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Asked a question 2 months ago

We have an employee whose project ended early due to Covid-19. We were able to find 80 hours of other billable work for her. Do we extend her employment by an additional 2 weeks (80 hours) since we can use the PPP loan to pay her? That is, we pay her from the PPP loan and then pay her salary for an additional time period since the company will get paid for the billable work she's doing/done while being paid with PPP money.

Where am I?

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With the passage of the amendment to the bill, you can either keep her on or use the money for other employees. You now have more than 8 weeks that you can get forgiveness for. The key will be your FTE count. You don't want to have fewer employees or you will reduce your forgiveness amount, no matter how much you pay the rest of your employees. So keep her on if you need to avoid reducing your FTE count. Use the money to pay other employees longer if FTE count is not an issue.