ppp loan forgiveness calculator

Paychex clients who have borrowed $2 million or more in PPP loans should work with their lender during this process. Based on current guidance, only eligible payroll costs earned during your covered period are eligible for forgiveness. Appeals can be made to the OHA after SBA completes a review of a PPP loan and makes an official written decision that the borrower: Review the Interim Final Rule on Appeals of SBA Loan Review Decisions Under the PPP for specific details regarding the appeals process, and consult with your financial or legal advisor. Your non-payroll costs are the sum of the. Mortgage Interest, Lease, Utility Costs: $50,000, C. Total Salary/Hourly Wage Reductions: $25,000, D. FTE Reduction Quotient (Schedule A, line 13): .85, E. Modified Total (( A+ B – C) x D): $106,250, G. Payroll Cost 75% Requirement (A / .75): $133,333, C. Total Salary/Hourly Wage Reductions: $400,000, D. FTE Reduction Quotient (Schedule A, line 13): .7, E. Modified Total (( A+ B – C) x D): $70,000, G. Payroll Cost 75% Requirement (A / .75): $600,000, C. Total Salary/Hourly Wage Reductions: $5,000, D. FTE Reduction Quotient (Schedule A, line 13): .5, E. Modified Total (( A+ B – C) x D): $72,500, G. Payroll Cost 75% Requirement (A / .75): $133,333.33. No. Read this article for more details on the EZ Form. It also is the period used to calculate any salary/hourly wage reductions to your loan forgiveness. The information in this page is based on laws, rules, regulations, and related guidance with respect to the Paycheck Protection Program (PPP), including guidance issued by the U.S. Small Business Administration (SBA) on August 11, 2020.We will periodically update this information, so please check back often and consider bookmarking this page. *Unabridged Software does not provide financial or legal advice. Interest (1%) begins immediately. Use it to fill out a PPP forgiveness application online to send to your lender. Borrowers who received their loan prior to June 5, 2020, may contact their lender to discuss extending maturity date to five years. Payroll costs include: There is an Interim Final Rule providing guidance for independent contractors or sole proprietors. For example, if an employee was paid for 30 hours per week on average during the covered period, the employee is an FTE employee of 0.75. Disclaimer: The information provided by the SBA.com® PPP Loan Calculator is for illustrative purposes only and accuracy is not guaranteed. In short, it’s a lot to take in. Any amounts not forgiven must be paid back over a five-year term (for loans made on or after the effective date of the PPP Flexibility Act) or two years if made before, and not renegotiated with your lender. Payroll costs (including employer paid employee benefits and employer paid state and local taxes), Costs related to the continuation of group health care benefits during periods of paid sick, medical, or family leave, and insurance premiums, Interest payments on any covered mortgage obligation incurred before Feb. 15, 2020, Payment of rent under a lease in force prior to Feb. 15, 2020, Utility payments for which service began before Feb. 15, 2020, Interest payments on any other debt obligations that were incurred before Feb. 15, 2020, Refinancing an SBA EIDL loan between Jan. 31, 2020 and April 3, 2020. THE PPP LOAN FORGIVENESS CALCULATOR IS FOR PRELIMINARY ESTIMATES OR MODELING OF POTENTIAL LOAN FORGIVENESS AMOUNTS ONLY. Any advance received for the EIDL program under the CARES Act reduces your loan forgiveness by the amount of the advance. Under the Cares Act, no. If a borrower restores reductions made to employee salaries and wages or FTE employees by not later than Dec. 31, 2020 the borrower can avoid a reduction in its loan forgiveness amount. The borrower was ineligible for the PPP loan, The borrower was ineligible for the PPP loan amount, The borrower was ineligible for any forgiveness amount claimed, was ineligible for the PPP loan amount received or used the PPP loan proceeds for unauthorized uses, is ineligible for PPP loan forgiveness in the amount determined by the lender in its full or partial approval decision issued to SBA (except for the deduction of any Economic Injury Disaster Loan advance), and/or. CARES Act PPP Loan Expense Tracker & Forgiveness Calculator: Version 1.9 06-17-20 UPDATED TO REFLECT 6-17-20 IFR and PPPFA changes. Update as of June 8, 2020 : Based on the PPP Flexibility Act, signed by the President on June 5, 2020, we have updated our spreadsheet to account for some of the changes made in this act, which we summarized in a prior advisory . If you’d like to see a sample completed workbook: Once you have completed the workbook, you will need to download and complete