Off Cycle Payroll for PPP loan

Fund Accounting, Accounts Payable, Accounts Receivable, Payroll

Moderators: Moderators, Tech Support

Post Reply
christybeth
Posts: 72
Joined: Tue Feb 09, 2016 12:35 pm
Location: Washington State
Contact:

Off Cycle Payroll for PPP loan

Post by christybeth »

Is anyone else looking at doing an off cycle payroll to get maximum forgiveness with the PPP loan and are you concerned as to how that will affect your quarterly 941 and payroll taxes? Our pay cycles are every other week on Friday with payroll taxes being due the following Wednesday and we are looking at doing a payroll with just one week of hours at the end of June for the PPP loan. Any thoughts?!

NeilZ
Posts: 10209
Joined: Wed Oct 08, 2003 1:20 am
Location: Dexter NM
Contact:

Re: Off Cycle Payroll for PPP loan

Post by NeilZ »

christybeth wrote:
Thu May 14, 2020 1:29 pm
Is anyone else looking at doing an off cycle payroll to get maximum forgiveness with the PPP loan and are you concerned as to how that will affect your quarterly 941 and payroll taxes? Our pay cycles are every other week on Friday with payroll taxes being due the following Wednesday and we are looking at doing a payroll with just one week of hours at the end of June for the PPP loan. Any thoughts?!
Why do you think it would affect anything other than show additional tax withholding? Federal taxes are calculated based on the annual table, and will adjust up or down for a particular paycheck depending on the listed income. Now I'm assuming you are depositing fed taxes every other week. I'd just include that in the next normally scheduled tax deposit.

This is why we don't use biweekly paydates, but the 15th and end of the month. Salaried personnel are paid properly since their income is divided by 24. Hourly workers are paid by the number of hours worked, so if they work two 40 hour weeks, and 1 week of 8 hours, they get paid on 88 hours. As far as taxes, we deposit monthly, along with state taxes on the 1st work day of the following month. Makes it much easier, especially at the end of the quarter when the 941 and local taxes are due.
Neil Zampella

Using PC+ since 1999.

Post Reply