Over the past couple of days we have received several questions regarding the payroll cost calculation, including questions as to reducing payroll costs for Federal taxes and FICA. The questions were being driven by the U.S. Department of Treasury Interim Final Rule published on April 2, 2020.
On April 4, 2020, the AICPA-led small business funding coalition clarified that gross payroll should be used for the calculation of the average monthly payroll cost under the Paycheck Protection Program. According to the press release, gross payroll should not be reduced for federal withholding and employee FICA.
As always, please reach out to us at email@example.com if you have any questions about this information, and be sure to visit our COVID-19 Resource Center at macpas.com/covid-19 as information is constantly being updated.
Questions on submitting your PPP loan application or the forgiveness process?
Our team stands ready to assist you through the PPP loan application and forgiveness process. Do not go at it alone. Ensure you are submitting the right information and receiving the highest forgiveness amount possible. Visit our PPP Loan Consulting webpage by clicking here to request assistance or support.
This communication is intended to provide general information on legislative COVID-19 relief measures as of the date of this communication and may reference information from reputable sources. Although McKonly & Asbury has made every reasonable effort to ensure that the information provided is accurate, we make no warranties, expressed or implied, on the information provided. As legislative efforts are still ongoing, we expect that there may be additional guidance and clarification from regulators that may modify some of the provisions in this communication. Some of those modifications may be significant. As such, be aware that this is not a comprehensive analysis of the subject matter covered and is not intended to provide specific recommendations to you or your business with respect to the matters addressed.