Here is the calculation you can use to determine if you’ve met this requirement:įirst, determine the average number of full-time equivalent employees you had during: This is because the purpose of the PPP loan is to maintain jobs. You must maintain the number of employees on your payroll. Simply divide your total payroll costs by 0.6. You can also find your maximum forgiveness amount from your payroll costs. This means $15,000 of the $20,000 loan is forgiven, and they have to pay back the remaining $5,000.
#Paypal ppp round 2 application full#
This is 75% of the minimum payroll cost required for full forgiveness so their forgiveness amount is 75% of the loan. However, they spend only $9,000 on payroll. Your forgivable amount will scale in proportion to the percentage of your loan that you spend on payroll, up to the total loan amount.įor example, if a business gets a $20,000 PPP loan, they would need to spend at least $12,000-60% of the loan-on payroll. Payments to independent contractors cannot be included in the payroll costs.
The 60/40 ruleĪt least 60% of your loan must be used for payroll costs. All payroll that your employees incur over the 8 to 24 week period is eligible for forgiveness, even if the actual payout date falls outside the covered period. You do not need to adjust your payroll schedule. This is not necessarily the date on which you signed your loan agreement. 8 to 24 weeks of expense coverageĮxpenses eligible for forgiveness are those that are incurred over the 8 to 24 week period, starting from the day you receive your PPP loan from your lender. The following conditions will also apply: 1.
#Paypal ppp round 2 application how to#
Worker protection expenditures-any personal protection equipment or property improvements to remain COVID compliant from Maonwardsįurther reading: How to Spend Your PPP Funds (Updated for 2021)Īll expenses that fall under the above listed categories are eligible for forgiveness. Supplier costs-any purchase order or order of goods made prior to receiving a PPP loan essential to operations Property damage costs-any costs from damages due to public disturbances occurring in 2020 and not covered by insurance Operations expenditures-any software, cloud computing, or other human resources and accounting needs ( like Bench) Utilities-as long as service began before Febru( here’s what’s included in utilities) Rent-as long as the lease agreement was in effect before Febru( here’s what’s included in rent) Mortgage interest-as long as the mortgage was signed before February 15, 2020 Payroll-salary, wage, vacation, parental, family, medical, or sick leave, health benefits The funds from your PPP loan can be used for the following purposes: Let’s first review the terms of using your PPP loan.
The conditions of the Paycheck Protection Program
0 kommentar(er)
