Paycheck Protection Program Loans: Three Things The SBA And Banks Have To Agree With Now

Paycheck Protection Program Loans: Three Things The SBA And Banks Have To Agree With Now

Read it a few more times, nevertheless, and also you understand that this paragraph is determining the payroll expenses associated with receiver of this re payments, maybe perhaps not the payor. Whenever looked over during that lens, the above wording provides that the payroll price of an one-man shop taxpayer that has no workers of his or her very own is made up of any re re re payments of settlement he/she has gotten, be it a wage, payment, or web earnings from self work. It’s got nothing at all to do with computing payroll prices for the celebration INVESTING the contractor that is independent.

The SBA assisted explain this interpretation by issuing directions to its PPP application that explained paragraph bb what sort of CARES Act needs by saying that payroll costs consist of: For a single proprietor or separate specialist: wages, commissions, earnings, or web profits from self work, capped at $100,000 for an annualized foundation for every single worker.

Needless to say, this language didn’t signify a small business having to pay separate contractors couldn’t ALSO add those payments to its payroll expenses, and in order that product had been kept unaddressed.

Then arrived interim guidance through the SBA, that was meant to clear up the ambiguity, but initially muddled things further by saying on web page 6 that a small business had been qualified to receive a PPP loan if it “either had workers for who you paid salaries and payroll fees or paid independent contractors, as reported on Form 1099 MISC.” This led many readers, including myself, to close out that the SBA would definitely enable 1099 MISC re re payments from a company to separate contractors to count as payroll costs. Continue reading “Paycheck Protection Program Loans: Three Things The SBA And Banks Have To Agree With Now”