Accounting and Financial Disclosures for the Employee Retention Credit (ERC) and the Pass-Through Entity (PTE) Tax
The objective of this course is to review the accounting and financial disclosures related to two recent changes from legislation: the Employee Retention Credit (ERC) and the Pass-Through Entity (PTE) Tax.
Topics include: An overview of the ERC rules; models to use to account for the ERC;Â comparing use of the ASC 958 model with the IAS 20 model to account for the ERC;Â disclosures required for the ERC including disclosures found in newly issued ASU 2021-10;Â fixing 2021 ERC presentation and disclosure errors; presenting the ERC on tax-basis financial statements; overview of the Pass-Through Entity (PTE) Tax election;Â GAAP accounting for the PTE tax;Â GAAP disclosures for the PTE tax;Â presenting the PTE tax on tax-basis financial statements, dealing with ERC withdrawals and filings in 2024 and 2025, and more.
This course uses materials entitled Accounting and Financial Disclosures for the Employee Retention Credit (ERC) and the Pass-Through Entity (PTE) Tax- 2025 Edition- 2 CPEs, authored by Steven C. Fustolo, CPA.
This course is included in the Accounting and Auditing Bundle.
Course information
Price: $24
Course No. F200
Format: Online pdf (64 pages).
Instructional Delivery Method: QAS Self-Study
Prerequisites: General understanding of accounting, financial reporting, auditing and compilation and review standards
Advance Preparation: None
Level: Overview
CPE Credit: 2 hrs.
Field of Study: Accounting: Technical
Course expiration:Â Â You have one year from date of purchase to complete the course.
Course Revision Date: February 2025
Objectives
After completing this course, participants should be able to:
- Recognize the type of expense that is the basis for measuring the amount of the Employee Retention Credit (ERC).
- Identify where to present the ERC in the statement of income using the ASC 958 conditional contribution model.
- Recognize where to present the ERC in the statement of income using the IAS 20 grant model.
- Recognize the proper presentation of the ERC in a tax-basis statement of income.
- Identify how to account for an ERC filing.
- Recognize a technique that has been attempted to circumvent the SALT deduction limitation.
- Identify how to account for the PTE tax in an entity’s financial statements.
- Recognize the requirements for recording deferred state income taxes with respect to the PTE tax election.
- Identify disclosures that should be made for the PTE tax.
