General Inquiries

SBA Forgiveness Applicaiton -

  • 1.  SBA Forgiveness Applicaiton -

    Posted 05-20-2020 10:07
    Trying to figure out the language in the application that refers to "owner-employee" on page 4.  For an S-Corp, would this be applicable to wages paid to owners?

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    Vickie Tischendorf, CPA, CFO
    Martel Construction, Inc.
    Bozeman, MT 59715
    406-586-8585
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  • 2.  RE: SBA Forgiveness Applicaiton -

    Posted 05-20-2020 10:26
    That's how I treated it.  I put the wages from all owners on Line 9 of Schedule A.  It still gets included in the forgivable amount (up to the $15,385/employee limit), but is just reported separately on the form.

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    Steve Hunt CPA
    Cfo
    Alto Construction Company, Inc.
    Tampa FL
    (813) 241-2586
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  • 3.  RE: SBA Forgiveness Applicaiton -

    Posted 05-20-2020 10:41

    Hello Steve,

     

    Thanks for your response.  Another question, in the instructions for line 9 (owner pay), it refers to 85 FR 21747.  Reading that document related to amounts eligible for forgiveness, it states that forgivable amounts include "covered benefits for employees (but not owners)".  This is the first time I've seen this language.  Does this mean we can't include healthcare costs for owners?

     

    Thanks again for responding,

     

    Vickie Tischendorf, CFO

    Martel Construction, Inc.

    Office: 406-586-8585

    Fax: 406-586-8646

    vickie@martelconstruction.com

     

    "Challenges make you discover things about yourself that you never really knew".

    Cicely Tyson

     






  • 4.  RE: SBA Forgiveness Applicaiton -

    Posted 05-21-2020 12:36
    It appears this is the case.  This was new guidance with the application, but possible it could be changed..stay tuned.

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    Marvin Kiesow CCIFP
    Tax Director
    Moss Adams LLP
    Albuquerque NM
    (505) 878-7273
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  • 5.  RE: SBA Forgiveness Applicaiton -

    Posted 05-22-2020 07:42

    I could be wrong about this, it wouldn't be the first time, but I think that 85 FR 21747 deals with Self-Employed individuals, Schedule C and not a corporation, partnership or S-Corp. I still believe that corporate owner fringe benefits and retirement plan contributions are part of the forgiveness calculation.

     

    I'd love to hear other opinions on this.

     

    Steve Brunner, CPA, CVA, MAFF

    Chief Financial Officer

    (D) 859-600-1199

    (O) 859-431-4700

    (F)  859-655-7943

    sbrunner@rizzobrothers.com

    rizzo logo re-sized for email

     






  • 6.  RE: SBA Forgiveness Applicaiton -

    Posted 05-26-2020 10:31
    The new rule issued on Friday clarifies​ that "No additional forgiveness is provided for retirement or health insurance contributions for self-employed individuals, including Schedule C filers and general partners, as such expenses are paid out of their net self-employment income". Based on this new guidance owner fringe benefits and retirement plan contributions are part of the forgiveness calculation for owner employees of C corporations and S corporations.

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    Marvin Kiesow CCIFP
    Tax Director
    Moss Adams LLP
    Albuquerque NM
    (505) 878-7273
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