Some answers to questions about the Paycheck Protection Program

1. If a person owns an S corp and is on salary and is working can they draw that salary from PPP funds?

As long as the owner takes a W2 paycheck from the S-Corp – yes the company can apply for the PPP and use that W2 wage to the owner as their paying wages for the 8 weeks of the PPP.

2. Is the owners share of payroll taxes an eligible expense?

Taxes are not an eligible payroll deduction under PPP (NYS payroll taxes are eligible not federal)

3. Are there any specific (out of the ordinary) documentation an owner will need to provide for relief from the loan?

All payroll documents, – IRS 940, 941, state income and unemployment tax filing reports – for the  8 week time frame. Copies of payroll reports for each pay period during the 8 weeks. Should include all sick, vacation, etc… Documentation of any health insurance premium payments, copy of invoices and payments, – same for any retirement payments. If they are claiming 25% for Other expenses – such as rent – a copy of the lease and proof of payment (canceled check or bank statement) , same for interest on any loans paid on real estate debt obligations .