![]() ![]() In the original CARES Act, PPP loans were forgiven if a business spent 75% of the loan money on payroll. Non-tax provisions in new law. The following are among the non-tax provisions in the new law: New law provides tax deferral relief. PPPFA eliminates the above exception and thus would allow taxpayers with these forgiven loans to defer payment of the payroll taxes. ![]() 1102 (PPP loans), or indebtedness forgiven under Act Sec. 1106 with respect to a loan under Small Business Act Sec. The Act provides an exception to the above rule under that exception, these deferrals don't apply to any taxpayer which has had indebtedness forgiven under Act Sec. 31, 2021 and defers payment of the remaining 50% until Dec. 2302, that defers the payment of 50% of certain payroll taxes until Dec. The CARES Act contains a provision, Act Sec. 116-136, the Act) that authorizes a certain amount of forgivable loans to small businesses to pay their employees during the COVID-19 pandemic. 7010) which provides more flexibility for participants in the PPP program, including allowing those participants to defer the payment of certain payroll taxes that the CARES Act prevented them from deferring.īackground. The PPP is a provision included in the CARES Act ( P.L. On June 5, President Trump signed the Paycheck Protection Program (PPP) Flexibility Act (PPPFA) of 2020 (H.R. ![]() 7010, the Paycheck Protection Program Flexibility Act of 2020 President signs bill that provides more PPP flexibility ![]()
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