There are two main areas that we focus on in the calculator: The forgiveness percentage which is based on number of employees you still have at the end of the period Qualified costs – we dig in line by line on each allowable cost. We’re getting asked a few questions from those who’ve been lucky enough to get the PPP loans, so we wanted to make sure you can plan accordingly. , the calculator will help with both data collection and your calculations. 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. For example, if you did reductions in salaries versus terminations, or if you have seasonal employees, you’ve got to do some extra work on the next page after we’ve gotten to the forgiveness percentage. Download the 8-Week Full Time Equivalent (FTE) Calculator. In short, it’s a lot to take in. We have to get to the next steps. And I have more time to work on selling dresses!!! We’ve documented that for you so you understand what that is and then if you get stuck, you can just email us with questions on the forgiveness tab. The share of PPP2 funding going to small businesses in rural areas is up nearly 30 percent from PPP1. 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 first step to calculating loan forgiveness for your employees is to determine their full-time equivalency, as you’ll need to prove that you maintained the same number of full-time equivalents during the eight-week time period following loan origination as you maintained before the COVID-19 crisis hit. Are self-employed and have no employees; OR, Did not reduce the salaries or wages of their employees by more than 25%, and did not reduce the number or hours of their employees; OR, Experienced reductions in business activity as a result of health directives related to COVID-19, and did not reduce the salaries or wages of their employees by more than 25%, applies to you, our calculator will serve more as a central place for data collection and less as a calculator thanks to some of the new rules passed in June. If you’re ready to start: Download a blank version of SBA.com®’s Loan Forgiveness Calculator here. to build on these efforts, one of which is a specific window for small business applications, better guaranteeing that funding doesn’t run out again. Our days are very busy serving our clients and managing internal operations. Download the Information Checklist to Apply for PPP Loan Forgiveness. The American Institute of CPAs (AICPA) has created a loan forgiveness calculator (excel spreadsheet download) for the Paycheck Protection Program (PPP) to help resolve outstanding issues with the process.. Example – If you are a sole proprietor with no employees who received a PPP loan for $20,833, that amount represented compensation to you. Your average FTEs during the reference period (aka, what you entered on your application) were 15. We are not responsible for any errors or omissions resulting from incorrect information, assumptions, or interpretation of SBA PPP Guidance. The goal is to even the playing field for firms that make up most of the small business community  – 98% of small businesses employ fewer than 20 people but have only received 45% of PPP funding thus far, according to the SBA. Why? Now, we’ll need to work on the qualified costs, which we’ve split into several categories as defined by the SBA: payroll-related owner compensation replacement, mortgage interest, rent, and utilities. PPP Loan Forgiveness Example Calculations. https://future.aicpa.org/.../ppp-loan-forgiveness-calculator-excel You’ll see we’ve included a source that explains that, but you do have to back it out for the non-prorated period. All Rights Reserved | 3423 Piedmont Rd NE, Atlanta, GA 30305 | Privacy Policy | Terms of Use. Again, $153,600 out of your $200,000 PPP loan is forgivable. Why? PPP LOAN FORGIVENESS DOCUMENTS REQUEST FORM, HOW TO FILL OUT YOUR PPP LOAN FORGIVENESS APPLICATION. Clinic … We can’t get caught up in that though. 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. To download SBA.com®’s Loan Forgiveness Calculator, you will need Microsoft Excel or similar spreadsheet program that is able to open.XLSX files. Please note that this blog and the 24-week PPP loan forgiveness templates are based on laws effective in August 2020 and may not contain later amendments. Our company has utilized PFCU Payroll Service since 2010 and have been extremely happy since Day One. Kerry was very much on top of his game. What is the Research and Development Tax Credit (R&D Tax Credit) & Who Qualifies? 98% of small businesses employ fewer than 20 people but have only received 45% of PPP funding thus far, according to the SBA. Your average FTEs during the reference period were 15. Next, you can skip the mortgage interest tab if you don’t own the building you’re in. Simplifi Payroll and HR went out of their way to make sure the employee got his money less than a few hours later. We’ve wanted to let you know that, at this time, we’re offering free 30 minutes with any of our CFOs to talk through your circumstances or chat about anything you need right now during this crazy time. Joe Pintimalli has been instrumental in keeping our payroll compliant and our costs low. Even the name interim final rule suggests that the Treasury is building the plane while we are flying in it. We outsource the accounting function for hundreds of companies, and we’ve been working a lot lately on helping people through the payroll protection program. You didn’t cut any of your remaining employees’ wages. . Even the name interim final rule suggests that the Treasury is building the plane while we are flying in it. "We have had an overwhelmingly positive experience in our relationship with Philadelphia Federal Credit Union Payroll Service. We’ll just stick with a quick calculation for this example. Second Draw Loan Overview from the SBA As of 1/8. If you have additional questions, feel free to reach out to us at [email protected], or schedule a free 30-minute session with one of our CFOs. Calculate PPP Loan Forgiveness under the SBA Paycheck Protection Program - CARES ACT. That’s why we prefer to leave all that burden on Simplifi Payroll & HR while we concentrate on making great food! The first thing you should do is to get a sense of the forgiveness calculation itself, even though there’s likely going to be diversity practice with