Forbes – Ten Things We Need To Know About Paycheck Protection Program Loan Forgiveness

Clients have applied and are now being approved for and receiving PPP Loan funds. Now what? There are a lot of details to pay attention to and rules to follow. This is an interesting article on forbes.com written by Tony Nitti / Senior Contributor, titled Ten Things We Need To Know About Paycheck Protection Program Loan Forgiveness.

https://www.forbes.com/sites/anthonynitti/2020/04/15/ten-things-we-need-to-know-about-paycheck-protection-program-loan-forgiveness/#584577ed3291

The ten issues it addresses are:

#1: What does it mean when it says “costs incurred and payments made” within the 8-week covered period will be forgiven?

#2. How do the two “covered periods” interact?

#3. Are payments made with forgiven funds deductible?

#4. Can a business pay interest on non-mortgage debt during the covered period and have it forgiven?

#5. Can self-employed taxpayers have mortgage interest/rent/utilities forgiven, or can’t they?

#6:  What are we doing about federal income tax withholding and payroll taxes?

#7: Can a business have self-rental payments forgiven?

#8: Can someone explain how we determine the required reduction in forgiveness amount if a business cuts employees?

#9: How does the reduction in forgiveness caused by salary reduction work?

#10: Who makes the call?