PPP Loans: New Legislation and the Impact on Forgiveness
Author: Greg White
| CPE Credit: |
2 hours for CPAs
2 hours Federal Tax Law Updates for EAs and OTRPs
2 hours Federal Tax Updates for CTEC |
If your clients have received PPP loans, the planning has just begun. We’ll cover crucial issues related to the recently passed Paycheck Protection Flexibility Act and how to maximize debt forgiveness based on the most current information issued by the SBA:
- What changed in the new legislation?
- How do you determine your “covered period”?
- Can you keep your original 8-week covered period?
- When will you want to keep your original 8-week covered period
An update/review of the following forgiveness topics:
- Alternative covered period
- Do you use cash basis or accrual basis when determining the costs during the covered period?
- How do the FTE and wage reduction Haircuts work?
- What is the ordering rule for determining forgiveness?
- What certifications must your client make on the application for forgiveness?
- What needs to be provided to the bank in order to obtain forgiveness?
Publication Date: June 2020
Designed For
Practitioners advising individual and business clients.
Topics Covered
- Practical planning ideas to maximize forgiveness
- Monitoring the status of PPP funds
- Keeping your clients out of trouble: How to avoid personal liability for PPP loan repayments
- Getting a game plan in place for the use of the funds once received
Learning Objectives
- Identify the new legislation and how it applies your clients
- Recognize what the impact of certain elections in the new legislation are and when to make them
- Compute the amount of debt forgiveness
- Compute the new limit on nonpayroll expenses
- Identify how to monitor the disbursement of funds
- Recognize how to develop a game plan for clients related to PPP forgiveness
- Identify remaining areas where we still lack guidance
- Identify a component of covered overhead costs
- Identify the primary emphasis for the 24-week covered period
- Recognize the steps in the FTE haircut computation
- Identify eligible nonpayroll costs
Level
Update
Instructional Method
Self-Study
NASBA Field of Study
Taxes (2 hours)
Program Prerequisites
Basic understanding of individual and business tax preparation.
Advance Preparation
None
