Measure Twice, Cut Once

That was something that my wood-worker father-in-law would always say, and it translates perfectly to the PPP Forgiveness application.  Just because you get your FTE and wage numbers from your payroll company does not mean they are correct.  Always double-check the numbers. 

Working with a client this week, their payroll company provided them  with their PPP Forgiveness worksheet, stating they had failed the FTE and Wage calculations.  Many companies would take that report, enter the numbers on their lenders worksheet, submit the form and accept the fact that their PPP loan was not 100% forgiven.  What some payroll providers are doing is going straight to using form 3508 and not even doing the calculations for 3508EZ.  Furthermore, if you have not been using your payroll company since the beginning of 2019, they probably don’t have all the information they need to generate a correct 3508. 

What’s new with Round 2 of stimulus?  Nothing other than continued gridlock and finger pointing.   

Does your PPP Loan come with tax consequence?  At this point that is very likely.  Many are hoping that there will be legislation that will clarify the impact of the loan on the eligibility of expenses for tax deduction purposes.  However, unless something is passed by Congress, the IRS will hold that expenses related to PPP loans are not tax deductible.  However, paying taxes on free money isn’t a bad deal either.  I will trade $5 for $20 any day of the week. 

Perhaps the new week will bring new developments.  In the meantime, I can answer any questions you may have about getting your PPP Loan forgiven.  Remember, double check your numbers!