PPP Loan Forgiveness Payroll Worksheet

Show expandable text

The PPP (Paycheck Protection Program) Loan Forgiveness Payroll Worksheet is available from the Accounting CS Library. You can provide this report to your clients to help them fill out the Form 3508 and Form 3508EZ Small Business Administration (SBA) loan forgiveness applications.

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

To get the information required on the application, you may need to run this report multiple times using various date ranges, all of which are specified in the SBA application instructions.

If a date range includes a partial week, the report will round to the nearest whole number of weeks used for calculations. Specifically, a date range that includes a partial week of 3 or less days will round down, and a partial week of 4 or more days will round up.

Report contents and calculations

Section headings

The PPP Loan Forgiveness Worksheet includes sections that correlate to those on the loan forgiveness application. If a section doesn't apply to an employer, it won't display in the report.

  • Employee compensation of less than or equal to $n,nnn for the nn week period. (Form 3508 only) Use the information in this section to fill out Table 1 of the application. This table requires you to enter information for employees who were paid an annualized rate of less than, or equal to the cap of $100,000.00 for all pay periods in the date range.
  • Employee compensation capped at $n,nnn for the nn week period. (Form 3508 only) Use the information in this section to fill out Table 2 of the application. This table requires you to enter information for employees who were paid an annualized rate of more than the cap of $100,000.00 for all pay periods in the date range.
  • Employee compensation limit of $n,nnn applied for the nn week period. (Form 3508EZ only) Use the information in this section to determine the payroll costs on Form 3508EZ.
  • Employer paid contributions and state/local taxes. This optional section lists the employer contributions and employer paid state and local taxes for the reporting period.  If you include this information when you run the report for the PPP loan coverage period or the alternate loan coverage period, it could help complete the Non-Cash Compensation Payroll Costs During the Covered Period or the Alternative Payroll Covered Period section of the SBA loan forgiveness application.

Columns

  • Full Cash Compensation. This column displays the employees' pay, excluding leave covered by the Families First Coronavirus Response Act (COVID-19 self care, other care, and extended child care).
  • Limited Cash Compensation. This column displays the Full Cash Compensation amount limited to the annualized $100K cap, based on the number of weeks included in the date range.  (The limit is calculated by the number of weeks in the date range x $1,923.08).

    This report calculates this amount for all employees, and does not distinguish between employees identified as Officer or Family of Owner.

  • Average Full-time employee (FTE) calculations. For each employee, the average number of hours paid per week in the report date range is divided by 40. This is capped at 1.0 where average hours is over 40.
  • Simplified Average Full-time employee (FTE) calculations. This is the calculation used in the instructions for the SBA loan forgiveness application.
    • 1.0 - The employee's average number of hours paid per week in the report date range is 40 or greater 
    • 0.5 - The employee's average number of hours paid per week in that date range is greater than 0 but less than 40 

Standard hours vs. Actual hours

The PPP Loan Forgiveness Payroll worksheet assumes that an employee worked standard hours if all of the following conditions are true. (What are standard hours?)

Pay frequency Standard hours
Weekly 40
Biweekly 80
Semimonthly 86.6667
Monthly 173.3333
Quarterly 520
Semiannually 1,040
Annually 2,080
  • The employee used a pay item with a Salaried amount calculation type.
  • The Salaried amount pay item has an amount associated with it on the payroll check.
  • The Salaried amount pay item has 0 regular hours recorded on the payroll check.

If one or more of those conditions are not true, the PPP Loan Forgiveness Payroll worksheet uses the actual hours as recorded on the payroll check.

Was this article helpful?

Thank you for the feedback!