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Ppp loan forgiveness calculator4/15/2024 ![]() ![]() ![]() This blog post attempts to synthesize the complicated PPP loan forgiveness calculation, but we also must warn readers and small business owners of two huge things. ![]() Updated J(SBA released the EZ PPP Loan Forgiveness Application which streamlines the forgiveness application… detailed in our EZ PPP Loan Forgiveness Application blog post.)Īs part of the CARES Act due to this COVID-19 nonsense, the SBA handed out about $600 billion in Paycheck Protection Program (PPP) loans which also contained an amazing forgiveness component. Updated J(House and Senate pass the PPP Flex Act which changes 8 weeks to 24, 75% payroll to 60%, and 2 years for payback to 5 years… we’ll adjust our verbiage below accordingly.) Updated (Treasury releases PPP Loan Forgiveness Application recently and solved a bunch on unknowns, but also required us to change our template and this blog post a ton… frankly we and others were over-complicating it) Unemployment insurance tax filings reported.Updated (SBA says loans under $2M are safe harbor on need for funds) Payroll tax forms (typically IRS Form 941) showing employee wages, tips and other compensation. Copy of lender amortization schedule and receipts or cancelled checks verifying eligible payments from the Covered Period or lender account statements from February 2020 and the months of the Covered Period through one month after the end of the Covered Period verifying interest amounts and eligible payments.ĭocuments supporting the average number of FTE employees (not required if you don’t have employees) during the Covered Period or Alternative Payroll Covered Period and reference period. Copy of current lease agreement and receipts or cancelled checks verifying eligible payments from the Covered Period or lessor account statements from February 2020 and from the Covered Period through one month after the end of the Covered Period verifying eligible payments. Copy of invoices from February 2020 and those paid during the Covered Period and receipts, cancelled checks, or account statements verifying those eligible payments. Verifying the existence of the obligations/services prior to Februand eligible payments from the Covered Period. Cancelled checks or bank statements documenting employer contributions to health insurance and retirement plans Payroll tax forms (typically IRS Form 941) showing employee wages, tips, and other compensation Bank statements or third-party payroll provider reports noting cash compensation paid to employees Verifying the eligible cash compensation and non-cash benefits payments from the Covered Period or the Alternative Payroll Covered Period. You then restored your FTE employee levels by not later than Decemto your FTE employee levels in the pay period that included February 15, 2020. You reduced your FTE employee levels in the period beginning February 15, 2020, and ending ApAND If in good faith, you are able to document that you were unable to operate between February 15, 2020, and the end of the Covered Period at the same level of business activity as before February 15, 2020, due to compliance with requirements established or guidance issued between Maand December 31, 2020, by the Secretary of Health and Human Services, the Director of the Centers for Disease Control and Prevention, or the Occupational Safety and Health Administration, related to the maintenance of standards for sanitation, social distancing, or any other worker or customer safety requirement related to COVID-19. If you meet one of these two rules, then you may be exempt from any loan forgiveness reduction based on a reduction in your FTE employee levels: Business activity reductions could have resulted directly or indirectly from compliance with COVID Requirements or Guidance from federal, state or local government shutdown orders that prohibited you from maintaining the same Full Time Equivalency (FTE) employee levels.
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