Members With More Than One Business, Take Note

The Internal Revenue Service, in a comprehensive FAQ document available at FarmEquip.org/PPPfaq, offers clarification on the use of the Payroll Protection Program in cases in which owners have more than one company.

In Question 80, the IRS declares that in a case where two or more companies are aggregated and treated as a single employer because they are under common ownership, and one company receives a PPP loan, all companies within the aggregated group are prohibited from claiming the employee retention credit.

The aggregation rule, explained in Question 25 online, treats all companies under common ownership as a single employer for purposes of the credit.

Source: National Law Review