2020 certainly is BOOSheet! COVID, social distancing, the elections, the crazy weather, wildfires, and whatever else 2020 has thrown our way certainly has given us an opportunity to rise above our situations. More than once, we have uttered the phrase – time to put on your big girl pants and carry on! Out of the struggles, we’ve seen many blessings as together we keep on keeping on.
While the PPP has been a blessing to so many small businesses and their employees – to those in the payroll world – it has been exhausting! All the remedies have included payroll modifications and many extra hours for people in the payroll world.
The SBA began approving PPP forgiveness applications on October 2 and per law, the lender has 60 days to approve and the SBA has 90 days.
Per Congress, the loan forgiveness is not taxable income. Per the IRS, the expenses paid with the loan are not deductible. If the loan is forgiven in 2020 – no tax impact. If the loan is not forgiven until 2021 – uncertainty abounds. More than 170 business and trade organizations are asking congress to allow businesses to be able to write off the expenses paid for with the forgiven PPP loan funds – now that would be a huge blessing! Stay tuned for more info as this unfolds.