Legislative Updates

RESOURCES

Paycheck Protection Program Guide: In March 2020, Congress passed the Coronavirus Aid, Relief and Economic Security Act (CARES Act) which added a temporary program called the Paycheck Protection Program (PPP) to the loan programs administered by the Small Business Administration (SBA). PPP loans were created to provide economic relief to small businesses nationwide that were adversely impacted by COVID-19 and are available to religious organizations. PPP loans were originally only available from February 15, 2020 through June 30, 2020, but the Paycheck Protection Program Flexibility Act, passed in June 2020, extended the deadline to December 31, 2020.

Choosing the Right Application for PPP Loan Forgiveness

Application for Loan Forgiveness

• Instructions
  

Application for Loan Forgiveness – EZ version

• Instructions
• Requirements to use the EZ version

Forgiveness Application Form 3508S for loans $50,000 and under 

• Application
• Instructions

SBA Guidance and Loan Resources Webpage

Treasury Department FAQ

RESOURCES

IRS Updates Guidance on Reporting for Paid Family, Sick Leave

The Internal Revenue Service guidance (Notice 2021-53) builds on a directive released in July 2020 on how employers should comply with requirements for reporting on W-2 forms or separate statements the amount of sick leave and family leave wages paid to individuals under the Families First Coronavirus Response Act. Under the updated guidance, employers are required to report qualified leave wages either on a 2021 Form W-2, Box 14, or on a separate statement. The guidance also provides information for self-employed individuals to claim qualified sick leave equivalent or qualified family leave equivalent credits for the 2021 taxable year.

ARPA Q&A Document: On March 11, President Biden signed the American Rescue Plan Act of 2021. This bill is the latest COVID-19 stimulus legislation and includes changes to the Families First Coronavirus Response Act. ARPA continues the tax credit for employers who voluntarily provide paid sick leave and family medical leave, and were subject to the FFCRA, through September 30, 2021. ARPA also expands the reasons for qualifying leave and provides new allotments of paid time that can qualify for tax credits. 

• IRS Form 7200: Advance Payment of Employer Credits
• Instructions for IRS Form 7200
• IRS Frequently Asked Questions

RESOURCES

• IRS Form 7200: Advance Payment of Employer Credits
• Instructions for IRS Form 7200
• IRS Tips on Completing Form 7200
• IRS Frequently Asked Questions
• IRS 2021 Guidance Summary for ERC
• IRS 2021 Guidance for ERC

RESOURCES

• Paycheck Protection Program loans: Organizations that received a PPP loan in 2020 are, in some cases, eligible to apply for and receive a second loan. See the Q&A document for more information, including the additional types of expenses that loan proceeds can be used to cover.
  • PPP Q&A document
  • PPP application for organizations that received a loan in 2020 (second-draw loan application)
  • PPP application for organizations that did not receive a loan in 2020
• A resource document detailing additional provisions of the act, including those related to pandemic unemployment assistance, recovery rebates for individuals and tax credits for paid sick and family leave. The document includes links to the original information on these topics from the CARES Act and Families First Coronavirus Response Act.
• FSA flexibility through the Consolidated Appropriations Act: The December 2020 appropriations act has provisions that provide temporary relief for health and dependent care flexible spending arrangements (FSAs). This relief is especially impactful as many workers were not able to use all of their FSA funds in 2020 and are at risk of losing those funds. See the document to learn about the relief options available to employers.
• Employee Retention Tax Credits: Employers that received a Paycheck Protection Program (PPP) loan in 2020 were previously barred from taking advantage of the Employee Retention Tax Credit (ERTC), a refundable credit against applicable employment taxes for qualified wages paid. The Consolidated Appropriations Act, passed at the end of 2020, changed this rule, and now employers can retroactively claim the ERTC for 2020 even if they received a PPP Loan, subject to some limitations. The act also extended the ERTC through June 30, 2021 and changed how the credit will work for 2021. See the document for more details.

• Signed into law 3/27/20

Who it applies to

• Small business loans as described in act available to employers with fewer than 500 workers.

Resources

• CARES Act Expanded Q&A

CARES Act Topics

• Main Street Lending Program
  • The Federal Reserve Board recently announced the availability of new loans for tax-exempt organizations through their Main Street Lending Program. These loans are separate and different from the Paycheck Protection Program loans that were made available earlier this year.
    
    There are several requirements for an organization to be eligible, including that it employs at least 10 employees and that non-donation revenues are equal to or greater than 60% of expenses for the period from 2017 through 2019. This requirement may make it challenging for churches to qualify. Loans through this program are not forgivable. For more information, click here.
• Economic Stabilization Loans (for ministries with 500+ employees)
• Pandemic Unemployment Assistance Program (expands unemployment eligibility)
  • Department of Labor Guidance on Unemployment Insurance
  • Implementation and Operating Instructions
• Charitable Contributions Incentives
• Recovery Rebates for Individuals
  • IRS information on individual rebates
• Student Loan Relief
• Retirement Plan Changes (403(b) distributions)

  The CARES Act provides opportunities to access funds from your 403(b) account or other retirement savings accounts if you have suffered serious financial harm due to the economic effects of COVID-19.

  If you are experiencing financial stress, this may seem like a quick fix. But before making any decisions to tap into your 403(b) savings, it is important to understand the consequences of a distribution and consider alternatives. To help you make an informed decision, click here to view important considerations before you make a withdrawal from your CRSP account or other retirement savings accounts.

  To learn more watch the webinar on the CRSP and CARES Act or contact one of our financial wellness educators:

  • Karen Wilhelms - Karen.Wilhelms@ConcordiaPlans.org
  • Laura Scheer - Laura.Scheer@ConcordiaPlans.org
• Health Plan Changes (COVID-19 coverage)
• HHS and Dept. of Education Funding (available to non-public schools)