If we spend $2 million on eligible payroll in the 24 week period, and our FTE ratio is 80%, and our loan is $1 million, will $1 million be forgiven (lower of principal = $1,000,000 or 80% of eligible expense = $1,600,000), or will $800,000 (80% of principal) be forgiven?
Did I miss something? C-Corp owners with a more than 5% stake--is that NO forgiveness at all for payroll or health insurance?
Do attribution rules apply when determining who is an owner-employee?
I think I also missed something . A sub-S owner that owns more then 5% has NO forgivness?
No. a 5% or greater owner is eligible for forgiveness; however, the limits are more strict. Still eligible to forgive but at a lesser amount.
What if a business receives a $100,000 PPP loan and spends 150% (instead of 100% in the example given) on forgiveness eligible payroll related expenses?
Clarifying comment on the 24 week period: If all of loan was paid out after 12 weeks and in week 20 have to lay off employee, how does that change your FTE calc?