3.30.20 | Churches & Denominations, COVID-19 Resources, Higher Education, Nonprofit Organizations, Nonprofit Tax | Email Alerts
Key Provisions of the CARES Act and Paycheck Protection Loan Program
On March 27, 2020, President Trump signed into law the Coronavirus Aid, Relief, and Economic Security Act (the “CARES Act”), which is estimated to provide more than $2 trillion in economic aid in response to the COVID-19 pandemic.
- We’ve put together a summary of key provisions of the CARES Act and how they affect nonprofits, churches, and educational institutions. Read the article here.
- The CARES Act creates a new Paycheck Protection Loan program (PPLP) designed to provide small businesses, including nonprofits, with immediate access to cash to allow them to survive the disruption caused by the COVID-19 pandemic. Here’s what to know.
- We’re offering a free webcast about the new COVID-19 legislation on Wednesday, April 1 at 4 p.m. EDT. You can register here or watch for an official email invitation with additional details later this afternoon.
Please contact us online or at [email protected] with questions about the CARES Act, PPLP, or how we can help your organization navigate this challenging time.Sign up for e-news and alerts
I Represent Fulton United Methodist Church and my question is : What is the cost for me to listen in on this seminar ?
The webcast is free. You can access the recording and other resources at https://capincrouse.com/webcast-covid-19-legislation/
Is a ministers housing allowance included in the PPP calculations in the CARES ACT?
Thank you for your question. We’ll respond via email, and there is some information about the minister’s housing allowance in this article: https://capincrouse.com/paycheck-protection-program-loan-regulations/
Is there any guidance on the employee retention credit as it pertains to ministerial employees? Can the church apply for the credit on the salary paid to a ministerial employee?
Stephanie, here is the response provided by Ted Batson, Partner and Tax Counsel:
CARES Act section 2301(c)(5) defines wages for purposes of the employee retention credit as follows:
(5) WAGES.—The term ‘‘wages’’ means wages (as defined
in section 3121(a) of the Internal Revenue Code of 1986) and
compensation (as defined in section 3231(e) of such Code).
Section 3121(a) effectively excludes amounts paid to “a duly ordained, commissioned, or licensed minister of a church in the exercise of his ministry.” This would include missionaries who are ordained, commissioned and licensed and subject to SECA tax. The reference to section 3231(e) relates to the definition of compensation for purposes of the Railroad Retirement Tax Act.
So the bottom line is that wages paid to a minister are not includible in qualifying wages for purposes of the employee retention tax credit.