“CARES Act” Payroll Reports
One of the most important components of the Paycheck Protection Program (PPP) loan also happens to be one of the most difficult ones for business owners to analyze: your payroll. This number is used to determine your total PPP loan amount. Below are some resources to help you more easily calculate your payroll costs.
Get vital funds you need. Streamline your PPP application and speed up the review process with a payroll report.
Many payroll providers are now offering a “CARES Act Report” or “PPP Report” that tells you everything you need to know for your PPP loan application. These reports include gross pay, adjusted gross pay, net pay, and employer taxes and contributions for each employee. Let a report from your payroll provider do the heavy lifting for you, so you don’t have to worry about the calculation. Plus, this handy report is all that is needed to support your payroll calculation, helping our underwriters review your loan quicker!
Find your payroll provider below to learn how you can download a payroll report.
As your payroll and HR partner, ADP can help you gather information to understand the payroll specific components of your PPP loan. These reports are easily accessed within your ADP system and are updated regularly as government guidance changes.
Gusto has updated Paycheck Protection Program (PPP) reports to reflect the latest guidance from the Consolidated Appropriations Act, 2021.If you’re a Gusto customer, You can find your Paycheck Protection Program Loan report by going to the Reports section in your Gusto account, and selecting Paycheck Protection Program Loan. If you’re not a customer, access the report here.
This small business supporter has updated their Paycheck Protection Program payroll data report in light of new PPP regulations. The new report removes employer social security and Medicare (FICA) from the final calculations, per the new guidance issued by SBA. The final calculations seen in the report are accurate per the guidance issued April 6, 2020.
For more information about how SurePayroll can help you with your PPP application calculations, visit their site here.
Paychex is staying on top of regulatory developments and has already begun the work to revise their PPP Data Report to implement new guidance.
In the meantime, if you want to apply for a PPP loan using the prior version of your Paychex PPP Data Report, you can simply take the Total line of the “Employer FICA Taxes” column, divide by the number of months (generally 12), and subtract it from your “Average Total Payroll Costs” to reasonably estimate your new monthly average payroll costs for the loan application.
Once the new version of the Paychex PPP Data Report is released, it will be available for all online Paychex Flex® users to download. If you use Paychex Flex, the new report will be available within the Quick Reports section of your dashboard.
For business owners not using Paychex, you can complete this form to be put in touch with a Service Specialist who can assist you.
If you don’t use a payroll processor, Mazars USA LLP, a national accounting, tax, and consulting firm, announced in April that they have launched a tool to help small businesses calculate the amount they are eligible to receive from the PPP. This tool is available for small businesses, CFOs, and accounting firms to help them navigate the complex program, increasing the speed of the application process.
The Marzars tool was created to help:
- Accurately calculate your potential PPP loan amount
- Accurately calculate the 8-week loan forgiveness with the ability to calculate multiple scenarios
- Accurately calculate loan forgiveness
- Make better business decisions to aide with short term business objectives
- Understand the patterns and the effects of the loan amortization and the amount of loan coverage for a 2-year period
We’re here to answer your questions.
Who is eligible to receive a PPP Loan?
What are the PPP loan maximums and limitations?
First-draw PPP loan limitations:
The maximum amount a business that has not yet received a PPP loan can borrow is the lesser of:
- 2.5 times the average monthly payroll costs and healthcare costs
- $10 million
There may be exceptions to these limits for restaurants and other hospitality businesses.
Second-draw PPP loan limitations:
Any business that is applying for a second draw will be subject to more stringent limitations. The maximum second PPP loan amount is the lesser of:
- 2.5 times the average monthly payroll costs and healthcare costs in the year prior to when the loan was received or within the calendar year
- 3.5 times the average monthly payroll costs and healthcare costs in the year prior to when the loan was received or within the calendar year for any business that is classified under Code 72 by the North American Industry Classification System (NAICS). (This is a list of hospitality and entertainment businesses like restaurants, hotels, and casinos; click the link to get the full list.)
- $2 million
Which payroll costs qualify?
First, you’ll need to identify your payroll costs that qualify under PPP.
If you employ other people:
The sum of payments of any compensation with respect to employees that is a:
- salary, wage, commission, or similar compensation
- payment of cash tip or equivalent
- payment for vacation, parental, family, medical, or sick leave
- allowance for dismissal or separation
- payment for group health care and retirement benefits
- payment of state or local tax assessed on the compensation of the employee
If you’re self-employed, a sole proprietor, or an independent contractor:
- 2019 net income not more than $100,000
Which payroll costs don't qualify?
Next, subtract your payroll costs that don’t qualify from your eligible payroll costs. These include:
- Compensation of an individual employee in excess of an annual salary of $100,000 (note: employer contributions to healthcare and retirement benefits are not part of amount deemed in excess of $100,000 annual salary)
- Employer portion of payroll taxes
- Any compensation of an employee whose principal place of residence is outside of the United States
- Qualified sick leave wages for which a credit is allowed under section 7001 of the Families First Coronavirus Response Act (Public Law 116– 5 127); or qualified family leave wages for which a credit is allowed under section 7003 of the Families First Coronavirus Response Act
What time period should borrowers use to determine their number of employees and payroll costs?
Borrowers may use their average employment over the same time periods to determine their number of employees, for the purposes of applying an employee-based size standard. Alternatively, borrowers may elect to use SBA’s usual calculation: the average number of employees per pay period in the 12 completed calendar months prior to the date of the loan application (or the average number of employees for each of the pay periods that the business has been operational if it has not been operational for 12 months).