Payment Protection Program

07 Jul 2021

How The Paycheck Protection Plan Is Impacting Businesses One Year Later

For companies in many industries, staying in business throughout 2020 was a struggle. It meant constantly adapting to new challenges, working harder than ever to just stay afloat and strategically taking advantage of state and federal relief efforts, like the Paycheck Protection Program (PPP), wherever possible.

As a small business, we felt those struggles ourselves, and even as life starts to go back to ‘normal,’ we understand that the financial concerns of the last year are not going to just magically disappear.

Depending on what relief was utilized, many business owners are now considering their best strategy for repayment. In this blog, we’ll discuss your options and help you decide what’s best for your company.

A Recap On The PPP

Written by Monika Miles | Posted in Paycheck Protection Program

12 May 2021

SALT Alert: Texas Margin Tax Update Paycheck Protection Program(PPP) Update

On May 5, 2021, Texas Governor Greg Abbot signed into law House Bill 1195, which excludes federal PPP loans forgiveness as revenue for Texas Margin Tax (the “Margin Tax”).

In response to the COVID-19 pandemic, the U.S. Congress enacted legislation providing economic relief to businesses through the paycheck protection program, which allowed businesses to secure forgivable loans and grants in order to continue paying employees while operations were impacted due to the pandemic. While PPP loans may be forgiven under the program, the business receiving the PPP loans or grants would still be taxed on the amount of money received as part of its total revenue subject to the Margin Tax.

Written by George Rendziperis, J.D. | Posted in Paycheck Protection Program

20 May 2020

How To Apply For Payment Protection Program Loan Forgiveness

In last week’s blog, we discussed the continuing confusion surrounding the deductibility of eligible expenses by small businesses who have received loans through the Paycheck Protection Program (PPP). While that situation has yet to be fully resolved, another aspect of the PPP program, applying for loan forgiveness, is a bit clearer cut.

You might ask, “why are you writing about the PPP loan forgiveness in a multistate tax blog?” The answer is simple. One of the things we are proudest of, in our state tax consulting space, is that we too, are a small business. And we’ve had first-hand experience in working through the complexities of this process. We felt it was important enough from a national small business perspective to warrant some dedicated space!

Which Expenses Are Eligible For Loan Forgiveness?

Loans through the PPP are applicable for forgiveness, but to be forgiven, the funds must be used to cover the following:

-Payroll costs, including benefits (up to $15,385 per worker)
-Interest on mortgage obligations, entered into before February 15, 2020
-Rent, under lease agreements in force before February 15, 2020
-Utilities, for which service began before February 15, 2020

In addition, employee and compensation levels must be maintained, or employees must be quickly rehired. Plus, no more than 25 percent of the forgiven amount may be for non-payroll costs.

How To Calculate PPP Loan Forgiveness
Read More

Written by Monika Miles | Posted in Loan Forgiveness • Paycheck Protection Program