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Accounting for the Employee Retention Credit and the Pass-Through Entity Tax

  • ITEM SKU
    8070
  • CPE Hours
    2
  • Full Course Price
    $29.50
Exam Questions: 10
Course Level: Basic
Pages: 62 | Content: 54, Supplemental: 8
NASBA Area of Study: Accounting
Not Acceptable for: Enrolled Agents
Version: 8070B

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 2021 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, dealing with ERC withdrawals and filings in 2023 and 2024, and more. PLEASE NOTE: Not accepted for Enrolled Agents. All course material provided. No prerequisites. Course level: Basic.

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Course Information

Table of Contents
  • Accounting - Financial Disclosures for the Employee Retention Credit (ERC)
  • Accounting - Financial Disclosures for the Pass-Through Entity (PTE) Tax
Objectives
  • To recognize the type of expense that is the basis for measuring the amount of the Employee Retention Credit (ERC)
  • To identify where to present the ERC in the statement of income using the ASC 958 conditional contribution model
  • To recognize where to present the ERC in the statement of income using the IAS 20 grant model
  • To recognize the proper presentation of the ERC in a tax-basis statement of income
  • To identify how to account for an ERC filing in 2023
  • To recognize a technique that has been attempted to circumvent the SALT deduction limitation
  • To identify how to account for the PTE tax in an entity's financial statements
  • To recognize the requirements for recording deferred state income taxes with respect to the PTE tax election
  • To identify disclosures that should be made for the PTE tax election

PLEASE NOTE: CPE credit measurement is based on NASBA Registry and QAS guidelines of one credit for every 50 minutes. Credit calculation may vary in different states — check with your State Board of Accountancy. Unless otherwise noted in the specific course description, no advanced preparation is required in order to register or complete any PES CPE course. Use of materials or services provided by Professional Education Services, LP ("PES") are governed by the Terms and Conditions stated on PES' website www.mypescpe.com. PES provides these courses with the understanding that it is not providing any accounting, legal, or other professional advice and assumes no liability whatsoever in connection with its use. PES has used diligent efforts to provide quality information and material to its customers, but does not warrant or guarantee the accuracy, timeliness, completeness, or currency of the information contained herein. Ultimately, the responsibility to comply with applicable legal requirements falls solely upon the individual licensee, not PES. PES encourages you to contact your state Board for the latest information and to confirm or clarify any questions or concerns you have regarding your duties or obligations as a licensed professional.