July 23, 2020
Our payments of auto allowances are paid as a non-accountable plan and therefore fully taxed to the employee. Would these monthly auto allowances be forgivable if paid during the Covered Period?
Posted by Armanino Financial Advisory Team
Because they are part of your employee’s taxable income, and presumably reported on your Form 941 each quarter, these can be included in your Payroll Costs for your forgiveness application. If they were not taxed as income, they could not be included.