Government Assistance

12 Months Ended

Jun. 30, 2022

Government Assistance

Government Assistance

Note 18: Government Assistance

The Employee Retention Tax Credit (“ERTC”) was created as part of the CARES Act to encourage businesses to continue paying employees by providing a credit to the eligible employer for wages paid to eligible employees. The refundable credit is available for wages paid from March 13, 2020 through September 30, 2021 and can be utilized even if companies received Paycheck Protection Program (“PPP”) loans.

For calendar year 2021, the maximum ERTC was $7,000 per eligible employee per quarter. The 2021 credit was computed at a rate of 70 percent of qualified wages paid, up to $10,000 per eligible employee, per quarter. For Eligible Employers with less than 500 average full-time employees in 2019 and experienced a decline in gross receipts in current quarter or prior quarter compared to the same quarter in calendar year 2019, the credit was available for all employees receiving wages in 2021.

The Corporation recognized an ERTC of $1.2 million in the first quarter of fiscal 2022 and $2.4 million in the fourth quarter of fiscal 2021. The ERTC was recorded in the Consolidated Statement of Operations for the respective periods under Salaries and employee benefits expense as a reduction to the total expense and the receivables were recorded in the

Consolidated Statements of Financial Condition under Prepaid expenses and other assets. Also, the ERTC is a non-taxable credit for state income tax purposes. As of June 30, 2022 and 2021, the total outstanding ERTC was $3.6 million and $2.4 million, respectively.