For owner workers of C corps
The worker money payment of a C owner that is corp, understood to be an owner who’s also a worker, is entitled to loan forgiveness up no more than 2.5 x their monthly 2019 employee money payment. The maximum forgiveness is $20,833 per owner, and for an 8 week period the maximum is $15,385 for a 24 week covered period.
You can even claim forgiveness for re payments for boss state and neighborhood fees compensated by the debtor and examined on owner worker settlement, for the quantity compensated by the debtor for manager efforts for owner worker medical insurance, as well as for manager your retirement contributions to owner worker your retirement plan capped during the quantity of 2.5x their month-to-month 2019 manager your your retirement contribution.
To claim forgiveness, you need to submit payroll papers detailing money settlement compensated to owner employee(s) through the covered duration chosen, as much as the eligible amount stated previously. re Payments apart from for money settlement should really be included on lines 6 through 8 of PPP Schedule A of Form 3508 or line 1 of Form 3508EZ, and never count toward the $20,833 limit per person.
In every situations
Owner payment for the 24 covered period is capped $20,833 (not to exceed 2.5 months of 2019 compensation) across all businesses in which they have an ownership stake week.