PPP Loan Forgiveness

Paycheck Protection Program (PPP) Loan Forgiveness Report

ECCA Payroll+ developed a specific report that will provide you with information to help you complete the U.S. Small Business Administration’s loan forgiveness application.

There are two different loan forgiveness applications – the Loan Forgiveness Application and the EZ Forgiveness Application.

The EZ version applies to borrowers that:

  • 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%.

How to Run the Report

Below are the steps to run the PPP Loan Forgiveness report within Stack+. If you do not have access to Stack+, please complete the below form for further assistance.

  1. In Stack+, click Reporting in the main navigation bar.
  2. In the Title field, type loan. Click Search.
  3. Click PPP Loan Forgiveness.
  4. Scroll down to the Additional Options section on the run report page.
    • Note: Since the dates required for the PPP Loan Forgiveness report may not coincide with your standard check dates, the standard date selection fields are disabled.
  5. Enter the following information:
    • Number of covered weeks (defaults to 8).
    • Date of your loan application.
    • Date of your first pay period following your loan deposit.
    • Indicate whether or not to include 1099 employees.
  6. Click Run Report.

 

Follow these easy steps to run the PPP Loan Forgiveness report.

When should I run the report?

Run this report AFTER the end of your Alternative Payroll Covered Period. The report will identify all check dates processed within the eight-week (56 days) timeframe.

How does the report work?

This report uses the Alternative Payroll Covered Period method.

If you prefer to use the Covered Period, you will need to use a series of other reports and manual calculations. This is because pay periods cannot be broken down into individual dates.

How is FTE calculated?

The FTE calculation is based on hours and auto-pays within Stack+. While COVID-qualified wages as authorized under the FFCRA are NOT eligible under payroll costs, the hours reported as such are included in the FTE calculations. There are additional FTE Reduction Safe Harbor ways available to you; please review the PPP Loan Forgiveness Application carefully.

PPP Loan Forgiveness Report Sections

The report has four key sections. These sections will provide you will the data needed for the following components of the PPP Loan Forgiveness Application: PPP Loan Forgiveness Calculation Form; PPP Schedule A; and the PPP Schedule A Worksheet.

Employee Count

The number of employees as of the date of your loan application. This is information for the Loan Forgiveness Calculation Form section.

PPP Loan Report-1

Table 1

Employee details needed for TABLE 1 of the PPP Schedule A Worksheet section. You can use this information for your totals and the substantiation reporting requirements.

NOTE: COVID-qualified sick and FMLA wages as authorized under the Families First Coronavirus Response Act (FFCRA) are automatically excluded.

PPP Loan Report-2

Table 2

Employee details needed for TABLE 2 of the PPP Schedule A Worksheet section.

As with the information for TABLE 1, you can use this data for your totals as well as the substantiation reporting requirements; COVID-qualified sick and FMLA wages authorized under the FFCRA are excluded.

PPP Loan Report-3

FTE Reduction Safe Harbor

The FTE Reduction Safe Harbor section will provide information needed to complete the corresponding section on the PPP Loan Forgiveness Application.

  • Use the total average FTE between February 15th and April 26th, 2020 for Step 1 of the PPP Schedule A Worksheet, FTE Reduction Safe Harbor section.
  • Use the total average FTE during payroll inclusive of February 15, 2020 for Step 2.
  • For Step 4, use the total average FTE as of June 30, 2020.
  • If you determine the FTE Reduction Safe Harbor has not been met, then use the FTE By Month report to complete Schedule A, Line 11 of the PPP Loan Forgiveness Application.
PPP Loan Report-4

Payroll Expenses

The final section of the report provides a per-employee breakdown of payroll expenses for the period. It also provides totals for all payroll expenses.

PPP Loan Report-5

PPP Loan Forgiveness Report Assistance

ECCA Cares

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As economies begin to re-open and employees return to a different work environment that still requires social distancing, you may need to hire additional staff.

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