July 23, 2020
We are using a PEO service. How do we obtain or calculate State and Local Taxes for the Covered Period?
Posted by Armanino Financial Advisory Team
If the PEO made payments to a state or local authority on behalf of you as the employer, ask your PEO for appropriate evidence of the payments made. If you paid the costs directly, simply include those expenses in Table 7 of the Pay Cycle 1 Input tab in the Forgiveness Calculation Model. Please remember that State and Local Taxes for purposes of forgiveness exclude any amounts you withheld from your employees’ gross wages and remitted (or your PEO remitted) to the government. These costs are ONLY for taxes paid by the employer based on employee compensation.