Demystifying the CARES Act Webinar - April 3, 2020 CARES Act Webinar – BD 4.3.2020 | Page 25

PAYCHECK PROTECTION PROGRAM (PPP)
“PAYROLL COSTS” MEANS:
Aggregate payroll costs for the last 12 months to
employees (salary, wage, commission, or similar
compensation; payment of cash tip or equivalent; payment
for vacation, parental, family, medical, or sick leave;
allowance for dismissal or separation;
Independent contractors do not qualify as employees for
the purpose of PPP loans as they have the ability to apply
for a PPP loan on their own.
Payment of state or local tax assessed on the
compensation of employees;
Payment of any retirement benefit;
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