PPP Loan Forgiveness: What About Tipped Employees?
As restaurants across America begin to reopen, the question has frequently arisen as to whether customer tips could be counted toward eligible payroll costs for the PPP loan forgiveness calculation. Given the newly released clarification from the SBA (in the form of an application and instructions), we can finally answer this frequently asked question regarding the treatment of tipped employees as it relates to eligible payroll costs and the hourly wage reduction penalty impact.
For guidance related to eligible payroll costs and the hourly wage reduction, along with an example exploring various scenarios for a tipped employee, click here.
