A Guide to Employee Retention Credit (ERC) Payroll Tax Refund For Churches And Religious Groups

By Tim Connolly, CEO and Founder of Corporate Strategies, LLC

The Employee Retention Credit (ERC) is a CARES ACT cash tax refund for employers who qualify under a Gross Receipts Test or a Government Mandate Test. This article explores and clarifies the ERC Tax Refund Program for religious groups, churches, schools, nonprofits and start-up businesses (RSB).

The Gross Receipts Test outlines the time and amounts for the ERC tax refund qualifications. If the company’s gross receipts fall by more than 20% in the first, second, or third calendar quarters of 2021, compared to the same quarter in 2019, the company will be considered an Eligible Employer. 

Due to the need to demonstrate a fall in gross receipts of more than 50% in only one quarter, the 2020 Gross Receipts fall standards will be more challenging to achieve.  

The Government Mandate Alternative Qualification Test allows churches or non-profits that experienced fully or partially suspended operations and were more than nominally affected as a result of directives from the proper governmental authorities to restrict operating hours, commerce, travel, or group meetings due to COVID-19 to qualify for the ERC even if they don’t meet the Gross Receipts Test. 

The ERC Alternative Qualification period is that time frame when the employer continued paying qualified wages while government mandates were in effect that caused full or partial suspension of normal operations such as: 

* A national, local or state order requiring employees to work from home 

* A restriction on public gatherings (e.g., closed schools, churches, other events) 

* Limitations on the availability of public or private venues that force the postponement of scheduled conferences., meetings or fundraising events

Discover and learn more about the ERC Tax Refund Program for religious groups, churches, schools, nonprofits and start-up businesses (RSB):

Call (713) 621-2737

email [email protected] or 

visit https://corporate-strategies.net/erc-refunds/

Are e ERC Tax Refunds Available to PPP Loan Recipients? When the ERC was first authorized as part of the CARES Act, an association that accepted funding under PPP was statutorily prohibited from claiming an ERC. Churches and non-profits can qualify for the ERC Tax Refund even after getting a PPP forgiven. 

Enhanced Benefits Passed in 2021 specify that if rejected for ERC in 2020, businesses you may qualify for now! The ERC eligibility criterion increased to 500 or fewer full-time employees in 2021. Before this change, the maximum benefits available under the ERC calculations were only accessible to enterprises with 100 or fewer full-time employees (as measured, on average, in 2019). There is no threshold limit for employees paid while on leave due to Government Mandates. 

Because of the many government orders limiting routine activity in 2020 and 2021, many churches and non-profit organizations that did not observe a reduction in gross receipts are obtaining big tax refunds. 

Learn more about the Employee Retention Credit and receive an estimate of your tax refund at no cost by contacting Corporate Strategies Merchant Bankers at 

713-621-2737 or 

e-mail [email protected]

Corporate Strategies has developed a unique body of knowledge to accurately qualify diverse types of organizations for the maximum legal tax refund. This experience analyzing the provisions of the CARES Act and the hundreds of pages of IRS documents on how to qualify and paper ERC Tax Refunds has resulted in tax refunds ranging from $70,000 to $2,900,000. Much of this funding was for parties previously informed by tax professionals that they did not qualify for the ERC Tax Refund program.

Corporate Strategies is a private lending and real estate investment community leader. The company achieved this by successfully financing small to medium-sized businesses and startups (SMBs) who have been rejected by conventional banks. They actively invest in commercial real estate acquisitions, development, private lending for bank non-renewal of business loans, and private lender asset-based financing. 

About The Author

Tim Connolly is CEO and founded Corporate Strategies Merchant Bankers in 1989. Tim and the Corporate Strategies team have extensive public and private company experience in US and International Merchant Banking, creating unique non-bank funding solutions for SMBs and leading turnaround operations teams in the USA, Canada and the European Union.

Corporate Strategies (https://CSBankers.com) is a private lending and real estate investment community leader. The company achieved this by successfully financing small to medium-sized businesses and startups (SMBs) that have been rejected by conventional banks.

They actively invest in commercial real estate acquisitions, development, private lending for bank non-renewal of business loans, and private lender asset-based financing.

Since February 2020, Corporate Strategies has also assisted businesses, churches, and non-profits in receiving CARES Act emergency funding through PPP loans, EIDL loans, ERC payroll tax refunds, and Recovery Startup Business funding.

Tim has been a nationally syndicated radio commentator and guest on CNBC, ABC, NBC, and other business and political news programs. He holds Business, Marketing, and Business Administration undergraduate and Masters degrees from Texas A&M University, College Station, and Canyon, Texas.

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