Do you struggle each month to understand your monthly reports? Are you curious about why internal controls are so important? Do you wonder if your church is using best practices in your financial processes?
Join Wisdom’s experts on the topic & get your questions answered.
If you cannot join us at the time above, please still register, as we will send the recording out after the webinar.
Or, do you need the confidence that a CPA looked at your church’s books?
The term “audit” has been used in church circles to refer to having an CPA look at the books, exercise their professional judgment, and give accounting support. In the world of CPAs, a traditional audit requires many regulations and procedures that we have found many churches and nonprofits do not benefit from. We at Wisdom have found another option: Financial Statement Preparation.
In a little-known change, churches have access to a new round of COVID relief funding. Unlike the PPP (Paycheck Protection Program) program, a church qualifies even if it only suffered operational impact stemming from a government order. Proving a negative financial impact is not required to be eligible for Employee Retention Tax Credit (ERTC) relief. In short, churches that cut back programs or services qualify for these refunds.
Consider whether during COVID your church experienced any of the following?
Camps cancelled
Youth group cancelled
Small groups cancelled
After service fellowship cancelled
Training and meetings cancelled
If any of these things happened to your church for a period of time the ERTC may be available to your church.
So, what is the big deal with the ERTC?
Refunds available under the ERTC can be as large as $5,000 per qualified employee for 2020 and as large as $21,000 per qualified employee for 2021.
One of our CPA partners, Wisdom Over Wealth has helped claim over $4 million in ERTC relief. Wisdom is equipped to evaluate the benefit of the ERTC for your church. They will calculate the credits available and prepare the necessary forms for filing with IRS.
Wisdom is hosting a Webinar on Thursday, November 3rd at 1PM EST to share more information on the ERTC. Join for more information and to learn how Wisdom can help your church claim these funds. Register here and we will “see” you there!
Interested in getting your evaluation started before the webinar?
Click here and let us know!
Kaitlin DeWitt gives a step-by-step video of how to apply for the Employee Retention Tax Credit (ERTC). Please Contact Us if you have any questions!
Take a look at our original post about the ERTC!
Starting in July 2021 over 80 million American households become eligible to receive a new payment from the Internal Revenue Service. An increased child tax credit has allowed for monthly payments of $300 per child aged 5 and under, and $250 for each child aged between 6 and 17 to be sent as advances for the Child Credits found on next year’s (2021) Federal Income Tax return.
In the latest round of COVID legislation, the ERTC was made available to more businesses, including churches. The ERTC is a tax credit that’s rewards are two-fold: rewarding employers who have retained employees during COVID and thus providing cash to continue providing these jobs.
But churches do not pay taxes, how can they get a refund from the IRS?
Although churches are exempt from paying income tax, most churches do submit and pay in for payroll taxes. The ERTC is a credit against the Social Security taxes withheld by employers, including those taxes withheld by churches.
Vertigo: “Confusion resulting from misleading information sent to the brain.”
Vertigo occurs in pilots when they fly in hazy conditions and lack any reference to the reality of the horizon. Without reference to objective truth, the horizon, it is possible for pilots to fly their airplanes into the ground while thinking they were flying level.
Church accounting systems can also suffer vertigo. Unless there is a connection to objective truth outside the system, the accounting may become out of touch with reality – possibly causing a crash to the ground.
