Over the past week, our team members have been extremely active in advocating key positions and recommendations related to the Paycheck Protection Program (PPP). We also have been providing leadership and working with our clients for PPP implementation which will make an impact for many small businesses in our community and beyond.
Last night, the Treasury Department and the Small Business Administration posted an 18-point FAQ that addresses common questions.
Some of the FAQs:
• The Gross Payroll approach should be used for both loan application and forgiveness. The guidance also clarifies that employer FICA should not be included.
• The $100,000 salary limitation does not include healthcare, retirement benefits, and state and local taxes.
• Applicants who use Professional Employer Organizations (PEOs) can provide payroll reports since they cannot produce individual entity payroll tax documents.
• Borrowers can calculate their aggregate payroll costs using data either from calendar year 2019 or from the previous 12 months. The FAQs also provide information for businesses that have been in operation less than 12 months.
Our overall goals have been to help small business owners thru this difficult time with clarity about the PPP. The SBA clarifications are positive steps forward and will have a significant impact on the total eligible funding amount available to small businesses.
We also know, however, that there are other outstanding issues, and we will continue to provide Treasury and the SBA with recommendations to make sure the small businesses most at need receive funding to maintain operations and keep their employees paid.
We will continue to assist small business owners apply and access much-needed funds during these uncertain times. We will keep you updated with information and resources as they become available.