Are independent contractor payments included in payroll costs?

Posted by Bonita Hatchett-Bodle

Apr 20, 2020 3:25:35 PM

No. The Small Business Administration confirmed, consistent with the final interim regulations, that an applicant’s payments to an independent contractor should not be included in calculation of the eligible borrower’s payroll costs. Only employee costs, including leased employee costs, are to be included. However, an independent contractor or sole proprietor is itself eligible to apply for a loan under the Paycheck Protection Program if the individual satisfies the applicable requirements.

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Topics: independent contractors, Paycheck Protection Program