Prepayments are not allowed. Follow the same method that was used to calculate Average FTE in the PPP Schedule A Worksheet Tables. Enter the compensation paid to yourself and your partner(s). If your funds were sent in stages, enter the first date. If you had any employees you could not hire back, their FTE can be included here. Enter Salary/Hourly Wage Reduction (Box 3) from PPP Schedule A Worksheet, Table 1: If the average annual salary or hourly wage for each employee listed on the PPP Schedule A Worksheet, Table 1 during the Covered Period or the Alternative Payroll Table 1 is for employees who make less than or equal to an annualized $100k. Enter Average FTE (Box 2) from PPP Schedule A Worksheet, Table 1: Line 3. This is your E-tran number that the SBA generated for you. Calculate the average number of hours paid per week, divide by 40, and round to the nearest tenth. Follow the same process as Table 1, but only considering employees who were paid an annualized rate of more than $100,000 for any pay period in 2019. If the result is greater than 1.0, enter 1.0. It’s finally time to submit your loan forgiveness application. You see here that there are two pools of employees. Sum across all employees and enter: . •Very Borrower Friendly. If Step 2 is less than Step 1, complete lines 11, 12, and 13. Line 1: Enter Cash Compensation (Box 1) from PPP Schedule A Worksheet, Table 1: Self-explanatory. Enter Cash Compensation (Box 1) from PPP Schedule A Worksheet, Table 1: Line 2. Instructions for PPP Schedule A Worksheet . PPP Loan Worksheet Track your expenses to maximize forgiveness on the 2nd draw of your PPP loan during the COVID-19 pandemic in 2021. … Line 1: Enter Cash Compensation (Box 1) from PPP Schedule A Worksheet, Table 1: Self-explanatory. You do not need to report any expenses you don’t want to claim for forgiveness. If you satisfy any one of the following three criteria, check the appropriate box to claim the Safe Harbor, skip lines 11 and 12, and enter 1.0 on line 13. Table 1 is for those employees earning under a $100k per year. GET FREE ACCESS TODAY We developed this tool to help you get laser-focused on your cash flow as it relates to your second draw PPP loan funds. Notes: Each Box is at the bottom of Table 1, referenced by a key. Don't worry, we’ll cover where to find these totals later in this article. PPP Schedule A Worksheet and the following: Documentation supporting the listing of each individual employee in PPP Schedule A Worksheet Table 1, including the Salary/Hourly Wage Reduction calculation, if necessary. Enter the employer-paid expenses for employee health insurance, retirement plans, and state and local taxes on payroll. For self-employed individuals, this is where you can enter your owner compensation replacement. Enter the number of actual employees, not Full-Time Equivalents (FTE). Next steps. Notice that these look a lot like the case study tables and information. 1a. Friends don’t let friends do their own bookkeeping. 1b. PPP Schedule A Worksheet • Table 1 –Lists E/E’s who were employed during Covered period AND paid < $100K annualized rate for ALL pay periods in 2019 OR were NOT employed at any point in 2019. List every single employee on your payroll during the 8-week Covered Period (or the Alternative Payroll Covered Period). Annual Salary as of 2/15/2020: This information pertains to salaried employees. This is the third component of the PPP Forgiveness Application, but should ideally be completed before the second component. Table 1. Total average FTE between February 15 and April 26. –Removes fears about salary reductions (in addition to FTE reduction) for former EE’s not paid during Covered period. Review the pay that … If you applied for and received an EIDL advance, enter this amount. Download the Forgiveness Application (PDF). Return back to page 3 (instructions below). Start with completing Table 1 for employees paid <$100K. Calculate the period starting from your disbursement date to 24 weeks (168 days) after. The number the lender has assigned to your loan in their systems. Payroll Costs (add lines 1, 4, 6, 7, 8, and 9): … The Total eligible cash compensation table (table 3) adds up the cash compensation for each employee from tables 1 and 2, and applies an annualized cap of $100,000 per employee prorated for your selected period. Includes wage information for following time periods: i. Further reading: How to Calculate FTE for the PPP. •Separates into five pieces; 1 and 2 must be submitted to Lender: 1. Similarly, for line 5 and lines 11-13, it's easier to skip these for now. Borrowers must use all three forms to calculate their loan forgiveness amount. Do not include any independent contractors, owner-employees, self-employed individuals, or partners. Page 9: PPP Schedule A Worksheet. Multiply the calculated difference by the average number of hours