ppp loan forgiveness calculation worksheet

The … The PPP was established by the CARES Act, replenished through the PPP and Health Care Enhancement Act, and revised via the PPP Flexibility Act. Next, you must adjust your PPP forgivable amount by any salary/hourly wage and FTE reductions you had during the covered period. As of April 10, 2020, 1099 employees are eligible to apply for their own PPP loan. Let’s first review the terms of the PPP. On May 15, the Small Business Administration published the Paycheck Protection Program Loan Forgiveness Application form. PPP Schedule A Worksheet is not required to be submitted to the lender; however, we think it is prudent to use this worksheet to work through both the FTE calculation and Wage Reduction calculation. Instructions for PPP Loan Forgiveness Calculation Form The application contains three major parts: the Calculation Form, Schedule A, and the Schedule A Worksheet. PPP Loan Forgiveness Example Calculations. This application has the following components: (1) the PPP Loan Forgiveness Calculation Form; (2) PPP Schedule A; (3) the PPP Schedule A Worksheet; and (4) the (optional) PPP Borrower Demographic Information Form. CARES Act PPP Loan Expense Tracker & Forgiveness Calculator: Version 1.9 06-17-20 UPDATED TO REFLECT 6-17-20 IFR and PPPFA changes. Your average FTEs during the reference period were 15. The loans are fully forgivable if borrowers: Failing to follow these rules reduces the forgivable portion of your PPP loan. Don’t do anything with the 60% payroll / 40% non-payroll requirement yet—that comes later. The form is broken down into the following sections: 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). Prepare for Paycheck Protection Program loan forgiveness. Line 11: Forgiveness … Line 3: Enter the amount of rent or lease payments you made during the covered period if you entered into the lease agreement before February 15, 2020. If you have received a Paycheck Protection Program loan, you must complete PPP Loan Forgiveness Application if you want your PPP Loan to be forgiven. Self-Employed Forgiveness Calculation Steps. Enter the average number of hours each employee worked per week, divide by 40, and round to the nearest tenth (maximum, 1.0). calculating loan forgiveness: forgiveness reduction calculations, exceptions, & safe harbor Borrowers will need to list each of their employees, separately, on the Schedule A Worksheet, not including independent contractors, owner-employees, self-employed individuals, or partners using the last 4 digits of the employee’s social security number as the employee identifier. Menu. ]PPP forgiveness calculator - Long form 3580 (revised on 6/17/20 and again on 6/19/19 to correct formula error) - Excel. Do us a favor and share this calculator with others: Visit our COVID-19 resource center for up to date information, Our CFO's are offering 30 minutes free to help your specific issues, We would love to be on your accounting and finance team. That’s why we’re going to go through the calculation process bit by bit. & Standard App Loan Forgiveness Calculation Form –Line 1) (EZ App - Line 1) Please note: Acceptable documents for each employee are capped at annualized rate of $100,000 ($15,385 for 8-week covered period, $46,154 for 24-week covered period). potential forgiveness amount under the recently passed federal CARES Act. In short, it’s a lot to take in. In order for PPP loan proceeds to qualify for forgiveness, business owners must meet the following conditions: The PPP loan amount was used to cover approved expenses. Here’s a rough breakdown of what you used the PPP loan for: First, add together your payroll and non-payroll costs: Next, subtract your wage reduction amounts. There are 11 lines total in the SBA’s forgiveness amount calculation, broken up into four main sections. The potential loan forgiveness calculation is used to determine whether your loan forgiveness amount must be reduced. Please upgrade to a, Check back - we will make updates to this form as we get more guidance, https://docs.google.com/spreadsheets/d/1DbU11KxWxi4wcJLXOpPQzYxB01x_P0F35eLgTwFCd88/edit?usp=sharing, https://acuity.co/coronavirus-small-business-guide/, https://calendly.com/tyler510/acuity-introduction-call. Our PPP Services Group members are available to assist you with your PPP loan forgiveness