Important Update on the Loan Forgiveness Phase of the PPP
If you are participating in the Paycheck Protection Program (PPP) and have received your funding, it is likely you have questions about the second phase of the program – loan forgiveness. The loan forgiveness aspect of PPP is anticipated to be extremely complex and likely to be ever changing (clarification on forgiveness should be forthcoming by April 26). BMSS strongly encourages you to work with your payroll provider right away to make sure you are ready. We also encourage you to reach out to your BMSS professional to make sure you don’t take any unintentional actions that could affect your forgiveness.
There are two primary aspects of the loan forgiveness phase: FTEE Calculation and Gross Wage Calculation. Both items need to be evaluated and will be a factor in determining the amount of loan forgiveness.
Per our review of the PPP, the SBA has until April 26 to modify and clarify their guidance on the loan forgiveness aspect of the program. We highly encourage you to reach out to your BMSS professional as well as your attorney for advice and counsel as you navigate the eight weeks that are covered under the PPP.
If you do not currently have a payroll provider, our sister company, Payroll & Benefit Solutions (PBS), is available to assist you with your human resources, benefits administration and PEO needs. PBS has been researching the CARES Act and has prepared custom reports that you will need for the loan forgiveness phase of PPP. As we experienced during the first stage of the PPP, each bank is likely to have different reporting requirements. PBS will be ready to assist you with any payroll reporting request that you may have. Reach out to them today at (205) 271-5400.