What is PPP Loan Forgiveness?
Businesses that received a PPP Loan may apply for forgiveness of all or part of the loan based on expenses that meet the Small Business Administration (SBA) requirements. This PPP Loan Forgiveness Report will assist you and your lender in determining the amount of forgiveness to apply for based on eligible expenses related to payroll.
What we’ll cover
How to run the report
In your Company Dashboard, click Covid-19.
Click PPP Loan Forgiveness Report.
Enter the date of the first day of the covered period, and click View Report.
How OnPay calculates payroll cost
A loan forgiveness calculator can give you a good estimation of what to expect, but the Loan Forgiveness Report totals employee compensation, non-cash compensation, and state & local employer taxes as outlined by the SBA and Department of Treasury, over the relevant eight-week period that is selected. Borrowers should carefully review and verify the information in the report prior to submitting their forgiveness application to their lender.
PPP Loan Forgiveness Report
In the below example, we’ve run a report for an 8 week period beginning on April 10th. Below, we've outlined how we calculate for each column.
Note: This report is built using costs incurred.
This column includes gross wages that, per PPP guidelines, include the dollar amount paid to or on behalf of each employee for:
- Salary, wages, commissions, tips, and bonuses
- Any paid leave (excluding FFCRA paid leave)
This report calculates payroll costs incurred within the relevant eight-week period. Pay runs that cover days within and outside the eight-week window will be prorated. OnPay uses a daily rate calculation to apportion the costs by day.
If your company has employees that earn more than $100,000 in a year, the total amount of cash compensation eligible for forgiveness for the eight-week period is capped at $15,385 per employee. The $15,385 maximum amount will show in this column if the employee’s gross earnings in column 1 exceed $15,385.
(+) Employer State Taxes
Add the total amount paid by the borrower for employer contributions for employee health insurance, excluding any pre-tax or after-tax contributions by employees incurred during the eight-week period.
(+) Employer Paid Health
Add the total amount paid by the borrower for employer contributions to employee retirement plans, excluding any pre-tax or after-tax contributions by employees.
(+) Employer Paid Retirement
Add the total amount paid by the borrower for employer state and local taxes assessed on employee compensation, excluding any taxes withheld from employee earnings.