Message Board › PPP WAGE EXPENSES
- This topic has 1 reply, 2 voices, and was last updated 6 months ago by Lynn Freer.
May 22, 2020 at 4:48 pm #248671Scott PennParticipant
I’m I correct in assuming that because my pay period began prior to our funding date (May 14th in our case), I cannot count the hours that the employees worked prior to that date as part of my payroll costs?
For example: We were funded on May 14th. The pay period began on the May 6th and went through the May 20th; Payday is on the 26th. If I am reading this correctly then I can not count the payroll costs that were incurred from the 6th to the 13th.
2. And if this is the case, then how do I treat the two people in our office that get salary, not wages. Do I prorate those amounts, or can I count the entire salary amount?
3. It looks like we can not take FICA (Medicare & SS) as payroll cost. But can we take Futa (required in our state) as a Payroll cost? It is, after all, paid by the employer.
4. Final question. It looks like we can include in Payroll costs state taxes such as SUI (Suta) because it is paid by the employer, but not state disability (SDI) because it is paid by the employee? Please confirm if I have this correct.
Our clients are beginning to call asking how to track their PPP loan amounts and I want to make sure that they do not include costs that they should not include.
May 23, 2020 at 5:00 pm #248741Lynn FreerParticipant
You can take the portion of the payroll that was incurred during the 8 week period, ie. from the 5th to 13th and you will do the same on the other end.
2.Salaried would be prorated on a daily basis
3. You can’t take any federal payroll taxes, including FUTA, only state SUI and (for CA) ETT
4. See above
But wait…there’s more! The house is set to vote next week on a bipartisan bill the Trump has said he would sign. This will make major changes. We’ll send a flash with more information after passage but see the Flash Email we sent out on Friday for an overview