The CPA's are waiting on more guidance from Small Business Association, just like the rest of us. If you are owner of an S-corp, and you pay yourself a W2 salary, it seems pretty clear that your salary (up to $100k) can count towards "payroll expenses" in determining max loan amount.
If you are a sole proprietor, it seems clear that compensation you receive that is subject to self-employment tax (up to $100k) can also count towards "payroll expenses"
I have not seen any guidance on partnerships or multi-member LLC's that are regarded as partnerships for tax purposes. In these cases do owner members' salaries count as "payroll expenses?" One could argue that all members'/partners' compensation subject to SE tax should count as eligible "payroll expenses" but this is not explicitly been addressed.
Anyone seen anything different?
If you are a sole proprietor, it seems clear that compensation you receive that is subject to self-employment tax (up to $100k) can also count towards "payroll expenses"
I have not seen any guidance on partnerships or multi-member LLC's that are regarded as partnerships for tax purposes. In these cases do owner members' salaries count as "payroll expenses?" One could argue that all members'/partners' compensation subject to SE tax should count as eligible "payroll expenses" but this is not explicitly been addressed.
Anyone seen anything different?
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