How to get reports to fill out the Payroll Protection Program Application
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The Coronavirus Aid, Relief, and Economic Security Act (CARES) has allocated government funds for financial assistance to small businesses. Known as the Paycheck Protection program, the initiative provides 100% federally guaranteed loans to small businesses. Small businesses count as either for-profit or non-profit organizations with fewer than 500 employees.
- This article includes the following attachments which you will find when you scroll down to the bottom of the form.
- Coronavirus Emergency Loans Small Business Guide and Checklist
- Paycheck Protection Program (PPP) Information Sheet
- Borrower Protection Program Application Form (SAMPLE)
- Scroll down to find a list of ParishSOFT Accounting Reports which we believe may be helpful for you in making your payroll calculations.
Loans can be up to 2.5 X the borrower's average monthly payroll cost, not to exceed 10$ Million.
For further information see the Small Business Administration Website: www.sba.gov. Please note there is important information on this site and other linked sites and documents regarding criteria that must be met for the loans to be fully forgivable.
Once you receive your loan, you may be interested in the article, How to record your PPP loan.
Calculating payroll
- For purposes of calculating “Average Monthly Payroll”, most applicants will use the average monthly payroll for 2019, excluding costs over $100,000 on an annualized basis for each employee.
- For seasonal businesses, the applicant may elect to instead use average monthly payroll for the time period between February 15, 2019, and June 30, 2019, excluding costs over $100,000 on an annualized basis for each employee.
- For new businesses, average monthly payroll may be calculated using the time period from January 1, 2020, to February 29, 2020, excluding costs over $100,000 on an annualized basis for each employee.
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The calculation of full-time equivalent (FTE) is an employee's scheduled hours divided by the employer's hours for a full-time workweek. When an employer has a 40-hour workweek, employees who are scheduled to work 40 hours per week are 1.0 FTEs. Employees scheduled to work 20 hours per week are 0.5 FTEs.
You can calculate your average monthly payroll cost using this formula:
(Sum of Included Payroll Costs - Sum of Excluded Payroll Costs = Payroll Costs) / 12 months
Included Payroll Costs:
- 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 required for the provisions of group health care benefits, including insurance premiums
- Payment of any retirement benefit
- Payment of state or local tax assessed on the compensation of the employee
Excluded Payroll Costs:
- Compensation of an individual employee in excess of an annual salary
of $100,000, as prorated for the period February 15, to June 30, 2020 - Payroll taxes, railroad retirement taxes, and income 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
ParishSOFT Accounting Reports that will help you get the necessary information
Once you have determined which category you fall into for calculating payroll, to get reports that can help you with filling out the program application, please do the following:
- Run the following Reports In Payroll: How to get the Average Monthly payroll cost
- Payroll Summary Report [Payroll → Reports → Standard Reports → Payroll Summary]: How to get the average monthly payroll cost
- Current Earnings Reports [Payroll → Reports → Standard Reports → Current Earnings]
- 2019 W2s, W-3 [Payroll → Forms → W-2s/W-3]: How to verify W-2/W-3 Numbers, and How to print Tax Forms (W-2/W-3)
- 941s for each Quarter [Payroll → Forms → 941]: How to print the quarterly 941 report
- Run the Following Reports In Ledgers & Payables:
- Statement of Activities [Ledgers & Payables → Reports → Statements → Statement of Activities]: How to customize your Statement of Activities
Note: We are not a government official or certified accountants. Please see the US Treasury Website for further information about filling out this form.
Other helpful sites:
- 023595_comm_corona_virus_smallbiz_loan_final.pdf80 KB
- PPP_Borrower_Information_Fact_Sheet.pdf200 KB
- Borrower_Paycheck_Protection_Program_Application_0.pdf1 MB
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