On October 26, 2020, the Small Business Administration (SBA) issued a notice in the Federal Register that, … Read More, If you’re considering selling your medical practice, it’s essential you prepare for the transactions and … Read More. Then sign the document. Much of the data in the Loan Forgiveness Calculation Form is derived from the Worksheet and Schedule A. If the borrower, together with any affiliates, received loans total $2M or more, the borrower . New PPP Loan Forgiveness Form 3508 S To Simplify Forgiveness Process for Small Businesses, Reduces the salary or hourly wage of an employee (who earned less than $100,000 in 2019) during the “covered period” of the loan, relative to the first quarter of 2020, or. Columns Step1A, Step1B, Step1C, Step2A, etc. Some of these you might not have needed in the past, but they are important now as many figures are derived from them. Following is the PPP Loan Forgiveness Calculation Form and corresponding numbers to explain the data we provide. If you already entered them in the payroll system as their cash compensation, do not add that again in box 9. Are there caps on the amount of loan forgiveness available for the payroll compensation of owners? Review each of the questions and check them all off. You didn’t reduce salary or wages for any employee by more than 25% during the covered period. Accordingly, before you start gathering the data and getting ready to submit your application you will want to check if you are one of those borrowers that is eligible to use the Form 3508S (PPP Loans Under 50K). We have done our part in simplifying it so that you have the information available at your fingertips. The details of how to derive the data correctly are provided in the PPP Schedule A Worksheet section of this article. Otherwise, you can get it from your insurance premium statements. In this section, the borrower is certifying that all the information provided is correct and that they are aware of the consequences of providing false information in this form. Any employee who during the covered period was either (a) fired for cause, (b) voluntarily resigned or (c) voluntarily requested and received a reduction of hours. As outlined in the Salary/Hourly Wage Reduction section on page 4 of the PPP Loan Forgiveness Application Table Instructions, finding the answer to this question on a per-employee basis is complex as it requires many comparisons and calculations so that you can determine if there is a salary reduction.
The forgivable amount of compensation paid to an owner/shareholder is limited. We understand the needs and challenges of our clients and we have made it our obligation to create, grow and protect asset value. You will only be required to provide documentation verifying those cost for which you are seeking forgiveness. This field is for validation purposes and should be left unchanged. The FTE Count Report will calculate your Full Time Equivalency based on the data selected. Additionally, the new one-page form (plus the optional demographic information form), requires only certifications. Jump to: Forms, webinar recording & other resources In this article, we show you how to produce the data you are looking for from our payroll system to fill out the long Form 3508. As such, if you have an issue with the employee count you would have to further analyze the data so that you can determine if you need to add employees due to the existence of one of the above 3 scenarios. While those borrowers still need to ensure that the money was spent correctly, timely, and subject to the various caps for owners and employee compensation, this new form and rule relieves those borrowers from having to reduce forgiveness if they had a reduction in payroll, or have reduced any employees’ compensation during the Covered Period. On one before the last line of Schedule A Worksheet Table 1 in the Average FTE column, you add employees to your employee count if your employee count was reduced and their position was not filled yet and one of the following 3 conditions are met.