VertiSource HR | HRIS and HR Outsourcing

Payroll Protection Program (PPP) Round 2. Do You Qualify?

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It’s a new year! We have a new president, a new strain of the coronavirus, humorous memes of Bernie Sanders sitting in a chair in every situation known to man, and a new round (Version 2) of the PPP. This is otherwise known as the Payroll Protection Program. Do you know if you qualify for the second round of the PPP, and if so, should you take it? Let’s find out.

Who is eligible for the PPP v2

  • Your business cannot have more than 300 employees
  • You have used (or will use) all of the first PPP loan.
  • You had a 25% or greater reduction of “gross receipts” when compared to any quarter in 2020 to the same quarter in 2019

Other items of note to participate in part 2 of the PPP

  • Loans cannot exceed 2 million dollars.
  • How much you can qualify for is simply 2.5 times your monthly average payroll costs, in one, the year prior to getting the loan or in the 2019 calendar year.
  • Any business that has a NAICS starting with 72, this is the hospitality industry like hotels and restaurants, they instead of 2.5 times their monthly payroll cost are eligible for 3.5 times.
  • As with the first PPP round, employers must spend at least 60% of the PPP v2 on payroll. This has to be done within an 8 to 24 week period.
  • The PPP v2 loans are available through March 21, 2021.

Here are the payback or forgiveness details on the PPP v2

If there was one part that you really need to pay attention to, it is this section right here that covers the terms of forgiveness.

  • Just as with the first round of PPP, forgiveness costs under payroll expenditures were amended to include: Payroll, health insurance, retirement contributions, mortgage interest, rent, and utilities.
  • Those who utilize the PPP v2 are still required to use at least 60% of the PPP loan proceeds on eligible payroll costs in order to receive full forgiveness.

Trust the experts!

If you have additional questions regarding the first or second rounds of the PPP, please call VertiSource HR. They know the PPP program inside and out, and they work diligently to make sure their clients adhere to the forgiveness rules as it pertains to their payroll, 401k, health insurance, retirement contributions, and more. They also work to submit the required documentation to make sure your company is in full compliance. Trust the experts, trust VertiSource HR!

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