Non-profit organizations are eligible for the Employee Retention Credit (ERC) even if they work with a PEO. This is one of the largest credits available to business owners, offering thousands of dollars in credits per employee with qualifying salaries. If you're running a non-profit organization, you may be wondering if you can take advantage of the ERC. According to LaRose, “it's been surprising to see how many nonprofit organizations DON'T take advantage of the employee retention credit.
But what many may not have realized is that the employee retention credit wasn't just meant for a traditional for-profit company. Tax-exempt organizations are eligible for the employee retention credit because they are considered to be involved in a trade or business in connection with the entirety of their operations. For the sole purpose of determining eligibility for the ERC, a tax-exempt employer's gross income includes gross income from all operations, not just from activities that constitute unrelated trades or businesses. A non-profit organization can take advantage of the ERC if during the calendar quarter in question it experienced a significant decrease in its gross revenues.
Stenson Tamaddon allows non-profit business owners like you to take advantage of the full potential of financial aid programs and specialized tax incentives, including the employee retention credit. With an average of about half of nonprofit businesses employing at least one Form W-2 employee full time, there's a good chance you're already eligible for an ERC. Eligible organizations that consider themselves “large employers” can only apply for the ERC for salaries paid to employees for the time that employees do not provide services. The ERC is currently one of the largest reimbursable tax credits available and can offer thousands of dollars in credits per employee every quarter.
But did you know that you can continue to retroactively claim the employee retention credit for up to three years?.