- FFCR: Family First Coronavirus Response Act
- EIDL: Economic Injury Disaster Loan
- PPP: Paycheck Protection Program
Per the regulations put forth by SBA, this is what qualifies for the PPP loan.
For regulations see this: PPP–IFRN FINAL
Payroll Costs (see page 10 of the regulations)
- Wages, Commissions, Cash Tips (Do not include independent contractors)
- Payment for vacation, parental, family, medical or sick leave
- Separation or dismissal pay
- Employee benefits, health insurance
- State and local taxes on compensation (e.g. SDI, unemployment if paid by the employer)
- Wages, commissions, income or net earnings from self-employment.
Be careful to not double count when picking up net earnings.
Excluded Payroll Costs (see page 10 and 11 of the regulations)
- Compensation if the residence of an employee is outside of the US
- Compensation in excess of $100,000 per employee (we assume annual compensation)
- Federal employment taxes, such as withholdings, FICA, medicare. (Because the FFCR act allows you to delay the payment until 12/31/2020?)
- Qualified Sick and Family leave for which there is a credit in the FFCR act
FORGIVABLE LOAN COSTS UNDER PPP (see page 15 of the regulations)
(note: these are business costs not personal costs)
• Payroll costs – as defined above: At least 75 percent of the PPP loan proceeds shall be used for payroll costs.
• Group health care costs
• Mortgage Interest
• Interest payments on any other debt obligations that were incurred before February 15, 2020
• Interest payments refinancing an SBA EIDL loan made between January 31, 2020 and April 3, 2020.
• Proceeds from any advance up to $10,000 on the EIDL loan will be deducted from the loan forgiveness amount on the PPP loan