As we approach the new year, it's crucial to stay informed about the latest developments…
I just got off our weekly Federal Affairs Committee for NAPEO, our National Association for PEOs. Here is the latest info.
Last week the House put a bill on the floor regarding PPP loan forgiveness, and it is being argued today with a vote hopefully coming tomorrow.
As of this morning, here is what was in the bill from the House side:
- Move the 8-week spend to 24 weeks for cost forgiveness,
- Take out the 75/25 rule for Payroll costs vs Other expenses altogether, and
- Move the June 30th date to year-end to have your payroll back to normal wages.
The Senate introduced a bill last week before they left for break, and their version has the following:
- Move from 8 weeks to 16 weeks to spend your PPP loan for forgiveness,
- Move the June 30th to December 31st, and
- No change to the 75/25 rule.
Today, union labor spoke up and said they think the purpose of the loan was to help employees, and they did not like getting rid of the 75/25 rule. The people on our call seemed to think that it may end up at a 60/40 compromise, and that it would end up moving to a 24-week period to spend the loan money for forgiveness qualification.
These are bipartisan bills, and they have lots of outside pressure to ensure these bills are written specifically to help small businesses and do not contain anything that isn’t directly related to Covid-19.
The House Bill is HR7010 if you want to track its progress.
I will remind you that this is the US Congress we are talking about, so nothing ever goes as planned. Please make your plans accordingly, and for the time being follow the laws that are currently in place.
Delta is having a webinar for its clients on Thursday, June 4th at 2 PM to go over the latest technology that allows more things to be paperless. We will also have new reports available for the current state of PPP forgiveness that we will be reviewing. Please save the date and time, and we will be posting a link to the webinar soon.
Have a great evening