Are Churches Eligible to Receive ERTC?

August 25, 2023
Dayes Law Firm

There is less than a year left to claim the Employee Retention Tax Credit (ERTC/ERC) for quarters in 2020, but there are likely many businesses that could be qualified to claim the tax credit that still haven’t applied for it. Some business owners may simply not be aware that they are eligible to apply for the ERTC, or what the rules are around certain entities like charities and non-profit organizations. But once the ERTC deadline comes and goes, there won’t be another chance to take advantage of this important program. 

Church Eligibility and the ERTC

Leaders at churches around the country may not know whether or not churches are eligible to receive ERTC funds, and ultimately might be missing out on a financial boost that could be desperately needed to fund projects, salaries, building upgrades, and more. 

The ERTC was established to help businesses retain employees during one of the most challenging times of the COVID-19 pandemic – in 2020 and 2021, when many businesses shut down or faced major obstacles that they had not planned and budgeted for. Churches and other houses of worship were no different. They faced incredible financial strain just the same as any mom-and-pop shop trying to stay open despite a global health emergency. 

Religious organizations like churches are eligible to receive ERTC money as long as they meet the qualifications to do so. Generally, in order to potentially qualify, the church must have:

  • Experienced fully or partially suspended operations due to government orders, and
  • Experienced a substantial decline in gross receipts during a quarter in 2020 or 2021 when compared to the same quarter in 2019

In order to improve your religious organization’s potential ERTC refund, it might be in the best interest of your church to get a tax professional skilled in applying for the Employee Retention Tax Credit involved in the process. 

ERTC Tax Professionals 

The ERTC team at Dayes Law Firm can help determine if your church is eligible to receive the ERTC. Our firm can file amended quarterly payroll tax returns on behalf of your church to help you claim the funds it is entitled to before the ERTC deadline arrives. 

For all quarters in 2020, the deadline to apply for the ERTC is April 15, 2024, which is now less than a year away. And for all quarters in 2021, the deadline is April 15, 2025.

Before it’s too late to claim the Employee Retention Tax Credit, please call our offices to speak to a member of our team to determine whether or not your church is eligible to receive it. Our experienced tax professionals can determine your total qualified wages for 2020 and 2021 and compile the documentation necessary to back up those findings.

Since churches may not seem like businesses the way something like a restaurant or fitness center does, people who handle the finances for churches could be missing out on claiming this crucial financial lifeline for their house of worship because they misunderstand the tax credit’s eligibility process. We want to help. 

Please give us a call at (866) 684-8114 or fill out the form on this page to get in touch, and we can assist you in getting the ERTC process started for your church today!