Wilson Toellner CPA

In last week's blog, we discussed what it would mean for small businesses participating in the Paycheck Protection Program to extend their PPP covered period from 8 weeks to 24 weeks , and how that would affect the loan forgiveness procedures. New guidance has been released that allows PPP recipients to apply for loan forgiveness before their covered period ends, but doing this may result in a portion of the loan proceeds not being forgiven. In the calculations for forgiveness, there is a reduction in the loan forgiveness amount if you reduce any employee’s wages by more than 25% during the covered period. However, if wages are restored by December 31, there is a safe harbor to avoid reductions in the loan forgiveness. If you apply early for forgiveness you may forfeit this safe harbor. Below is an example of how the calculations work. Using a 24-week period, in this example the total decrease in wages that is in excess of the allowed 25% is $3,600. You would list the ...

On June 8, 2020, the Paycheck Protection Program Flexibility Act was signed which allows for more flexibility for small businesses participating in the Paycheck Protection Program. Our Mid-MO CPA firm is here to give you more information on this in this week's blog. If you end up having any questions about what you are about to read, please give us a call at Wilson Toellner CPA . Our CPA firm in Central MO consists of four offices throughout Mid-MO, one in Sedalia, Marshall, Camdenton, and Lake Ozark. All phone numbers can be found on our website at www.WTCPA.com . The bill will allow more time and flexibility for small businesses to keep their employees on payroll and continue operations by extending the covered period for loan forgiveness from eight weeks to 24 weeks.  Borrowers have the flexibility to keep the eight weeks covered period if they already received their PPP loans. If you opt for the 24 weeks covered period below is where you will receive additional flexibi...