Question

Anyone on here dealing with PPP stuff? I have a couple questions on what is forgivable and what is not.  

Answer 1

Yes, I’m in it very heavily.  

Comments

@bea8 am I correct that only State unemployment taxes are forgivable on payroll but not federal? Also is an owner draw on payroll forgivable as salary?  

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@lakisha Well, the bill says all state and local taxes, so state unemployment may count, but I never read anything to support that specifically. Owners draw is not payroll.  

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@bea8 thx

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@lakisha I am also involved quite heavily (bank side). I would agree with Clark, we have been including unemployment but the bill is quite vague on what to include in state taxes. Owners draw is not payroll, however if it is a schedule C operating income (bottom line) my bank has been including as payroll to owner

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Working on submitting PPP loans on the bank side as we speak (taking a short break)

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@lakisha What do you report your taxes on Schedule C or Partnership/Corporate tax return? Exclude Federal Income Taxes, Medicare, and Social Security. We've been counting everything else as fair game for the most part.  

Answer 2

You have only so many days after you receive payment to request loan forgiveness. It is not automatic.  

Answer 3

Ok I got my questions figured out on current salary. New questions for bankers :) 1. If we give raises or hire new employees, can we get that forgiven if it happens inside the 8 weeks? 2. WHAT is considered a forgivable non-payroll expense. Utilities is very vague.