WASHINGTON, DC (April 4, 2020) – For the calculation of the Average Monthly Payroll cost under the Paycheck Protection Program (PPP), the Gross Payroll approach should be used for the application, according to the recommendation from the AICPA-led small business funding coalition. This recommendation was developed in conjunction with the National Payroll Reporting Consortium (NPRC). It comes after the additional guidelines Treasury and the Small Business Administration (SBA) issued on Thursday.

For the calculation of the Average Monthly Payroll cost, we recommend that payroll providers and CPAs use Gross Payroll based on 2019 data versus Net Payroll (defined as Gross Payroll less federal withholding and employee and employer FICA). Neither the CARES Act nor the recent guidance instructs the PPP applicant to exclude federal withholding, employee and employer FICA for the 2019 period. The Average Monthly Payroll cost includes Gross Payroll and the other defined PPP payroll cost elements such as health care, etc.

“Treasury and the SBA have acted quickly to generate this small business stimulus. As key stakeholders in the implementation of the PPP relief, we are collectively working to drive consistency in the interpretation of the administration’s guidance. Our goal is to help produce an efficient application process to quickly get the funds in the hands of small businesses and their employees,” said Erik Asgeirsson, president and CEO of CPA.com.

Mark Koziel, CPA, CGMA, the AICPA’s executive vice president of firm services, added, “Based upon statements from members of Congress, it appears that the intent of the PPP was to base the salary calculation on gross wages with no adjustment for federal taxes. This ensures that payroll tax expenses are not passed on to the small businesses in need. In a program of this magnitude, it’s expected that guidance will evolve and terms will be clarified.”

The AICPA also said that its discussions with Treasury, SBA, banks and payroll processors to address these and other issues are ongoing and that it will keep its members, coalition partners and small businesses updated on the efforts to protect Main Street America.

About the American Institute of CPAs

The American Institute of CPAs (AICPA) is the world’s largest member association representing the CPA profession, with more than 429,000 members in the United States and worldwide, and a history of serving the public interest since 1887. AICPA members represent many areas of practice, including business and industry, public practice, government, education and consulting. The AICPA sets ethical standards for its members and U.S. auditing standards for private companies, nonprofit organizations, federal, state and local governments. It develops and grades the Uniform CPA Examination, offers specialized credentials, builds the pipeline of future talent and drives professional competency development to advance the vitality, relevance and quality of the profession.

The AICPA maintains offices in New York, Washington, DC, Durham, NC, and Ewing, NJ.

Media representatives are invited to visit the AICPA Press Center at https://www.aicpa.org/press.

Group Urges Fast Distribution of Stimulus Funds Through Payroll Processors

WASHINGTON, D.C. (March 24, 2020) – More than a dozen new members have joined an American Institute of CPAs-led group advocating the use of payroll processors to quickly distribute governmental funds to small businesses so they can meet payroll and avoid layoffs.

The new members are: Alliance Payroll, Asure Software, BenefitMall, CheckWriters, Council for Electronic Revenue Communication Advancement, EmployCo USA, Green Dot, Gusto, OnPay, National Payroll Reporting Consortium, Paycom, Paylocity, PPI Business Services, PrimePay and Thomson Reuters.

They join the existing coalition of the AICPA, Paychex and Intuit and the International Franchise Association. All members have signed the following open letter:

About the American Institute of CPAs

The American Institute of CPAs (AICPA) is the world’s largest member association representing the CPA profession, with more than 429,000 members in the United States and worldwide, and a history of serving the public interest since 1887. AICPA members represent many areas of practice, including business and industry, public practice, government, education and consulting. The AICPA sets ethical standards for its members and U.S. auditing standards for private companies, nonprofit organizations, federal, state and local governments. It develops and grades the Uniform CPA Examination, offers specialized credentials, builds the pipeline of future talent and drives professional competency development to advance the vitality, relevance and quality of the profession.

About the Association of International Certified Professional Accountants

The Association of International Certified Professional Accountants (the Association) is the most influential body of professional accountants, combining the strengths of the American Institute of CPAs (AICPA) and The Chartered Institute of Management Accountants (CIMA) to power opportunity, trust and prosperity for people, businesses and economies worldwide. It represents 657,000 members and students across 179 countries and territories in public and management accounting and advocates for the public interest and business sustainability on current and emerging issues. With broad reach, rigor and resources, the Association advances the reputation, employability and quality of CPAs, CGMAs and accounting and finance professionals globally.

The American Institute of CPAs (AICPA), along with the International Franchise Association and payroll processing companies Paychex and Intuit, are asking policymakers to help small businesses make payroll during the coronavirus pandemic.

“As the federal government focuses its attention on America’s economic engine — small businesses and their millions of employees — direct funding of their payroll can help,” the group said in a letter. “The problem: It takes time to create new processes to distribute funds to small businesses — speed is of the essence here. An efficient and effective process would be to leverage established small business payroll processing that is already in place and can be marshalled immediately to protect jobs and preserve resiliency within the small business sector.”

The group said about 60 million people in the United States are employed by small businesses, and payroll processors account for roughly 40% of all payroll payments in the United States.

“We are also convinced that proposed direct payments to individuals will not prevent small businesses from laying off employees. Small businesses need to make payroll now – the clock is ticking,” the letter said.

The letter is addressed to President Donald Trump, Treasury Secretary Steven Mnuchin, Small Business Administrator Jovita Carranza, and members of Congress.

Last week, Moody’s Analytics said nearly 80 million jobs in the United States are at high or moderate risk due to the impacts of the coronavirus. The President and chief executive officer of the Federal Reserve Bank of St. Louis, James Bullard, on Sunday said he thought U.S. unemployment could hit 30% in the second quarter.

