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PPP Loans - what comes next?
Although a PPP loan is potentially forgivable, the amount forgiven is not guaranteed. It is important to know the rules to get the largest available grant. Based on your loan date, you may be coming to the end of your 8-week window for using funds for eligible expenses.
The forgiveness program uses cash basis accounting so make sure you have actually paid out the funds for your payroll; your contributions to any medical or retirement plans; and other expense if they qualify for the 25% eligible expenses exclusion… BTW the "other expenses" can include more than your rent and utility payments so be sure you know all the expenses that qualify.
Payroll is not as straight forward as it initially appears, you will need to calculate your full time equivalent employees, consider if any of the employees that did not come back can be excluded in your calculations (obtain the necessary documentation) consider if any new hires will be accepted and create a spreadsheet of your employment expenses during the period. Hint – this is more than just payroll checks.
To top it off, this is a moving target with Congress and the Treasury changing the rules as we go. If you are not a fan of paperwork or bookkeeping, the requirements can be daunting.
Give us a call, we can help… 231-796-2832
Jeanne Bergelin-Murphy | 05/30/2020