The Employee Retention Credit (ERC) was originally enacted as part of the Coronavirus Aid, Relief, and Economic Security (CARES) Act.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
Additional relief from COVID-19 disruption came at the end of 2020 that may be beneficial for not-for-profit organizations. While much of the attention has been on the updates to the Paycheck Protection Program in the Consolidated Appropriations Act, 2021 a second law brought changes that not-for-profit organizations may want to note as well.
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Topics:
Grants,
COVID-19,
PPP,
EIDL,
SBA,
PPP Loan Forgiveness,
Consolidated Appropriations Act,
PPP2,
The Act,
gross revenue,
SVO,
relief,
Shuttered Venue Operator
Provisions in the year-end stimulus bill known as the Consolidated Appropriations Act, 2021 (the Act) benefit beleaguered not-for-profit organizations in a number of ways. The COVID-19 relief measures clarify important elements for recipients of Paycheck Protection Program (PPP) loans, and offer fresh funding for new loans (PPP2) that may be particularly important to not-for-profits. An employer tax credit was also enhanced and employee benefit modifications extended. Read on to learn how your organization can take advantage of the newest stimulus legislation and find some stability in these trying times.
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Topics:
not-for-profit,
NFP,
tax credit,
Employee Benefits,
Paid Family and Medical Leave,
COVID-19,
CARES Act,
PPP,
SBA,
PPP Loan Forgiveness,
Consolidated Appropriations Act,
PPP2,
The Act,
ERTC
The Employee Retention Tax Credit (ERTC) was established by the Coronavirus Aid, Relief, and Economic Security (CARES) Act, but limitations on its availability tempered interest in the relief measure. That is about to change, thanks to significant changes made on Dec. 27, 2020, by the Consolidated Appropriations Act, 2021 (the Act). The ERTC is now available to employers that received loans under the Payroll Protection Program (PPP), so any employer meeting ERTC eligibility criteria can benefit. Because employers potentially benefit from the enhanced ERTC on a retroactive basis, employers should immediately begin analyses to identify and calculate the value of retroactive or prospective ERTC benefits.
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Topics:
not-for-profit,
IRS,
NFP,
tax relief,
tax credit,
employees,
COVID-19,
CARES Act,
PPP,
PPP Loan Forgiveness,
Consolidated Appropriations Act,
Employee Retention Tax Credit,
The Act,
ERTC
