How Can Independent Schools Properly Account for Employee Retention Credit Funds?

In a recent issue of NetAssets, Nonprofit & Education partner Chris Maynard authored an article, “Employee Retention Credit Accounting Guidance for Independent Schools.”

The Employee Retention Credit (ERC) is one of a handful of federal programs aimed at helping businesses and nonprofit organizations maintain healthy operations through the coronavirus pandemic. For many independent schools, programs like the ERC and the Paycheck Protection Program (PPP) have helped keep people on the payroll while leaders have been faced with difficult decisions about their school’s future. Accounting for the ERC — for example, how and when should ERC funds be recorded — is a concern for many independent schools.