There have been numerous updates to the Paycheck Protection Program (#PPP) since it was introduced. The latest occurring last week, from the SBA and Treasury departments.
One of the clarifications the SBA made we are talking a lot about is the classification of FULL-TIME versus PART-TIME employees on #payroll.
There are 2 ways you can go about this.
- You can classify every full-time employee as a 1.0 credit towards the PPP program. You can classify every part-time employee as a 0.5 credit towards the PPP program.
- You can classify every full-time employee as a 1.0 credit towards the PPP program. You can classify every part-time employee by taking their number of hours worked during a given week, dividing that number by 40, and rounding to the nearest tenth.
*You cannot exceed 1.0 credits for any full-time or part-time employees.
If you are looking for some ways to keep up with the changes, or better understand them, here are a few nice Links I have been sharing:
- https://quickbooks.intuit.com/small-business/coronavirus/paycheck-protection-program/
- https://quickbooks.intuit.com/learn-support/en-us/help-articles/how-does-a-paycheck-protection-plan-loan-get-forgiven/00/535051?cid=DR_em_46936_001_Text3_US_QBOA#
- https://home.treasury.gov/system/files/136/3245-0407-SBA-Form-3508-PPP-Forgiveness-Application.pdf
- https://www.currentfederaltaxdevelopments.com/blog/2020/5/16/ppp-loan-forgiveness-application-and-instructions-released-by-sba
As always – let us know if there are any questions we can assist with!