worked per week between January 1 and March 31. The application and instructions are the first detailed guidance from the SBA and … Application instructions (pp 1 & 2) 2. Table 1 can be found on page four of the application. Now we can proceed to Schedule A on page 6. This is the final amount of eligible forgivable expenses, accounting for any reductions due to not meeting the FTE or pay requirement. Step 1. You should be able to see this in your bank records or in your online banking portal. This is where you calculate if you’ve met the forgiveness requirements for maintaining pay. When it comes to PPP forgiveness calculation, you need the PPP Schedule A Worksheet, PPP Schedule A, and PPP Loan Forgiveness Calculation Form (in that order). The employee’s compensation over your Covered Period, which includes: Each individual’s compensation cannot exceed an annualized salary of $100,000. Multiply by 24 to get the full 24-week equivalent (multiply by 8 if you are using an 8-week Covered Period). If you have multiple businesses and multiple PPP loans, you will have more than one E-tran number. Schedule A (p 6) 1. For loan amounts less than $50,000, you can use the new Form 3508S released on October 8. There are 3 Parts of the PPP Schedule A Worksheet: 20. Calculate the following FTEs. Enter 0. Your completed data from Table 1 then goes into this section on each of the lines specified. Here you will find the PPP Schedule A worksheet. 1. Schedule A instructions (p 5) 3. This amount may not be included in PPP Schedule A Worksheet, Table 1 or 2. For the official application instructions, download the SBA’s guide (PDF). Enter this amount. If you received your PPP loan before June 5, 2020 you can use an eight-week (56-day) period. Then complete Table 2 for employees paid >$100K in 2019 Finally, complete steps 1 -5 of the FTE Reduction Safe Harbor Table Instructions Employee’s Name: Separately list each employee. The full loan amount you received. Each person should consult his or her own attorney, business advisor, or tax advisor with respect to matters referenced in this post. We’ll do the required calculations later on. For each employee, complete the following steps: Compare the employee’s pay during the covered period (or alternative payroll period) to the pay between January 1 to March 31. Do not include anyone who does not live in the US, any independent contractors, yourself, or your partners. The day the funds arrived in your bank account. Record on Step 2. Generally payments ranged from $1,000 to $10,000, in increments of $1,000. Lines 1 through 5: Enter the amounts from PPP Schedule A Worksheet Tables as directed. What Can I Do? No reduction in employees or average paid hours, You did not reduce the number of employees or the average number of paid hours of your employees between January 1 and the end of your Covered Period. �.�����/���u��3���@�8�o�sX��|݆|���:P.�������m�7�د�S.Gcr��#�9���~þy��vPx9Z��h������� ��(#�n�_���c_�8K�z� |�7Q8p��0N�Z�/���-������y�k�vS�����ʵl'ۮ�%AۈLM��z�/��W�q���4:�Si� 7J�aC� List every single employee on your payroll during the Covered Period (or the Alternative Payroll Covered Period). Schedule A worksheet instructions (pp 7-8) 4. No pressure, no credit card required. Select the frequency of payroll being paid to employees. Sign up for a trial of Bench. Partnerships (or in general, if any other individuals were compensated as an owner), include a separate table that lists how the compensation was paid out (names and amounts). The employee meets the Safe Harbor requirements if these two conditions apply: The average annual salary or hourly wage on June 30 is equal to or greater than the average annual salary or hourly wage on February 15, The average annual salary or hourly wage between February 15 and April 26 was lower than it was on February 15. 03 Definitions 07 Step 1: Documentation 10 Step 2: PPP Schedule A Worksheet 12 Step 3: PPP Schedule A 15 Step 4: PPP Loan Forgiveness Calculation Form 18 Calculations Table of Contents PPP FORGIVENESS This information is for illustrative purposes only and is not intended to provide specific planning, financial, legal, or other types of advice Enter the 24-week equivalent of the difference in salary by multiplying by 24/52 (use 8/52 if you are using an 8-week Covered Period). Take the total amounts you entered on this column of Table 1, but only Table 1 … You can start your covered period for payroll on the day of your first pay period. Self-employed individuals without payroll can skip lines 1 through 8. Make the required representations and certifications and sign. The Covered Period can’t go past December 31, 2020. Between February 15 and the end of your Covered Period, you were unable to operate at the same level of business activity as before February 15 because you were in compliance with health guidelines or requirements set out