Ohio Society of CPAs Talks To Doug Houser About Updated PPP Guidance
“Recent PPP Guidance Requires Nuance,” originally published on June 25, 2020, on the Ohio Society of CPAs’ website.
The updated guidance on the Payroll Protection Program (PPP) from the June 5 PPP Flexibility Act of 2020 means practitioners will need to consider the different impacts this will on businesses, says one PPP expert.
“CPAs are able to offer the best interpretation that we can of the rules released,” said Doug Houser, CPA, principal at Rea & Associates, an Ohio CPA Proud organization.
The recent guidance updated the allowance for choosing a 24-week period to use PPP funds versus the original eight weeks.
“There was a lot of applause early on for 24 weeks to spend the money,” Houser said. “But it was really before everybody thought through the nuance of it.”
Houser said despite the additional time to spend the funds, some businesses are still suffering. If they use up that money in 12, 14 or 16 weeks and need to reduce their labor force it can impact forgiveness because full-time employee reductions are a part of those calculations. That could mean the business is going to be disqualified from a portion of forgiveness because of FTE reductions.
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Looking for more information and assistance with your PPP loan? Check out the “Financial Resources For Employers” section of Rea & Associates’ COVID-19 Resource Center.
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