ASA: Temporary Staffing Agencies Are the Employers for Purposes of PPP Loans

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Photo by Kelly Sikkema on Unsplash

American Staffing Association (04/10/20) Confusion has arisen under the Paycheck Protection Program of the Coronavirus Aid, Relief, and Economic Security (CARES) Act as to whether staffing firms or their clients should count the staffing firm’s temporary employees in determining loan eligibility and which entity can include the temporary employees’ wages as “payroll costs” in determining the maximum loan amounts.

In a new issue paper, ASA tax counsel Marc J. Gerson of Miller & Chevalier examines the question. Both the staffing agency and client should count the temporary employees in determining their respective size, but only staffing agencies, as the common law employer, can claim the temporary employees’ wages as payroll costs in determining loan amounts under the PPP.

Read the full story at Temporary Staffing Agencies Are the Employers for Purposes of PPP Loans

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