By: Robert G. Tweel
Interim Rules released today by the SBA clarify that in calculating payroll costs for Paycheck Protection Loan, borrowers should include partner compensation up to $100,000 in these costs. There had been some question as to the appropriate treatment of partner compensation and these rules have answered that question.
These rules go on to clarify that calculation of self-employed individual compensation. The main method will be the net profit reported on line 31 of schedule C.