Initial unemployment claims jumped 33% last week, the biggest week-over-week jump since the 2008 financial crisis.

“The payroll processing companies and the 45,000-plus CPA firms in America have long been partners in helping small businesses thrive in good times, and we have a role to play in the grave challenges we face today,” the group said in its letter.

It is also urging the creation of a central payroll funding account that small business payroll processors could use to allow small businesses to continue paying workers.

The number of confirmed coronavirus cases had jumped to more than 33,000 in the U.S. Monday morning, with more than 20,000 cases in New York.

AICPA, Paychex, Intuit and IFA Say Speedy Relief Required to Prevent Layoffs Due to Pandemic

WASHINGTON, D.C. (March 22, 2020) – A coalition made up of the American Institute of CPAs (AICPA), the International Franchise Association (IFA) and two leading payroll processing companies, Paychex and Intuit, issued the following open letter to President Donald J. Trump, U.S. Treasury Secretary Steven Mnuchin, Small Business Administrator Jovita Carranza and members of Congress:

About the American Institute of CPAs

The American Institute of CPAs (AICPA) is the world’s largest member association representing the CPA profession, with more than 429,000 members in the United States and worldwide, and a history of serving the public interest since 1887. AICPA members represent many areas of practice, including business and industry, public practice, government, education and consulting. The AICPA sets ethical standards for its members and U.S. auditing standards for private companies, nonprofit organizations, federal, state and local governments. It develops and grades the Uniform CPA Examination, offers specialized credentials, builds the pipeline of future talent and drives professional competency development to advance the vitality, relevance and quality of the profession.

About the Association of International Certified Professional Accountants

The Association of International Certified Professional Accountants (the Association) is the most influential body of professional accountants, combining the strengths of the American Institute of CPAs (AICPA) and The Chartered Institute of Management Accountants (CIMA) to power opportunity, trust and prosperity for people, businesses and economies worldwide. It represents 657,000 members and students across 179 countries and territories in public and management accounting and advocates for the public interest and business sustainability on current and emerging issues. With broad reach, rigor and resources, the Association advances the reputation, employability and quality of CPAs, CGMAs and accounting and finance professionals globally.

Media Contacts:

Kathy King
AICPA
202.434.9210
kathy.king@aicpa-cima.com

Laura Saxby Lynch
Paychex
585.383.3074
lsaxbylynch@paychex.com

Erin Green
Intuit
650.944.3774
erin_green@intuit.com

Stephen Worley
IFA
202.662.0792
sworley@franchise.org

Four Early-Stage Companies to Receive Guidance from the Association of International Certified Professional Accountants and CPA.com

NEW YORK (Feb. 24, 2020) – Four early-stage companies pursuing various solutions involving digital assets, climate risk, automation and artificial intelligence will form the 2020 cohort for an accounting-focused startup accelerator sponsored by the Association of International Certified Professional Accountants (the Association) and CPA.com.

The startup accelerator, begun in 2017, is designed to promote innovation in the accounting profession and give the Association and CPA.com more visibility into disruptive trends from emerging technologies. Finalists get a nominal funding investment and guidance from a panel of experts in the profession on marketplace needs.

“Many of these early-stage companies are offering a glimpse into the transforming capabilities of the profession,” said Erik Asgeirsson, president and CEO of CPA.com. “We have a common interest in nurturing that growth and ensuring that accountants have the best access to technological innovation.” The members of this year’s group are:

• The Climate Service - The North Carolina company has developed a cloud-based solution to help companies measure, manage and disclose climate-related financial risks
• Gilded - The New Orleans company offers seamless invoicing, payments, and accounting for global businesses-powered by blockchain
• Scanye – The European company uses intelligent algorithms to automate document processing, accounting and finance management for small to medium-sized enterprises
• Tally Street – The Boston-based startup created a “virtual analyst” to help businesses boost cash flow by using accounting data to find opportunities and anticipate problems before they happen

Each accelerator company will be able to present information about their business in June at ENGAGE 2020, a leading event for the accounting profession sponsored by the American Institute of CPAs (AICPA) and the Chartered Institute of Management Accountants (CIMA).

“We’ve heard from our previous accelerator companies what a great opportunity it has been to work with some of the leading thought leaders and influencers in the profession,” said Lawson Carmichael, chief operating officer of the Association. “And the companies have offered us great insight in return.”

For more information about the startup accelerator, please visit aicpa-cima.com/accelerator.

About CPA.com

CPA.com brings innovative solutions to the accounting profession, either in partnership with leading providers or directly through its own development. The company has established itself as a thought leader on emerging technologies and as the trusted business advisor to practitioners in the United States, with a growing global focus. Our company’s core mission is to drive the transformation of practice areas, advance the technology ecosystem for the profession, and lead technology research and innovation efforts for practitioners.

A subsidiary of the American Institute of CPAs, the company is also part of the Association of International Certified Professional Accountants, the world’s most influential organization representing the profession. For more information, visit CPA.com.

About the Association of International Certified Professional Accountants

The Association of International Certified Professional Accountants (the Association) is the most influential body of professional accountants, combining the strengths of the American Institute of CPAs (AICPA) and The Chartered Institute of Management Accountants (CIMA) to power opportunity, trust and prosperity for people, businesses and economies worldwide. It represents 657,000 members and students across 179 countries and territories in public and management accounting and advocates for the public interest and business sustainability on current and emerging issues. With broad reach, rigor and resources, the Association advances the reputation, employability and quality of CPAs, CGMAs and accounting and finance professionals globally.