PROVIDENCE – Amid continued confusion over the details of the U.S. Small Business Administration’s Paycheck Protection Program, the American Institute of Certified Public Accounts has put forward a set of documents and guidelines intended to clarify the application process, according to a news release.
Specific recommendations for employers include:
- Federal tax reports: Use 2019 IRS quarterly reports on Form 941 and annual Forms 940 or 944.
- Compensation: Use payroll reports for calendar year 2019, including for each employee: gross wages, paid time off/vacation pay/family medical leave pay if not included in gross wages, and state and local taxes assessed on employee’s compensation.
- Group health care benefits: Use documentation showing total costs paid for all health care benefits, including insurance premiums paid by the organization under a group health plan.
- Retirement plan benefits: Use documentation showing the sum of all retirement plan funding costs paid for by the organization.
The guidance also addresses specific documentation for sole proprietors, independent contractors and self-employed workers, as well as recommendations for how to calculate payroll. The AICPA has also developed a resource page with more information for CPA firms.
Nancy Lavin is a staff writer for PBN. Contact her at Lavin@pbn.com.
