![]() If you made a good-faith, written offer to restore reduced hours of an employee during the Covered Period or the Alternative Payroll Covered Period and they rejected it.If you made a good-faith, written offer to rehire an employee who was employed on February 15, 2020, and you weren’t able to hire a similarly qualified employee before Decem(for a PPP loan made after December 27, 2020, before the last day of the 8 to 24 week covered period).There are certain situations where you can exclude an employee from the FTE calculation. This isn’t a safe harbor but it is an exception available to businesses who experienced an FTE reduction. But the application does specify that you’ll need to keep any supporting documentation that you use to fill out the worksheet. After you fill out the worksheet determining whether you qualify for the safe harbor, you’re not required to submit any additional supporting documentation. You’ll calculate this safe harbor by using the PPP Schedule A Worksheet. So if before the end of your covered period you’re able to bring your FTEs back up to where they were on February 15, 2020, you can qualify for this safe harbor. For loans disbursed after December 27, 2020, this is extended to the end of your 8 to 24 week covered period. (2) the Borrower then restored its FTE employee levels by not later than Decemto its FTE employee levels in the Borrower’s pay period that included February 15, 2020. (1) the Borrower reduced its FTE employee levels in the period beginning February 15, 2020, and ending Apand This safe harbor exempts borrowers from forgiveness reduction if they meet two criteria: You might be trying to restore your FTEs but it’s taking longer than expected. ![]() However, the instructions don’t clarify what this documentation would look like so use your best judgment to keep any paperwork that applies here. ![]() But you’ll want to keep documents that help support this. For loans disbursed after December 27, 2020, the period is extended to the end of your 8 to 24 week covered period.Īpplying this safe harbor to your application is simple - you’re required to check a box certifying that it’s true. If your business doors were required to be fully or partially shut, a safe harbor applies.īusinesses that weren’t able to operate at the same level between February 15, 2020, and the end of the Covered Period because of compliance with guidelines issued between March 1 and December 31 by the Secretary of Health and Human Services, the Director of the Centers for Disease Control and Prevention, or the Occupational Safety and Health Administration, qualify for the safe harbor. If you find yourself in that position, there are two safe harbors and an exemption that you may be able to use to avoid having your loan forgiveness amount reduced. When you compare your reference period to your Covered Period, if there was a decrease during your Covered Period of FTEs, your loan forgiveness amount will be reduced. You can choose whichever period works best in your favor.
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |