Initial guidance in the legislation indicates that a borrower should submit to their lender an application to request loan forgiveness and supply the lender with the following documentation relating to the covered period:
- Documentation verifying the number of FTE and pay rates.
- Payroll tax filings reported to the IRS.
- State income tax, payroll and unemployment insurance filings.
- Documentation, including:
- cancelled checks,
- payment receipts,
- transcript of accounts or other documents verifying payments of covered mortgage interest, rent and utility payments.
- Certification from a representative of the business that:
- The documentation presented in true and correct.
- The loan amount for which forgiveness is requested was used to retain employees and to make payments on covered mortgages, lease or utility obligations.
We understand that from there, the lender must issue a decision regarding the loan forgiveness within 60 days of the application being filed and that the amount forgiven is excluded from gross income.
Remember, understanding what qualifies for loan forgiveness is the critical first step to taking a proactive approach to documenting the use of the PPP loan proceeds. The action you take now could make the loan forgiveness process less cumbersome, but there is a lot that remains unknown. Our team is working with several client to provide high-level outsourced accounting and bookkeeping services which are designed to assist with all back-office reporting needs including reporting and documentation related to PPP Loan Forgiveness. Our team is managed remotely, and our engagements are completed virtual through cloud-based tools and fully encrypted software which protects your information.
Some of the tasks we can assist with include:
- Financial Monitoring and Measurement
- Account Reconciliation
- Process Development / Improvement
- Internal Management Reports
Contact Our Team:
Tene Thomas, CPA
Tax and Small Business Solutions