the banks. The Biden Administration has made strides to deliver equitable relief to small businesses with the Paycheck Protection Program in 2021. You are not eligible for the FTE safe harbor. We can take this off of your plate and help you maximize your loan forgiveness — just fill out the form below to get started. We’ve previously shared Paycheck Protection Program (PPP) Loan fund tracking spreadsheets for the eight-week covered period. You can also include any owner compensation in there. PPP1 funding left behind many small and minority-owned businesses in 2020, but now, PPP2 funding will better serve entrepreneurs and startups. Don’t forget your payroll-related expenses — things like health expenses, retirement contribution, and state taxes — that also qualify. Forgiveness Update. There are a couple of “gotchas” here, so we’ve included some notes on this as there are additional things you’ll need to consider. SBA PPP Loan Forgiveness Spreadsheet. Likewise the spreadsheet sums all non-payroll costs and calculates the percent of total PPP loan. Slide deck: How Nonprofits Can Navigate the Forgiveness Process & Application (PPP 402) (pdf) Updated 2/10. Our PPP Calculator… They made me a customer for life that day. PPP Loan Forgiveness Calculator. You can read more about this announcement here. We can’t get caught up in that though. The latest round of PPP loan applications closes on March 31, 2021. Some applicants, including self employed and sole proprietors, may now use gross income to calculate their loan amount using new simplified SBA forms 2483-C and 2483SD-C. To use these forms, check the “Schedule C Filer” box during your application process on the Union Bank PPP portal. We have updated the PPP Loan Forgiveness calculator. Please read the instructions in the worksheet which indicate how to use the resource as intended. Out of your $200,000 PPP loan, $153,600 is forgivable. The full amount of your PPP loan is forgivable. Managing Your Loan & Forgiveness Guidance. In the event of any discrepancies between the information on this site and the SBA’s site, please follow official SBA guidance. However, if you need to file the. Borrowers must use all three forms to calculate their loan forgiveness amount. We put together a free PPP Forgiveness Calculator to help with the documentation requirements we are expecting. Another related question we’ve been getting is about whether or not PPP loan forgiveness is taxable. On the owner compensation replacement, there is a formula in here, and they’re going to do that based on that income. CARES Act PPP Loan Expense Tracker & Forgiveness Calculator: Version 1.9 06-17-20 UPDATED TO REFLECT 6-17-20 IFR and PPPFA changes. Best Startup Credit Cards for Small Business Owners. We have a number of locations and lots of employees with unusual schedules. PPP Expense Tracking Calculator Helping you keep track of your Paycheck Protection Program expenses This process can be a daunting task especially with the constant changes by the SBA. We’ve also created a short instructional video to help walk you through the process of how to calculate PPP at the bottom of this post. Attention: If you are a sole proprietor Schedule F or Schedule C filer who received a first draw PPP loan after Jan. 1, 2021, please be sure you have allowed enough time to incur the appropriate amount of expenses to achieve full forgiveness of your PPP loan. ", "We had a situation last year where we forgot to pay a key employee his bonus. Download the PPP Loan Forgiveness Calculator. Throughout the sheet, you’ll see blue cells that you can highlight and input information — I’ve included instructions on every tab, as well as the original sources so that you can see where we got the information in case anything changes. How to calculate loan forgiveness for FTE. schedule a free 30-minute session with one of our CFOs, Legal Accounting Software Comparison: Clio vs. TrustBooks, What You Need to Know About Bookkeeper Fraud, What’s In Your Wallet? It is designed to take the guesswork out of tracking which expenses count toward your PPP loan forgiveness. You didn’t cut any of your remaining employees’ wages. For First Draw Loans - On March 5, 2021, the SBA issued new forms, SBA Form … Now, here’s how to use our free PPP forgiveness calculator. The workbook is broken out into multiple tabs that you will have to click through to complete. Their online platform is amazing! You can submit your PPP loan forgiveness application any time after you’ve spent your PPP loan proceeds (or at least all the loan proceeds you want forgiven). Skip to content. If you’ve received a Paycheck Protection Program loan from the Small Business Administration, it is very important to proactively approach your use of the funds so that you can maximize your loan forgiveness. The information used to create this Calculator may not constitute the most up … *Unabridged Software does not provide financial or legal advice. We have to get to the next steps. We have added step-by-step instructions to every tab in the calculator to make it easy as possible to use. Updated 3/15. If you have rent, as opposed to own the building, you can include those descriptions here and make sure to correct it. So, let’s find the FTE reduction quotient. It’s okay, though, if you can’t get to your loan forgiveness application ASAP. Download the 24-Week Full Time Equivalent (FTE) Calculator. Let’s say you received a PPP loan worth $200,000. To give you a better idea of the process, here are some examples of the PPP forgiveness calculation in action. The Calculator is based on the CARES Act, PPP Flexibility Act of 2020, the SBA Interim Final Rules, the Loan Forgiveness Application, and related guidance (collectively, "SBA PPP Guidance") as of the date listed below and are subject to change. Please contact Cray Kaiser for most recent information. 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. 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. 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. He answered all of my questions and now I am finally able to start my spreadsheets with confidence. The share of PPP2 funding distributed through Community Development Financial Institutions and Minority Depository Institutions is up more than 40 percent from PPP1. 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