Here’s good news for S and C corporation owner-employees.
During the past month, the Small Business Administration (SBA) issued:
- A new set of frequently asked questions (FAQs)
- A new interim final rule concerning the Payroll Protection Program (PPP)
Taken together, these rules provide S and C corporations with significant benefits.
What are they? How can you take advantage of them?
You’ll get the whole story when you read my new article titled Tax Tips: PPP Update: Two New Rules for Owners of S and C Corporations.
Three ways our fact-filled article can help you:
- We’ll tell you what the new rules mean to you. Here’s the story in a nut shell. The new helpful rules override prior guidance related to current loan-forgiveness rules. This new guidance has positive, immediate implications for S and C corporation owners-employees, today and perhaps tomorrow. That’s because it may be possible for you to obtain additional loan monies retroactively if Congress revives the PPP. We’ll give you all the details when you read the full article.
- We’ll explain why you’re eligible for increased loan forgiveness. The $20,833 cap on owner-employee compensation applies to cash compensation only. Under this new rule, the owner-employee can add retirement benefits on top of the cash compensation. This create a new higher cap as you’ll learn when you read the full article.
- We’ll explain how owner status rules have changed. The change in the rules could be extremely beneficial for you. You see, you’re not considered an owner-employee if you have less than a 5% ownership stake in an S or C corporation. That means the cap on forgiveness (for the newly-defined, non-owner-employee) is $46,154, not $20,833. You’ll get the whole story when you read the full article.