July 23, 2020
Our total actual payroll was $550,000, but after excluding salary portions greater than $100,000 the “eligible” payroll reduces to $525,000. Can we use the PPP funds to only pay the eligible portion while using company funds to pay the balance to ensure the maximum forgiveness amount?
Posted by Armanino Financial Advisory Team
Without knowing the loan amount, this is a difficult question to answer. The net result of the caps is that you are, in effect, using company funds to pay the balance for the highly compensated employees.