Can you use the PPP money for hazard pay or bonus pay to your employees?
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The technical answer is âYesââŚI am waiting on guidance from my accountant to post here before EOD TuesdayâŚmore to come
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Iâm following this as well - trying to figure out if we can increase staffs hours as well (to above where they were before covid).
Hereâs what my accountant said:
Question: Is it permitted to pay hourly employees a âstipendâ or âretention bonusâ to ensure we exceed the 75% threshold referenced in #3 above as long as we do not go over the individual pro-rated $100k limit? If so, could we run an off-cycle payroll run of $500 per hourly employee and expect that to be forgiven?
Accountantâs Response: This is another question that we also believe will be addressed. There does not seem to be any language prohibiting the payment of bonus (if they stay below the $100k prorated amount for the 8 weeks) but there is also some question of whether those bonuses would meet the definition of âincurredâ during the 8 week period so we again have to wait for the final rules.
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