Ppp Fte Calculation.
Determine if you are going to use this method. PPP Loan Disbursement Date. ” Businesses without FTE employees will use Form 3508EZ. The maximum for each employee is capped at 1. PPP ForgivenessFAQsFTE Reduction Exception - There are certain situations whereyou can exclude an employee from the FTE calculation. Each week we will provide a detailed explanation of computations included on the SBA prepared PPP loan forgiveness application. There are two methods for determining full-time employee status: The look-back measurement method. By: Elizabeth L. Verification showing the average number of FTEs for the payroll period. How do I determine the FTE calculation for each employee? a. → during CP or APCP; ÷ Average number of FTE employees/mo. The first of these FTE reduction exemptions can be found at the bottom of page 3 of Form 3508 on PPP Schedule A. The SBA is allowing you to perform a simplified FTE calculation using the same periods as follows:. PPP loan forgiveness will be reduced (a) in proportion to the decrease in the average monthly number of full-time-equivalent employees (“FTE”) during the Covered Period as compared to a reference period and (b) dollar for dollar by the amount of any reduction in total salary or wages of an employee (other than those who have annualized pay. •FTE Reduction Quotient (line 7) •Modified Total Expenses (line 8 = sum of lines 1-5 x line 7) Smallest of the following •Modified Total Expenses (line 8) •PPP Loan Amount (line 9) •Payroll and related costs divided by 60% (line 10). › A Borrower’s total average FTE for the period 2/15/2020 to 4/26/20 (calculated in the same manner as for the FTE Reduction Quotient) is less than the total FTE for the pay period that includes 2/15/20, & the borrower restores its total FTEs as of June 30, 2020, to the total FTE level for the pay period that includes 2/15/20. A full-time equivalent employee is determined by adding the hours of part-time employees on a monthly basis and dividing by 120 [IRC Section 4980H(c)(2)(E)]. 5 for employees who work fewer hours. Here is an excellent description of what we know thus far. The average number of FTE employees on payroll per month employed by the Borrower between 2/15/19 and 6/30/19, or. • If an employee is paid for 40 hours/week in an organization with a 40-hour work week, the employee is a 1. Use this calculation to show that FTE levels are restored to pre-crisis levels. February 15, 2019 through June 30, 2019 and 2. Business Legal Name ("Borrower") DBA or Tradename, if applicable Adjustments for Full-Time Equivalency (FTE) and Salary/Hourly Wage Reductions Line 9. There is. Note: This FTE reduction would not apply if you meet safe harbor and exclusion requirements noted below. Enter the borrower’s total FTE (a) for a PPP loan made before December 27, 2020, as of December 31, 2020 or (b) for a PPP loan made after December 27, 2020, the last day of the covered period:. If you made a good-faith, written offer to rehire an employeewho was employed on February 15, 2020, and you weren’t ableto hire a similarly qualified employee before December 31, 2020. week covered period as well as total payroll costs. If the FTE as of June 30, 2020 is greater than or equal to the FTE for the February pay period, the safe harbor is satisfied and the FTE is. Making adjustments for full-time equivalency (FTE) and per hour wage reduction: PPP calculation is calculated based on a total salary per hour reduction of more than 25% or. average FTEs for the period between January 1, 2020 and February 29, 2020 " loan period " means the period beginning on the date the PPP loan is first disbursed by the lender and ending two years thereafter. For example: if one's average FTE was 10. Average number of FTE employees/mo. Salary Reduction. Full-time equivalent employees:To calculate the average FTE, borrowers take the average number of hours paid per week per individual employee, divided by 40, and round the total to the nearest tenth, capped at 1. Here are several examples of how the FTE concept is calculated:. The extent of the reduction is based on the "FTE Reduction Quotient," which compares the average FTE employees during the borrower's chosen reference period to the average FTE employees during the. Forgiveness of the PPP loan is reduced by taking the Average FTEs during the covered period (8-week period after receiving proceeds) divided by the Average FTEs from one of the following reference periods: February 15, 2019 – June 30, 2019; January 1, 2020 – February 29, 2020; or. PPP loan forgiveness will be reduced (a) in proportion to the decrease in the average monthly number of full-time-equivalent employees (“FTE”) during the Covered Period as compared to a reference period and (b) dollar for dollar by the amount of any reduction in total salary or wages of an employee (other than those who have annualized pay. • Background on the Use of FTEs in the PPP • Basics of Calculating Average Weekly FTEs • Hours Paid Method of Calculation of Average Weekly FTEs (aka Mathematical) • FTE stands for "Full Time Equivalent. For example, if a position has an FTE of six to which four employees (each with an FTE of one) are assigned, the remaining headcount of two is a vacant expense. The other 16 questions handle how a PPP borrower can calculate the maximum amount it is eligible to receive in a second-draw loan. 175/30 = 5. 0" for employees who worked 40 hours or more per week during that period and "0. " It is a measure of the amount of time an employee works. How do I determine the FTE calculation for each employee? a. FTE Calculation in Paycheck Protection Program Loan Forgiveness. 5 times your average monthly payroll costs or $10 million, whichever is lower. Forgiveness Calculation: $400,000 Loan, multiplied by 95% = $380,000 (a 5% reduction in forgiveness). 0 for anyone who works 40 hours or more and 0. > Ratio of Covered Period FTE to Historic FTE = 95/100 (95%). Divide your average FTE during your chosen eight-week period by the average FTEs from one of the comparison periods (for the comparison period, choose the one with the lowest average FTEs to maximize forgiveness). Step 3: Calculate average monthly payroll costs (divide the amount from Step 2 by 12). If you made a good-faith, written offer to rehire an employeewho was employed on February 15, 2020, and you weren’t ableto hire a similarly qualified employee before December 31, 2020. In this case, the lesser of the two numbers, $100,000 – the entire PPP loan amount – is the forgiveness amount. FTE Calculation 5. Answer: The amount of forgiveness available will be reduced according to the formula A = B (X/Y). FTE Safe Harbor: Calculation and documentation of the FTE Safe Harbor criteria. Add your full-time FTE and your part-time FTE to get your total FTE figure. Making adjustments for full-time equivalency (FTE) and per hour wage reduction: PPP calculation is calculated based on a total salary per hour reduction of more than 25% or. Download the PPP Loan Forgiveness Calculator. 