Peace of Mind For Faith Organizations
ERTC For Religious Organizations: Verity Provides Audit Ready Reports For Every Client
At Verity, we understand the importance of stewardship and making the most of the resources we have been given. You may still be eligible for ERTC for religious organizations, despite having tax-exempt status or receiving PPP loans.
We will provide you with the confidence you need to claim your credits, with our detailed analysis and comprehensive research. But we don’t stop there – we also value personal connection. We’ll get to know you and your organization so we can help you maximize your claim and be completely prepared and supported in the case of an audit.
VERITY Generates ERTC for Religious Organizations Just Like You
Working with the Verity team was efficient. They were clear on what they needed and how the data needed to be configured so they could work with it. All on the team were extremely pleasant and professional. Our positive results speak for themselves!
Will you be ready for ERTC audits?
Because of the aggressive and inaccurate claims made by “ERC Mills”, the IRS has issued several warnings about being sure that your ERC credits are able to be verified. It’s important for organizations to be aware of the issue and take necessary precautions to ensure their ERC claims are valid. If audited, IRS will demand detailed documentation and proof of compliance with tax aggregation and attribution rules.
But with so much on the line, it can be overwhelming to try to tackle these audits on your own. That’s where Verity Tax Credits, LLC comes in. Our experts are here to help you navigate the complex world of ERC claims and deliver audit-ready reports that will give you peace of mind.
What VERITY Delivers
Memos – Our Research Team builds a solid qualification case for every client. They build timelines and arguments to prove your qualifications for the ERTC.
Qualifications Summaries – Exactly how you qualify clearly laid out just as the IRS likes to see.
Qualified Wage Details – Breakdown of information on payroll by employee per quarter.
PPP Details (If Applicable) – Detail showing wages that were paid using PPP funds.
Government Orders – Location-specific Government Orders that negatively impacted your business during COVID-19.
Forms – Accurate and supportable numbers which allow you to confidently claim the tax credits that you are eligible for.
What Other Companies Deliver
Memos – Our Research Team builds a solid qualification case for every client. They build timelines and arguments to prove your qualification for the ERTC.
Qualifications Summaries – Exactly how you qualify clearly laid out just as the IRS likes to see.
Qualified Wage Details – Breakdown of information on payroll by employee per quarter
PPP Details (If Applicable) – Detail showing wages that were paid using PPP Funds.
Government Orders – Location-specific Government Orders that negatively impacted your business during COVID-19.
Forms – Prefilled tax forms with unverifiable accuracy ready for you to submit to the IRS.
Contact US
Please fill out our simple, one-minute form to learn more about how you qualify for ERC.
Two ways you can qualify for the
ERTC for Religious Organizations
1. Significant Decline in Gross Receipts
If an employer’s gross receipts for a 2020 calendar quarter were below 50% of the comparable quarter in 2019, or for a 2021 calendar quarter were below 20% of the comparable quarter in 2019.
2. Full or Partial Suspension by Government Order
If your organization was fully or partially suspended by government order due to COVID-19 during the 2020/2021 quarters.
Examples of potentially qualifying activities that may have been restricted by government orders include:
Weekly Prayer
Music, Singing, Chanting
Festivals, Feasting, and Celebrations
High Holy Day Services and Events
Lifecycle Rituals and Events
Youth Group
Retreats
Community and Study Groups
Community Outreach
Preschool Operations
Religious School – Instruction for PreK – 12th Grade, Teens, and Adults
Facility Rental
Your Questions Answered
Our organization has a tax-exempt status; do we qualify for ERTC?
Churches and other tax-exempt organizations may qualify for the Employee Retention Credit (ERC). The ERC is a valuable tax credit that can be applied against payroll taxes owed by eligible employers. This credit is designed to provide financial assistance to organizations that have been negatively impacted by COVID-19. As it is tied to payroll taxes, it is an inclusive incentive that allows both for-profit and non-profit organizations, such as churches, to benefit from this stimulus. Provided they meet the necessary requirements for eligibility, churches and other tax-exempt organizations can take advantage of this credit and help to mitigate the financial impacts of the ongoing economic challenges.
How will this benefit our organization?
Unlike PPP, the ERC is a great option for religious organizations as it gives them more flexibility in how they can use the funding. As long as they meet the eligibility requirements, they can spend the funding however they think is best for their organization.
