Paycheck Protection Program-health costs

[J-Lo]

Has anyone received formal guidance on calculating  Self funded health plan cost for the PPP application? I know you have to back out employee contributions.

The banker indicates it has to be on a cash basis; so if true, that would rule out a few methods. Haven’t seen any guidance yet. Carrier has not advised yet either.

[hr for me]

The IRS did answer the question for the FFCRA (emergency sick pay and EFMLA)  in their FAQs  (#34) of "Covid-19 Related Tax Credits " and I have to wonder if that gives some clue as to how self funded plans would calculate it under CARES.  Just a thought, no real experience.  

[Mike Preston]

6 hours ago, J-Lo said:

The banker indicates it has to be on a cash basis...

In the end, the PPP is a loan guaranteed by the government, but otherwise subject to whatever rules the bank imposes.  So, if your banker says it has to be on a cash basis then it has to be on a cash basis.

[J-Lo]

Thank you both. Very helpful!