by government health agencies (the Secretary of Health and Human Servies, the Director of the Centers for Disease Control and Prevention, or the Occupational Safety and Health Administration). Those employees are to be listed on Table 2. But it’s not the simplest form to fill out. From the worksheet, the sum of Box 2 and 5. How to Use The PPP Loan and EIDL Together, Complete basic company information on the main Loan Forgiveness Calculation form, Complete Schedule A Worksheet to see if you meet the headcount and pay requirements, Complete Schedule A to find your payroll and compensation costs, Complete the rest of the Loan Forgiveness Calculation Form to determine your total eligible costs and our forgiveness amount, paid leave (vacation, family, medical or sick leave, not including leave covered by the Families First Coronavirus Response Act), allowances for dismissal or separation paid or incurred during the Covered Period or the Alternative Payroll Covered Period. Here’s how to fill out the simplified SBA Form 3508EZ. Enter Average FTE (Box 2) from PPP Schedule A Worksheet, Table 1: Line 3. PPP Schedule A Worksheet, Table 1 Totals The first part of Schedule A, titled “Table 1 Totals,” accounts for how much you paid your employees out of the entirety of your PPP loan amount. Congratulations, you’ve completed Schedule A! Refer back to the FTE Reduction Safe Harbor section on the Schedule A Worksheet. PPP Schedule A Worksheet or its equivalent and the following: a. You can find this on your signed loan docs. �bX9��brP'繈�s���Z�K���YB��=Γi'%z�N�_�ǰ�x��qG�z�˥@��}��-b{L�[ Enter the amount from line 3 of PPP Schedule A on line 5 of the Loan Forgiveness Application Form. Enter the smallest of lines 8, 9, and 10. All of these are in the Loan Forgiveness Application form packet. If you don’t know where to find this number, speak to your lender—they’ll have it on file. For lines 2 and 3, you’ll need the Average FTE (Box 2) and the Salary/Hourly Wage Reduction (Box 3) from PPP Schedule A Worksheet, Table 1. Also do not include anyone who received an annualized pay rate of more than $100,000 in 2019. If you can’t find it, your lender will be able to provide it for you. This applies to you if you run payroll on a biweekly or more frequent basis. Otherwise, if Step 4 is greater than Step 2, check the box and enter 1.0 on line 13. You’ll need to complete Schedule A first to get the figures you need, which we’ll find by starting on the Schedule A Worksheet first. If pay decreased by less than 25%, enter 0. My PPP Loan is the Wrong Amount. Last 4 digits of SSN (Social Security Number). Now that that’s done, we can move on to page 4. Self-employed individuals without payroll can ignore the worksheet, and proceed to Schedule A on page 6. Next, we will discuss where we information to complete this worksheet. If all your employees were paid at least 75% of their original pay (between January 1 and March 31), check the box and enter 0. Enter the sum of interest payments on any business mortgages that were in effect before February 15, 2020. They can be included if the position was not filled by a new employee and they meet one of the following conditions: The employee rejected your good-faith, written offer to rehire them at the same pay rate/hours as before, They voluntarily requested and received a reduction of their hours. On May 18, the SBA released the official form you’ll need to fill out in order to apply for forgiveness on your PPP loan, also known as SBA Form 3508. If you decide to use this period, you must use it for all parts of the application that call for it (no picking and choosing). PPP Schedule A Worksheet has Table 1 and Table 2 which asks for employee name, employee identifier, cash compensation, average FTE, and salary/hourly wage reduction. }�b�/���X7�r�DK�D����ڐ�6��6إ/P&̗�,����ڻU�7*�||.P��&h�‚s_T���|W5����_v��'�/������䔘kz�_F6��G;�]>�yN�^p�9. Page 1: PPP Loan Forgiveness Calculation Form, Finishing Page 3: PPP Loan Forgiveness Calculation Form, how to fill out the simplified SBA Form 3508EZ, Self-Employed Guide to the PPP Forgiveness Application (SBA Form 3508EZ). g�7.ԭ^��Dg�N��r��ɝ;����FKL�v_\��N �]���zm��������I�cܨ�Q=��z"J\� �f/��� �z'�ڝ`s����߱B݂�e. Your lender should not have charged fees or otherwise taken any amount away. Share this article. PPP Schedule A Worksheet together with: Documentation supporting the listing of each individual employee in PPP Schedule A Worksheet Tables 1 … Total Payroll Costs Line 10. You do not need to report any expenses you don’t want to claim for forgiveness. Record on Step 1, Total FTE in your pay period that includes February 15. If this has changed since 2019, select the frequency you were using during the 8 or 24-week forgiveness period. Purposes only and does not live in the PPP Schedule A on page 6 8-week! 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