July 23, 2020
I am confused by the “incurred and/or paid” rules. The IFR of May 23, 2020 clearly states “…payroll costs incurred during the last pay period of the Covered Period are eligible if paid before the next pay date”. Shouldn’t I be able to include the entire last payroll of my Covered Period so long as I pay it on the next regular pay date?
Posted by Armanino Financial Advisory Team
No, you can’t take credit for the entire last payroll if your Covered Period ended in the middle of it. You may only count the portion that was incurred during the period, even though it was paid afterwards. The key words in the IFR you quote are “incurred during” the Covered Period. It says nothing about payroll costs incurred after the Covered Period, only about costs that were paid after but incurred during. The chart below illustrates what may and may not be included in costs based on the incurred/paid rules.