Can insurance be included in PPP?

Employer contributions for group health, life, disability, dental and vision insurance, retirement, and other benefits for employees are in addition to this cap. For details about group health and retirement benefits for owners, see Frequently Asked Questions A-17 and A-18 (PDF).

What are the new rules for PPP loan forgiveness 2021?

Specifically, for each new employee in 2020 and 2021, as well as each existing employee who was not paid more than the annualized equivalent of $100,000 in any pay period in 2019, the borrower must reduce the total forgiveness amount by the total dollar amount of the salary or wage reductions that are in excess of 25% …

What are the rules for the PPP loan?

Forgivable expenses must be spent on eligible categories and adhere to the 60/40 rule. Eligible expenses must be incurred over your chosen covered period between 8 and 24-weeks — starting from when your lender provides your first payment. You must maintain the number of employees on the payroll.

What expenses are covered by PPP?

The funds from your PPP loan can be used for the following purposes:

Payroll—salary, wage, vacation, parental, family, medical, or sick leave, health benefits.
Mortgage interest—as long as the mortgage was signed before February 15, 2020.

Are FUTA taxes included in PPP?

Compensation such as salary and wages, paycheck tips, and supplemental payments (e.g. bonuses and commissions payments), up to that $100,000 cap. Employer-paid state and local taxes (Federal taxes such as FICA & FUTA are excluded)

What is the deadline for PPP loan forgiveness 2021?

August 30, 2021
First PPP Loan Forgiveness Deadline is August 30, 2021. If you obtained a PPP loan, your covered period starts on the day the loan money was deposited. The covered period length could be from 8 to 24 weeks.

What expenses are forgivable under PPP?

Business expenses on electricity, gas, water, transportation, telephone, or internet access are eligible uses of PPP funds and qualifies for forgiveness.

Will PPP loans be forgiven for self-employed?

For independent contractors, sole proprietors, and other self-employed workers, you can have eight weeks of your loan proceeds automatically forgiven as salary replacement. This should amount to 75% of your PPP loan, assuming you took the maximum amount available to you when you applied.

What utilities are covered under PPP?

The following are all considered forgivable utilities expenses for the PPP:

Electricity.
Water bill.
Gas.
Sewage.
Telephone (cell phone and landline)
Internet bill.
Transportation costs.

Is cell phone considered a utility for PPP?

Utilities are the last qualified expense under the PPP program. These are described by the SBA as phone, internet, gas, water, electricity, etc.

Is Social Security included in PPP?

Q3: Can I spend all of the PPP loan proceeds on payroll costs? retirement plans and employer 401(k) contributions NOTE: Loan proceeds may not be used to pay employer Social Security / Medicare or Federal Unemployment taxes.

Can FICA be included in PPP calculation?

Under the Act, the Small Business Administration and the Treasury Department have said that payroll costs are based on gross pay and do not include withholdings such as the employee’s and employer’s share of Federal Insurance Contributions Act (FICA) and income taxes.