduction of employee retention tax credits has made navigating the labyrinth of legal and financial considerations associated with business operations more complicated for employers all around the world. Particularly perplexing for churches is the issue of employee retention tax story for churches, where recent passing of the Coronavirus Aid, Relief and Economic Security CARES Act has muddled the waters.
can churches claim the employee retention credit
How Does an Employee Retention Credit Work?
Employee retention credits can be applied towards the employer-share of payroll taxes and are available to employers during the duration of the COVID-19 pandemic. The credit is equal to 50% of wages paid up to a limit of $10,000 in wages, per employee.
can churches claim the employee retention credit ?
Yes. Churches can be eligible to receive the employee retention credit, depending on dates and location of any applicable closure and number of employees. If your church is subject to the general rules, you may qualify.
What Does the CARES Act Mean for Churches?
The CARES Act provides certain types of tax relief for churches, including payroll tax credits. Since churches do not pay federal income taxes, they are eligible to receive the employee retention credit up to a maximum of $10,000 per employee. In short, churches should take the time to evaluate the various tax breaks associated with the CARES Act. It is highly recommended to consult a professional tax advisor if you have any questions about employee retention tax story for churches .
