Updated CARES Act FAQ

Updated CARES Act FAQ


Ross Williams

4/2/2020

Dear Treasurers and Finance Chairs (copy to Pastors),

I've been receiving a lot of questions about the CARES Act and how the provisions can be taken advantage of by our member churches.

Please see a newly updated "Frequently Asked Questions" document at the bottom of this e-mail.

This document was prepared by the General Council on Finance & Administration of the UMC and contains specific guidance for our churches. 

A couple points I'd like to mention related to the Paycheck Protection Program:

  • Payroll costs include, salary, wages and tips (up to an annual amount of $100,000 per employee); group health care benefits including insurance premiums; retirement plan contributions; and state/local taxes assessed on compensation.  You should therefore include any healthcare and pension costs when calculating your average payroll (up to a total of $100,000 per employee).
  • The SBA has stated that they anticipate that not more than 25% of the forgiven amount may be for non-payroll costs.  This means that if the church cannot demonstrate that 75% of the grant amount was used for payroll in the 8 weeks after it was approved, (as opposed to mortgage interest, rent and utilities), such amounts (the shortage) will not be forgiven but instead converted to a loan.

Sincerely,

Ross

Files: caresactfaq.pdf