PPP Payroll Costs Comprehensive List - Every allowable PPP payroll costs (application & forgiveness)

Many PPP borrowers have been confused about what costs are allowed to be included for the purposes of requesting the PPP loan and also getting it forgiven. This video helps explain all the PPP eligible payroll costs.

What’s included in Payroll Costs?
1) Gross wages (salaries, hourly pay, commissions, cash tips, bonuses, tip replacement, cash stipends, etc)
2) Payment for vacation, parental family, medical or sick leave (usually shown on payroll reports as separate line items)
3) EMPLOYER Payment for employee benefits:
Group health insurance, dental, vision, life, and disability
4) Retirement contributions by EMPLOYER
5) State and local taxes assessed on compensation
6) Owner compensation replacement (partners, sole props, schedule F files who do NOT put themselves on payroll)

What’s NOT included in Payroll Costs?
1) Cash compensation for ANY employee or owner over $100k
2) Federal employer taxes (FICA and FUTA)
3) Payments for wages claimed under ERTC.
4) Dividend payments, shareholders distributions, and owners draws for S corps and C corps. Only W2 wages are allowed

Remember, independent contractor wages that you pay for your business are NOT payroll costs!

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Hannah Smolinski is a #CPA and the Founder of Clara CFO Group.

Find out more about Clara CFO Group at https://claracfo.com/

Disclaimer: This video is intended for educational purposes and should not be taken as legal or tax advice. You should consult with your financial professionals about your unique financial situation before acting on anything discussed in these videos. Clara CFO Group, LLC is providing educational content to help small business owners become more aware of certain issues and topics, but we cannot give blanket advice to a broad audience.

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