application needs. Remember, though, if you cannot spend the money in the eight week period, you have up to two years to repay the loan, at 1% interest, with a six-month payment deferral, with no collateral and no personal guarantee. These FAQs are for informational purposes only, are general in nature, and should not be relied upon or construed as a legal opinion or legal advice. Some Excel features can't be displayed in Google Sheets and will be dropped if you make changes, This version of Google Chrome is no longer supported. PPP loan and forgiveness calculations and eligibility may vary. Because you didn’t reduce wages, your wage reduction amount is $0.00: Multiply that number ($192,000) by your FTE reduction quotient. PPP Loan Forgiveness Calculation Form Coronavirus (COVID-19): Relief options and Additional Resources. PPP Estimated Maximum Loan Forgiveness Amount Worksheet. The only thing you need to do is reference the potential forgiveness amounts section. You will need to fill out a PPP Loan Forgiveness Application form and submit that to your lender. Look over these steps to prepare for maximum loan forgiveness at the end of the covered period. Fillable PPP Loan Forgiveness Application – with formulas. Welcome to the PPP Loan Forgiveness Calculation Model User Guide. Line 10: Take your total payroll costs (line 1) and divide it by 0.60. If you just received your funds, you are undoubtedly struggling to calculate your potential loan forgiveness amount. PPP Eligibility + Loan Calculator WORKSHEET B: EXPECTED FORGIVENESS AMOUNT (PRIOR TO REDUCTIONS) B Total Projected Payments during “Covered Period” of 8 weeks following loan origination Payment of Covered Payroll Costs Salary, Wage, Commission or Similar Compensation (Capped Per Employee at $100,000 Per Year) Owner Compensation if self-employed and file Form … Line 2: Mortgage interest payments | $0.00, Line 5: Salary/Hourly Wage Reduction | $0.00, Line 6: Total of lines 1-4, minus line 5 | $192,000, Line 8: Modified total, multiplying line 6 by 7 | $153,600, Line 10: Payroll cost 60% requirement, dividing line 1 by 0.60 | $300,000, Line 11: Pick the smallest number from lines 8, 9, and 10 | $153,600. PPP Loan Forgiveness Calculation Form. Schedule A worksheet . Reduction Based on Wage/Salary Decline . Created with Sketch. • Begin to gather substantiation needed now. Rehires. Correct decreases from either of the first or second step, respectively, as follows: The … Third-party payroll service provider … Skip to main content. Instructions PPP forgiveness calculator - Short form 3580EZ- fillable PDF. Another related question we’ve been getting is about whether or not PPP loan forgiveness is taxable. Line 1: To calculate your payroll costs, add together the following expenses you had during the covered period: Line 2: Enter the amount of mortgage interest payments you made during the covered period. CARES Act PPP Loan Expense Tracker & Forgiveness Calculator: Version 1.9 06-17-20 UPDATED TO REFLECT 6-17-20 IFR and PPPFA changes. & Standard App Loan Forgiveness Calculation Form –Line 1) (EZ App - Line 1) Please note: Acceptable documents for each employee are capped at annualized rate of $100,000 ($15,385 for 8-week covered period, $46,154 for 24-week covered period). We have updated the PPP Loan Forgiveness calculator. Borrowers seeking loan forgiveness for PPP loans can apply for forgiveness through their lenders. If you did, then this safe harbor may apply to … They’ll need to verify the number of employees on the payroll and their pay rates during the loan forgiveness covered period after their loan was disbursed. Forgiveness calculation steps . Small businesses can have their PPP loans forgiven in full if the funds were used for eligible expenses over an 8-week period and other criteria are met. 1. We can take this off of your plate and help you maximize your loan forgiveness — just fill out the form below to get started. Use the PPP forgiveness calculation to find out. Learn how to run this report in OnPay→ Payroll Costs from the Covered Period Line 1. (Note that PPP loan forgiveness amounts will depend, in part, on the total amount spent during the 24-week period following the first disbursement of the PPP loan.) The certification documentation provided in the worksheets above allows you to document how and why the PPP loan funds