0 for employees who work 40 hours or more per week and. FTE Headcount during January 1 through February 29, 2020 = 100 FTE. And, if you accidentally included salaries over $100,000 or those for employees based outside of the US, simply subtract the amount over $100K per. PPP Loan Forgiveness Calculation Form; PPP Schedule A; PPP Schedule A Worksheet (optional) PPP Borrower Demographic Information Form; All borrowers must submit (1) and (2) to their lender. Option (1): Take the average number of hours paid per week, divide by 40, and round the total to the nearest tenth (maximum for each employee is 1. FTE Reduction Safe Harbors. This indicates that. The numerator of the FTE ratio (average weekly FTEs of each employee during the covered period) derives from Table 1 and Table 2 of the PPP Schedule A Worksheet. If a client fired an employee during the first quarter of 2020 (3/15/2020), then is the only option to keep the FTE number is to rehire this specific employee (assuming the employee was not fired for cause, nor voluntarily. PPP loans were made available through the Small Business Administration (SBA), and even self-employed persons and independent contractors could qualify. There are also some "safe harbor" laws that allow you to have a 1. Hours paid each week / 40 = FTE The Treasury defines a full-time employee as an employee who works 40 or more hours per week, so FTE is calculated on a scale of 1. Calculate the number of FTEs during the Covered Period or Alternative Payroll Covered Period. For a for-profit business, the guidance. 3) Divide #2 / #1 Example: You choose the average FTE period between 1/1/20 and 2/29/20 where you had an average of 10. DWH staff is available for further support. Therefore, the full-time equivalent (FTE) of Mobi Incorporation is 5 FTEs. The request will include documents that verify the number of full-time equivalent. The SBA released PPP Loan Necessity Questionnaires (Forms 3509 and 3510) for borrowers that received PPP loans of $2 million or more on October 30, 2020. Employee Management > Employee Maintenance > Employment FTE Reduction Exceptions SBA Original Exceptions for FTE Reduction Employee terminated for cause during loan period. There is. 9 FTE or 15(hours)/40(hours) = 0. 15, 2020 and Apr. 0 for employees that work 40 hours or more per week and 0. Enter the average number of hours paid per week during the loan period divide by 40, and round to the nearest tenth, OR 2. PPP loans can be as large as 250% of a business' average monthly payroll costs over the one year period before the loan is made, plus the amount of any COVID-19 Economic Injury Disaster Loan previously made to the business that is refinanced with the PPP loan, not to exceed $10 million; provided, that the portion of an employee's salary. 40/40=1 FTE; This brings your total FTEs to 2. Baseline FTE; There was an anticipation that the baseline FTE calculation would involve calculating the FTE for each pay period in the chosen baseline period and taking the average of all of the pay periods. Each week we will provide a detailed explanation of computations included on the SBA prepared PPP loan forgiveness application. Example for class with 30 students meeting 75 minutes per day twice a week for a 17. A seasonal employer electing to use an alternative 12-week base period to calculate its maximum PPP loan amount should also consider its reference period to. Keyword CPC PCC Volume Score; fte calculator: 0. 0 on line 13 of PPP Schedule A; the FTE Reduction Safe. 33, enter $8,333. If the entry for step 4 is greater than or equal to step 2, enter 1. Option (1): Take the average number of hours paid per week, divide by 40, and round the total to the nearest tenth (maximum for each employee is 1. If you work 60 hours this is equal to 1,5 FTE. Loan forgiveness. The PPP provides that a reduction in FTEs between Feb. How do I determine the FTE calculation for each employee? a. Use this calculation to show that FTE levels are restored to pre-crisis levels. Assume that a Night Security Guard position has an FTE of two, a loaded headcount of four, and to which four part-time employees (each having an FTE of 0. The Loan Forgiveness Calculator uses available guidance from the Small Business Administration and Treasury, along with interpretations of that guidance (see notes throughout) to estimate the amount of a PPP loan that may be eligible for forgiveness. On May 15th, the SBA released the PPP Loan Forgiveness Application. PPP Loan Forgiveness Calculation Form; PPP Schedule A; PPP Schedule A Worksheet (optional) PPP Borrower Demographic Information Form; All borrowers must submit (1) and (2) to their lender. This can be calculated either by counting hours, dividing by 40 and rounding to the nearest tenth (provided that no individual can be more than one FTE), OR a simplified method treating all 40+ hour employees as one FTE each and all. 000 FTE 80 hrs/pay period. Alternatively, you can use a binary option of either 1. PPP Loan Amount: Reduction Amount in relation to Salary/Wage Reductions Date of Last Update to Forgiveness Calculator: PAYCHECK PROTECTION PROGRAM LOAN FORGIVENESS CALCULATOR FTE Headcount as of February 15, 2020 Reduction Amount in relation to FTE reductions PPP "Covered Period" commencement (1) (1) Will be the loan disbursement date. I want to break this down on a monthly basis where the maximum hours per week is 40 hours. FTE Reductions: Loan forgiveness is also subject to a reduction if average FTE levels during the covered period are less than average FTE levels of the comparative period selected by the borrower (either February 15, 2019 to June 30, 2019; January 1, 2020 to February 29, 2020; or, in the case of seasonal employers, either of those options or. If your final FTE for all your full-time and part-time employees shows 50 FTEs or more, you are an Applicable Large Employer for the year. The long form application also includes a PPP Schedule A Worksheet, to be completed for all employees to assist with properly calculating the PPP Schedule A items. The staff Full-Time Equivalent (FTE) is a metric which plays a key role in: the internal management reporting of the university; the establishment of external key performance indicators; the financial requirements of planning, costing, Resource Allocation Model, bench marking, ratios and trend analysis. Download the PPP Loan Forgiveness Calculator. Example: ABC Company receives a PPP loan. Calculate the average full-time equivalency (FTE) per employee during the Covered Period or the Alternative Payroll Covered Period. For more information on how to calculate the number of FTE employees, for full instructions on which form to. PPP Loan Forgiveness Calculation Form. Lender PPP Loan Number: Enter the loan number assigned to the PPP loan by the Lender. The formula for revenue per employee is simply net revenue divided by the number of FTEs. You then restored FTE employee levels by not later than June 30, 2020 to the FTE employee levels in the pay period that included February 15, 2020. A previous FAQ provided FTE reduction relief for certain employees who opted not to come back to work. What does Full Time Equivalent mean? Using FTE calculations; Covered Period, lookback period and FTE comparison; Wage Reductions Calculation. Q) What happens if you reduce FTEs after the 8 weeks but before 6/30?. Examples of the Calculation of FTEs. The three sub-categories are then used to make the loan forgiveness calculation. We can help you reduce a large portion of your SBA LOAN debt or get a 100% full forgiveness granted. For your convenience, all the calculations and rules are embedded into the system and will provide the required totals and line items for Schedule A and the Forgiveness Calculation. FTE Reductions: Loan forgiveness is also subject to a reduction if average FTE levels during the covered period are less than average FTE levels of the comparative period selected by the borrower (either February 15, 2019 to June 30, 2019; January 1, 2020 to February 29, 2020; or, in the case of seasonal employers, either of those options or. PPP forgiveness calculation: Calculate payroll and non-payroll costs: They are payroll costs, mortgage interest payments, rent or lease payments, and utility payments. These situations include:1. The FTE calculation for PPP loan forgiveness, unless I am missing something, is average weekly FTE over your 8 week period compared to one of two lookback periods 2/15/19-6/30/19 or 1/1/20-2/29/20, although an email from my bank says the FTE should be average MONTHLY. Enter the borrower’s total FTE (a) for a PPP loan made before December 27, 2020, as of December 31, 2020 or (b) for a PPP loan made after December 27, 2020, the last day of the covered period:. There are two methods for determining full-time employee status: The look-back measurement method. If you received a PPP loan in 2021, the earliest you can apply for loan forgiveness is 8 weeks from your loan funding date. • If the total FTE for the pay period inclusive of 2/15/20 is greater than the average FTE between 2/15/20 and 4/26/20, complete the FTE Safe Harbor Calculation per the instructions • NOTE: There is an FTE Reductions Exception that is applicable under certain circumstances Once complete, return to the Forgiveness tab 16. PPP Loan Disbursement Date. Click the Change Dates button and enter the date range needed. The result is OPTION 3. No matter your business structure we can assist. 0 where average hours is over 40. You will use the same FTE calculation method as you did for Table 1. FTE - Standard Hours Conversion Table Position Management uses Standard Hours to calculate the FTE for a Position. This is the calculation used in the instructions for the. To get average FTEfor the chosen reference period, run the PPP FTE Countreport for the specific date range. Reduction in Loan Forgiveness Amount Due to Reduction in Salaries or Wages i. The first of these FTE reduction exemptions can be found at the bottom of page 3 of Form 3508 on PPP Schedule A. Part-time employees are those who worked an average of less than 30 hours per week. PPP forgiveness calculator – Prior version (5/22/20 – 6/17/20) – Excel Please see our important disclaimer regarding use of the calculator inside the Excel spreadsheet. Must maintain all document for six years after loan forgive or repaid. The SBA continued with the release of guidance late in the evening, with a release around 10:00 pm EDT on May 23. , an employee that earns $200/week would count as 0. Follow the same method that was used to calculate Average FTE in the PPP Schedule A Worksheet Tables. Here is an excellent description of what we know thus far. 5 billion available, including $35 billion for first-time loans. Enter the borrower’s total average FTE between February 15, 2020 and April 26, 2020. Notice / Adopted Section Description ID Publish Date; Final 6A-14. This topic has 1 reply, 2 voices, and was last updated 3 months, 3 weeks ago by Renee Rodda. And, if you accidentally included salaries over $100,000 or those for employees based outside of the US, simply subtract the amount over $100K per. We’ve laid out all the details in this article for calculating your headcount as well as complying with and documenting the details needed for your PPP loan forgiveness application. rated FTE; e. Line 9: Enter the PPP Loan Amount. I am working on the Paycheck Protection Program Forgiveness work sheet and I need an excel formula that calculates the average full time equivalent for each employee. Total FTE = 2. There are two eligible methods for calculating your FTEs during the covered and base period:. Restore FTE by no later than June. Answer: Yes, employer paid holidays may be included in the PPP forgiveness calculation when calculating full-time equivalent (FTE) employees for forgiveness purposes. the average number of FTE employees on payroll per month employed by the Borrower between February 15, 2019 and June 30, 2019; b. Documentation supporting the listing of each individual employee in PPP Schedule A Worksheet Table 1, including the “Salary/Hourly Wage Reduction” calculation, if necessary. Bonuses and hazard pay and payroll paid to furloughed employees are eligible for loan forgiveness. The Paycheck Protection Program (PPP) helps small businesses by offering a loan to cover payroll, mortgage, rent, utilities and certain benefits. Also, the Flexibility Act loosened the restrictions on FTE’s and payroll reduction – so this new form addresses that. Calculate FTEs based on the methods outlined in the Loan Forgiveness Application. Powered by decades of business lending expertise and technology, the calculator helps simplify the complexity of a government program to make it easy for business owners to understand how much they may qualify for with. Please refer to the latest guida. Business Legal Name (“Borrower”) DBA or Tradename, if applicable (FTE) and Salary/Hourly Wage Reductions Line 9. 5 FTE Hence,altogether they would count as 1. 0 FTE employee is an employee who works 40 hours (or more) during the work week. 5 times that amount, or $41,667. Business Legal Name (“Borrower”) DBA or Tradename, if applicable (FTE) and Salary/Hourly Wage Reductions Line 9. In determining the FTE before COVID-19 and during the Covered Period (8-week or 24-week), the SBA has given two alternative methods of calculation. Recently, GrowthLab provided you with the 5 steps necessary to complete your PPP Loan Forgiveness Application (Form 3508). SBA PPP Loan Number: Enter the loan number assigned by SBA at the time of loan approval. 5 x 2 meetings/week = 3. Enter the borrower’s total average FTE between February 15, 2020 and April 26, 2020. For more information on how to calculate the number of FTE employees, for full instructions on which form to. How do I determine the FTE calculation for each employee? a. The salary reduction requirement means that if the borrower reduces employee wages, both salaried and hourly, by 25% or more, then the forgiveness is reduced by the total amount of the reduction. PPP FTE Calculations. The methodology outlined in the application appears to be. Calculate your average FTE between February 15, 2020 and April 26, 2020; Calculate your FTE for the pay period that included February 15, 2020; If your FTE for the pay period including February 15, 2020 was greater than your average FTE between Feb 15-Apr 26, 2020 keep going. April 27, 2020. I am working on a spreadsheet that will make scheduling employees easier. So if you work 40 hours it's equal to one FTE. For each employee during the covered period, calculate the average number of hours paid per week, divide by 40, and round to the nearest tenth. You should work with your loan agent or lender to determine the. FTE loan forgiveness calculation #1. To manage this, recipients determine the baseline FTE and payroll amounts to calculate the forgiveness. • Background on the Use of FTEs in the PPP • Basics of Calculating Average Weekly FTEs • Hours Paid Method of Calculation of Average Weekly FTEs (aka Mathematical) • FTE stands for "Full Time Equivalent. November 19, 2020. 85 This is the FTE Reduction quotient. Most of the complexity in the standard form comes from calculating forgiveness adjustments due to FTE and salary reductions. 