California Treatment of the Employment Retention Credit Under federal law, employers that claim the ERC must reduce their wage and salary expense deduction by the amount of the ERC. California does not conform to these provisions and does not have a similar credit.
The Middle Class Tax Refund (MCTR) was a one-time payment issued to eligible recipients between October 2022 and January 2023, to provide relief to Californians.
However, after reviewing the relevant federal rules and guidelines, the FTB has now announced that ERC refunds received will not be taxable for California income tax purposes, and the wages used to claim the credit will remain deductible.
Going forward, the only way to apply for the ERC is to file an amended Form 941X (Quarterly Federal Payroll Tax Return) for the quarters during which the company was an eligible employer.
The State Board rules do not allow commissions or contingent fees if the CPA performs, for the client, "...a compilation of a financial statement accompanied by a report..." The AICPA rules prohibit commissions or contingent fees if the CPA performs, for the client, "... a compilation of a financial statement when the ...
How do I claim the ERC? (updated Sept. 14, 2023) A1. Eligible employers that didn't claim the credit when they filed their original employment tax return can claim the credit by filing an amended employment tax return.
The 2024 ERC's Starting Grants results The funding is part of the EU Horizon Europe programme. This competition attracted 3,474 proposals and had a 14.2% success rate overall across all disciplines. Female researchers were awarded 44% of the grants, compared with 43% in 2023 and 39% in 2022.
Credit amount The total ERC benefit per employee can be up to $26,000 ($5,000 in 2020 and $7,000 per quarter in 2021).
On Form 1120S, businesses can report the ERC by including it as a credit on Line 13f (“Credits”) of Schedule K, Form 1120S. Ensure accurate documentation of qualified wages and related expenses to support the credit claim.