We obtained a PPP loan; will we be able to claim ERTC?
Good news! The Consolidated Appropriations Act of 2021, which was signed into law on December 27, 2020, has repealed a provision that previously prevented organizations from obtaining a PPP loan and claiming the ERC. This change is retroactive to March 12, 2020, so you can now claim the ERC while also receiving full forgiveness on your PPP loan(s). Many churches have already done this.
Just a friendly reminder to be careful as you can’t “double dip” between these programs. Any wages or benefits used to obtain forgiveness on your PPP loan(s) are not eligible for the ERC. Not to worry though, Verity will handle that analysis for you.
Our organization doesn't pay income taxes; how do we qualify?
Although churches typically do not pay income tax, they do submit a withholding tax return on quarterly Form 941. This form serves as the foundation for claiming the Employee Retention Credit (ERC), which is a valuable tax credit that can be applied against payroll taxes owed by eligible employers.
We did not see a big drop in gross receipts; how do we qualify?
There are a couple of ways to qualify for the credit. Even if you didn’t have a significant decline in gross receipts during 2020 or 2021, you may still be able to get the credit through the “partial suspension of operations” provision. From what we’ve seen, most churches that have applied for the credit have done so because of government restrictions that impacted their operations. Also, it’s worth noting that the decline in gross receipts is measured quarter by quarter compared to the same quarter in 2019, so even if your organization’s revenues were about the same for the year, timing differences in donations from 2019 to 2020 or 2021 could make you eligible.
We have fewer than 10 employees; is ERTC beneficial for us?
Each employee can potentially bring in a big credit for your organization – up to $5,000 per employee for 2020 and $21,000 per employee for 2021! This is based on the wages and benefits paid during a qualified period. Many religious organizations are qualifying for over $12,000 per employee! So, even if you only have a few employees, the financial benefit for your organization can really add up quickly.
What does Verity charge for these services?
At Verity, we’re all about doing thorough research and working closely with your organization to make sure your claim is as strong as possible. And the best part? We don’t charge anything upfront – we only get paid once you receive your credit from the IRS. We also offer discounted fees for faith-based organizations.
ERTC FOR FAITH ORGANIZATIONS BEGINS TO EXPIRE APRIL 2024
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What is ERTC for religious organizations?
The CARES Act of 2020 created the Employee Retention Credit (ERC) at the same time it enacted the Paycheck Protection Program. This lesser-known incentive has proven to be a significant opportunity for businesses of all sizes. The ERC allows businesses to recover costs associated with keeping employees on payroll during hardships related to COVID-19.
RECOVER WAGES
The ERC allows qualified employers to recover wages and health plan expenses incurred during COVID-19.
Max Per Employee
Employers are eligible to claim up to $26,000 per employee
2020
For 2020 periods, businesses can recover 50% of qualified wages, up to $5,000 per employee
2021
For 2021 periods, businesses can recover 70% of qualified wages, up to $7,000 per employee, per quarter
The Verity Way:
Qualify
Establish Eligibility
The Verity team will review your documentation to see if your business had the necessary decline in gross receipts or conduct the necessary research to ensure that your business meet the IRS requirements for a full or partial suspension of operations.
Documentation
Calculate Credit
We know that the ERTC for religious organizations can be confusing and time-consuming. That’s why our team is dedicated to making sure you maximize your credit. We categorize your qualified wages, analyze and research potential shut-down opportunities, calculate your credit, and make sure that your numbers are meticulously accurate.
Results
Obtain Refund
Verity will work with you to ensure that credits are accurately filed. We will guide you through the process of obtaining updates from the IRS until you have received your benefit.
Gourmet Advisory Services
I have and will continue to give Verity every referral I can. Jeremiah is such a pleasant, polished professional. The results were better than we imagined. Verity is the team to go with every time.
Lori Bluberg
Westminster Presbyterian Church
“Working with the Verity team was efficient. They were clear on what they needed and how the data needed to be configured so they could work with it. All on the team were extremely pleasant and professional. Our positive results speaks for itself!”
Terry Monahan, Business Administrator
Pennsylvania Mineral Services
“I was very happy with the work of VERITY. They were very efficient in getting our company tax credits that were higher than my expectations. I would recommend them to anyone.”
Jack Pisarcik, Owner
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