New EZ PPP Forgiveness Application and Updated PPP Forgiveness Application and Guidance.
Updated Eligible Payroll Cost Guidance:
- If opting for 24 week covered period, the maximum paid to each employee is capped at $46,154, but remains at $15,385 if opting for 8 week covered period.
- If opting for 24 week period, the maximum wage paid to owner-employee/general partner is 2.5 months’ worth of 2019 compensation capped at $20,833 per individual.
- If opting for 24 week covered period, the maximum compensation replacement for sole proprietors is 2.5 months’ worth of 2019 net profit capped at $20,833.
Updated Non-Payroll Cost Limitation and FTE Safe Harbor:
- Includes the update to change non-payroll cost limitation, so that forgiveness is not reduced if at least 60% of expenditures are from payroll costs.
- Adds the new safe harbor for Full Time Equivalent reduction: If you were unable to operate between February 15, 2020, and the end of the covered period at the same level of business activity as before February 15, 2020 due to compliance with requirements established or guidance issued between March 1, 2020 and December 31, 2020, by HHS, the CDC, or OSHA related to the maintenance of standards for sanitation, social distancing, or any other worker or customer safety requirement related to COVID-19.
New EZ application (Form 3508EZ)
- This form is for sole proprietors. It avoids all of the calculations and reductions for those with employees and calculates only using payroll and non-payroll costs.
If you have any questions, please contact your Kerkering Barberio team member at (941) 365-4617 or visit our website at https://www.kbgrp.com/resources/covid-19-updates.