July 23, 2020
If an employee earns $110,000 per year, can I include the first $100,000 of wages in the forgiveness amount?
Posted by Armanino Financial Advisory Team
No, that’s not how it works. For this or any other employee, you can only include up to $15,385 if using an eight-week Covered Period, or $46,154 if you choose 24 weeks. The $100,000 maximum is an expression of annualized pay, meaning how much they would have been paid if you had persisted for a full year at the same level you paid the person during the Covered Period.