You are correct. You (a member receiving a guaranteed payment) are being taxed on the amount of PPP funds to the extent they are used for the purpose of guaranteed payments as employees would have been taxed on their income if those funds were used to pay wages.
With the exception of the guaranteed payments, the LLC members are not being taxed on the balance of the PPP funds. The PPP funds are to be considered non-taxable to the entity, not to the recipients that receive payments using those funds.
