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Are You Balancing

COVID19 And Coming

Out On TOP!! Here’s A

Major Tip

By Alysia R Dahir, MBA

You received PPP Funding, but MAJOR QUESTIONS: Payroll costs that are eligible for
now what? Forgiveness or loan loan forgiveness:
repayment? Or maybe not applied When will I be required to provide

at all? documentation for forgiveness? ● Salary, wages, commissions,
Forgiveness calculations begin or ti ps (capped at $100,000 on

Alysia R. Dahir, MBA is the owner in June. At that ti me, SBA and an annualized basis for each
and Managing Partner at Dahir your lender will be requiring employee);

Tax & Accounting Firm located documentati on for payroll and
in Fountain Hills and Scottsdale, expenses then they will calculate ● Employee benefi ts including

Arizona. Last month, she recently the balance of your 1% loan this costs for vacati on, parental,
helped many of her clients secure loan has a maturity of 2 years. Loan family, medical, or sick leave;
the funding through the Paycheck payments will also be deferred allowance for separation or

Protection Program (PPP.) The for six months. No collateral or dismissal; payments required for

PPP is a special loan funded by personal guarantees are required. the provisions of group health

The Cares Act using SBA Lenders care benefits including insurance
in which the balance can be Forgiveness is based on the employer premiums; and payment of any
forgiven instead of repaid if certain maintaining or quickly rehiring reti rement benefi t;
guidelines are met. employees and maintaining salary
levels. Forgiveness will be reduced ● State and local taxes assessed
Alysia states, “Business owners if full-ti me headcount declines, or if on compensati on; and
need to be very careful how they salaries and wages decrease.
spend their PPP funds or they may ● For a sole proprietor or
forgo forgiveness and owe the entire What costs are eligible for loan independent contractor: wages,

balance. This can be avoided by forgiveness? commissions, income, or net
following the SBA guidelines and earnings from self-employment,
submitting paperwork before stated The loan will be fully forgiven capped at $100,000 on an

deadlines.” if the funds are used for payroll annualized basis for each
costs, interest on mortgages, rent, employee.
SBA has addressed the following and uti liti es (due to likely high
questions regarding loan subscripti on, at least 75% of the Payroll costs that are not eligible

forgiveness, however procedures forgiven amount must have been for loan forgiveness:
are rapidly changing. It is always used for payroll). ● Payments to an independent
best to check with the SBA for the contractor

most up to date information. ● Cash compensation in excess of
$100,000
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