New PPP 24 Week Period

There was another thread that was super long on all of this stuff.  Curious to know if others agree that retirement contributions are almost certainly moot now with the 24 week period as opposed to 8 weeks?  Obviously a company that has been shut down since March is a different story, I'm talking about the for whom payroll over 24 weeks will exceed the amount needed for forgiveness.

We pointed that out to sponsors who are gung-ho to do it now and they just want to get it over with.  Don't want to carry the loan any longer and one was fearful the government would change its mind.  As is the unfortunate case in so, so many things, perception trumps reality.

1 hour ago, austin3515 said:

There was another thread that was super long on all of this stuff.  Curious to know if others agree that retirement contributions are almost certainly moot now with the 24 week period as opposed to 8 weeks?  Obviously a company that has been shut down since March is a different story, I'm talking about the for whom payroll over 24 weeks will exceed the amount needed for forgiveness.

We believe that the 24 week period will make the vast majority of PPP recipients 100% whole with just payroll over the 24 weeks. There will of course be exceptions, but just if we get 24/52 of $100k ($46,153) forgiveness for the highly compensated who only received 1/12 x $100k x 2.5 ($20k), we look to be exceeding 100% of the loan with compensation alone in the 24 week period.  Retirement money and health insurance and even rent and utilities will not often be needed to qualify for 100% forgiveness.  We are still waiting for SBA to bless the 24/52 calculation as appropriate now.

4 minutes ago, Bird said:

We pointed that out to sponsors who are gung-ho to do it now and they just want to get it over with.  Don't want to carry the loan any longer and one was fearful the government would change its mind.  As is the unfortunate case in so, so many things, perception trumps reality.

We agree as to those who can meet the 100% in the 8 weeks.  If you can't, we are also waiting for guidance whether you can use the 24 weeks and submit after, say, only 12 weeks if you are now at 100%.   There is also the issue of the June 30 date for FTE recovery moving to 12/31; that is being looked at for some sort of modification since what if you are a season employer (think of a restaurant on the Cape) and on 12/31 you never have many employees but you had everybody working over the summer. Stay tuned for 40 more pages of "guidance" tomorrow (they have typically drop the loan on us on Friday afternoons).  Why not screw up our weekend AGAIN!

So this got more complicated and not less complicated.  That's great.

https://www.forbes.com/sites/kylewestaway/2020/06/10/how-the-payroll-protection-flexibility-act-affects-entrepreneurs/#5cdae4446b48

1 hour ago, ratherbereading said:

https://www.forbes.com/sites/kylewestaway/2020/06/10/how-the-payroll-protection-flexibility-act-affects-entrepreneurs/#5cdae4446b48

The Forbes article noted is deficient in its explanation of what items make up payroll.  I don't know how they could include health insurance premiums (correct) but completely ignore retirement contributions.  Something as fundamental as that makes me not use such a piece for "third party" info.  FWIW.