![]() For seasonal employees, you must use the 2/15/19 to 6/30/19 period. Divide the result by the average number of full-time equivalent employees from either 2/15/19 to 6/30/19 or to. You don’t maintain your full-time employees: Multiply the payroll expenses by the average number of full-time equivalent employees during the eight-week period.However, your forgivable amount can also be reduced if: Up to the full loan amount and accrued interest can be forgiven if you qualify for the PPP loan. While you can’t prepay mortgage interest and rent payments, consider how the timeline compares to your regular payroll schedule and if you may want to make adjustments. Once You Qualify for a PPP Loan, You Must Spend The Money Within Eight WeeksĪdditionally, only loan proceeds that you spend on qualified expenses during the eight weeks after you receive your loan - which may be later than when you signed your loan agreement - count toward the forgivable portion. Sick and family leave wages if you received a credit due to the Families First Coronavirus Response Act.Employer’s side of federal payroll taxes.Payroll costs for the prorated portion that’s above $100,000 for each employee.Payroll costs for employees whose principal residence isn’t in the US.If you use the money for the following, those amounts won’t be forgiven: There are also several exclusions to PPP loan forgiveness. But, all the loan proceeds that you spend on the following types of expenses are covered under PPP loan forgiveness:įor the mortgage, rent, and utility payments to qualify, the loan, lease, or service must have begun before February 15, 2020. The total amount you can borrow depends entirely on your payroll expenses. Loan Proceeds Can Be Forgiven If You Use the Money For The forgivable portion of your loan can also be reduced if you don’t maintain or quickly rehire your employees, or if you reduce employees’ pay by more than 25%. You must spend the money on eligible expenses during the eight weeks after you receive the loan.You must use at least 75% of your loan for payroll costs. ![]() You can use this checklist to help ensure you’re on track - and stay on track - when it comes to PPP loan forgiveness and having as much of it forgiven as possible. However, the forgivable amount of your PPP loan will depend on how you use the funds and whether you maintain staff levels and pay. If you’re considering applying for PPP loan funding you should know the entire loan could potentially be forgivable. If you’ve taken out a Paycheck Protection Program (PPP) loan, you likely know that one of the big benefits is the ability to get the loan forgiven in the future. Read this article for the most up-to-date information the most current round of the Paycheck Protection Program. Update as of January 26, 2021: This article may no longer be up-to-date.
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