Average Payroll Cost Worksheet

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The Average Payroll Cost Worksheet is available from the Accounting CS Library. You can provide this report to your clients to help them apply for the Paycheck Protection Program, as specified in the CARES Act.

For details about the Paycheck Protection Program, as specified in the CARES Act, see the PPP Borrower Information Fact Sheet (from home.treasury.gov).

Report calculations

Loan Amount = 2.5 x Average Payroll per Month

   Total Compensation (regular wages, reported tips, etc.) capped at $100,000.00 per employee
+ Employer Contributions (health insurance payments, retirement benefit payments, etc.)
+ Employer State and Local Taxes (state unemployment tax, etc.)
= Total Payroll Cost

   Total Payroll Cost
÷ Number of Months
= Average Payroll per Month

If the Use 3.5 x Multiplier option is marked in the Sections to Include area, the application uses that calculation instead of the default 2.5 x multiplier.

Default report settings

  • The calculation includes all employees. To exclude certain employees, such as independent contractors or those whose principal place of business is located outside of the United States, use the filtering options at print time. Example

    Excluding independent contractors

    To exclude independent contractors, you can use the Employee filtering tab to filter by Type > is not > Independent contractor
    Exclude independent contractors

  • The calculation includes all pay items in the Total Payroll amount, so it includes regular wages, reported tips, etc. To exclude certain pay items, use the filtering options at print time. Example

    Excluding pay items

    To exclude pay item ABC, use the Payroll Items filtering tab to filter by Description > is not > ABC.

    Exclude pay item
  • The calculation includes all employer contribution items in the Total Payroll amount, so it includes health insurance payments, retirement benefit payments, etc. You can exclude all employer contributions from the Total Payroll amount by clearing the Add Employer Contributions into Total Payroll checkbox at print time.
    Include Employer Contributions

    To exclude certain employer contribution items, use the filtering options at print time. Example

    Excluding employer contribution items

    To exclude employer contribution item XYZ, use the Payroll Items filtering tab to filter by Description > is not > XYZ.
    Exclude employer contribution

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