In the recently issued Notice 2021-49 (August 4, 2021), the IRS provides guidance for employers claiming the Employee Retention Credit (ERC). Included in the IRS notice is guidance on the definition of related parties’ wages for purposes of claiming the ERC and whether the wages paid to shareholders and their spouses qualify for the credit. [...]
The SBA just informed lenders that the loan necessity review requirement for Paycheck Protection Program (PPP) loans of $2 million or more has been eliminated for both for-profit and not-for-profit borrowers. Additionally, borrowers are no longer required to submit a loan necessity questionnaire that had been previously requested by the SBA. Leading up to this, [...]
On Thursday, June 17, the Supreme Court ruled the Plaintiffs' challenge on the Affordable Care Act's (ACA) constitutionality did not have standing, and the case was dismissed. At the heart of the case was the issue of whether the 3.8% Net Investment Income Tax (NIIT) could be justified after Congress eliminated the penalty for failure [...]
On the eve of the deadline, President Biden signed the Paycheck Protection Program (PPP) Extension Act of 2021. The deadline for loan applications for forgivable loans under the Paycheck Protection Program was initially set to expire on March 31, 2021. The extension provides an additional two months for borrowers to apply for first and second [...]
The second round of Paycheck Protection Program (PPP) funding is ready to be released. The Consolidated Appropriations Act of 2021 allocated $284 billion to the PPP program allowing second draws for hardest hit businesses. It is expected the SBA will begin taking application next week (January 11-15). Qualifications for a second draw include borrowers that: [...]
As with much of what has been issued regarding PPP loans and ever-changing guidance, the following analysis of deductibility is subject to legislative change. At the end of April, the IRS issued guidance precluding deductions for expenses paid with PPP funds. The Small Business Expense Protection Act would reverse that and allow the expenses to [...]
In anticipation of PPP borrowers beginning to file applications for PPP loan forgiveness, the SBA issued 23 new FAQs. While they do not cover all needed guidance, answers were provided in the following categories: General Payroll costs Nonpayroll costs Wage and headcount reductions Meanwhile, legislation has been introduced to expand and extend the PPP loans. [...]
Congress extended the Paycheck Protection Program (PPP) loan application deadline from June 30, 2020 until August 8, 2020. PPP loans are potentially forgivable loans designed to provide businesses with funds primarily to cover payroll costs during the 24 weeks following the loan (originally 8 weeks, but the program has been revised numerous times since its [...]
On June 16th, the SBA issued the REVISED Paycheck Protection Program (PPP) Loan Forgiveness Application and a new EZ Forgiveness Application. Generally, a borrower can apply to have PPP Loan amounts forgiven related to certain payroll and non-payroll costs paid during the “covered” period (generally either 24 weeks, or, if the loan was made before [...]
Wednesday evening, June 3rd, the Senate passed the House’s version of Paycheck Protection Program Flexibility Act of 2020 and now awaits President Trump’s signature. The bill passed unanimously Wednesday evening in the Senate and 471-1 last week in the House. Designed to make it easier for borrowers to get full, or almost full, forgiveness, the [...]