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Webcast for Nonprofits: A First Look at Paycheck Protection Program Loan Forgiveness

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In this CapinCrouse webcast, we will review current guidance on Paycheck Protection Program (PPP) loan forgiveness, potential best practices for accounting for PPP loan funds, and computation of your loan forgiveness amount. Registration is free and CPE credit is available.

Learning Objectives:

  • Identify the component parts of the loan forgiveness calculation
  • Apply best practices for accounting for PPP loan funds
  • Compute your loan forgiveness amount

Wednesday, April 22
1:00 p.m. – 2:00 p.m. EDT
Instructor: Ted R. Batson, Jr., Partner, Tax Counsel, and Professional Practice Leader – Tax

This webcast has already occurred. Please note that CPE credit is not available for recorded webcasts.

Watch the recording >

Download the handout >

 

Additional Resources:

Preparing for Paycheck Protection Program Loan Forgiveness

COVID-19 Resources

7 Comments

  • Tim Dinkelman says:

    Thanks for providing this session. Quick question. Is it allowed to utilize the PPP loan amount during the 8 week period (the one used for payroll, mortgage interest, utilities and rent) to pay a bonus to our faculty and staff who are going above and beyond to provide E-Learning resources during this challenging time? We are a not-for-profit school. We may not utilize the entire loan proceeds during the 8 week period and would like to use the remaining amount not used for typical payroll and other items on a bonus of some sort? We generally have not been in a position to provide bonuses to our faculty and staff, so do not have a trend in years past of doing this.

  • Angela Seed says:

    Just listened to the webinar and it was very helpful! I did get lost when you went over the payroll reduction rules and calculations. I heard you say that there would be a follow-up seminar on how to account for expenses (we have already been approved and just waiting on the funds). How do I get singed up for the next webinar? Thanks so much for your help!!!

    • Amy Bucklin says:

      Hi Angela, thank you for listening to our webcast. We’re glad you found it helpful! We’ll be sending an email invitation to future webcasts. You can sign up for our e-news, if you haven’t already, to receive those invitations: https://bit.ly/capincrouse-enews

  • I am also wondering what thed rules are for using these funds to increase wages for hazzard py for those still working. I do not want to bring people back that are vulurable just to get a payhceck. My girls are working thier tails off and deserve some type of compensation for it. Plese advise as to what your thoughts are on using these funds to increase the pay of my 10 employyes

    • Amy Bucklin says:

      Christine, I passed your question along to Ted Batson, Partner and Tax Counsel. He said:

      You asked whether PPP loan funds could be used to increase employee pay during the eight-week period. There is nothing in the statute or current guidance that would preclude this. In addition, your example doesn’t involve increasing pay to executives, but to front-line employees who appear to be working above and beyond. Their extra effort provides a rationale for an upward adjustment.

      Note that I said “current guidance”. This could certainly change, but that’s my answer for now.

  • Deborah Zimmerman says:

    On the slide PPP Loan Forgiveness: Payroll Costs – the first bullet says to start with gross pay – the sub bullet under the second says include the employee’s share of FICA and Medicare and income tax withheld – so this would lower the total amount and that amount would be compared to the semi-monthly or bi-weekly amounts? I thought I understood and then I reread this and confused myself –

    • Ted Batson Ted Batson says:

      Deborah,

      The rule is that you start with gross wages. You do NOT reduce gross wages by the employee’s share of FICA or Medicare or by federal, state, or local tax withheld. You also do NOT reduce gross wages by an employee’s share of health benefits, employee contributions to retirement plans, or any other employee pre-tax or after-tax withholdings.

      So to be clear, the only answer is gross wages.

      However, you are NOT allowed to include the employer’s share of FICA and Medicare (or FUTA if it applies to you). You are allowed to include SUTA (if it applies to you).

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