Note: This post was first published on March 24, 2020
Government officials have responded to the COVID-19 crisis with relief efforts and quarantine orders. Here are a few updates:
Paid Leave and Payroll Tax Credits
On Friday, the IRS, Treasury and Labor announced plans to ease the burden of the COVID-19 paid leave requirements set out in the Families First Coronavirus Response Act (FFCRA) by allowing organizations to use funds they would normally pay to the IRS as payroll taxes to cover the cost of paid leave. Note that the FFCRA sets out two types of paid leave: (1) paid sick leave at 100% pay and (2) child care leave at 66% pay. Also, note the limits and restrictions set out in the full release here.
Further, if the payroll tax amounts described above are not sufficient to cover the paid leave, the IRS will reimburse businesses/ministries for the paid leave. This reimbursement form is not yet available.
State governments are working on relief efforts as well, so you should also check with your state Department of Revenue and Department of Workforce Development (or similar agencies) for similar state-based relief packages.
Disaster Relief Loans
I have spoken with or heard about several ministry leaders that are facing financial disaster scenarios due to cancellations of in-person services and large events such as fundraising dinners, and I have received questions about the Small Business Administration loans. The SBA is offering low-interest disaster relief loans that are also available to qualifying nonprofits. I know that this is a worst-case scenario for any ministry, but I am sharing in case you need the assistance or need a back-up plan for peace of mind.
Stay-At-Home Orders
In a previous article, I set out a Biblical and constitutional analysis of state-ordered church cancellations due to the pandemic. And, I have generally encouraged compliance with the orders and emphasized Christ’s command to love our neighbors during this crisis (Mark 12:31).
Many states have now issued stay-at-home orders, which prohibit individuals from leaving their homes unless engaged in “essential” activities or working for an “essential” business. Though many of these orders follow the same basic format, the definitions are slightly different. This has led to questions about whether or not church leadership teams (including worship and audio-visual teams) should continue gathering at churches to livestream services.
Instead of responding to each state order here, I am generally encouraging ministries to review the actual language of their state’s executive order (which can be accessed from the state’s or governor’s website). Several of these orders have exempted religious organizations from the stay-at-home orders as long as they maintain CDC and Presidential recommendations (for example, New York, Michigan and Kentucky) or classified religious organizations as essential businesses (for example, Indiana and Ohio). In other words, many of these orders (at least currently) do not prohibit church leadership teams from meeting to livestream services as long as they limit the effort to ten (10) people and observe social distancing. Note that this is a state and even city-specific analysis and is subject to change as the pandemic continues.
If you have additional questions about the relief efforts or stay-at-home orders, please contact me at josh@goodcitizen.us.
Note: This article is designed to provide accurate and authoritative information in regard to the subject matter covered. It is being provided to church and ministry leaders with the understanding that The Good Citizen Project is not engaged in rendering legal, accounting, tax, or other professional services. If legal advice or other expert assistance is required, the services of a competent professional should be sought. Laws vary by jurisdiction, and the specific application of laws to particular facts requires the advice of an attorney.