W-2’s for Employees who received wages from forgiveaable PPP grant funds
The research I’ve found says income from PPP grants are not to be listed as income on business tax returns and the expenses paid with those funds are not deductible; but the how are W-2 wages reported. The IRS already has the quarterly wage reports for the year and the FICA and MC have been paid, but SSA is going to be writing letters if the 941’s don’t match the tax return. Have been unable to find anything that addresses this situation.
Terry Says
The new stimulus law changed the taxation of PPP loans that are forgiven. Now the expenses ARE deductible.
Read this article on Forbes.
I think that is goign to solve your problem because you will now report those wages as a tax deductible expense, and on your quarterly 941 forms as well. But do consult your accountant as to how this new law applies to your situation.
