Non-Profits and the Employee Retention Credit
The employee retention credit (ERC) is a form of government assistance created under the Coronavirus Aid, Relief and Economic Security (CARES) Act to help businesses and organizations keep employees on their payroll during the pandemic. While the credit provided an opportunity for substantial savings for non-profit organizations, these organizations now need to properly account for this credit.
A non-profit employer is eligible if the organization:
- Experienced a full or partial suspension of operations because of a government-ordered shutdown during 2020 or 2021.
- Experienced a decline in revenue of more than 50% during 2020 or 2021 compared to the same quarter of the year prior.
Cumulatively, eligible employers could receive a refund of up to $5,000 in 2020 and up to $7,000 in 2021, per employee per quarter.
While the ERTC was initially set […]