Accounting for Emergency Paid Sick Leave Credits

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#1
Dbertke  
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77
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10-Oct-2019 2:18pm
Location:
Ohio
How is everyone planning on accounting for the Emergency Paid Sick Leave/Expanded Family Medical Leave credits for book and tax purposes? To the extent that a taxpayer receives a tax credit for qualified wages paid under either of these are you:

A) Reducing wages expense on the tax return and financial statements
B) Reducing FICA payroll tax expense on tax return and financial statements
C) Reporting this as Other Income on tax return and financial statements
D) Something else

I haven't seen any guidance on any of this as of yet. Am I missing something
 

#2
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6042
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22-Apr-2014 3:06pm
Location:
WA State
Like most other payroll related credits, they should reduce the expense to which they relate.
From a timing perspective, they should be accounted for in a manner consistent with your method of accounting.
~Captcook
 


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