On May 3, 2020, the US Treasury released further guidance surrounding the implications of rehiring previously laid off employees for purposes of maximizing loan forgiveness under the Paycheck Protection Program. The Treasury’s updated FAQ document can be interpreted to address the following questions: Q: What if I offer to rehire an employee but they don’t… [keep reading…]
Tag: PPP
PPP – Tax Treatment of Wages and Other Qualified Expenses Paid
On April 30th 2020, the IRS released Notice 2020-32 to address the tax treatment of wages and other qualified expenses paid for using PPP loan proceeds. According to the Notice, expenses for which PPP proceeds have been used will NOT be tax deductible to the extent those proceeds have been forgiven. Under the CARES Act,… [keep reading…]
SBA Releases Guidance on Self-Employed Individuals and the Paycheck Protection Program
On April 14th, the US Treasury released interim final rules regarding the eligibility and requirements for self-employed individuals to participate in the Paycheck Protection Program (PPP). Here are certain key highlights and considerations: To be eligible for the PPP you must satisfy four requirements: You were in operation on February 15, 2020, You must be… [keep reading…]
Small Business Administration Releases FAQs on Paycheck Protection Program Loans
The US Treasury and the Small Business Administration (SBA) released FAQs addressing certain questions regarding the Paycheck Protection Program (PPP). The 29-point FAQs can be found here: https://home.treasury.gov/system/files/136/Paycheck-Protection-Program-Frequently-Asked-Questions.pdf Notable highlights of the FAQs include: Payroll costs are calculated on a gross basis without regard to federal taxes imposed or withheld, such as the employee’s and… [keep reading…]
CARES Act – Paycheck Protection Program Interim Final Rule Issued
Last night the US Treasury released interim final guidance on the recently enacted CARES Act Paycheck Protection Program (PPP) loan provisions. TBC wanted to share our latest takeaways from this final guidance. The loan application is on a first come first serve basis, we recommend applying with your bank as soon as possible. Banks will… [keep reading…]