Does anyone know if a portion of the PPP money can be used to fund 2019 Profit share cost for employees?
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.
Thank you for answering this question!
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