The New England Not-For-Profit Accounting Advisor

A significant number of organizations across the nation are likely eligible for the Employee Retention Tax Credit (ERTC), but since few have claimed it, the tax break may expire early.

If passed, the proposed $1 trillion Infrastructure Investment and Jobs Act will end the pandemic-era tax break three months early, on Sept. 30 rather than the current date of Dec. 31, 2021. Eligible organizations would still be allowed to claim the ERTC for 2020 and the first quarter through the third quarter of 2021, but there would be no credit for the fourth quarter.

Topics: NFP, COVID19, COVID-19, CARES Act, Paycheck Protection Program, PPP, PPP Loan, SBA, Employee Retention Credit, Employee Retention Tax Credit, ERTC

The CBIZ Main Street Index report takes the pulse of organizations like yours and provides useful data and insights for your organization to leverage. The information below highlights the data from Main Street Index for the Not-For-Profit Industry. See how your organization compares to other not-for-profits in the areas of revenue, growth areas, and workforce arrangements. 

Topics: NFP, nonprofit, Nonprofit Board, COVID-19, Paycheck Protection Program, PPP, higher education, ERTC, health and human services, revenue, emergency disaster loans, post-pandemic, hybrid, main street index results

With the modifications made to the incentive, organizations continue to evaluate how to maximize the Employee Retention Tax Credit (ERTC). The ERTC is a special incentive created within the 2020 Coronavirus Aid, Relief, and Economic Securities (CARES) Act that encourages employers to retain their workforce during periods of economic disruption caused by the coronavirus pandemic. It provides immediate reductions to payroll taxes and cash refunds for credits in excess of payroll taxes, for both commercial and not-for-profit employers. A business must have been subject to government shutdown orders or experienced a significant decline in gross receipts to qualify.

Topics: AICPA, IRS, NFP, COVID19, COVID-19, CARES Act, Paycheck Protection Program, PPP, PPP Loan, Employee Retention Credit, Employee Retention Tax Credit, ERTC

The Employee Retention Tax Credit (ERTC) was enacted as part of the early COVID-19 stimulus measures, and can be claimed through Dec. 31, 2021 by eligible employers who retained employees during the COVID-19 pandemic. Earlier this year, the ERTC was expanded through the American Rescue Plan Act to potentially cover more organizations and situations. While not-for-profit organizations are eager to take advantage of the ERTC, there are some logistical hurdles between taking the credit and reaping its benefits.

Topics: NFP, COVID19, COVID-19, Paycheck Protection Program, PPP, PPP Loan, Employee Retention Credit, Employee Retention Tax Credit, ERTC

The window of opportunity to take advantage of the Paycheck Protection Program (PPP) has closed, but considerations for the program, particularly around its most appealing benefit, remain.

Topics: tax, NFP, COVID19, COVID-19, CARES Act, Coronavirus Aid, Relief, and Economic Security Act, Paycheck Protection Program, PPP, PPP Loan, SBA, Small Business Administration, PPP Loan Forgiveness

As the country continues to implement the COVID-19 vaccine distribution in phases, employers may deliberate whether to encourage voluntary compliance or mandate employee vaccination.

Topics: not-for-profit, NFP, employees, COVID-19, OSHA, Covid vaccine, legal, vaccination, EEOC, ADA, employers

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.

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.

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

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.

Topics: Grants, COVID-19, PPP, EIDL, SBA, PPP Loan Forgiveness, Consolidated Appropriations Act, PPP2, The Act, gross revenue, SVO, relief, Shuttered Venue Operator

On February 22, the White House announced changes to the Paycheck Protection Program that give exclusive access to certain small businesses.

Year-end legislation provided additional funding and an extension of the Small Business Administration’s Paycheck Protection Program (PPP) for the first quarter of 2021. Effective February 24, the Biden-Harris administration is instituting a 14-day holding period on new PPP applications (sometimes referred to as PPP2 loans) for businesses with 20 or more employees. The goal of the hold is to lessen the PPP competition for small businesses and sole proprietorships that may have had difficulty accessing the federal funds previously.

Topics: Election, COVID-19, CARES Act, Paycheck Protection Program, PPP, PPP Loan, SBA, PPP Loan Forgiveness, PPP2