General Inquiries

PPP Loan Forgivness Schedule A Worksheet

  • 1.  PPP Loan Forgivness Schedule A Worksheet

    Posted 05-22-2020 10:21
    This schedule is baffling to me.
    • Table 1 calls for
      • Employees employed during the covered period
      • Employees compensated at "an annualized rate of less than or equal to $100,000 for all pay periods in 2019 or
        • were not employed in 2019
     Is the second condition a qualifier to the first condition, i.e., list only those who were employed in 2019 and who are employed during the covered period?

    The language, "an annualized rate of less than or equal to $100,000 for all pay periods", does that mean someone who earned less than $100,000 in 2019 for "all pay periods" or does that mean someone who never had a pay period that annualized to more than $100,000. Most of our payroll -95% - received a bonus of $2,000 or more. That one pay period, annualizes to more than $100,000 even though their annual compensation was less than $100,000.

    Table 2 then asks for "an annualized rate of more than $100,000 for any pay period in 2019". That would include virtually our entire payroll.

    I know the bonus question has floated in many forums, but I've not seen an answer, and the Forgiveness Application seems only to muddy the waters.

    Timothy Mickunas CPA, CCIFP
    Chief Financial Officer
    D. Wilson Construction Company
    McAllen TX
    (956) 686-9573

  • 2.  RE: PPP Loan Forgivness Schedule A Worksheet

    Posted 05-25-2020 18:37
    Edited by Jon Olsen 05-25-2020 18:37
    Hi Timothy,

    I'm getting a lot of my information from the good folks at Albin, Randall and Bennett. Check out the 40 minute mark of this video:

    They make it clear that in your situation, most employees would be exempt.

    If you need any help extracting and automating the reporting of this information direct from your ERP, don't hesitate to give us a call.

    Jon Olsen
    Olsen Consulting
    Calgary AB
    (403) 836-5118

  • 3.  RE: PPP Loan Forgivness Schedule A Worksheet

    Posted 05-26-2020 07:53
    The big picture for Tables 1 & 2 is to gather the payroll data from all employees during the forgiveness measurements period (except owner-employees).  This is the 1st bullet point in the instructions for both tables.  The 2nd bullet point just segregates the above $100k employees from the below $100k employees.  They want to make sure you're not counting any cash compensation above $15,385 for the 8-week period per employee, so they want all of the over $100k employees to be listed on Table 2.

    It's all about keeping the annualized amount at $100k or lower ($15,385 or lower for the 8-week period), so bonuses of $2k or more in 2019 are just added in with all other cash comp.  The 2019 total determines whether the employee should be on Table 1 or 2.  A bonus in the forgiveness period could be much larger than $2k, but the sum of all cash comp during this period would cap at $15,385, regardless of which table the employee is in.

    If anyone in your payroll has had an increase in 2019 such that he/she will receive greater than $15,385 in the forgiveness period, then you should put them in Table 2.  In the end, 2 tables aren't necessary for the calculation, but it makes you think about the limit for each employee, so they're making us jump through these hoops.

    Steve Hunt CPA
    Alto Construction Company, Inc.
    Tampa FL
    (813) 241-2586

  • 4.  RE: PPP Loan Forgivness Schedule A Worksheet

    Posted 05-27-2020 11:16
    Edited by Vincent Holley 05-27-2020 11:16
    If a bonus in a pay period during 2019 caused an employee to have even one pay period (the bonus period) that annualized over $100,000 for the year, then the employee is not considered to need to be tested for reduction in pay during the covered period.  So all those $2000.00 bonuses help you in the event you did reduce their pay due to the pandemic during the covered period. No forgiveness reduction test is required for them.  IE. all those employees are to be listed on Table 2, not Table 1.

    Vincent Holley CPA
    Ironwood Heavy Highway
    Rochester NY
    (585) 241-8777