9 FTE or 15(hours)/40(hours) = 0. PPP ForgivenessFAQsFTE Reduction Exception - There are certain situations whereyou can exclude an employee from the FTE calculation. For example, using a $100,000 PPP loan: if you have 6. PPP Loan Forgiveness Calculation Form; PPP Schedule A; PPP Schedule A Worksheet (optional) PPP Borrower Demographic Information Form; All borrowers must submit (1) and (2) to their lender. The platform will calculate the reference period FTEs for the 2019 reference period (February 15, 2019 to June 30, 2019) and also a 2020 reference period (January 1, 2020 to February 29, 2020). PPP Loan Forgiveness Calculation Form. To calculate the average number of FTE employees, choose one of the methods below and apply that method consistently to each employee: For each employee, calculate the average number of hours paid per week, divide by 40, and round the total to the nearest tenth. Total reduction. An interesting aspect of the application is the number of FTE calculations that may be required including the following: FTE for employees during the covered period making less than $100,000 during 2019. Calculating and Budgeting Contact Center FTE Requirements Three timeless articles from the ICMI Archives: • Why Staff Shrinkage Perplexes Your CFO – and Shrinks Your Budget • The Science and Judgement behind FTE Budgets • Troubleshooting FTE Requirements About the Author Brad Cleveland is often cited as one of the world's foremost. Follow the same method that was used to calculate Average FTE in the PPP Schedule A Worksheet Tables. President Trump signed into law the Coronavirus Aid, Relief and Economic Security Act (the “CARES Act) on March 27,2020. Calculating your FTE Reduction Quotient looks like this: 3. You have maintained your FTE employee count or you have restored your FTE employee count but you are going to need to reduce it in the coming months. The SBA released PPP Loan Necessity Questionnaires (Forms 3509 and 3510) for borrowers that received PPP loans of $2 million or more on October 30, 2020. Looking for the headcount number. A “full-time equivalent employee” (FTE) is a term used to represent the number of employees of a business entity for the purpose of determining whether the business qualifies as a small business. A single employee cannot be counted as more than 1. Here is an excellent description of what we know thus far. Borrower then fills out the PPP Loan Forgiveness Calculation Form to calculate the actual loan forgiveness amount by: Adding together the Total Payroll Costs from the PPP Schedule A with non-payroll costs. The average number of FTEs during the Covered Period (the 8 weeks post-loan origination) is 100. Hi, I'm having a real problem calculating an average FTE. The calculator relies on several assumptions contained in the AICPA’s recommendations, such as how to calculate FTEs and the aligning of the 8-week covered period with the beginning of a pay period, rather than the date the PPP loan proceeds were disbursed. Verification showing the average number of FTEs for the payroll period. You should use 30 hours weekly as your guide for an FTE. UPDATE 6/3/2020: Congress passed H. Enter the borrower’s total FTE (a) for a PPP loan made before December 27, 2020, as of December 31, 2020 or (b) for a PPP loan made after December 27, 2020, the last day of the covered period:. An employee working more than 40 hours per week is capped as 1. See full list on patriotsoftware. If your final FTE for all your full-time and part-time employees shows 50 FTEs or more, you are an Applicable Large Employer for the year. This calculator will assist in Download the PPP FTE Calculator. PPP forgiveness calculation: Calculate payroll and non-payroll costs: They are payroll costs, mortgage interest payments, rent or lease payments, and utility payments. Notice / Adopted Section Description ID Publish Date; Final 6A-14. Essentially, you divide the average FTEs during your covered period by the average FTEs in the predetermined reference period. Calculating FT and FTE Employees [UPDATED] As part of their annual filing of healthcare coverage information with the IRS, organizations must determine if they are Applicable Large Employers (ALEs) for purposes of the Affordable Care Act (ACA) - that is, whether they have an average of 50 or more full-time or full-time-equivalent employees. 0 for employees who work 40 hours or more per week and 0. Businesses may borrow 2. The average weekly number of full-time equivalent (FTE) employees is reduced, or Salaries and wages are cut by more than 25% for any employee who made less than $100,000 annualized in 2019. FTE payroll reduction (if reduced average FTE during PPP Period) - Payroll reduced by any FMLA and Sick Leave credits during (8 week) PPP Period. To ultimately calculate the amount of the loan that can be forgiven, you'll need to calculate your FTE reduction quotient. If your business does not qualify for any of the above exemptions, please review our Determining FTE and Wage Reduction for PPP Loan Forgiveness support article to determine how to calculate your forgiveness reduction. The formula to calculate the full-time equivalent (FTE) is as follows: Total working hours per year is calculated considering 8 hours in a day, five days in a week, and 52 weeks in a year = 8 * 5 * 52 = 2,080 hours. However, Revenue Per Employee figures allow you to see how much each employee (in a certain part of your business) contributes to revenues. The average number of FTE employees on payroll per month employed by the Borrower between 1/20/20 and 2/29/20 3. There are two periods that you can use to establish your Base FTE count. Follow the same method that was used to calculate Average FTE in the PPP Schedule A Worksheet Tables. with additional documentation verifying the number of FTE on Borrower’s payroll once PPP is in place compared to (divided by) average FTE during an eight -week period measured at either of the two time frames: • Average monthly FTE for 2/15/19 to 6/30/19, or; • Average monthly FTE for 1/1/20 to 2/29/20. The forms are not available at the SBA or Treasury websites, but were released through the PPP Loan Forgiveness portal to lenders. CALCULATING PPP LOAN FORGIVENESS By: Jeremy E. Someone who works 10 hours per week is 0. There are two eligible methods for calculating your FTEs during the covered and base period:. FTE stands for the full-time equivalent. A single employee cannot be counted as more than 1. Divide the number of FTE’s as of 2/15/20 by the number of FTE’s during the 8 week covered period; If the resulting percentage is less than 100%, then the difference times your total eligible costs equals your forgiveness reduction. PLEASE NOTE: These spreadsheets are locked to maintain the integrity of the formulas. Sum across all employees and enter: Step 2. Which form you will submit depends on whether you used your PPP funds to pay FTE employees. (See graphic, below). No matter your business structure we can assist. The new EZ PPP Loan Forgiveness Application (Form 3508EZ) can be used by borrowers who meet any of the three criteria detailed on page 1 of the EZ Application. The SBA released PPP Loan Necessity Questionnaires (Forms 3509 and 3510) for borrowers that received PPP loans of $2 million or more on October 30, 2020. PLEASE NOTE: These spreadsheets are locked to maintain the integrity of the formulas. A seasonal employer electing to use an alternative 12-week base period to calculate its maximum PPP loan amount should also consider its reference period to. PPP Schedule A, which summarizes cash compensation, average FTE counts, non-payroll costs eligible for forgiveness including employer payments for employee health insurance, retirement plans, and state unemployment taxes, and the FTE reduction calculation which generates the "FTE Reduction Quotient" (more details below). You would be eligible to borrow 2. Forgiveness Calculation - In Line with PPP Loan Forgiveness Calculation Form Refer to the SBA's Forgiveness Application for definitions, alternative calculations, exceptions, and safe harbors Simplified PPP Loan Forgiveness Calculator. February 15, 2019, to June 30, 2019; January 1, 2020, to February 29, 2020. Business use FTEs to measure performance, plan labor, and for certain regulations under the ACA. FTE is used to measure a worker’s service in a place (e. CALCULATING FTEs: