PPP loan and forgiveness
Does anyone know, can the corporations owner, who wants to begin to take a salary rather than a draw, be included as part of the 75% for payroll under the PPP loan in order to be able to have the PPP forgiven. There are other employees also but I haven't read a definitive answer regarding the owners payroll salary.
While i don't know the answer to your question, Corporate Officers should already be on payroll, not taking a draw. They may also take a dividend, as long as it is less than the payroll. Check with your CPA, on the recommended split. Many CPA's say 60/40 or 70/30 split between PR and Dividend.
I would put him on payroll right away.
Thank you. His CPA and I have been telling him that for years but it is a small family owned business and he just always felt he couldn't afford it. I told him even a small salary was better than non but you can't make someone listen to you. I begged him to put his 22 year old son on payroll and he allowed me to do that last year. I explained that he would be hurting his son and his son's credit report if he never shows an income.
I get it.... lead them to water...... Well, it sounds like NOW he wants to be on payroll, just to make sure he is covered for the PPP....when it could make a difference to him! I think i would tell him it is too late! haha.