While Northeast businesses and employees have benefited from loans approved through the Paycheck Protection Program (PPP), the second critical step is to achieve maximum forgiveness of the loan. Farm Credit East hosted a webinar July 23 for a top-to-bottom guide on preparing for PPP loan forgiveness.
Key records and calculations for forgiveness were reviewed, including:
- Payroll records in your reference period and during the forgiveness period
- Full-time equivalent calculations and how to avoid reduction penalties
- Rate-of-pay calculations
- Which taxes should (and shouldn’t) be included in your payroll expenses
- Eligible, non-payroll expenses and how they should be documented
- Available forgiveness timelines – 24 weeks vs. 8 weeks
Along with this review, consultants Keith Dickinson and Erin Pirro discussed recent program developments.