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ppp loan forgiveness calculation worksheet
Commercial Real Estate
May 10, 2017
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Question: I am self-employed and have no employees, how do I calculate my maximum PPP loan amount? Keep in mind that you don’t have to report any non-eligible payroll or non-payroll costs you used the loan for. If you did, then this safe harbor may apply to … Today’s atmosphere for small businesses is a challenging one. We are happy to have worked together to create our comprehensive tool for PPP Loan Forgiveness. Self-Employed Forgiveness Calculation Steps. 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 … How to Complete the PPP Loan Forgiveness Application. The Loan Forgiveness Application Revised June 16, 2020, requires the Loan Forgiveness Calculation Form and PPP Schedule A to be submitted to the lender. PPP Loan Forgiveness Calculations Service. Because you didn’t reduce wages, your wage reduction amount is $0.00: Multiply that number ($192,000) by your FTE reduction quotient. • Determine if you qualify for EZ form or need to file the Long Form. Loan forgiveness will not be reduced if the borrower can show documentation for one of the following: 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: 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. Instructions for PPP Loan Forgiveness Calculation Form . - Please note: When considering PPP forgiveness eligibility, 1099 employees are not eligible for inclusion in small business payroll calculations for PPP loans. 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. • Begin to gather substantiation needed now. 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. Forgiveness calculation steps . Page 1: PPP Loan Forgiveness Calculation Form Business Legal Name (“Borrower”) DBA or Tradename, if applicable Enter the same business name used on your PPP application, which should be identical to the name you use on your tax returns. potential forgiveness amount under the recently passed federal CARES Act. Take a look at examples of partially and fully forgivable loans. Business Address/Business TIN (EIN, SSN)/Business Phone/Primary Contact/E-mail Address. But since our advice is to always move to the next step, in this case Loan Forgiveness, it is time to move forward. DWH staff is available for further support. 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. EMPLOYER CHECKLIST WORKSHEET PPP Eligibility + Loan Calculator WORKSHEET C: REDUCTION ON FORGIVENESS AMOUNT C Historical Period A Creating a payroll report may help verify these numbers and expedite the auditing process. PPP Loan Forgiveness Example Calculations. Refer to the SBA.gov for information about your particular situation. Because you didn’t reduce your FTEs, your quotient is 1.0: Finally, select the smallest amount between the following three options: The smallest amount is $200,000. The new 24-week limit and other changes to PPP Loans means changes in calculating payroll costs, and thus the amount of loan forgiveness. Loan forgiveness will not be reduced if the borrower can show documentation for one of the following: If you didn’t cut wages, enter $0.00 here. 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. Line 9: Simply enter the PPP loan amount you received from your lender. Add together your payroll and non-payroll costs: Now, multiply that number ($200,000) by your FTE reduction quotient. You are not eligible for the FTE safe harbor. Forgiveness Calculation: $400,000 Loan, multiplied by 95% = $380,000 (a 5% reduction in forgiveness). Expense Type: Sole Proprietor/ Independent Contractor – No Employees Sole Proprietor w/ Employees Partners in Partnerships: S Corporations C Corporations: Group Health Expenses for Owners 0: 0 0 *0 As paid or incurred during 8 or 24 weeks Group Health … In short, it’s a lot to take in. But before you can do that, you need to find your FTE reduction quotient. Demographic information form (optional) Form 3508S: PPP borrowers applying for forgiveness on PPP loans with a total loan amount of $50,000 or less: Signature/authorization form . Assign a 1.0 for employees who work 40 hours or more per week and 0.5 for employees who work fewer hours, The total cash compensation you paid your employees during the covered period (gross wages, but do not include federal income, Social Security, or Medicare taxes), Employee health insurance contributions (employer), Employee retirement plan contributions (employer), State and local taxes assessed on employee compensation, Total amount paid to owner-employees/self-employed individuals/general partners, $10,000 state and local taxes assessed on wages, $180,000 (gross compensation + health insurance contributions + state and local taxes assessed) + $0.00 (mortgage interest) + $10,000 (rent) + $2,000 (utilities) =, 12 (FTEs during covered period) / 15 (FTEs during reference period) = 0.8, [(Payroll + Non-payroll Costs) – Wage Reduction Amounts] X FTE Reduction Quotient =, Payroll Cost 60% Requirement = $300,000 ($180,000 / 0.60), $11,000 state and local taxes assessed on wages, $188,000 (payroll) + $0.00 (mortgage interest) + $10,000 (rent) + $2,000 (utilities) =, Payroll Cost 60% Requirement = ~$313,333.33 ($188,000 / 0.60). Instructions PPP forgiveness calculator - Short form 3580EZ- fillable PDF. Let’s say you received a PPP loan worth $200,000. Again, $153,600 out of your $200,000 PPP loan is forgivable. If the borrower had no reductions in the number of employees or average paid hours 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. Either you are in the midst of applying, playing the waiting game, or you recently received your PPP Loan funds. Actual eligibility and loan availability, as well as forgiveness terms may vary based on SBA regulations and guidelines once released. On June 16, the SBA revised it. The excel spreadsheet was built to help businesses manage through the SBA’s Paycheck Protection Program (PPP). Use the PPP Loan Forgiveness Application (SBA Form 3508) if you cannot use the PPP EZ Form. 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. ]PPP forgiveness calculator - Long form 3580 (revised on 6/17/20 and again on 6/19/19 to correct formula error) - Excel. & 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). Prepare for Paycheck Protection Program loan forgiveness. This will determine if you used 60% of your loan for payroll costs like the Treasury and SBA require. On May 15, the Small Business Administration published the Paycheck Protection Program Loan Forgiveness Application form. How to Complete the PPP Loan Forgiveness Application. This document is to be shared with anyone who needs a simple tool, and walk-through instructions, for calculating loan forgiveness. The loans are fully forgivable if borrowers: Failing to follow these rules reduces the forgivable portion of your PPP loan. The PPP was established by the CARES Act, replenished through the PPP and Health Care Enhancement Act, and revised via the PPP Flexibility Act. There is an additional “bail out” introduced in the PPP Flexibility Act (passed on 6/4/20). QuickBooks is working to make it easier to apply for PPP loan forgiveness. 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 11: Forgiveness … Correct decreases from either of the first or second step, respectively, as follows: The … Schedule A . Borrowers must use all three forms to calculate their loan forgiveness amount. Enter the quotient (e.g., 0.8) here. Use this article to help you learn about Form 3508. Help clients complete an SBA PPP forgiveness application with this PDF, which includes calculations and information from other, relevant application pages. 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. Out of your $200,000 PPP loan, $153,600 is forgivable. Information is provided 'as is' and solely for informational purposes, not for trading purposes or advice. Your average FTEs during the covered period were 12. PPP loan and forgiveness calculations and eligibility may vary. Q7: What do the percentages of 60% and 40% mean for purposes of PPP loan forgiveness? Employee must have been employed during the covered period and have a U.S. principal residence. First, calculate your total payroll and eligible non-payroll business costs. You didn’t cut any of your remaining employees’ wages. 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. Use the same information as on your PPP application unless … We have updated the PPP Loan Forgiveness calculator. 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. PPP Schedule A –FTE Reduction Calculation Purpose: to calculate the reduction in loan forgiveness as a result of a reduction in the number of employees or average paid hours during the covered period or alternative covered period. 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. & 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). A: Loan proceeds under the PPP may be used for certain specified non-payroll costs, including mortgage interest, rent, utility payments or interest on debt, if the respective obligations were incurred prior to February 15, 2020. But by how much? This is your forgiveness amount. All of these are in the Loan Forgiveness Application form packet. 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. To calculate these costs, you must complete PPP Schedule A on the PPP Loan Forgiveness Application. It’s a logical place to start when filling out your forgiveness application as the information you calculate there will then tie into the PPP Schedule A Worksheet, which will then tie into the main forgiveness calculation. The full amount of your PPP loan is forgivable. If your FTEs at 12/31/20 meet or exceed your FTE count at 02/15/20 then your maximum loan forgiveness amount will not be reduced. Next, you must adjust your PPP forgivable amount by any salary/hourly wage and FTE reductions you had during the covered period. 1. Fillable PPP Loan Forgiveness Application – with formulas. All Borrowers must submit (1) and (2) to their Lender. Congratulations on navigating the PPP process. 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. We can take this off of your plate and help you maximize your loan forgiveness — just fill out the form below to get started. Skip to main content. All Borrowers must submit (1) and (2) to their Lender. Only include payments on mortgage interest incurred before February 15, 2020.

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