TOPIC: Tax Reporting

claiming the Employee Retention Credit

VP at a bank ($65MUSA)
We are investigating retroactively claiming the Employee Retention Credit after other small banks in our area have brought up the topic.  Since banks were deemed essential businesses during our state's shutdown, we never shut our doors completely.  However, our transaction volume dropped significantly, loan activity disappeared (except for PPP) and we did let a part time staffer go to give us more physical space between staffers at our office.  We continued to pay everyone full time wages even if some were rotating working from home where they were either less productive or not productive at all depending on the nature of their position.  I'm trying to parse the language that created the Credit and am wondering how other banks are justifying qualifying for the credit.  Are you claiming it based on, "the full or partial suspension of the operation of their trade or business during any calendar quarter because of governmental orders limiting commerce, travel, or group meetings due to COVID-19" or are you basing it on the reduction in "receipts"?  In which case, how are you calculating that?

    General Ledger Reconciliation: Member Over Payments

    Employee at a credit_union ($598MUSA)
    Asking as a non-accountant so any help would be greatly appreciated.

    How do other FI's handle small member over payments related to loan payoffs or other loan-related transactions? Specifically, when there is a small over payment of say $0.01 or $2 do you send that to the member or is there an accounting rule or industry regulation allowing a de minimis exception to allow the FI to put that small dollar amount into the GL? 

    The issue is when this is a recurring event, and there are many members in the situation, the research and mailing costs add up. Obviously, if the dollar amount is significant the amount must be returned. But what about these tiny over payments? Whether it is one penny or $100 the money belongs to the member but is there something in the accounting rules or regs that allow for a de minimis over payment to go into a GL. 

    The goal is to find a workable solution with limited staff and hours available for the research and processing of these small over payments. 

    Thanks in advance and please let me know if I may clarify.