If an employer continues to pay employees using the PPP loan funds, do the existing 401(k) employee contributions continue during that time? In addition, is the employer still responsible for employer match during that period?
Salary deferrals continue from compensation unless the employee stops deferrals (for more see May the sponsor temporarily suspend withholding 401(k) deferrals during times of economic uncertainty?). Employer match depends on whether it is discretionary or not. Non-discretionary (fixed) matches embedded into the plan document, like a safe harbor match must continue unless terminated by amendment (see a detailed discussion under What flexibility exists regarding plan contributions? Can we still make changes to plan features and design?)