Transcription of Center for Plain English Accounting
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Employee Retention Credit (ERC) Financial Reporting & Disclosure Examples By: Robert Durak The Employee Retention Credit (ERC) was established by the Coronavirus Aid, Relief, and Economic Security (CARES) Act, 116-136, in March 2020. It was intended to help businesses retain their workforces and avoid layoffs during the coronavirus pandemic. It provides a per employee credit to eligible businesses based on a percentage of qualified wages and health insurance benefits paid to employees. It works as a refundable payroll tax credit claimed quarterly, and it can provide reductions to payroll taxes or cash refunds.
Center for Plain English Accounting AICPA’s National A&A Resource Center. Applicable U.S. Generally Accepted Accounting Principles (U.S. GAAP) The ERC is a refundable credit. The CPEA does not believe that claiming the ERC is an income tax position within the jurisdiction of FASB Accounting Standards Codification
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