Article Date:
September 2020


Word Count:
1057

 

 

PPP Update: Two New Rules for Owners of S and C Corporations


During the past month, the Small Business Administration (SBA) issued a new set of frequently asked questions (FAQs) and a new interim final rule, which in combination create the following good news for the Payroll Protection Program (PPP):

 

·

More forgiveness. The $20,833 cap on owner-employee compensation applies to cash compensation only.1 It’s not an overall compensation limit as the SBA had stated in its prior interim guidance.2 Under this new rule, the owner-employee can add retirement benefits on top of the cash compensation, creating a new higher cap.

·

Escape owner status. You are not an owner-employee if you have less than a 5 percent ownership stake in a ... Log in to view full article.

Log in to view full article

Already a subscriber?

Email Address


Password


Log In Send me my password

You'll be able to read the full article and get instant access to the last few issues of the Tax Reduction Letter

Not yet a subscriber?
 
with a money-back guarantee

Bradford Tax Institute

 
Subscription Services
4040 Civic Center Drive, Ste. 200
San Rafael, CA 94903
Telephone: (415) 446-4340

contactus@bradfordtaxinstitute.com
 
Editorial
1701 Pennsylvania Avenue, N.W., Suite 300
Washington, DC 20006
Telephone (202) 652-2293
Fax (202) 580-6559
contactus@bradfordtaxinstitute.com
 
© 2025 Bradford Tax Institute