CICPAC, Construction Industry CPAs and Consultants, has recently published a new white paper to assist contractors with how to account for the Employee Retention Credit (ERC) for financial statement purposes. The ERC is a fully refundable payroll tax credit for eligible employers and is something that contractors have not had to account for in the past.

Employee Retention Credit Financial Accounting Considerations offers some insight into how to account for the ERC. The white paper details two accounting policy options that contractors can use to account for the ERC.

CICPAC is a long-time, generous supporter of NASBP. Kathleen Baldwin and John Corcoran of CICPAC are active participants on the NASBP CPA Advisory Council.