THE MATH. The calculator relies on several assumptions contained in the AICPA's recommendations, such as how to calculate FTEs and the aligning of the 8-week covered period with the beginning of a pay period, rather than the date the PPP loan proceeds were disbursed. The first step in calculating FTE is to make a list of all employees. ” It is a. Sum across all employees and enter:. Here is an excellent description of what we know thus far. The size of your workforce in the previous calendar year determines whether you are an applicable large employer. The long form application includes four items, including the PPP Loan Forgiveness Calculation Form and PPP Schedule A, each of which will need to be provided to your PPP lender. The above example is for illustrative purposes only, and assumes no reduction in FTEs or salary, which would be represented in calculation 1. The guidance addresses a frequently asked question regarding the relationship between calculating gross receipts and the accounting method the borrower uses for its business. We can help you reduce a large portion of your SBA LOAN debt or get a 100% full forgiveness granted. • If an employee is paid for 40 hours/week in an organization with a 40-hour work week, the employee is a 1. 5 for anyone else. For our 8 week period we have our FTE calculation at 1. The PPP Loan Forgiveness Application provided guidance on how to calculate the loan forgiveness reduction based on salary/hourly wage reductions. Here is the calculation that shows how many full-time equivalent employees they represent: 50 + (10 x 20 + 10 x 22 + 20 x 25 + 10 x 28)/120 = 60 full-time equivalent employees. There are two eligible methods for calculating your FTEs during the covered and base period: Each employee that works a 40-hour work or more a week will be counted as 1. How can I request loan forgiveness? You can submit a request to the lender that is servicing the loan. No matter your business structure we can assist. The EZ Form still requires the borrower to do calculations, provide documentation, but not as much as compared to the full form, and certification. Major PPP Loan Forgiveness Issue Clarified with New Guidance on FTE Haircut Reduction Posted: May 4, 2020 With many businesses considering how and when to reopen or resume operations, a major barrier to Paycheck Protection Program (PPP) loan forgiveness has been addressed in new guidance released Sunday, May 3, 2020, by the U. Enter the borrower's total average FTE between February 15, 2020 and April 26, 2020. Enter in each employee’s name, EIN, Wages Paid during the Covered PPP period (from TAB 3), the Average FTE (from FTE calculator), and the required Forgiveness due to Salary reduction (from TAB 3). You can either take the average number of hours paid each week, divide by 40, and round to the nearest tenth (Hours paid each week / 40 = FTE) or you can assign full time employees that work 40 hours or more per week an FTE of 1. In simple terms, FTE is a method to calculate the number of total employees working in your organization by. The money you pay to 1099 contractors should have been excluded from your PPP calculation as contractors are eligible to apply for the PPP on their own. FTES for Full-Term class: WSCH x TLM / 525. Until guidance is received otherwise, we suggest using this computation to determine the FTEs for those employees who work fewer than 30 hours per week. Step 2 is for Employees that make more than $100,000 annually. If the total labor hours for a company within a year was 18,245, that would be divided by 2,080. , 7:00 hours. Download the 24-Week Full Time Equivalent (FTE) Calculator. Non-FTE = proportional hours based on anything less than 40 hours per week (example: 30 hours is 0. Answer: Yes, employer paid holidays may be included in the PPP forgiveness calculation when calculating full-time equivalent (FTE) employees for forgiveness purposes. PPP loan forgiveness will be reduced (a) in proportion to the decrease in the average monthly number of full-time-equivalent employees (“FTE”) during the Covered Period as compared to a reference period and (b) dollar for dollar by the amount of any reduction in total salary or wages of an employee (other than those who have annualized pay. PLEASE NOTE: These spreadsheets are locked to maintain the integrity of the formulas. SBA Releases PPP Loan Forgiveness Application. March 2019 to March 2020)? A) This is a good question for your banker. Similarly, if a non-payroll cost is incurred during the measurement period but not due until after the end of the measurement period, that payment is potentially forgivable if paid on or before the next regular billing date. Essentially, you divide the average FTEs during your covered period by the average FTEs in the predetermined reference period. The Nav CARES Act Calculator helps business owners estimate their potential PPP loan amount so they can apply with confidence. where: "A" is the amount of PPP Loan forgiveness reduction. They will have had two full time employees for the entire 8 weeks. In this case, FTE would be 8. The average weekly number of full-time equivalent (FTE) employees is reduced, or Salaries and wages are cut by more than 25% for any employee who made less than $100,000 annualized in 2019. Calculate the average full-time equivalency (FTE) per employee during the Covered Period or the Alternative Payroll Covered Period. The CARES Act potentially reduces the PPP loan amount forgiven when the business (1) reduced compensation of any one individual by more than 25 percent (but only if the individual was earning less than an annualized $100,000) or (2) reduced its FTEs. Note: On January 11, 2021, the SBA and Treasury reopened the Paycheck Protection Program. A careful reading of CARES Act section 1106(d)(2)(A) validates that the PPP Loan Forgiveness Application correctly applies the FTERQ to both payroll costs and non-payroll costs. We recommend all borrowers consult with their bank, legal, financial, and business advisors regarding interpretation and implementation of the loan forgiveness program. Sum across all employees and enter:. Step 5: Divide your payroll cost by. However, you would need to take into account that the 30 hours vs the 40 hours might change the FTE calculation. To calculate the first forgiveness formula limitation, Take Bucket A and divide it by 75%. January 1, 2020 through February 29, 2020. The information in this page is based on laws, rules, regulations, and related guidance with respect to the Paycheck Protection Program (PPP), including guidance issued by the U. Option (2): Sim ply assign a 1. PPP ForgivenessFAQsFTE Reduction Exception - There are certain situations whereyou can exclude an employee from the FTE calculation. 5 for employees who work less than 40 hours weekly. This would, potentially, affect their percentage of PPP loan forgiveness. Answers to "Biweekly vs Weekly FTE calculation? In calculating the Average FTE for the Forgiveness Schedule A worksheet, SBA instructs to enter the average number of hours paid per week then divide by 40. 5 times that amount, or $41,667. Schedule A worksheet (p 4) 5. Pursuant to the SBA Form 3508 instructions, the amount of a PPP loan eligible for forgiveness will be reduced first, by reductions to employee compensation (a dollar for dollar reduction), and then, by reduction related to full time employee equivalent (FTE) headcount (a percentage reduction). Download the PPP Loan Forgiveness Calculator. Borrowers that have maintained FTEs and salary/pay rates or restore them before the end of the of the 24-week period will want to apply for forgiveness as soon as they are abl e to. The second PPP loan. The word Internet was used in 1974 as the shorthand form of Internetwork. Business Legal Name ("Borrower") DBA or Tradename, if applicable Adjustments for Full-Time Equivalency (FTE) and Salary/Hourly Wage Reductions Line 9. 