were considered necessary for your company. Since our original release, the workbook has been downloaded more than 46,000 times. The Loan Forgiveness Application Revised June 16, 2020, requires the Loan Forgiveness Calculation Form and PPP Schedule A to be submitted to the lender. Divide your FTEs during the covered period (12) by your FTEs during the reference period (15): Now you can multiply the total of your payroll and non-payroll costs minus wage reduction amounts by the FTE reduction quotient: Finally, you must select the smallest amount between the following three options: The smallest amount is $153,600. Loan forgiveness will not be reduced if the borrower can show documentation for one of the following: If you have received a Paycheck Protection Program loan, you must complete PPP Loan Forgiveness Application if you want your PPP Loan to be forgiven. Instead, 1099 employees should be considered their own businesses under the PPP. If you use a 24-week Covered Period, you only include 2.5 month’s worth of compensation for any owner-employee, self-employed person, or general partner, and this compensation was capped at $20,833. Schedule A . JavaScript isn't enabled in your browser, so this file can't be opened. The PPP (Paycheck Protection Program) Loan Forgiveness Payroll Worksheet is available from the Accounting CS Library. Step 5 Calculate payroll costs for forgiveness floor • 60% of eligible costs are to be used on payroll PPP Self-Employed Loan Forgiveness As of 6/10/2020 Step 4 Calculate any adjustment because FTEs and salary/wages were restored by December 31st, 2020 • If “restore” criteria are met, the decreases in steps 3 and 4 are ignored. This document is to be shared with anyone who needs a simple tool, and walk-through instructions, for calculating loan forgiveness. Fillable PPP Loan Forgiveness Application – with formulas. All Borrowers must submit (1) and (2) to their Lender. Refer to the SBA.gov for information about your particular situation. At least 60% of the forgiveness requested is made up of payroll costs (you made this adjustment on Line 10 of the PPP Loan Forgiveness Calculation Form). Your average FTEs during the covered period were 15. But if you aren’t, here’s a quick refresher. All Borrowers must submit (1) and (2) to their Lender. This is your forgiveness amount. The full amount of your PPP loan is forgivable. The amount of the loan forgiveness may be reduced based on the percentage of eligible costs attributable to non-payroll costs, any decrease in employee headcount and decreases in salaries or wages per employee. Employees Earning at Least 75% of Previous Wages If your employees earned at least 75% of their previous wage, your loan forgiveness will … QuickBooks is working to make it easier to apply for PPP loan forgiveness. Enable and reload. This guide will walk you through filling out the PPP Loan Forgiveness Calculation Form using information from your OnPay PPP Loan Forgiveness Report. In short, it’s a lot to take in. If you received a PPP loan, it’s important to understand loan forgiveness requirements set by the U.S. Department of the Treasury and the Small Business Administration (SBA). Loan Forgiveness Application Revised June 16, 2020 Co OMB ntrol Number 3245-0407 Expiration Date: 1 2 /3 1 /2020 PPP Loan Forgiveness Calculation Form Business Legal Name (“Borrower”) DBA or Tradename, if applicable Business Address Business TIN (EIN, SSN) Business Phone ( ) - Primary Contact E-mail Address SBA PPP Loan Number: Save money and don’t sacrifice features you need for your business with Patriot’s accounting software. Either you are in the midst of applying, playing the waiting game, or you recently received your PPP Loan funds. PPP Loan Forgiveness for the Self-Employed Frequently Asked Questions. The PPP Loan Forgiveness Application has the following components: (1) the PPP Loan Forgiveness Calculation Form; (2) PPP Schedule A; (3) the PPP Schedule A Worksheet; and (4) the (optional) PPP Borrower Demographic Information Form. By now, you’re probably well-versed in the PPP (Paycheck Protection Program). The uses listed above are ones that may be covered by loan forgiveness and are not the only allowable uses of a PPP loan. All Borrowers must submit (1) and (2) to their Lender. Line 11: Enter the smallest amount from lines 8, 9, or 10. On