Does anyone know if a portion of the PPP money can be used to fund 2019 Profit share cost for employees?
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According to our broker’s Q&A tip sheet:
Q. Can the PPP forgivable loan money be applied to matches, non-elective contributions, profit sharing contributions?
A. Employee benefits including the funding of the retirement plan are included in payroll costs.
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Thank you for answering this question!
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How about specifically for 2019 profit-sharing?
We always pay one lump sum for profit sharing at the time when our taxes are due. According to our broker, this will be ok to use the funds. But I would check with your individual brokers/plans to confirm.
We do the same. I was told by our banker that this would be fine, but that the guidance is still unclear. I just listened to a tele-town hall meeting sponsored by MSMS (Michigan State Medical Society) featuring a panel of CPAs- the upshot was the same- probably okay, but we will have to wait to see what the guidance says
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