IMPORTANT CLARIFICATION ON PAYCHECK PROTECTION PROGRAM LOANS!

In a bulletin we published yesterday entitled PAYCHECK PROTECTION PROGRAM- IMMEDIATE HELP FOR SMALL EMPLOYERS, we discussed the topic of the cap of $100,000 in payroll costs (on an annualized basis per employee) for which an employer could seek a PPP loan beginning tomorrow, April 3. The “Borrowers Fact Sheet” we linked from the Treasury Department correctly sets forth that “payroll costs“ include salary, wages, commissions or tips capped at $100,000 on an annual basis for each employee, PLUS certain employee benefit costs, state and local taxes, etc. Those latter numbers are not included within the $100,000 cap, which again applies only to an employee salary, wages, commissions or tips.

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Since legal developments pertaining to COVID-19 are constantly evolving, we recommend that our clients call the Kullman Firm attorney(s) with whom they work for the most current guidance on these matters.