0 for an individual employee, even if they work more than 40 hours per weekly pay period) and employees who work less than 40 hours per week an FTE of 0. Standard PPP loan forgiveness application: Wage reductions over 25% and FTE reduction safe harbors. Use SBA’s “FTE” and related calculations based on 40-hour work week. • Background on the Use of FTEs in the PPP • Basics of Calculating Average Weekly FTEs • Hours Paid Method of Calculation of Average Weekly FTEs (aka Mathematical) • FTE stands for "Full Time Equivalent. Treasury defines a FTE as any employee who works 40 hours per week or more. Full-Time Equivalent (FTE) Reduction Calculation: Calculating average weekly FTE over several different time periods including: February 15, 2019 – June 30, 2019; January 1, 2020 – February 29, 2020; Pay period inclusive of February 15, 2020. Following is calculation for counting their combined FTE. We've explained with one example below. 5 / 525 = 3. Employment loss is calculated by determining the quotient of average number of FTEs each pay period during the Covered Period divided by pre-loan FTEs. 5 FTE for Part Time (Less Than 40 Hours/Week) FTE Calculation Election (enter "Y" for chosen method) y PPP Application Chosen Period Employee Name (List only if less than or equal to $15,385 cash comp for 8 week period) Employee Identifer (last 4 digits. ” Businesses without FTE employees will use Form 3508EZ. An employee working more than 40 hours per week is capped as 1. The PPP Loan Disbursement Date will be the first day of the Covered Period. 0 FTE employee is an employee who works 40 hours (or more) during the work week. What is an "FTE" for purposes of the PPP? A. PPP Loan Disbursement Date is the date of their initial advance. Business Legal Name (“Borrower”) DBA or Tradename, if applicable (FTE) and Salary/Hourly Wage Reductions Line 9. Step 3: Calculate average monthly payroll costs (divide the amount from Step 2 by 12). The first way to calculate FTE is to take the average number of hours paid each week, divide by 40, and round to the nearest tenth. Step 4 -Calculate FTE levels for pay period that includes Feb 15, 2020 Step 5 –Calculate FTE level on Jun 30, 2020 and compare to Step 4 FTE # equal to or greater than lookback FTE: No forgiveness reduction, no further action required FTE # less than lookback FTE: Loan Forgiveness Reduction 4 5. Step 6: Your PPP Loan forgiveness amount will be LESSER between Options 1, 2 and 3. (This number can not exceed 1. Hourly FTE calculations is 40 hrs/week. Enter the borrower's total average FTE between February 15, 2020 and April 26, 2020. How do I determine the FTE calculation for each employee? a. 33, enter $8,333. SBA PPP Loan Forgiveness Calculator. Now a lot of people are calling our office to ask if we are doing PPP one and PPP two application services. FTE Reduction Safe Harbor. The requirement applies to every employee who got less than $100,000 at an annualized rate in 2019 or 2020, whichever year the borrower uses to calculate the PPP loan. Bonuses and hazard pay and payroll paid to furloughed employees are eligible for loan forgiveness. However, you would need to take into account that the 30 hours vs the 40 hours might change the FTE calculation. Any borrower of a PPP loan of $50,000 or less may use SBA Form 3508S to apply for loan forgiveness and be exempted from any reductions in their loan forgiveness amount based on reductions in full-time equivalent (FTE) employees or reductions in employee salary or wages. These situations include:1. Recently, GrowthLab provided you with the 5 steps necessary to complete your PPP Loan Forgiveness Application (Form 3508). Payroll and Full Time Equivalents (FTEs) PPP loans are forgivable, but reductions in employees, work hours and total payroll decrease the forgiveness. However, you would need to take into account that the 30 hours vs the 40 hours might change the FTE calculation. For simplicity, you can choose to use 1. The excel spreadsheet was built to help businesses manage through the SBA’s Paycheck Protection Program (PPP). Full-time equivalent employees:To calculate the average FTE, borrowers take the average number of hours paid per week per individual employee, divided by 40, and round the total to the nearest tenth, capped at 1. Note: For rehires who decline with written acknoweldgment, count as 1 FTE per week. 0 on line 13 of PPP Schedule A; the FTE Reduction Safe. This indicates that. CHOOSE PART-TIME FTE CALCULATION METHOD Actual % of Full Time (i. (This number can not exceed 1. We simplified these three by making the following decision tree to help you determine whether to use the new EZ Application, or the standard Application. Making adjustments for full-time equivalency (FTE) and per hour wage reduction: PPP calculation is calculated based on a total salary per hour reduction of more than 25% or. The PPP Loan Forgiveness Calculation Form • Must submit to lender. A full-time equivalent employee is determined by adding the hours of part-time employees on a monthly basis and dividing by 120 [IRC Section 4980H(c)(2)(E)]. The pay period that includes January 1 is from 12/27/2019 to 1/10/2020. The Paycheck Protection Program ends on May 31, 2021 or whenever funding runs out. The Treasury Department and the SBA have released new interim final rules, a new how-to FAQ and other revised FAQs to further explain how the PPP loan rules work. To calculate the average number of FTE employees, choose one of the methods below and apply that method consistently to each employee: For each employee, calculate the average number of hours paid per week, divide by 40, and round the total to the nearest tenth. PPP forgiveness calculation: Calculate payroll and non-payroll costs: They are payroll costs, mortgage interest payments, rent or lease payments, and utility payments. Review and Verify Eligibility, FTE Certifications including related supporting payroll reports & documentation for the various SBA PPP Applications: 3508S, 3508EZ & Certifications, 3508 & Schedule. The Nav CARES Act Calculator helps business owners estimate their potential PPP loan amount so they can apply with confidence. If line 2 is less than line 1, then dividend line 2 by line 1. Definition of Full-Time Employee. 0 during the covered period, a 20% reduction (8/10 forgivable) would be required in the loan forgiveness calculation. Update as of June 10, 2020: Based on a joint statement by the Secretary of the Treasury and the SBA Administrator, it is expected that forthcoming regulations will be adopted regarding some of the changes made to the PPP through the PPP Flexibility Act. Run PPP FTE Count Report by clicking on that tab. For example, if a position has an FTE of six to which four employees (each with an FTE of one) are assigned, the remaining headcount of two is a vacant expense. 