Tax Tips for Higher Education

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Will We Be Taxed for (Virtual) Summer Camp Activities on Our Campus?

PPP Forgiveness – FTE

ISSUE: We continue to receive guidance from the SBA and Treasury Department meant to clarify Paycheck Protection Program (PPP) Loan Forgiveness. Let’s look at the FTE information. SITUATION: Marathon Bible College (MBC) is a private college exempt under Internal Revenue Code section 501(c)(3) and 170(b)(1)(A)(ii). They are required to file Form 990 annually. MBC’s Controller called to ask about the FTE (Full-Time Equivalent) employees calculations with regard to the PPP Loan Forgiveness process.

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Will We Be Taxed for (Virtual) Summer Camp Activities on Our Campus?

PPP Forgiveness – Covered Period for Payroll Costs

ISSUE: Guidance for charting/tracking payroll costs for Paycheck Protection Program (PPP) Loan Forgiveness has been issued in the instructions for the Small Business Administration’s (SBA) PPP Loan Forgiveness Application.
SITUATION: Idaho Theological Seminary is a private college exempt under Internal Revenue Code section 501(c)(3) and 170(b)(1)(A)(i). We met with their Accounting Team via video conference to talk about CARES Act funding and the reporting requirements regarding the Paycheck Protection Program. They asked, “When do we count our payroll costs for purposes of the 8-week period after we received the PPP funds? Is it cash basis or accrual basis?”…

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Will We Be Taxed for (Virtual) Summer Camp Activities on Our Campus?

CARES Act Section 18004(a)(3) – At least $500,000!

ISSUE: The most recent allocations from the Higher Education Emergency Relief Fund (from CARES Act Section 18004(a)(3)) has provided a “game changer” for a number of schools. SITUATION: Saltwater Christian College (SCC) is a private college exempt under Internal Revenue Code section 501(c)(3) and 170(b)(1)(A)(ii). They are required to file Form 990 annually…

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Will We Be Taxed for (Virtual) Summer Camp Activities on Our Campus?

PPP and Minister’s Housing Allowances

The SBA has clarified whether expenses paid for housing allowances could be included in “payroll costs” when figuring the amount of spending on covered costs during the 8-week period after receiving PPP funds.  This can be important for applying for “PPP forgiveness.”

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