PPP Loan Forgiveness Webinar

Presented on 6/2/2020: The clock has been ticking on the Paycheck Protection Program (PPP) and soon your lender will need your Loan Forgiveness Application. If you’re like most businesses, your 8-weeks might not have gone as planned or is closing with more questions then when you started. Join us as we discuss the PPP Forgiveness process and calculation assistance.

We’ve partnered with local SBA lenders to bring you this platform. Participants will have the opportunity to chat in questions to be answered during the last half of the webinar. Our Christianson PLLP team of experts in Tax, Payroll and Human Resources will be standing by ready to answer live.

Webinar Recording:

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The form and instructions (you can access with the button below) include several measures to reduce compliance burdens and simplify the process for borrowers, including:

Options for borrowers to calculate payroll costs using an “alternative payroll covered period” that aligns with borrowers’ regular payroll cycles
Flexibility to include eligible payroll and non-payroll expenses paid or incurred during the eight-week period after receiving their PPP loan
Step-by-step instructions on how to perform the calculations required by the CARES Act to confirm eligibility for loan forgiveness
Borrower-friendly implementation of statutory exemptions from loan forgiveness reduction based on rehiring by June 30
Addition of a new exemption from the loan forgiveness reduction for borrowers who have made a good-faith, written offer to rehire workers that was declined

We encourage you to reach out for support or with questions during the application process. We’re here to help.

PPP Application for Forgiveness

Here are the Q&A answers from the webinar:

I usually do our SEP contributions after the first of the year. Do I need to do those contributions now? Just for the 8 weeks or for the year to date?

For Cellphones, if you reimburse an employee for the phone charges do these still work or does it have to be in the company name?

For eligible payroll costs in a religious organization, are housing allowances included?

Are the health insurance and retirement contribution calculated against the $15,385 max?

FTEE - what if the employee does not want to come back to work yet due to impaired health - is simply afraid of coming down with the virus?

Are the health insurance premiums for the owner-employee when the employer gets a W-2 and the entity is a Sub S? Is that forgivable?

If our loan is up next Tuesday (6/9/2020), what do we do with not knowing if the senate will extend the loan period?

With a farm S corp can I deduct planter rent as a custom farm rent?

We have an S corp, 3 partners. Can we use there personal Simple IRA contributions and the matched contributions in the eligible payroll?

Our disbursement was 4/17 which was also a pay day. Can we use that payroll, or do we have to use the next one?

Fuel costs on transportation, what qualifies?

Is the 8 week period set in stone... or is there a chance that will be extended? especially with restaurants that are only doing very limited staff for take out orders at this time?

Can you use owner salary for payroll forgiveness?

How much gas used for employees is deductible? {bulk gas for farm}

I received a PPP loan, and now I qualified for an EIDL loan, should I decrease my EIDL loan amount by the amount of PPP loan I already received? What is the relationship between PPP and EIDL loans?

Did I understand that dental and vision are not health insurance?

Do you think a pastors mileage be eligible under transportation?

What about a contract employee that will get a 1099 at the end of the year?

Can I prepay July rent and July employee health insurance?

What about Travel Related Expenses for Employees, and if so is this capped at $100k threshold?

We have a business loan for inventory. Can the interest on this loan be included as non-payroll costs?

At this time is the forgiving amount under PPP deductible on your taxes?

For Corp farm operation: Is land rent included and divide payment by 52 X 8?

What is the calculation if 75% wasn't spent on wages (missed by 5%), but was spent on eligible non-payroll costs?

We use Motus for our employees that get a set reimbursement each month for use of their personal vehicle in company business. Would that be a deductible wage?

Where do find the PPP forgiveness calculator again?

We reimburse employees for their vehicle use thru a company (Motus) is that expense allowable?

Once forgiveness happens, how will the amount be listed on financial statements?

As we know all loans over $2 million will be audited by SBA. What are your thoughts on auditing for loans in the $1 million dollar range.

Can I include interest payments made on a Line of Credit loan?

Does mortgage interest need to be prorated for the eight weeks also?

On the PPP loan forgiveness Application there are 4 lines for Payroll/non payroll costs. Line 1 states enter payroll costs. On that line, do we use all employees and owners gross pay up to $100,000?

On the PPP Loan Forgiveness Application, I am not seeing where the forgiveness amount is reduced by the EIDL Advance.

Is dental insurance payments an allowable health insurance cost?

Any further guidance on incurred vs paid notations?

Any further developments on the 8-week vs 24-week expendable period?

Is there a forgiveness application deadline after the 8-week period?

Is the EIDL Advance Taxable?

If you received an EIDL emergency advance say $3000.00,is that advance taxable or does it reduces your deductible business expenses? Does it impact calculations for PPP forgiveness and if so how?

Does payment of health insurance premiums for the owner-employee count towards the 75% PPP requirement for wages?

What are the steps I should take if we have an employee test positive for COVID?

To review other Frequently Asked Questions (FAQs) about the Paycheck Protection Program and PPP Loan Forgiveness, you can click the link here.

Additional Questions for PPP Loan Forgiveness

If you have additional questions relating to PPP loan forgiveness, fill out the form below. We will respond to your inquiry promptly.

If you have questions as it relates to the CARES Act, you can visit our COVID-19 Updates page, our Resources page, or you can contact our experts today. We’re here to help.

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Additional Questions for PPP Loan Forgiveness

Willmar, MN

Litchfield, MN

Paynesville, MN

Fairfax, MN

Redwood Falls, MN

Morgan, MN