• Letter About Wespath Conference Relief Efforts in Response to COVID-19 Crisis
• CARES Act Update—PPP Loans Funding and How the Payroll Tax Delay Interacts with PPP Loans
• Additional Funding for PPP Appears Likely
• Jurisdictional Conference Call Dial-in Information

Letter About Wespath Conference Relief Efforts in Response to COVID-19 Crisis

Wespath Board of Directors Chair Bishop Robert Schnase and General Secretary Barbara Boigegrain sent an email letter today to conference benefits officers and treasurers outlining short-term relief efforts including a 90-day premium holiday for the Comprehensive Protection Plan (CPP) for annual conferences and a two-month premium payment deferral for HealthFlex plan sponsors. Click here to read the letter.

CARES Act Update—PPP Loans Funding and How the Payroll Tax Delay Interacts with PPP Loans

As explained in our March 30, 2020 CARES Act Summary, in addition to the Paycheck Protection Program (“PPP”) loans, the Coronavirus Aid, Relief, and Economic Security Act (CARES Act) creates a payroll tax deferral period (“Payroll Tax Delay”) running from March 27 through December 31, 2020. Employers, including tax-exempt nonprofits like United Methodist Church (UMC) local churches, annual conferences and general agencies, may defer/delay payment of the “employer share” of Social Security taxes they otherwise are responsible for paying to the federal government with respect to their employees.

Generally, the Payroll Tax Delay is not available for an employer that has had a PPP loan forgiven by its lender. However, the IRS has recently issued FAQs clarifying that the Payroll Tax Delay is available to employers who have received PPP loans, until the date the PPP loan is forgiven by the lender.

• Cash Flow Benefit: The Payroll Tax Delay may assist UMC annual conferences, large local churches and general agencies with cash flow during this period when shelter-in-place orders are slowing donations, contributions, apportionment payments and other sources of revenue.

You can read more about this development here.

Additional Funding for PPP Appears Likely

The initial $350 billion that Congress appropriated for PPP loans on March 27, 2020 was exhausted by April 16. However, Congress appears close to a deal that would allocate another roughly $300 billion to the PPP program. Final terms of the legislation are still subject to some negotiation, and the voting process and timing for approval may take longer than usual. The latest legislative package also would make $60 billon more available for Economic Injury Disaster Loans (“EIDL”), another small business relief program managed by the Small Business Administration (SBA) that has exhausted its funding. The package also appears to include $75 billion to help hospitals nationwide and $25 billion to continue to expand COVID-19 testing.

If Congress approves this new funding for the PPP, UMC employers that have submitted PPP loan applications that have not yet been funded may want to check with their lenders regarding the status of their applications. Whether lenders will accept new applications based on the additional funding likely will vary. However, Wespath has heard anecdotally that some lenders have continued to accept PPP loan applications in hopes of this new Congressional funding.

Wespath continues to closely monitor legislative developments related to COVID-19, and will keep conferences and other plan sponsors informed as developments unfold. If you have questions about the CARES Act, please send them to Tony Prestipino, Andy Hendren, Steve Clark or Jim O'Connell.

Additional resources are available on Wespath's COVID-19 webpage.

Jurisdictional Conference Call Dial-in Information

Wespath will be hosting two jurisdictional conference calls this week. We invite all Conference Benefit Officers, Treasurers and other conference staff to join.

North Central / South Central / Western Jurisdiction Call
Wed, Apr 22, 2020 3:00 PM - 4:00 PM (CDT)

Please join from your computer, tablet or smartphone.
https://global.gotomeeting.com/join/564771453

You can also dial in using your phone.
United States (Toll Free): 1 877 309 2073
United States: +1 (312) 757-3129

Access Code: 564-771-453

Northeastern / Southeastern Jurisdiction call
Fri, Apr 24, 2020 10:00 AM - 11:00 AM (CDT)

Please join from your computer, tablet or smartphone.
https://global.gotomeeting.com/join/934944557

You can also dial in using your phone.
United States (Toll Free): 1 877 568 4106
United States: +1 (312) 757-3129

Access Code: 934-944-557

New to GoToMeeting? Get the app now and be ready when your first meeting starts:
https://global.gotomeeting.com/install

---

Copyright © Wespath Benefits and Investments,
a general agency of The United Methodist Church
Share your suggestions and comments about On Board Express