Accounting and Financial Disclosures for the Employee Retention Credit (ERC) and the Pass-Through Entity (PTE) Tax

  • Credits: 2
  • Format: Self-Study eBook
  • Field of Study: Accounting
  • Author/Speaker: Steven Fustolo
Available Formats:
Advanced Preparation: None
Experience Level: Overview
Program Prerequisites: General Understanding of Accounting
Course ID: SF-458.22
Published Date: © Jan 2022

COURSE DESCRIPTION

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; comparing use of the ASC 958 model with the IAS 20 model to account for the ERC; disclosures required for the ERC including disclosures found in newly issued ASU 2021-10; fixing 2020 ERC presentation and disclosure errors; presenting the ERC on tax-basis financial statements; overview of the Pass-Through Entity (PTE) Tax election; GAAP accounting for the PTE tax; GAAP disclosures for the PTE tax; presenting the PTE tax on tax-basis financial statements, and more.

This course uses materials entitled Accounting and Financial Disclosures for the Employee Retention Credit (ERC) and the Pass-Through Entity (PTE) Tax - 2022 Edition - 2 CPEs, authored by Steven C. Fustolo, CPA.

Topics include:
  • An overview of the ERC rules; models to use to account for the ERC;
  • Comparing the use of the ASC 958 model with the IAS 20 model to account for the ERC;
  • Disclosures required for the ERC including disclosures found in newly issued ASU 2021-10;
  • Fixing 2020 ERC presentation and disclosure errors; presenting the ERC on tax-basis financial statements;
  • Overview of the Pass-Through Entity (PTE) Tax election;
  • GAAP accounting for the PTE tax;
  • GAAP disclosures for the PTE tax;
  • Presenting the PTE tax on tax-basis financial statements, and more.

Learning Objectives:

After reading the course material, you will be able to:

  • Recognize the type of expense that is the basis for measuring the amount of the 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.
  • Identify an action step to be taken to correct the previous presentation and disclosure of an ERC in the 2020 statement of income.
  • Recognize the proper presentation of the ERC in a tax-basis statement of income.
  • 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.

Who Should Attend:
  • All Certified Public Accountants (CPAs)
Qualifies and Approved with all State Boards of Accountancy and the following sponsorship’s:
NASBA