Treasury issues FAQ’s on PPP

On April 6, 2020 The Treasury Department  issued updated FAQ’s which clears up most of the confusion in the computation of the maximum loan amount and discusses other matters under the Paycheck Protection Program.

Some of the major clarifications are as follows:

  • The Gross Payroll approach should be used for both loan application and forgiveness. The guidance also clarifies that employer FICA should not be included. 
  • The $100,000 salary limitation does not include healthcare, retirement benefits, and state and local taxes.
  • Applicants who use Professional Employer Organizations (PEOs) can provide payroll reports since they cannot produce individual entity payroll tax documents.
    • Borrowers can calculate their aggregate payroll costs using data either from calendar year 2019 or from the previous 12 months. The FAQs also provide information for businesses that have been in operation less than 12 months. 

Click here to read the FAQ’s.

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