The Small Business Administration, in conjunction with the US Treasury, has issued additional guidance and clarification to the Paycheck Protection Program.
Some of the specific clarifications are:
- A company’s gross payroll should be used for both the loan application as well as forgiveness.
An employer’s portion of social security and medicare tax is not included in the gross payroll calculation. - The $100,000 salary limitation does not include healthcare, retirement benefits and state and local taxes.
- Companies who use Professional Employer Organizations (PEOs) can provide payroll reports since they cannot produce individual entity payroll tax documents.
- Companies can calculate their aggregate payroll costs using data either from calendar year 2019 or from the previous 12 months.
- Further clarification has been provided for businesses that have been in operation less than 12 months.
We hope everyone is healthy and safe!
Click here to read the updated FAQs.
As more information becomes available, we will provide you with updates.
