Paycheck Protection Program Re-Hire Offers and Rejections Clarified
Posted on June 4, 2020
By Scott Zickefoose, CPA, CM&AA, Transaction Advisory and Tax Senior Manager
Reporting Offers to Re-Hire and Rejections of Re-Hire to the State Unemployment Commission
The Treasury addressed in its Paycheck Protection Program (PPP) Interim Final Rule that loan borrower’s forgiveness amount will not be reduced if an employer makes an offer to re-hire an employee during the covered period for the same salary and same number of hours as earned by such employee in the last pay period prior to the separation and that offer is rejected by the employee.
“Important Paycheck Protection Program Bulletin” Excerpt:
The Treasury specified in its Interim Final Rule that a borrower’s loan forgiveness amount will not be reduced if an employer makes an offer to re-hire an employee during the covered period for the same salary and same number of hours as earned by such employee in the last pay period prior to the separation and that offer is rejected by the employee. There were several additional requirements specified by this interim final rule, including:
- The borrower has to maintain records documenting the offer and its rejection
- The borrower must inform the applicable state unemployment insurance office of such employee’s rejected offer of reemployment within 30 days of the employee’s rejection of the offer.
We know things are hectic but remember to lean on your advisors (counsel, accountant) for insights they have, as many of these decisions in normal times are made infrequently.
We are here to answer your questions and assist in any way we can. We will be providing additional insights and updates as we move through this period of uncertainty.
Additional Resources:
PPP Guidance: Allowable Tax Deductions for Business Expenses
PPP Loan Forgiveness Guidance Released
Clarifying the Paycheck Protection Program Loan Guidelines
Required Documentation for PPP Loan Forgiveness
Matt Austin Scott Zickefoose
Email: maustin@keiteradvisors.com Email: szickefoose@keitercpa.com
Phone: 804.433.4184 Phone: 804.273-6253
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