The diocese set up an emergency fund for the coronavirus crisis, as did other dioceses and archdioceses such as Trenton and Chicago. However, in anticipation of reduced incomes, dioceses and parishes have already begun cutting or furloughing staff.
But as dioceses across the country work to scale back payrolls, one lawyer who works with religious institutions says that new federal policies that could pay for employee leave and provide emergency loans to non-profits, and bishops and pastors should consider their options before making any major staffing decisions.
"I've never seen anything like it," Eric Kniffin, a partner in the religious institutions practice group at Lewis Roca Rothgerber Christie law firm, told CNA on Monday. Congress is essentially subsidizing businesses and nonprofits to keep people on payroll, Kniffin said, "making extraordinary, unprecedented offers."
Kniffin referred to two new laws passed by Congress before members left Washington, D.C. for the next several weeks, in the new coronavirus pandemic.
The Families First Coronavirus Response Act, signed into law on March 18, provides for up to 12 weeks of paid leave. It offers to pay the salary of workers on leave for 12 weeks and pay the employer's share of health insurance premiums.
The government foots the bill, Kniffin stressed, by providing a tax credit to employers that covers their Medicare tax, their share of the employee's health insurance premium, and the employee's pay.
The Coronavirus Aid, Relief, and Economic Security (CARES) Act, passed Congress last Friday and signed into law by President Trump on March 27, makes small business loans available to non-profits at two-and-a-half times their monthly payroll, Kniffin said.
The loans can turn into grants under certain conditions: if they are used to cover payroll, mortgage or rent, and utility payments, if they are spent within eight weeks of issuance, and if the employer maintains payroll for one year by keeping the same number of employees and not reducing wages by more than 25%.
Even if dioceses and parishes are not able to maintain these conditions over time, there are formulas to determine loan forgiveness, Kniffin said.
Under another provision of the law, taxpayers can make a $300 donation to the charity of their choice and use it as a dollar-for-dollar tax credit on their 2020 taxes.
"These laws are brand new, and so of course it's important to make sure how they apply to individual organizations," he said. "But every ministry ought to take a close look at these before they start making big payroll decisions."
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Matt Hadro was the political editor at Catholic News Agency through October 2021. He previously worked as CNA senior D.C. correspondent and as a press secretary for U.S. Congressman Chris Smith.