The Small Business Administration (SBA) released Form 3508 “Paycheck Protection Program (PPP) Loan Forgiveness Application” on May 15, 2020. Form 3508 and its instructions provide detailed guidelines for determining PPP loan forgiveness.
Join Don Farmer, CPA, for a webcast providing guidance on how to help your clients plan for maximizing PPP loan forgiveness. Topics include:
- The treatment of partners, self-employed individuals and S corporation owners
- Determining full-time equivalent (FTE) employees
- Avoiding reduction in forgiveness amount because of a reduction in FTEs or a decrease in an employee’s compensation, including new safe harbors for avoiding these reductions
- Choosing an alternative 8-week period for determining loan forgiveness
- The meaning of costs “paid and incurred” during the 8-week period
- Determining costs qualifying for loan forgiveness including the determination of mortgage interest, rents and utilities and the 25% limitation for these expenses
Also learn about:
- Employee Retention Credit (ERC) — There are many businesses that did not receive PPP loans or that repaid the loans by the SBA’s required deadline. Those businesses may qualify for the ERC. The ERC is equal to 50% of an employee’s qualifying wages up to a maximum $5,000 credit per employee. This credit may be claimed on an amended Form 941. Don will review the ERC provisions including key items covered in the more than 90 FAQs issued by the IRS.
- Other recent CARES Act developments