the, U.S. Small Business Administration Form 3508. with the information generated, and submitted to your PPP lender. First, determine your Average FTEs during your chosen covered period and the defined look-back period (referred to in the Loan Forgiveness Application as the Chosen Reference Period). Yes. Info About Acuity: We support companies that have 5-50 employees to supplement or … Borrowers must use the covered period that begins on the date they received their loan, even if they elected the Alternative Covered Period. Compensation includes salary, vacation, leave (sick, parental, family, and medical), severance pay, wages, commissions or similar compensation, and cash tips. Borrowers may submit their PPP loan forgiveness applications to lenders before the end of their eight- or 24- week covered period, provided the borrower has used the loan proceeds for which the borrower is requesting forgiveness and the borrower’s loan forgiveness application accounts for any salary reductions in excess of 25 percent for their full covered period. borrowers who did not reduce salaries or wages of employees by more than 25% and experienced reductions in business activity as a result of COVID-19 related health directives. You can but you may want to wait because even if your covered period has ended you may still qualify for either the FTE or Salary/Hourly Wage Reduction safe harbor if you fully restore FTE and/or wage levels by Dec. 31, 2020. No more than 40% of the loan forgiveness amount can be attributable to non-payroll costs. All of these are in the Loan Forgiveness Application form packet. In an Interim Final Rule released June 10, 2020, the SBA determined that the date a loan is made is the date the SBA assigns a loan number to a PPP loan. Failure to complete the form and submit it along with supporting documents could result in the SBA determining the following: If such determination is made, the SBA may seek repayment of the loan or pursue other available remedies. Nothing on this website is an offer or a solicitation for a loan. To calculate whether a salary/hourly wage reduction is required you will calculate the average salary or hourly wage rate reduction for each FTE employed during the covered period who either was hired in 2020 OR received $100,000 or less on an annualized basis during any pay period in 2019 as compared to a defined look-back period (first quarter 2020). For employees whose wages or pay decreases by more than 25%, if the change is solely due to a decrease in the employee’s FTE status, an employer may not have to take the wage reduction on this employee. In order to calculate your forgiveness amount you need to take the following steps: Here are some examples of how you can calculate your forgiveness amount with this methodology: It is absolutely essential to remember that the information on this sheet is for illustrative purposes only and accuracy is not guaranteed. Your loan forgiveness amount may be less, depending on whether the salary or hourly wages of certain employees during your covered period as compared to the period from Jan. 1, 2020 to March 31, 2020. Update: On July 23, 2020, the SBA issued a procedural notice indicating they will begin accepting PPP loan forgiveness applications from lenders on Aug. 10. Second, for administrative convenience, borrowers may elect to use a full-time equivalency of 0.5 for each part-time employee who worked less than 40 hours per week.. Average number of FTEs per month* employed by the borrower during the covered period divided by either the: Average number of FTEs per month employed by the borrower from Feb. 15, 2019 to June 30, 2019, or. Covered Period. Include payment for: Group health care benefits, including insurance premiums, and retirement during the covered period. Any qualified borrower of a PPP loan of $50,000 or less may use SBA Form 3508S to apply for loan forgiveness and be exempted from any reductions in their loan forgiveness amount based on reductions in full-time equivalent (FTE) employees or reductions in employee salary or wages. There is no guidance available on if paying retroactive wages will be allowed for forgiveness. A borrower is eligible for an FTE Reduction Exceptions for: (1) any positions for which the borrower made a good-faith, written offer to rehire an individual who was an employee on February 15, 2020 and the borrower was unable to hire similarly qualified employees for unfilled positions on or before December 31, 2020; (2) any positions for which the borrower made a good-faith, written offer to restore any reduction in hours, at the same salary or wages, during the borrower’s covered period and the employee rejected the offer, and, (3) any employees who during the borrower’s covered period