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We are getting a lot of questions regarding the amount of retirement contributions paid during the qualifying period for the forgiveness calculation. This is in regards to the Paycheck Protection Program (PPP) in the recent CARES Act:
Will a contribution for the 2019 plan year count toward forgiveness? Will a contribution for a full year count, or will some proration apply to account for the 8/52 weeks concept?
You can imagine the complexities of this concept: Who's to know that a contribution made during the qualifying period is the only contribution that will be made for the year? Even if you know that the contribution would be the only one for 2020, you can't really prorate it because you won't yet know total qualifying compensation for 2020.
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