UPDATED aPRIL 6TH 10am
Eligible payroll expenses for calculating PPP loan amounts include:
- Compensation (salary, wages, commission, or similar compensation, cash tips, etc.) Basically anything that is on the W2 and only the W2 including the following:
- Payment for vacation, family, medical, and sick leave
- Allowance for employee dismissal or separation
- Payment for group health-care benefits, including insurance premiums
- Payment of employee retirement benefits
- Payment of state and local taxes imposed on the compensation of employees (SUTI, SDI)
- Employer's share of FICA/MC
However, the PPP does not count the following expenses when calculating the total PPP reimbursement amount:
- Any compensation over $100,000 per employee
- Compensation of employees whose principal place of residence is outside the United States
- Qualified sick and family leave for which a credit is already allowed under other sections (i.e., 7001 and 7003) of the Family First Coronavirus Response Act
- Loans used for duplicate purposes of another SBA loan program already claimed by the applicant
The loans are categorized by how long the organization remains operable from the beginning of the crisis period (February 15) to June 30. For businesses that continue to operate and retain employees over that period, the SBA can provide a maximum loan of 250 percent of the average monthly payroll costs during that period:
- If you are in business over the period from February 15 to June 30, you will receive a maximum loan amount that is 2.5 times your average monthly payroll expenses over that time period.
- If you are a seasonal worker over the period from March 1 to June 30, you will receive a maximum loan amount that is 2.5 times your average monthly payroll expenses for that shortened time period.
- If you were not in business after February 15—that is, if you were not open because of the crisis or you went out of business entirely—you will receive a maximum loan amount that is 2.5 times your average monthly payroll expenses for the two months of January and February.
the following are some examples and explantions:
Question 1. 12 month look-back on the client’s Pay Cost states look-period is 12 months prior to the date they apply for the loan:
- Is this Calendar year – example would be Jan – Dec 2019 OR
- Rolling 12 months – example – apply April 3rd 2020 – look back = April 2019 – April 2020
Current State: The statue said rolling 12 months, while the sample SBA form says calendar 2019. We recommend utilizing what the bank recommends. RUN report both ways and ask your bank.
The Calculation states: Earnings - Taxes (Federal) + Taxes (State and Local Employer) - Chapter 21 Taxes (SS/Med) + Other Deductions (Employer) + Retirement Benefits (Employer). This was changed on Thursday night with new legislation. you no longer subtract any of the above. You actually ADD the employer's share.
The interactive calendar highlights federal and state tax due dates, special firm events and other important dates that may be of interest to you. Because the calendar is continually updated, check back often to keep track of filing requirements, deadlines and other events that will help you stay current and up-to-date.
Client Tax Organizer
A tax organizer can facilitate the process of pulling together your tax information. This basic tax organizer is designed for new clients and allows you to enter your information right on the screen. You can then print the completed tax organizer and fax or mail it to the office. Current clients should contact the office to request a "proforma" tax organizer that includes prior year information and carryover data.
Federal Tax Forms & IRS Publications
Looking for a federal tax form? Browse this online tax forms library to find downloadable IRS forms. The forms are presented in PDF format and are acceptable for filing with the IRS. You may also choose from dozens of helpful tax publications developed by the IRS to help taxpayers have a better understanding of various tax issues. Available in PDF format, these publications are written in a plain language format geared specifically to taxpayers.