SBA / Treasury FAQ on Loan Forgiveness / Payroll – 4. For purposes of calculating cash compensation, should borrowers use the gross amount … or the net amount paid to employees?

Compliance > CARES Act
Q:   For purposes of calculating cash compensation, should borrowers use the gross amount before deductions for taxes, employee benefits payments, and similar payments, or the net amount paid to employees?
 
A:   The gross amount should be used when calculating cash compensation.
 
 
This Q&A was based on information contained in the Treasury Department’s October 13, 2020, version of “Paycheck Protection Program Loans, Frequently Asked Questions on PPP Loan Forgiveness,” which may be updated from time to time.  This CARES Act / SBA / PPP Loan Forgiveness-related issuance may be found here:  https://home.treasury.gov/system/files/136/PPP--Loan-Forgiveness-FAQs.pdf
 

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