: salary, wages, commissions, or similar compensation; cash tips or the equivalent (based on employer records of past tips or, in the absence of such records, a reasonable, good-faith employer estimate of such tips); payment for vacation, parental, family, medical, or sick leave; allowance for separation or dismissal; payment for the provision of employee benefits consisting of group health care coverage,
including insurance premiums, and retirement; payment of state and local taxes assessed on compensation of employees; and for an independent contractor or sole proprietor, wage, commissions, income, or net earnings from self-employment or similar compensation.
Excluded Payroll Costs
: compensation over $100,000, prorated as necessary; iii. Federal employment taxes imposed or withheld between February 15, 2020 and June 30, 2020, including the employee’s and employer’s share of FICA (Federal Insurance Contributions Act) and Railroad Retirement Act taxes, and income taxes required to be withheld from employees; and iv. Qualified sick and family leave wages for which a credit is allowed under sections 7001 and 7003 of the Families First Coronavirus Response Act (Public Law 116–127).
: The Final Rule also clarifies utility costs. PPP funds can be used for utility payments under service agreements dated before February 15, 2020. (Remember that not more than 25 percent of the loan forgiveness amount may be attributable to non-payroll costs.)
Please note that
only mortgage interest payments are forgivable expenses (not mortgage prepayments or principal payments, as originally indicated).
Interest payments on any other debt obligations that were incurred before February 15, 2020, are also eligible expenses.
The interest rate for PPP loans is 1.0% and the loan term is two years.
Click below to review Paycheck Protection Program guidance per the SBA Interim Final Rule, published April 2, 2020.