July 23, 2020
We paid our May health insurance on April 13, the day before we received our PPP funds. Can we include this expense as an incurred cost? By the same logic, could we also include half of April as well even though it was paid in March?
Posted by Armanino Financial Advisory Team
The rule is that the cost must have been incurred or paid during the Covered Period. Your May health insurance was incurred during the period even though it was paid before the period began. Similarly, your April 14-30 health insurance was incurred inside the Covered Period though it was paid prior. So yes, you can include both.