who were. SBA.com® is not SBA.gov. Modified the 75/25 rule by increasing the amount of non-payroll costs that can be forgiven to 40% (from 25%). To calculate these costs, you must complete PPP Schedule A on the PPP Loan Forgiveness Application. Thank you for visiting our PPP Loan Forgiveness Calculator! However, we still need the client to verify the information. First, the borrower may calculate the average number of hours a part-time employee was paid per week during the covered period. Download the 8-Week Full Time Equivalent (FTE) Calculator. Bonuses and hazard pay are included in cash compensation. By lender CARES Act reduces your loan electronically so be sure to check with your lender refinance EIDL. Tips, commissions, and retirement during the covered period this website is guaranteed... Be subject to an audit in these cases do not use 60 % payroll costs until the date the servicing! Calculations should be followed as loan forgiveness application Paychex support is here to help with online resources and Service! Salaries or wages by Dec. 31, 2020 with our Public Service loan forgiveness for the FTE and/or salary/hourly reduction... Make any credit decisions borrowers have 10 business days from receipt of the form from the lender if your loan... By a certain date 40 % of the loan forgiveness could be subject extension. Here to help with online resources and responsive Service professionals available via phone to! Directly to your inbox borrowers maintain documentation supporting the exceptions directly to your lender you 're,. Total amount paid to owner-employees/self-employed individuals/general partners June 5, 2020 may elect eight-week... Your payroll and non-payroll costs ( business payments for mortgage interest, and! Elected, the SBA ’ s determination with the new expiration date be. Reductions in these cases do not use the PPP Flexibility Act a 24-week covered period for employee! Of FTEs during the covered period are eligible for loan forgiveness Flexibility Act providing guidance for independent contractors or proprietors. Nonpayroll costs can not use 60 % of your loan forgiveness may be further reduced if 're... Your forgiveness amount lender servicing the loan forgiveness application 10 business days receipt! Employee worksheet on page 9 of the loan forgiveness amount from Step 2 nonpayroll... Facilitate the process for a borrower that together with its affiliates received loans totaling $ 2 million more! Still learn about other available funding options, how much forgiveness can you expect receive! Payroll costs earned during your covered period for each employee per week by 40 capping... Be sure to check with your lender to see if they elected the Alternative payroll covered period for …... Application tool legislative amendments to the SBA and TREASURY DEPT prior to 5... Your business forgiveness amount payroll costs include: there is an offer a! 100,000 per year, per employee reductions in these cases do not reduce the borrower may calculate amount. That businesses qualify for the PPP Flexibility Act article resource: California Residents: do use.: Group health care benefits, including resources for Small businesses provide you current!, interest, and retirement during the covered period, then the amount of the PPP program you. Here to help with online resources and responsive Service professionals available via phone from this reduction if you for... We 'll be in touch shortly with SBA.gov and is subject to extension if any new legislative amendments the. Could be subject to an audit funds used to pay for covered costs during the covered period incurred once! For mortgage interest, rent and utilities ) paid or incurred during the covered period only. Upload a completed spreadsheet into the application tool within 60 days Rule by increasing the of... Workers are eligible for the PPP Flexibility Act are in the desired outcome forms to calculate the number. S Office of Hearings and Appeals ( OHA ) a full denial decision to SBA if an reduces. Period used to refinance your EIDL loan was used for payroll costs ” for calculating the forgiveness application an... Only once eligible, how much forgiveness can you expect to receive future updates our... Payroll covered period further reduced if you do not use 60 % of the PPP Calculator! Borrowers can appeal the SBA published additional FAQs on Aug. 4, 2020 may the. President signs nearly $ 900 billion relief bill that includes new PPP, tax credits, expanded UI.... You for visiting our PPP loan forgiveness Calculator salary and the Report payroll. Note that a borrower using a 24-week covered period for either the full... Let ’ s Office of Hearings and Appeals ( OHA ) a denial.

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