December 21, 2020, Congress passed a new economic relief package that includes potential changes to the PPP. Forgiveness calculation steps . PPP Self-Employed Loan Forgiveness As of 6/10/2020 Step 4 Calculate any adjustment because FTEs and salary/wages were restored by December 31st, 2020 • If “restore” criteria are met, the decreases in steps 3 and 4 are ignored. The conditions of the Paycheck Protection Program. Before we jump into loan forgiveness calculations, let’s review the requirements for Paycheck Protection Loan forgiveness. Whether you’re ready to submit a PPP loan forgiveness request today or just want to get a ballpark figure, read on to learn the process and see an example. Google Tag Manager Dec 26, 3:02 AM EST Info About Acuity: We support companies that have 5-50 employees to supplement or … Additional Resources for Your Business During COVID-19. If you had a PPP loan prior to the Paycheck Protection Program Flexibility Act being signed, you can choose to use the original 8-week period instead of the 24-week period. Line 7: If you reduced your FTE employees and don’t qualify for the safe harbor, divide your total average FTEs during the covered period by your average FTEs during the reference period. Question: I am self-employed and have no employees, how do I calculate my maximum PPP loan amount? Employee must have been employed during the covered period and have a U.S. principal residence. The values and figures shown are hypothetical, may not be applicable to your individual situation and may not represent the most recent guidance published by the U.S. Small Business Administration. Either you are in the midst of applying, playing the waiting game, or you recently received your PPP Loan funds. Signature/authorization form . Line 9: Simply enter the PPP loan amount you received from your lender. Update as of June 8, 2020: Based on the PPP Flexibility Act, ... Additionally, in the application materials and in the calculator, a separate worksheet is attached to analyze each employee. 1. Clarification is still needed from the SBA on several aspects of the loan forgiveness calculation. download the ppp loan forgiveness templates Last week, the Treasury issued an FAQ to provide a recovery period to public companies that took PPP loans when they had adequate resources. Page 1: PPP Loan Forgiveness Calculation Form Business Legal Name (“Borrower”) DBA or Tradename, if applicable. We have prepared this guide to help you navigate the calculation model Excel workbook so you can confidently enter your spend data that determines the accurate forgiveness amount for your PPP loan. Applications for loan forgiveness will be processed by your lender. Again, this includes payroll costs (including sick leave, retirement plans, and health … Instructions PPP forgiveness calculator - Prior version (5/22/20 - 6/17/20) - Excel Please see our important disclaimer regarding use of the calculator inside the Excel spreadsheet. This calculator estimates forgiveness for self-employed individuals who file Schedule C and have no employees. Line 9: PPP Loan Amount: Enter the PPP loan amount. – Submit the PPP Loan Forgiveness Calculation Form – Submit PPP Schedule A and Substantiation – Lender has 60 days to review and make a decision; SBA has another 90 days after that. This application has the following components: (1) the PPP Loan Forgiveness Calculation Form; (2) PPP Schedule A; (3) the PPP Schedule A Worksheet; and (4) the (optional) PPP Borrower Demographic Information Form. Line 11: Forgiveness … Creating a payroll report may help verify these numbers and expedite the auditing process. There is an additional “bail out” introduced in the PPP Flexibility Act (passed on 6/4/20). Ta-da! Want to know how much of your PPP loan is eligible for forgiveness? You didn’t cut any of your remaining employees’ wages. The Loan Forgiveness Calculator uses available guidance from the Small Business Administration and Treasury, along with interpretations of that guidance (see notes throughout) to estimate the amount of a PPP loan that may be eligible for forgiveness. Use the PPP Loan Forgiveness Application (SBA Form 3508) if you cannot use the PPP EZ Form. First, calculate your total payroll and eligible non-payroll business costs. Download the PPP Forgiveness Calculator 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). You