Maine DHHS Notifies Providers on Treatment of Employee Retention Credit (ERC) on Cost Reports

On Wednesday, May 3rd, DHHS sent out a notice to providers who have a December year end and have cost reports due at the end of this month. Based on recent guidance from CMS, and in alignment with the collection of other federal COVID-19 relief funding data, providers do not need to offset the Employee Retention Credit (ERC) on their cost reports.  However, the amount of the ERC needs to be reported on Schedule FF. 

To reiterate, CMS has reversed its position based upon our sector's advocacy and ERC funds are now to be treated like other COVID relief funds (e.g. PPP, PRF) and not like a tax credit on your Medicaid cost reports.
If you have any questions regarding the filing of your cost report, please contact the Department at

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