Whitney Houston sang, “How Will I Know?” and she may have been asking if independent contractor payments are included in the payroll calculation for the PPP loan.
I’ve recently been asked this question. We are referring to people who received 1099-MISC forms instead of W-2s and if those payments are included.
The answer is “No” as of April 2, 2020. Please reference 13 CFP Part 120, issued by the SBA in item 2h (page 11).
It states that independent contractors should NOT be included in the payroll calculation for employers as independent contractors should be submitting their own loan application.
Stay safe and healthy,
Jordan Ilderton, CPA