The Employee Retention Credit (ERC) was originally enacted as part of the Coronavirus Aid, Relief, and Economic Security (CARES) Act. The ERC was extended and expanded by the Consolidated Appropriations Act, 2021 (CAA), and then again by the American Rescue Plan (ARP) Act. Eligible employers can obtain the ERC with respect to wages and health plan costs paid during periods of disruption brought about by the coronavirus pandemic. The most common way to become an eligible employer under the CARES Act, the CAA, and the ARP Act is to satisfy a gross receipts test. Until recently, not-for-profit (NFP) entities faced significant uncertainty about the manner in which gross receipts is defined for purposes of the ERC. Although the CAA provided this clarification, NFP entities now must consider unusual planning decisions in order to maintain ERC eligibility.
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Topics:
not-for-profit,
NFP,
tax credit,
Employee Benefits,
COVID-19,
CARES Act,
Employee Retention Credit,
Consolidated Appropriations Act,
The Act,
ERTC,
American Rescue Plan (ARP) Act,
CAA
The American Rescue Plan (ARP) Act of 2021 passed in March is the second largest COVID-19 stimulus measure to date and brought significant benefits to individuals, organizations, and benefits offerings. Among the individual rebate checks and expansion to tax credits for parents, there are a handful of provisions of particular interest for not-for-profit organizations. A brief recap of the most notable changes follows.
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Topics:
not-for-profit,
NFP,
Employee Benefits,
Paid Family and Medical Leave,
COVID-19,
Paycheck Protection Program,
PPP,
PPP Loan,
Stimulus,
Employee Retention Tax Credit,
ERTC,
American Rescue Plan (ARP) Act,
ARP Act,
American Rescue Plan
