Barry Sunshine, acclaimed accounting expert with strong design and architecture industry experience provided a thorough breakdown of the Paycheck Protection Program – including MAXIMIZING FORGIVENESS under new rules updated on June 16, 2020.


  • The CARES Act allows for all or a portion of the PPP loan to be forgiven; amounts forgiven not subject to federal income tax.


  • The forgiven amount is equal to the amount the borrower spends on “eligible costs” during the applicable 8‐week or 24‐week period.


  • Not more than 40% of the forgiven amount may be used for non‐payroll costs.


  • It is essential to accurately calculate your qualified employees and payroll to determine your FTE quotient, Wage Reduction requirements, and if you qualify for the Wage Reduction Safe Harbor.


  • Non-cash compensation such as health care costs, retirement contributions and payroll taxes may be included in these calculations as well as owner compensation.


  • Non-payroll expenses include rent, utilities, and mortgage interest all qualify as covered expenses.


  • It is important to document all calculations and payroll records and retain them for a period of six (6) years following the application for forgiveness.