Tag Archives: Paycheck Protection Program

IRS FAQs Provide Welcome Guidance on Employee Retention Credit and PPP Loans in M&A Transactions

On November 16, the IRS added two new FAQs to its website that address an issue that has been concerning employers since the CARES Act was adopted.  For purposes of the employee retention credit (“ERC”), Section 2301(d) of the CARES Act includes an aggregation rule that treats all employers required to be aggregated under section … Continue Reading

Paycheck Protection Flexibility Act Becomes Law; Extends Employer Social Security Tax Deferral for PPP Loan Recipients

Earlier today, President Trump signed the Paycheck Protection Flexibility Act (“PPFA”), making certain changes to the Paycheck Protection Program enacted as part of the Coronavirus Aid, Relief, and Economic Security (“CARES”) Act in March.  Section 4 of the PPFA amends Section 2302(a) of the CARES Act to delete section 2302(a)(3).  Accordingly, employers who obtain forgiveness … Continue Reading

IRS Clarifies that Employers Who Repay PPP Loans May Claim Retention Credit

On May 4, the IRS revised its newly released frequently asked questions (“FAQs”) to clarify the interaction of the Paycheck Protection Program (“PPP”) with the employee retention credit.  FAQ 79 now indicates that an employer that repays its PPP loan by May 7, 2020, in accordance with rules issued by the Small Business Administration (“SBA”), the … Continue Reading
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