ERC PPP

[kgcpa0899]

One owner S-Corp qualifies for ERC. 100% shareholder took a salary.

Can the s-corp apply part of the ppp funds to the owner's salary and have less to apply to the qualifying wages?

PPP was $50,000, they used $20,000 of the ppp to pay the owner and the rest was used to pay the employees. 

Can the $50,000 forgiven PPP be reduced to thel $30,000 that was paid to the employees, or PPP funds can not be used against non qualifying wages.

[qbteachmt]

This is very confusing: "or PPP funds can not be used against non qualifying wages"

Are you filing in a tax return or an application for forgiveness?

When you apply for the funds, you are applying to use the funds against qualifying expense. You don't show you used it for other things. The concept would be that the PPP was used as applied for, which might have released the burden on other funds that were used for non-qualifying needs. For instance, if you ended up having to lay off everyone, anyway, this is the money that was supposed to be used to support their wages. If you never paid out any wages or other qualifying costs, you likely didn't meet the requirements for the funds to be forgiven.