Kate:
Per my understanding at least 75% of PPP monies received is to be used for payroll for all employees making less than $100K.
Payroll for these employees is to be paid for the
average hours worked over the past 12 months. If employees have worked for less than 12 months then the calculation is average hours worked since initial employment.
The remaining balance of 25% can be used for rent and utilities.
As of today my understanding is when we follow the above (although abbreviated for this discussion) then the loan will become a grant.
Of course, a 'grant' means that we will pay for this eventually through increased tax revenues, but the plan is for it to get us through the next 8 weeks!
I see a pent-up demand for imaging services so we're preparing for not only 'normal' patient volume but an increase within the next 8 weeks that this is in effect.
We've spent the past weeks using some of our 'down time' to contact each referring physician to let them know more about our services and get a better feel for their take on the future.
Time to 'sharpen the axe'!
Regards
Bill
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William Kisse
COO
Washington Open MRI, Inc.
Rockville, MD
bill@womri.com(301) 424-4888
https://www.linkedin.com/in/billkisse/------------------------------
Original Message:
Sent: 04-28-2020 07:21
From: Kate Smith
Subject: Use of PPP Funds
Thank you for the information. Do you have any employees who make greater than $100K per year? If so ,how did you handle their pay due to the PPP cap of $100K
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Kate Smith
Director of Practice Management
American Radiology Associates
Baltimore MD
(443) 436-1112
Original Message:
Sent: 04-27-2020 16:33
From: William Kisse
Subject: Use of PPP Funds
Fortunately we received our PPP funds this past Friday.
As there has been much confusion on use of these funds, I offer the following from my labor law attorney:
I was able to confirm that you can use loan proceeds to cover PTO or other forms of leave, including sick leave, so long as the leave is not COVID-19 leave (the paid sick leave and the expanded FMLA leave for which a credit is allowed under the Families First Coronavirus Response Act (FFCRA).
Any payment of payroll within the PPP 8-week period is what counts towards forgiveness.
So, payment for time worked before the loan was issued appears to be allowed, and even a payroll advance for time to be worked after the 8 weeks would seemingly be allowed.
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Per this advice I received funds in my account last week and have paid all employees in full for their 'average weekly payroll for the prior 12 months' this morning.
Since this is a hot and timely topic I wish to respectfully ask that our moderator allow the following info:
Howard Hoffman
Hoffman Employment Law, LLC
600 Jefferson Plaza, Suite 204
Rockville, MD 20852
hbhoffmanesq@hoholaw.com
301-251-3752
Thank you
Bill
------------------------------
William Kisse
COO
Washington Open MRI, Inc.
Rockville, MD
bill@womri.com
(301) 424-4888
https://www.linkedin.com/in/billkisse/
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