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PPP loan and forgiveness  

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(@diane-28)
Joined: 12 months ago
Posts: 2
21/05/2020 11:22 am  

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.


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(@casey-4)
Joined: 12 months ago
Posts: 126
21/05/2020 1:33 pm  

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.


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(@diane-28)
Joined: 12 months ago
Posts: 2
21/05/2020 2:03 pm  

@casey-4

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. 


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(@casey-4)
Joined: 12 months ago
Posts: 126
21/05/2020 2:30 pm  

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.


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