FLORIDA SMALL BUSINESS DEVELOPMENT CENTER AT IRSC
30
TCBusiness.com
For administrative convenience, borrowers
with a biweekly (or more frequent)
payroll schedule may elect to calculate
eligible payroll costs using the 24-week
(168-day) period or for loans received
before June 5, 2020 at the election of the
borrower, the eight-week (56-day) period
that begins on the first day of their first
pay period following their PPP Loan Disbursement
Date.
For example, if the Borrower is using
a 24-week Alternative Payroll Covered
Period and received its PPP loan proceeds
on Monday, April 20, and the first day of
its first pay period following its PPP loan
disbursement is Sunday, April 26, the first
day of the Alternative Payroll Covered
Period is April 26 and the last day of the
Alternative Payroll Covered Period is Saturday,
Oct. 10.
Borrowers that elect to use the Alternative
Payroll Covered Period must apply the
Alternative Payroll Covered Period wherever
there is a reference in this application
to “the Covered Period or the Alternative
Payroll Covered Period.”
However, Borrowers must apply the
Covered Period (not the Alternative Payroll
Covered Period) wherever there is a reference
in this application to “the Covered
Period” only. In no event may the Alternative
Payroll Covered Period extend beyond
Dec. 31, 2020.
Filling out the PPP Forgiveness
Application Form 3508EZ
If you plan to use this form to qualify
for forgiveness, we recommend you print
out the PPP Forgiveness Application Form
3508EZ and follow along here. Your lender
may use an electronic version of this form
but if you have it handy, it won’t hurt to
have this information already filled out.
First fill out basic information about
your business. Unless your business address
has changed, this should be the
same as the information you used when
you applied for PPP: Business Legal Name
(“Borrower”), DBA or Tradename, if applicable,
Business Address, Business TIN (EIN,
SSN), Business Phone Number, Primary
Contact, E-mail Address.
SBA PPP Loan Number: This is the
number assigned by the SBA to your loan.
If you don’t have it, ask your lender.
Lender PPP Loan Number: Enter the
loan number assigned to the PPP loan by
the Lender. Again, if you don’t know, ask
your lender.
PPP Loan Amount: This is the amount
you received.
PPP Loan Disbursement Date: Again,
this is when the funds were deposited in
your bank account. If you received more
than one disbursement, use the date of the
first one.
Employees at Time of Loan Application:
Enter the total number of employees
at the time of the Borrower’s PPP Loan Application.
It’s unclear whether self employed
individuals with no employees should list
themselves here. Check with your lender.
Employees at Time of Forgiveness
Application: Enter the total number of
employees at the time the borrower is applying
for loan forgiveness. Same question
as the previous question.
EIDL Advance Amount: If you have
received an EIDL advance (grant), enter it
here. Note that the advance does not have
to be repaid. It is different from an EIDL loan
which must be repaid. (The deposit into your
bank account would have included the notation
EIDG for EIDL grant.)
EIDL Application Number: If you applied
for an EIDL, enter your application
number. If you can’t find your application
number, try contacting the SBA Disaster
Assistance hotline. If they can’t help, ask your
lender for advice on what to do.
Payroll Schedule: The frequency with
which payroll is paid to employees is: •
Weekly • Biweekly (every other week) •
Twice a month • Monthly • Other
Covered Period: See the instructions
in the section above, What is the Covered
Period?
Alternative Payroll Covered Period, if
applicable: See the instructions in the section
above, What is the Alternative Payroll
Covered Period?
If Borrower (together with affiliates, if
applicable) received PPP loans in excess
of $2 million, check here: Check the box
if the Borrower, together with its affiliates
(to the extent required under SBA’s interim
final rule on affiliates (85 FR 20817 (April
15, 2020)) and not waived under 15 U.S.C.
636(a)(36)(D)(iv)), received PPP loans with
an original principal amount in excess of
$2 million. If you received more than $2
million (with affiliates) make sure you review
this with your advisors.
Forgiveness Amount Calculations
Payroll and Nonpayroll Costs
Line 1: Payroll Costs
Here you need to enter your payroll
costs for the Covered Period or the Alternative
Payroll Covered Period. To calculate
these costs, you’ll be adding cash compensation,
employee benefits and owner compensation
(as applicable) and as described
as follows in the instructions:
Cash Compensation: The sum of gross
salary, gross wages, gross tips, gross
commissions, paid leave (vacation, family,
medical or sick leave, not including leave
covered by the Families First Coronavirus
Response Act), and allowances for
dismissal or separation paid or incurred
during the Covered Period or the Alternative
Payroll Covered Period.
For each individual employee, the total
amount of cash compensation eligible
for forgiveness may not exceed an annual
salary of $100,000, as prorated for the
Covered Period. For an 8-week Covered
Period, that total is $15,385. For a 24-week
Covered Period, that total is $46,154 for
purposes of this 3508EZ.
You can only include compensation of
employees who were employed by the
Borrower at any point during the Covered
Period or Alternative Payroll Covered Period
and whose principal place of residence
is in the United States.
Employee Benefits: The total amount
paid by the Borrower for:
1. Employer contributions for employee
health insurance, including employer
contributions to a self-insured, employersponsored
group health plan, but excluding
any pre-tax or after-tax contributions
by employees. Do not add employer
health insurance contributions made on
behalf of a self-employed individual, general
partners, or owner-employees of an
S-corporation, because such payments are
already included in their compensation.
2. Employer contributions to employee
retirement plans, excluding any pre-tax or
after-tax contributions by employees. Do
not add employer retirement contributions
made on behalf of a self-employed
individual or general partners, because
such payments are already included in
their compensation, and contributions on
behalf of owner employees are capped at
2.5 months’ worth of the 2019 contribution
amount.
3. Employer state and local taxes paid
by the Borrower and assessed on employee
compensation (e.g., state unemployment
insurance tax), excluding any taxes
withheld from employee earnings.
Owner Compensation: Enter any
amounts paid to owners (owner-employees,
a self-employed individual, or general
partners). For a 24-week Covered Period,
this amount is capped at $20,833 (the >>
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