Another important piece of this to keep in mind for next years accounting disaster: If you are using the PPP loan and going for all or partial forgiveness, there is an important tax distinction that the IRS just advised on... Typically, any debt forgiveness is typically considered income and taxable as such. But In this case congress made this particular forgiveness non-taxable income. BUT! they just announced that any expenses in which the income was used for IS NOT DEDUCTIBLE. So if you paid employees qualifying wages out of that income, you can't write off that labor at the end of the year. So be very clear with the accounting!
So basically, Congress said this is not taxable income, but the IRS after the fact said OK, but it isn't deductible then either... So, basically its a wash now unless your employee was actually doing something productive during the qualified period. For any business who kept employees on payroll sitting at home (as they asked employers to do at the beginning of this), there isn't really any direct benefit. And if you kept them on for weeks leading up to funding, you are screwed on that part - your only hope is that they get back to work before the covered period ends.
