We interpret it pretty much the same. The question is when is the obligation incurred
and paid. That can be a tricky question when it comes to a defined contribution plan. Is that obligation incurred monthly? When does the liability actually accrue? On one extreme, if you hadn't already funded a 2019 profit-sharing/pension plan contribution, could you do it in the 8 week period and get credit? I would say that is pretty risky. At the other end of the spectrum, if you accrue a liability on your books every month and you take credit for 8 weeks worth of the accrual, that seems to be the most defensible and conservative position.
If you are a corporation, the board typically has to approve the actual amount and funding of the pension profit sharing obligation. You may have a situation where you fund every 3 or 6 months. You might take the more aggressive position that the obligation accrues, or is incurred, only when the board votes to fund. In that instance, you might argue that the obligation is incurred when the board authorizes the amount and payment. In this scenario, maybe you get 6 months of funding, but that approach is has more risk. There may be vesting issues that confuse the analysis too.
It would be nice if the Dept. of the Treasure would publish some guidance on this.
It remains to be seen if the rules of the game will change again in any event. If the period for use of the PPP funds is extended beyond 8 weeks (one of the proposals that has circulated), that will make compliance much easier. But, will we see. At the end of the day, if you have to pay it back, you pay it back. At least, you got a good chunk of money, and the price is pretty cheap - 1% on the unforgiven amount.
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