ERC Questions

Has it been determined for sure if PPP loan forgiveness or the receipt of the PPP loan funds initially are included as part of revenues for ERC purposes?

In recording the reduction of wages in the year the ERC is taken, are most of you just reducing the expense for wages or are you also reducing the Social Security tax expense?

Are the wages that are reduced also reduce the amount of wages eligible for the QBI deduction?

Has it been determined for sure if PPP loan forgiveness or the receipt of the PPP loan funds initially are included as part of revenues for ERC purposes

No. See 448(c) Regs. Personally I don't believe PPP funds fall under investment income.

In recording the reduction of wages in the year the ERC is taken, are most of you just reducing the expense for wages or are you also reducing the Social Security tax expense?

Wages only. See Notice 2021-20 Q60

Are the wages that are reduced also reduce the amount of wages eligible for the QBI deduction?

No. Try Form 5884-A in your tax sw.

Taxmaster, thank you very much.