Continuing support, this FRIDAY, June 12th at 1pm
Dear Community Member,
We hope you will join us this Friday, June 12th as we discuss H.R. 7010, a bill that will dramatically alter several critical terms of the recently-enacted Paycheck Protection Program (PPP). The bill, which has now become law, provides much needed relief for borrowers as they seek forgiveness of their loan amounts.
We will also be discussing the top 5 rehire questions as reopening continues.
Topics will include:
- PPP Loan Forgiveness “Flex Act” Changes & Questions Answered
- Top 5 Employment Law Rehire Questions Answered
Michael Murphy – CEO, Platinum Group
Sabrina Presnell Rockoff – Attorney, McGuire Wood & Bissette
Murphy Horne Fletcher – Attorney, McGuire Wood & Bissette
Please join us:
WHEN: FRIDAY, June 12th, 2020
TIME: 1:00 pm – 2:30 pm EST
If you sign up and are not able to attend, you will still receive a recording of the webinar and the presentation slide deck.
Following is a summary of the legislation’s main points compiled by the AICPA (American Institute of Certified Public Accountants):
PPP borrowers can choose to extend the eight-week period to 24 weeks, or they can keep the original eight-week period. This flexibility is designed to make it easier for more borrowers to reach full, or almost full, forgiveness.
The payroll expenditure requirement drops to 60% from 75%.but is now a cliff, meaning that borrowers must spend at least 60% on payroll or none of the loan will be forgiven. Currently, a borrower is required to reduce the amount eligible for forgiveness if less than 75% of eligible funds are used for payroll costs, but forgiveness isn’t eliminated if the 75% threshold isn’t met.
Borrowers can use the 24-week period to restore their workforce levels and wages to the pre-pandemic levels required for full forgiveness. This must be done by Dec. 31, a change from the previous deadline of June 30.
The legislation includes two new exceptions allowing borrowers to achieve full PPP loan forgiveness even if they don’t fully restore their workforce. Previous guidance already allowed borrowers to exclude from those calculations employees who turned down good faith offers to be rehired at the same hours and wages as before the pandemic. The new bill allows borrowers to adjust because they could not find qualified employees or were unable to restore business operations to Feb. 15, 2020, levels due to COVID-19 related operating restrictions.
Borrowers now have five years to repay the loan instead of two. The interest rate remains at 1%.
Borrowers can now defer the employer’s share of FICA payroll taxes for two years. Half of the payroll taxes will be due in 2021, with the rest due in 2022.
Missed any of the previous webinars? Recordings and slide decks of the webinars may be found here.
We are here to support you in this complex, ever-changing time.