April 3, 2020 Posted by: Category: Blog No comments


  • 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)


For self-employed

  • 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
• Rent
• Utilities
• 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





Paul Dion - Speaker, Author, and Tax Advisor - has been planning and preparing returns for business owners for over 25 years with a specialty in helping real estate agents and investors. His passion is to help business owners legally pay the least amount of tax using court-tested and IRS-approved tax strategies. In addition, he continues to advance service offerings to include income saving strategies designed to deliver higher profits to your business.