Confusion arises over PPP loan forgiveness. Many farmers received the credit using payroll costs, including commodity wages paid during 2019. However, some banks are now saying that process will not qualify.
Ag CPA Paul Neiffer speaks with RFD-TV’s own John Jenkinson on why banks disallowing loan forgiveness for paid commodity wages and his advice for farmers.
According to Neiffer, “What it is, is they’re referring to some guidance that the SBA has issued that the bankers are supposed to look at Form 941, while the farmer files a 943. So, that’s problem number one, and then line 5A, which is Medicare wages, and that makes sense for non-farm tax payers... However, in a farm situation where you pay commodity wages that’s only listed on line 1 of the 941 which is gross wages. It is not listed in box 5.”
He goes on to say that the best thing you can do is to wait and apply for forgiveness in 2021.
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