The more we learn about the nuances of the Paycheck Protection Program (PPP) forgiveness, Economic Injury Disaster Loan (EIDL) regulations, the Employee Retention credit (an alternative, payroll-tax-specific way to save cash for your business) … well, the more that we discover that much is still unclear. 

We also know that buried within these relief bills are plenty of cash- and tax-saving goodies as long as you dot your i’s and cross your t’s.

For instance, you cannot use both the EIDL and the PPP loan for the same purposes.  If you do, the EIDL loan amount (generous terms of 3.75% over 30 years) may get automatically refinanced into the PPP loan terms, which is payable in TWO years (albeit at a mere 1% rate, which is nice).

OR, you can lose forgiveness eligibility if you ignore the “headcount haircut” and “wages haircut” provisions within the PPP.

What are these “haircut” provisions?

Essentially, these are calculations designed to limit the amount forgivable if you have less employees now than before and, to limit the amount forgivable if you are paying less payroll than before. These calculations involve your payroll amounts and headcount from February 15, 2019 to June 30, 2019 AND they involve your payroll amounts and headcount from January 1, 2020 to February 29, 2020.

If you are an independent contractor, there are additional considerations.

There are a lot of nuances and still a lot of unknowns in terms of guidance. No one knows every jot or tittle of how these programs will be evaluated and audited.

In the midst of uncertainty, there are “risks” that might be worth taking. We at  Legacy CPA are confident in the calculations, guidance and decisions that we make for our clients.

As always, if you have any questions, we’re here for you.


The Team at Legacy CPA
(541) 326-0993

1322 E. McAndrews, Ste #201
Medford, OR 97504
Office # (541) 326-0993
Fax # (541) 326-0650


We are grateful for our chance to serve you and your business, ~Contact.FirstName~ — and we are dedicated to its success, in every season. 

Feel free to forward this article to a business associate or client you know who could benefit from our assistance. While these particular articles usually relate to business strategy, as you know, we specialize in tax preparation and planning for families and business owners. And we always make room for referrals from trusted sources like you.