Just when I thought it was safe to come out of my bunker and start working on PPP forgiveness applications, Congress changed the rules. Thankfully for you, you aren’t alone in figuring it out. S&K CPAs is here to help
Both houses of Congress have passed the changes and President Trump has signed off on the changes.
Here are the main points of the changes:
- Businesses have up to 24 weeks (up from 8 weeks) to spend the PPP money for loan forgiveness.
- The amount required to be spent on payroll and related expenses for forgiveness is now down to 60% from 75%. However, as the bill is currently written, 60% MUST be spent on payroll and related expenses to get ANY loan forgiveness. If this sounds complicated, we can help
- The payback period for any unforgiven amounts converted to loans is now five years – up from two years.
- The rehire date for bringing back employees has been extended to December 31, from June 30.
- The amount of loan forgiveness will now allow for an adjustment where employees have been called back but did not report for work. Also, an adjustment is allowed for businesses unable to find qualified employees. (I have no idea what this boondoggle will look like and how many billion trees will be killed writing the final regulations. I am buying stock in paper companies.)
- Businesses, who have accepted PPP money, are now also eligible for delaying payroll tax payments under the CARES Act. Previously, they were ineligible.
If you need help in any way we in which we can assist in these uncertain times, please contact us at (703) 818-8284 or e-mail fstitely@skcpas.com.
Contact us and we can make your tax situation less taxing.
Thanks for reading!
Frank Stitely