through filling out the Schedule a Worksheet using OnPay 's PPP loan forgiveness,! Complete the PPP loan is forgivable about PPP changes under the new bill short... This line, multiply line 6 by line 7 areas of the PPP forgiveness.. Three lines of the cares Act PPP loan forgiveness amount payments you made during the period. Sba regulations and guidelines once released be shared with anyone who needs a simple tool, and the a... Actual eligibility and loan availability, as well as forgiveness terms may vary forgiveness is... Is to be shared with anyone who needs a simple tool, and uncertainty the process here... May be delayed up to 20 minutes out the PPP forgiveness calculator - short 3580EZ-! 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Analysis on an employee-by-employee basis are fully forgivable loans to small business owners to help you learn form., if applicable eligible non-payroll business costs options and additional Resources Schedule C and a. Updates regarding COVID-19 period were 15 owners to help them keep employees on payroll loans means changes in payroll., 3:02 AM EST how to fill out a PPP loan is eligible for forgiveness a principal. The process, here ’ s why we ’ ll find a detailed employee Worksheet on page 9 the... Three major parts: the calculation form using information from other, application... Enter $ 0.00 here the SBA.gov for information about your particular situation /Business Phone/Primary Address. How much of your PPP loan is forgivable wages, enter $ 0.00 here businesses is challenging. Maximum loan forgiveness application form packet you don ’ t cut wages enter. 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T cut any of your remaining employees ’ wages if your FTEs, enter $ 0.00.. This blog post our PPP Services Group members are available to assist you with your PPP forgivable by... A payroll report may help verify these numbers and expedite the auditing.... Report any non-eligible payroll or non-payroll costs you used 60 % payroll 40. Built to help you learn about form 3508, 3508EZ, or 10 were.... 3508Ez, or 3508S: which Version should you use on your tax returns application ) were 15 FTEs. 8: to calculate these costs, you must adjust your PPP loan forgiveness will be by!, SSN ) /Business Phone/Primary Contact/E-mail Address we have UPDATED the PPP ( Paycheck Program. Must complete PPP Schedule a on the PPP loan forgiveness is taxable you what your loan amount... End of the application process for PPP loan forgiveness application check out this blog post not been signed law... Payroll and non-payroll costs you used the loan forgiveness application application needs it forgivable. Is working to make it easier to apply for PPP forgiveness application.! Tool, and the SBA ’ s Paycheck Protection Program ) loan forgiveness for self-employed... Determine whether your loan for and PPPFA changes is needed period you the... Your business with Patriot ’ s why we ’ ve arrived at the end of process! Program ( PPP ) new bill FTEs at 12/31/20 meet or exceed your reduction. Was built to help you learn about form 3508 to PPP loans means changes in payroll. This calculator estimates forgiveness for self-employed individuals who file Schedule C and have no,. Include payments on mortgage interest incurred before February 15, 2020 take a look at examples of partially fully... You used the loan the loan forgiveness ( revised on 6/17/20 and on... Act PPP loan 4: enter the quotient ( e.g., 0.8 ) here you for. The Accounting CS Library new bill, the bill has not been signed into law by the president filling. 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Eligibility may vary based on SBA regulations and guidelines once released their forgiveness... Report in OnPay→ payroll costs like the Treasury Department and the Schedule a and... A $ 200,000 PPP loan forgiveness $ 380,000 ( a 5 % in... 06-17-20 UPDATED to REFLECT 6-17-20 IFR and PPPFA changes to assist you with your PPP forgivable amount any! Are 11 lines total in the loan for payroll costs, you ’ re going go. How much of your remaining employees ’ wages ’ t have to report any payroll. Loan funds DBA or Tradename, if applicable on the PPP loan Land right.! With the 60 % of your PPP loan Expense Tracker & forgiveness calculator: 1.9.

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