0 FTEs or 2. The information from the Schedule A is used to fill out the PPP Loan Forgiveness Calculation Form on page 1 of SBA Form 3508. This week we will review how to calculate the number of full-time equivalent employees (FTEs) for the covered period (or alternative payroll period, if elected) and how to compare it to the base period(s) to determine a potential loan forgiveness reduction. Calculating FTE. Enter the borrower’s total FTE (a) for a PPP loan made before December 27, 2020, as of December 31, 2020 or (b) for a PPP loan made after December 27, 2020, the last day of the covered period:. The PPP Schedule A Worksheet and Instructions for the PPP Schedule Worksheet included in pages 7-9 in the link provided above, take you through the steps to calculate. If the entry for step 4 is greater than or equal to step 2, enter 1. Step 3: Calculate average monthly payroll costs (divide the amount from Step 2 by 12). As a result, we have updated our Loan Forgiveness Calculator. There are two eligible methods for calculating your FTEs during the covered and base period:. DWH staff is available for further support. Line 7: "FTE reduction quotient" You should use the PPP Schedule A to determine this amount. The amount eligible for forgiveness is capped at. 0 for employees who work 40 hours or more per week and. FTE for rules of loan forgiveness: Rules applied under IRC 4980H according to the Affordable Care Act, which states a full-time equivalent is anyone who works at least 30 hours per week. both 1) you had reduced your FTE EE levels from Feb 15, 2020 to Apr 26, 2020; and 2) you then restored your FTE EE levels by the end of the covered period to your FTE EE levels in your. Under this method, no employee may exceed 1. Average number of FTE employees/mo. They will have had two full time employees for the entire 8 weeks. A borrower's loan forgiveness amount will be reduced based on reductions in full-time equivalent employees (FTEs) or in salary or wages during an eight-week/56 day Covered Period subject to several safe-harbor provisions. • The aggregate of employees who work less than 30 hours per week, where the hours worked of such employees add up to at least 30 hours per week. 0 and WSCH = 3. Maintain FTEs and not reduce wages by more than 25 percent for any employee (compared to the most recent full quarter prior to receipt of the PPP loan) during the eight weeks following your receipt of the PPP loan; or Eliminate FTE and/or wage reductions by June 30, 2020. Notice / Adopted Section Description ID Publish Date; Final 6A-14. There are a number of traps that can reduce the amount of your spending that will be. Covered Period. Otherwise, use 1. To calculate its pre-loan FTEs, an employer can use either (a) its average number of FTEs from January 1, 2020 to February 29, 2020, or (b) its average number of FTEs from February 15, 2019 to. Calculating FT and FTE Employees [UPDATED] As part of their annual filing of healthcare coverage information with the IRS, organizations must determine if they are Applicable Large Employers (ALEs) for purposes of the Affordable Care Act (ACA) - that is, whether they have an average of 50 or more full-time or full-time-equivalent employees. Step 4: Calculate reductions in eligible forgiveness amount. I want to put a formula in cell CL2 that looks at the number. The SBA may issue additional forgiveness-related guidance. The application tells us that 1. 8: 5327: 9: fte calculator aca: 1. In simple terms, FTE is a method to calculate the number of total employees working in your organization by converting the strength of part-time. Please refer to the latest guida. You need to provide support for payroll and non-payroll costs, and full-time equivalent (FTE) employee counts. A borrower must calculate this revenue reduction by comparing the borrower’s quarterly gross receipts for one quarter in 2020 with the borrower’s gross receipts for the. When an employee of the borrower is fired for cause, voluntarily resigns, or voluntarily requests a reduced schedule during the covered period or the alternative payroll covered period (FTE reduction event), the borrower may count such employee at the same full-time equivalency level before the FTE reduction event when calculating the section. However, in certain circumstances, you can get FTE credit during the covered period for FTEs who are not actively working, so long as those employees still received at least 75% of their regular pay. Answered by Aria D. Assign a 1. The PPP Schedule A Worksheet and Instructions for the PPP Schedule Worksheet included in pages 7-9 in the link provided above, take you through the steps to calculate. Let's say you own a chain of movie theaters. Minimum Percentage of PPP Loan Forgiveness for Payroll Costs Decreased to 60%. Add your full-time FTE and your part-time FTE to get your total FTE figure. Follow the same method that was used to calculate Average FTE in the PPP Schedule A Worksheet Tables. Take the average number of hours paid per week, divide by 40, and round the total to the nearest tenth. 0 for employees who work 40 hours or more per week and. Full-Time Equivalency (FTE) Reduction Calculation. The Paycheck Protection Program (PPP) was launched by the US Small Business Administration (SBA) to help businesses keep their workforce employed during the Coronavirus (COVID-19) crisis. Examples of Reduction Due to Reduction Salaries or Wages 5. Note: For rehires who decline with written acknoweldgment, count as 1 FTE per week. April 22, 2020. FTEs can be reduced to meet operational needs earlier without affecting PPP loan forgiveness calculations, if the borrower has maintained a certain FTE level primarily to achieve maximum forgiveness. Background on the Use of FTEs in the PPP What does FTE stand for? • FTE stands for “Full Time Equivalent. If the entry for step 4 is greater than or equal to step 2, enter 1. Round down, and you'll have 8 FTEs. Step 4 -Calculate FTE levels for pay period that includes Feb 15, 2020 Step 5 –Calculate FTE level on Jun 30, 2020 and compare to Step 4 FTE # equal to or greater than lookback FTE: No forgiveness reduction, no further action required FTE # less than lookback FTE: Loan Forgiveness Reduction 4 5. PPP loan forgiveness will be reduced (a) in proportion to the decrease in the average monthly number of full-time-equivalent employees (“FTE”) during the Covered Period as compared to a reference period and (b) dollar for dollar by the amount of any reduction in total salary or wages of an employee (other than those who have annualized pay. , an employee that earns $200/week would count as 0. As discussed in more depth in yesterday's post, to calculate FTEs, borrowers must divide the average number of hours paid for each employee per week by 40. PPP loan forgiveness is also based partly. 5 for employees who work fewer hours. To calculate the FTE number, Lucky Lanes first needs add the average number of hours worked for all 10 part-time employees: 20+20+20+20+20+15+15+15+15+15 = 175 hours. February 15, 2019 through June 30, 2019 and 2. In calculating the FTE of part-time employees, borrowers may either add the hours of all part-time employees and divide by 40, or elect, "for administrative convenience. The denominator is the average number of full-time equivalent employees in the chosen time frame described in the following paragraph. Business Legal Name (“Borrower”) DBA or Tradename, if applicable (FTE) and Salary/Hourly Wage Reductions Line 9. PPP loans can be as large as 250% of a business' average monthly payroll costs over the one year period before the loan is made, plus the amount of any COVID-19 Economic Injury Disaster Loan previously made to the business that is refinanced with the PPP loan, not to exceed $10 million; provided, that the portion of an employee's salary. Answers to "Biweekly vs Weekly FTE calculation? In calculating the Average FTE for the Forgiveness Schedule A worksheet, SBA instructs to enter the average number of hours paid per week then divide by 40. ** Non payroll costs can account for NO MORE than 25% of loan forgiveness. These situations include:1. 