Hi Paula
Like you, we used the $8333/month figure on our application. However, SBA subsequently clarified that the 8 week limit is $15.385 (100000/52 x 8). I'm willing to bet this will ultimately be up to your bank's discretion, but my guess is that they will allow actual payout up to $15,385 per person during the 8 week period. That's certainly the number I would record for loan use, and what I would provide to the bank when the time comes to calculate forgiveness.
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David Smith FACMPE
Executive Director
United Imaging Consultants
Mission KS
(785) 393-8387
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Original Message:
Sent: 05-14-2020 12:17
From: Paula Oathout
Subject: PPP Repayment
I know we are all waiting on answers regarding our forgiveness but wanted to pose a question. The $100K salary cap-we calculated $8333 per month for our highly compensated in our application. We have part time HCEs that exceed the $100K on an annual basis but with our schedules their paycheck varies. They are paid a day rate and with bi-monthly paychecks so one check may greatly exceed $4166, another may not. Do you think we can count the $4166 per payroll for all of these HCE or would it vary payroll to payroll? We are keeping our $ separate and trying to be diligent in our designation before we move it. Augh! Thanks! Paula
Paula Oathout
Executive Director
Delaney Radiologists
910-341-1881
910-343-6021 fax
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Original Message------
Thought it would be a good idea to open a discussion on PPP repayment as it is as clear as mud and maybe we can crowdsource a strategy. Was reading a Forbes magazine article on this topic and enjoyed this quote from a CPA.
"We don't know what costs are forgiven. We don't know what will determine which costs are allowed - is it incurred, paid, or both? We don't understand the time frames. We don't know if we can deduct the expenses paid with forgiven dollars. We have no idea how to compute the reduction in forgiveness related to lost employees or reduced salaries, or how to restore that reduction if it occurs. And lastly, NONE of it may matter, because the banks are going to make the rules, and they don't know what the hell they're doing. Other than that, we've got this all figured out."
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Kyle Tucker
President
Dexios Corporation
Midlothian VA
(804) 378-3543
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