PPP Payroll Allocation

It shouldn't matter who you're paying, as long as you legitimately paid it and you don't exceed the limit for each individual employee.

It doesn't have to be the same person, just the same FTE head count for whichever period you designate. Also, you have until 6/30/2020 to accomplish this. The one thing i am not sure of is,,,,,if you are -1 head count when you get the ppp and your 8 weeks is up before 6/30, how the heck does that work?

We received funding in the first round of PPP. We are keeping a running total of our payroll and other forgivable costs (rent, utilites).

Once we get to week 6 or so if we look like we won't spend the full allocation, we will look at paying commissions/bonuses etc. to our employees as a form of "hazard pay" in order to maximize our use of the forgivable loan.

I talked to our CPA at length about this yesterday and all the comments in here are correct. If your FTE is 10, you may want to hire 2-3 extra people for the next 8 weeks just to make sure your head count is above your baseline. Also, make sure that you understand what non-payroll you're allowed to pay. Everyone knows rent and utilities but there are also approved expenditures for transportation and interest payments. The transportation has not been clarified yet, but my assumption would be that any gas that is used for company vehicles is an approved expense.

We are also keeping a spreadsheet of all expenditures over the next 8 weeks that would apply and will be paying out commissions to some of our people to ensure we come as close to our loan as possible.

Watch the head count & FTEs.

An educated guess says these parameters will change. They just will not work for all industries like restaurants and bars. Now I would not bet on it, but I really think changes are coming.