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minny65 said:
This really annoys me about this Covid situation and people trying to take advantage. So the Covid-19 stimulus allots 350 Billion to the SBA to help "small Business" meet it's payroll, pay utilities, mortgage etc.
Low and behold and from the heavens above pastors, churches and non-paying tax entities are afforded all the benefits of a tax paying small business. So are the Graham's, Baker's, TV evangelists a for profit business or tax exempt business. I guess in the land of the free you can have your cake and eat it too. If you have the clout you can pay no taxes but get tax breaks. Wonderful, these carnival barkers should be ashamed of themselves if they take a dime away from a tax paying person or small business. They are the new Welfare Kings. Isn't their guise in collecting money supposed to be about redistributing to those in need? Small businesses are in need of the money so don't take it from them from the get-go.
http://www.bpnews.net/54550/qa-how-churc...us-package
Highlights:
As a pastor or an employee of a ministry, am I eligible for a recovery rebate? If you are a U.S. resident with adjusted gross income under $75,000 ($112,500 for head of household and $150,000 married), are not the dependent of another taxpayer and have a work-eligible Social Security Number ("SSN"), you are eligible for the full $1,200 ($2,400 married) rebate. If you have children, you are also eligible for an additional $500 per child.
As a pastor I opted out of Social Security years ago. Am I eligible for a recovery rebate? Yes, as long as you are not the dependent of another taxpayer and have a work-eligible SSN.
If I have little to no income or receive federal benefits, such as SSI, am I still eligible for a recovery rebate? Yes, there is no qualifying income requirement. Even individuals with $0 of income are eligible for a rebate if they are not the dependent of another taxpayer and have a work-eligible SSN.
I have heard that unemployment insurance may be available to pastors or ministry staff that lost their jobs due to the coronavirus pandemic. Is this true? Yes, the COVID Phase III Stimulus Package provides specific provisions that will allow pastors or ministry staff who have lost their jobs to apply for unemployment benefits. The law creates a temporary program through December 31, 2020, to provide payment to those not traditionally eligible for unemployment benefits (self-employed, independent contractors, those with limited work history and others) who are unable to work as a direct result of the coronavirus public health emergency.
I have heard there may be federal financial assistance available to churches and ministries. Is this true? Yes, you may consider several options made available to your church or ministry by the COVID Phase III Stimulus Package to help your church or ministry through this difficult time.
What options are available? The Stimulus package makes available several forms of relief potentially benefitting churches and ministries. These include payroll tax credits, tax deferrals, encouraging charitable contributions and small business loans.
How do the small business loans work for churches and ministries? Churches and ministry organizations that are exempt from tax under Section 501©(3) of the Tax Code and that have fewer than 500 employees at one location and self-employed individuals, individuals operating as a sole proprietorship or individuals operating as an independent contractor, may apply for a Paycheck Protection Loan to cover payroll and related employee expenses for the period February 15 through June 30, 2020, to help them sustain their ministries.
How can the loan proceeds be used? The loan proceeds may be used to pay payroll costs, group health insurance benefits, paid sick leave, medical and insurance premiums, mortgage interest payments, rent payments, utilities or interest on other loans outstanding at the time of the pandemic.
What costs are considered payroll costs? Salary or wages, payments of a cash tip, vacation, parental, family, medical, or sick leave, health benefits, retirement benefits, state and local taxes. Note, however, that salary expenses above $100,000 per employee are not eligible for consideration as payroll costs and loan proceeds may not be used to pay salaries above $100,000 per employee.
How much can a church or ministry borrow? The amount that may be borrowed is the total average monthly payroll costs for the preceding 12 months (March 2019 through February 2020) multiplied by a factor of 2.5. For example, if the average payroll costs for the preceding twelve months were $20,000, the maximum amount of the loan would be $20,000 times 2.5 for a total of $50,000. The maximum amount available for a Payroll Protection Loan is $10,000,000.
Can a self-employed pastor apply for a Payroll Protection Loan? The Stimulus package allows self-employed individuals to apply for these loans. Under certain circumstances, pastors are considered self-employed and should be eligible to apply for a payroll protection loan under the same terms and conditions as other loan applicants. For example, if a pastor's average monthly salary for the preceding twelve months was $5,000 then the pastor should be able to apply for a loan in the amount of $12,500.
How soon must the church, ministry or pastor repay the loan? Payroll Protection Loans may include a term of up to 10 years from the date of application.
What interest rate will these Payroll Protection Loans bear? The maximum interest rate for these loans is 4 percent per year.
Is the church, ministry or pastor required to pledge collateral for the loan, or will another party have to guarantee repayment? No. Further, the loans are non-recourse to the borrower with the exception that if loan proceeds are used for an unauthorized purpose, the then loan may be collected from the borrower.
May payments under the loan be deferred? Yes, for a period not less than six months but not to exceed more than one year from the date of the loan.
May all or part of the Payroll Protection Loan be forgiven? Yes, the program is designed to encourage employers to retain employees and loan forgiveness is a key feature of these loans. A ministry under a covered loan can have all or a portion of the principal of the loan forgiven in an amount equal to payroll costs, mortgage interest, rent, or utility costs during the eight-week period following the origination of the loan. The forgiven amount, however, may be reduced based on a formula that compares the ministry's employment in prior pre-COVID periods with the number of employees and each employee's wage or salary in the eight-week period following the origination of the loan.
This doesnt belong here either..... you know damn well that this will be viewed as an attack on religion and has its own board.