• COOPER, MOSS, RESNICK, KLEIN & Co
    Certified Public Accountants
    15165 Ventura Boulevard, Suite 330
    Sherman Oaks, CA 91403
  • Phone: (818) 728-9868
    Fax: (818) 728-9822
    Email us here.
    admin@cmrkcpa.com

The lastest PPP news for you

Congress has passed and the President has signed a bill that provides more flexibility with regard to loan forgiveness and other issues related to the Paycheck Protection Program (PPP). The PPP Flexibility Act of 2020:
  • Allows borrowers to use the funds for up to 24 weeks or December 31, 2020 whichever is earlier (rather than limited to 8 weeks)
  • Requires borrowers to use at least 60% of the funds for payroll costs (rather than 75%)
    • However, in the event the borrower does not meet the 60% threshold, the borrower loses all loan forgiveness
  • Borrowers now have until December 31, 2020 to eliminate a reduction in headcount or salary/wages
  • Reduction in number of employees may also not affect forgiveness if the borrower can document an inability to rehire/replace unfilled positions or has reduced business activity due to complying with guidelines (e.g., restricted numbers of people in a store or restaurant)
  • Loans may be extended beyond the 2-year maturity date (for loans issued after this Act is enacted OR with agreement from the lender)
  • The bill also removes the restriction on employers who have received a PPP loan from deferral of the employer’s portion of social security taxes from March 27, 2020 to December 31, 2020. [This now allows those employers to defer payment of 50% of their Social Security liability during the payroll tax deferral period until December 1, 2021 and the other 50% until December 31, 2022.]
If you have any questions, as always, we are here to respond to your emails or telephone calls.

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