@taxjay 

"Not sure if AICPA has issued any guidance."

I googled:

covid erc aicpa

And yes, they have a lot of reference materials. Because here, you posted in a topic from two tax years ago. There is a lot of current info out there, now. For example:

https://www.irs.gov/coronavirus/employee-retention-credit

"The above is what most of CPAs in my network are doing! Not sure if this is correct as there are no clear instructions available."

Clearly, never the right way to do this. Form 5884a passes a general business credit through to the K-1. You are currently in a Payroll Tax Credit topic.

And you can see you (and your cohort) have this wrong, right here:

"Use Form 5884-A to claim the employee retention credit for employers affected by qualified disasters. An eligible employer who continued to pay or incur wages after the employer’s business became inoperable because of damage from a qualifying major disaster may be able to claim a credit equal to 40% of up to $6,000 of qualified wages paid to or incurred for each eligible employee."

Yet, the covid ERC = ERTC which "T" is for "Tax" credit.

https://home.treasury.gov/policy-issues/coronavirus/assistance-for-small-businesses/small-business-t...

"The American Rescue Plan extends the availability of the Employee Retention Credit for small businesses through December 2021 and allows businesses to offset their current payroll tax liabilities by up to $7,000 per employee per quarter. This credit of up to $28,000 per employee for 2021 is available to small businesses who have seen their revenues decline, or even been temporarily shuttered, due to COVID."

And:

https://www.paychex.com/articles/compliance/employee-retention-credit