As the pandemic continues to impact businesses and organizations across the country, churches are not exempt from the financial challenges brought on by the global crisis. With a decline in attendance and tithes, many religious institutions are struggling to keep their doors open and maintain their staff. However, thanks to the employee retention credit (ERC), churches and religious organizations have access to vital funds to help retain their valuable employees.
The ERC was established as part of the Coronavirus Aid, Relief, and Economic Security (CARES) Act to provide financial support to businesses, including tax-exempt organizations, during the pandemic. This credit allows employers to claim a refundable tax credit for a percentage of qualified wages paid to employees, with the goal of retaining employees and keeping organizations afloat during these unprecedented times.
For churches, the ERC plays a crucial role in helping them keep the faithful engaged and supported. Religious organizations rely heavily on the dedication and hard work of their staff to carry out their mission and service to the community. From pastors and clergy to administrative and support staff, each employee plays an integral role in the day-to-day operations of the church.
By utilizing the ERC, churches can alleviate the financial burden of retaining their employees, allowing them to continue their mission and ministry without having to make difficult decisions about layoffs or reduced hours. This, in turn, helps to maintain a sense of stability and support for congregants during a time of uncertainty.
Additionally, the ERC provides churches with the means to invest in their employees’ well-being and professional development. By retaining their staff, religious organizations can continue to provide essential services and support to their communities, especially during times of crisis. From virtual worship services and pastoral care to community outreach programs, the dedicated work of church employees is essential in meeting the spiritual, emotional, and practical needs of congregants.
In essence, the ERC gives churches the ability to maintain their workforce and continue their vital work in the face of unprecedented challenges. By supporting their employees, religious institutions can ensure the continuity of their mission and service to their communities, keeping the faithful engaged and supported during these challenging times.
As the pandemic continues to affect the financial landscape of businesses and organizations, the ERC serves as a critical lifeline for churches and religious organizations to retain their valuable employees and continue their important work. By leveraging this credit, churches can maintain the support and engagement of their congregants, ensuring that they can continue to serve and uplift their communities during these uncertain times.