| Over the last two weeks, many employers across the US have applied for Paycheck Protection Program (“PPP”) Loans, and some have even started to receive the funds. Below are important items for employers to remember to ensure that they qualify for the maximum level of loan forgiveness. Timing: 8 Weeks The amount of forgiveness of a PPP Loan depends on the borrower’s qualifying expenditures over an eight-week period beginning on the date the lender makes the first disbursement of the PPP Loan to the borrower. Qualifying Expenditures for Loan Forgiveness The following are qualifying expenditures for loan forgiveness: (1) Payroll costs. Payroll expenses must make up at least 75% of all expenditures. (2) Any payment of interest on any covered mortgage obligation existing on February 15, 2020. This includes personal property debt (equipment, etc.). (3) Any payment on any covered rent obligation existing on February 15, 2020. (4) Utility payments which includes electricity, gas, water, transportation, telephone, or internet access for which service began before February 15, 2020. Prepayments are not a qualifying expenditure. Tracking and Substantiation of Expenditures Tracking expenditures will be very important in order to qualify for PPP Loan forgiveness. Please feel free to email Gary Fortier (Gfortier@largeandgilbert.com) for a sample expenditure tracking spreadsheet. The spreadsheet will help track loan expenditures, 75% payroll cost requirement, and remaining loan balance to spend. Employee Retention and Maintaining Salary Levels Of course, employee retention and maintaining salary levels also play an important part in determining loan forgiveness. Any reduction in employee count or a decrease in more than 25% in an individual employee’s wage will reduce the total amount of PPP Loan that is eligible to be forgiven. The average number of full-time equivalent employees over the 8-week period will be compared to either (i) January 1, 2020 through February 29, 2020 or (ii) the period of February 15, 2019 through June 30, 2019. To assist with this calculation, an employee calculation tool is included in the spreadsheet referenced above. Additionally, we are awaiting additional guidance from the SBA/Treasury Department on how ‘rehires’ should be classified and the impact they may have on loan forgiveness. Of course, the above information is based on information from the Treasury Department and we recommend consulting with your banking institution regarding loan forgiveness as they will be coordinating with the SBA to authorize loan forgiveness. We will continue to keep you updated as new information becomes available. |
Large & Gilbert, Inc.: Best Construction Accounting Firm in Atlanta, GA
Welcome to Large & Gilbert, Inc., the premier construction accounting firm in the Southeast. Located in Atlanta, GA, we provide services to some of the areas largest home contractors, builders, and developers. Having specialized in the construction industry for over forty years, we are able to provide our contractors with answers to their questions about tax services, accounting and auditing, business advisory services, and wealth accumulation, just to name a few.
Welcome
Construction Accounting Firm
Welcome to Large & Gilbert, Inc. (“L&G”), the premier construction accounting firm in the Southeast. Located in Atlanta, GA, providing services to some of the area's largest contractors; including: general contractors, specialty contractors, heavy equipment contractors, builders, and developers. Having specialized in the construction industry for over fifty years, we are able to provide our contractors with answers to their questions about tax services, accounting and auditing, business advisory services, asset protection, retirement planning and wealth accumulation, just to name a few.
Do you know the latest on the benefits that are offered to you as a contractor in the tax code? Are you using the advantages Uncle Sam has given you to reach your retirement goals in order to maintain your lifestyle? Do financial questions keep you awake at night?
Is your surety agent asking for information you can't provide? Or has your bonding been reduced and you need fresh ideas to make your company healthier?
You can manage a $10 million construction project from start to finish and you can manage your 10-year-old's baseball team pretty well, too. Do you have the time or the staff to stay up-to-the-minute on the construction industry's complicated tax and accounting issues?
What kinds of services do you need when you come to L&G? Every company is unique... but our experience serving the construction industry for over five decades allows us to anticipate and meet your needs.
Testimonials
“I want you to know how much I appreciate your efforts in guiding us successful in this matter. It would not have been possible without you and I am grateful to you. I so enjoy working with you guys.”
“I really enjoy being around you Rhonda - you are a very bright person and have that special ability to relate to someone on my level without offending them or going over their head. You are as good as I have ever seen at that.”
“Rhonda, I don’t just consider you my business associate, I consider you my friend. Business and personally, I don’t think we’d be where we are today without L&G.”
Contact Us
Large & Gilbert, Inc.
6849 Peachtree Dunwoody Road
Building A-2
Atlanta, Georgia 30328
Phone: (770) 671-1533
Fax: (770) 671-1347
info@largeandgilbert.com
About Us
L&G has specialized in the construction industry for over 50 years. We have built our reputation on great client service and have spent many years learning the financial and tax ropes of the construction industry.