PPP Flexibility Act Updates to Loan Forgiveness Strategies & Recovery Best Practices - Shared screen with speaker view
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If we will run out of PPP money at about 12 weeks of payroll, do we still need to use an average headcount for the entire 24 weeks or can we use the time frame that we actually used the funds?
We prepaid our annual BWC premium which puts us at full forgiveness during the 8 weeks (we would be under without the full premium). Is there any risk this could be excluded from forgiveness?
Can we have Forgivable Costs (Payroll and Non-Payroll) greater than our original 2.5 months of payroll Loan Amount.
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If we qualify for the NEW EZ forgives application should we use the William Vaughan PPP calculator. Or is their a less time consuming tool?
Assuming the loan is forgiven, and a company has a profitable year. Is the loan considered taxable income or what?
Can we potentially use the entire loan amount for payroll if we elect the 24 week covered period? Do we have to split between payroll and eligible non payroll costs?
For the forgiveness, at which point in time is the wage and FTE reduction calculated?
Can you not use Pay Periods that correspond to the Reference Period Jan 1 to Feb 29th?
With a 24 week covered period, the qualifying payroll and non-payroll expenses will be much greater than the original loan amount. Therefore, it seems like a pretty hefty FTE reduction can be "applied" to the modified total, still resulting in total forgiveness as the 24 week modified total will be greater than the loan amount. Do you agree?
If you are able to max out forgiveness with payroll in the 24 weeks, is there any reason to even put in the other non-payroll costs?
when does the loan forgiveness application have to be completed by?
So if an employee recieves a bonus that would put them over $100,000 anything below $100,000 is still eligible for forgiveness. Correct?
All of our professional employees are PharmDs (pharmacists). They are FT for various pharmacies, but are PT for us, thus they are all W9 employees, and have been such for a decade. Does their pay (W9/1099) count as payroll? None of them have individually applied for PPP.
Is Retirement of an owner considered an exception for FTE Reductions purposes?
so you have to maintain the FTE to the Reference Period all the way through the Application submission process even once you run out of Loan Amount?
I'll have all my PPP funds used up in 10-12 weeks total. That being said, am I allowed to choose the 24 week period even though all the funds will be spent well before the 24 week period is over.
We will be sending out the link to our calculator in the follow-up email with the recording
Will you be sending an email of this session again like last time?
Our bookkeeper quit in February, got a temp to hire for 90 days, and then started paying the new bookkeeper starting in June on our payroll. Can I include the new bookkeeper's pay in our payroll costs?
Regarding the Retirment Plan expense, do plan contributions have to be paid within the covered period. We make a discretionary contribution but not paid until after our fiscal year.
Is interest expense on tax-exempt bonds allowed as mortgage interest?
We will probably only need to go to 10 weeks to pick up enough qualifiying costs . . . can we end our alternative covered period once we get there and do the Wage and FTE reduction calculations at that point?
For the FTE calculation...is 40 hours or more the definite legal threshold? Full-time hours prior to COVID were 37.5 per week
Steve Mnuchin stated companies can file for forgiveness once companies use up the money. Will they provide future guidance?
I understand the FTE is calculated on 40 hours regardless of OT. But, are the hours for wage reduction safe harbor subject to OT? Example: An employee averages 60 hrs week pre-PPP but 40 hrs/wk during PPP. Would that 20 hour reduction reduce our forgiveness even though they are still working full time?
If you take the 24 weeks - does the amount that an individual is entitled to increase to 20833?
Regarding incurred eligible payroll expenses - you mentioned incurred but not paid are forgiven, but must be paid by the "next pay period". What about SUTA that wouldn't be due until the month after the end of the quarter?
How are leased employees handled in the FTE count? We had leased employees when we received the PPP loan but they are no longer employees.
what about the Safe Harbor
Thank you all!