The Employee Retention Tax Credit: More Cash is available to American Churches.

The Employee Retention Tax Credit: More Cash is available to American Churches.

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.

Accounting Vertigo: Is Your Church Accounting Detached from Reality? And How Can You Tell?

Accounting Vertigo: Is Your Church Accounting Detached from Reality? And How Can You Tell?

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.

Making the Jump to QuickBooks Online

Making the Jump to QuickBooks Online

To allow flexible work arrangements, receive updates more quickly, and work more efficiently, many churches are migrating their business solutions to the cloud. Many have already moved to the cloud and are experiencing the benefits of having software available wherever they are rather than being tied to a specific desktop. If you are using the desktop version of QuickBooks, we would recommend making the move to Intuit’s cloud-based solution, QuickBooks Online (QBO) one of Wisdom’s preferred accounting software solutions.

Do You Really Need An Audit?

Do You Really Need An Audit?

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.

Paycheck Protection Program Loans, Take Two

Paycheck Protection Program Loans, Take Two

Late Sunday, December 27 President Trump signed the omnibus bill of $2.3 trillion passed by Congress just days before. Originally President Trump refused to sign the bill desiring more money to go to the American people; it appears that Congress is making attempts to pass additional legislation today (December 28, 2020) to meet the president’s demand on behalf of the American people.

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