Many business owners might have vaguely heard of NAICS Codes before (North American Industrial Classification System) but never thought much about them. Suddenly there is a lot of interest because if your NAICS Code starts with a72 (Accommodation and Food Services), you are eligible for 3.5 months of PPP support instead of the standard 2.5 months.
So how do you figure out your NAICS Code for the PPP application? It’s not that simple. What matters is what is reported on your tax return. And tax returns use a system called Principal Business Codes PBC that is a variant of the NAICS system. Your PBC is usually picked by your accountant the first year that you file and never changed.
Start by checking with your accountant (or you can do it yourself) what your PBC is. If it starts with a 72, you’re good to go. But if your PBC does not begin with a 72, and you think it should, the situation gets trickier. You will need to talk with your accountant about getting it changed and filing a revised tax-return
Here is the crazy part: I have talked to about a dozen accountants, and they have never even thought about filing a revised PBC code. Hopefully, if you belong in Code 72, you are a code 72, and that’s the end of that!