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  1. What happens if an employee retires during the covered period, does if affect FTE reduction?

    Comments Off on What happens if an employee retires during the covered period, does if affect FTE reduction?

    No, that is voluntary separation.  “FTE Reduction Exceptions: Indicate the FTE of (1) any positions for which the Borrower made a good-faith, written offer to rehire an employee during the Covered Period or the Alternative Payroll Covered Period which was rejected by the employee; and (2) any employees who during the Covered Period or the Alternative Payroll Covered Period (a) were fired for cause, (b) voluntarily resigned, or (c) voluntarily requested and received a reduction of their hours. In all of these cases, include these FTEs on this line only if the position was not filled by a new employee. Any FTE reductions in these cases do not reduce the Borrower’s loan forgiveness.”

  2. Is it correct that PPP could NOT be used to pay for anyone taking leave under FFCRA or the Emergency Sick Leave Act. Can it in fact be used for one of these purposes as long as a tax credit is not claimed as well? If so, could you please provide that regulation or guidance.

    Comments Off on Is it correct that PPP could NOT be used to pay for anyone taking leave under FFCRA or the Emergency Sick Leave Act. Can it in fact be used for one of these purposes as long as a tax credit is not claimed as well? If so, could you please provide that regulation or guidance.

    It has to be claimed as a credit under FFCRA and not included as a PPP Loan forgivable expense.

  3. If my payroll is more than the 75% and I don’t use the entire 25% will it be forgiven as long as it doesn’t go over 100%?

    Comments Off on If my payroll is more than the 75% and I don’t use the entire 25% will it be forgiven as long as it doesn’t go over 100%?

    Yes. For example, you received a $100,000 loan, used $80,000 for payroll (more than 75% of the loan) and $25,000 for rent.  Total spent was $105,000 of which $5,000 is out of your pocket and not the loan. In this situation you should receive forgiveness for the entire $100,000.