Maximizing PPP Forgiveness: How to COVID-Proof Your Business
8 Jun, 2020
- Don’t forget to include employer-paid benefit amounts in the payroll costs, including group medical, dental, vision, FSA and 401(k) plans. “You can use PPP not just for wages, but for many benefits you are paying to your employees. There are some exceptions, such as life insurance, but overall, most companies will find great relief here.”
- Adjust your payroll schedule (temporarily) to fit within the 8-week window. “Consider paying your employees on a more frequent basis to better work your payroll into the loan timeframe.”
- Keep track of hours worked for each employee – the forgiveness is based on FT and FTE counts (based on a 40-hour work week). “Make sure you’re having all of your employees fill out time sheets and that you have meticulous records for your work-at-home staff,” says Wilson.
- Pay a bonus or increase compensation for employees if you’re tracking too low near the end of the 8 weeks. “This is a win-win,” says Wilson. “You can thank your workers for all the extra stress and fear of working during a pandemic, while also ensuring you meet the requirements of your loan.”