0 on line 13 of PPP Schedule A; the FTE Reduction Safe. If you made a good-faith, written offer to rehire an employeewho was employed on February 15, 2020, and you weren’t ableto hire a similarly qualified employee before December 31, 2020. FTE reduction safe harbor 2. Hi, I'm having a real problem calculating an average FTE. On May 16, 2020, the SBA released its long-awaited forgiveness application that includes detailed guidance on calculating how much of a Paycheck Protection Program (PPP) loan may be forgiven. 0 for employees who work 40 hours or more per week and 0. Step 3: Multiply this number by the FTE Reduction Quotient (Schedule A, line 13) The result is OPTION 1. An FTE of 1. Maximum value of 1. 4 FTE (16 divided by 40)). 0 for employees who work 40 hours or more per week and. the average number of FTE employees on payroll per month employed by the Borrower between January 1, 2020 and February 29, 2020; or. Treasury defines a FTE as any employee who works 40 hours per week or more. Each week we will provide a detailed explanation of computations included on the SBA prepared PPP loan forgiveness application. The original PPP provided $525 billion in forgivable loans over five months before it stopped accepting applications in August. If the entry for step 4 is greater than or equal to step 2, enter 1. However, the amount of those eligible expenses actually forgiven may be decreased by a percentage proportionate to (a) a decrease in full time equivalent employees ("FTEs") during the 8-week covered loan period as compared to before, and/or (b) a decrease in individual employee salaries by 25% or more (excluding anyone making over $100,000. Essentially, you divide the average FTEs during your covered period by the average FTEs in the predetermined reference period. Does an employee that only worked from January 1-15th 2020 count against me for PPP FTE Base Period calculation. These situations include:1. The revised rule allowing practice owners to include up to $20,833 of their compensation towards the PPP loan forgiveness calculation extends to S-Corp owners too. Bonuses and hazard pay and payroll paid to furloughed employees are eligible for loan forgiveness. Next, add your full-time employee count (which is 20) with 8, and you'll have an FTE number of 28. Calculation Considerations Exceptions Owner Considerations There are special rules for owner-employees of a company for the PPP Loan Forgiveness report and must be tagged. Since the calculation method tracks each employee by the hours they worked, and since it is the same method to use pre-pandemic and during the eight-week period, it will. However, there are additional requirements regarding maintaining the company’s full-time equivalent (FTE) count during the eight-week period as before COVID-19 in order. It is my understanding that her hours count for the FTE calculation without any attribution to the owner which would exclude her hours from the calculation. If the total labor hours for a company within a year was 18,245, that would be divided by 2,080. 0 for employees who work 40 hours or more per week and. CALCULATING FTEs: THE MATH. This guide will walk you through filling out the PPP Loan Forgiveness. Line 10 totals the payroll costs listed on PPP Schedule A, with the amount carried to line 1 of the PPP Loan Forgiveness Calculation Form. You have maintained your FTE employee count or you have restored your FTE employee count but you are going to need to reduce it in the coming months. Estimate total eligible payroll costs during either the 8-week or 24-week coverage period and divide by 60 percent. Additional guidance or FAQs will be needed to address this question. Lender PPP Loan Number: Enter the loan number assigned to the PPP loan by the Lender. PPP ForgivenessFAQsFTE Reduction Exception - There are certain situations whereyou can exclude an employee from the FTE calculation. Note: For rehires who decline with written acknoweldgment, count as 1 FTE per week. These are individuals who are paid using a year-end W-2 form. The denominator is the average number of full-time equivalent employees in the chosen time frame described in the following paragraph. Full-time equivalents (FTEs) is a metric used to show you what your total labor hours equates to in full-time employees. Forgiveness Calculation - In Line with PPP Loan Forgiveness Calculation Form Refer to the SBA's Forgiveness Application for definitions, alternative calculations, exceptions, and safe harbors Simplified PPP Loan Forgiveness Calculator. The application tells us that 1. The platform will calculate the reference period FTEs for the 2019 reference period (February 15, 2019 to June 30, 2019) and also a 2020 reference period (January 1, 2020 to February 29, 2020). Take the average number of hours paid per week, divide by 40, and round the total to the nearest tenth. Calculate FTEs based on the methods outlined in the Loan Forgiveness Application. Hours paid each week / 40 = FTE The Treasury defines a full-time employee as an employee who works 40 or more hours per week, so FTE is calculated on a scale of 1. Or, simply assign a 1. 0 for employees who work 40 hours or more per week and. Average FTE. Maximum loan forgiveness: $500,000 * 73% = $365,000. 0 FTEs and those that normally work less are 0. The amount eligible for forgiveness is capped at. The Paycheck Protection Program is a loan designed to provide a direct incentive for small businesses to keep their workers on the payroll. Answer: The amount of forgiveness available will be reduced according to the formula A = B (X/Y). Business Legal Name (“Borrower”) DBA or Tradename, if applicable (FTE) and Salary/Hourly Wage Reductions Line 9. Calculate the number of FTEs during the Covered Period or Alternative Payroll Covered Period. 0 FTEs or 2. SBA will forgive loans if all employee retention criteria are met, and the funds are used for eligible expenses. Option (1): Take the average number of hours paid per week, divide by 40, and round the total to the nearest tenth (maximum for each employee is 1. Learn how to calculate your headcount reductions so you can determine if they affect your PPP loan forgiveness amount. You need to provide support for payroll and non-payroll costs, and full-time equivalent (FTE) employee counts. The result of the calculation on Line 7, would be 74 percent, and Mary's entire PPP Loan would be forgiven. Powered by decades of business lending expertise and technology, the calculator helps simplify the complexity of a government program to make it easy for business owners to understand how much they may qualify for with. However, in certain circumstances, you can get FTE credit during the covered period for FTEs who are not actively working, so long as those employees still received at least 75% of their regular pay. What does Full Time Equivalent mean? Using FTE calculations; Covered Period, lookback period and FTE comparison; Wage Reductions Calculation. We will periodically update this information, so please check back often and consider bookmarking this page. • Average FTE Headcount during January 1 through February 29, 2020 = 100 FTE. FTE Reductions: Loan forgiveness is also subject to a reduction if average FTE levels during the covered period are less than average FTE levels of the comparative period selected by the borrower (either February 15, 2019 to June 30, 2019; January 1, 2020 to February 29, 2020; or, in the case of seasonal employers, either of those options or. PPP forgiveness calculator – Prior version (5/22/20 – 6/17/20) – Excel Please see our important disclaimer regarding use of the calculator inside the Excel spreadsheet. The rules around forgiveness of PPP loans are changing. Again, $153,600 out of your $200,000 PPP loan is forgivable. 1) CARES - 1106, (d), (2), (B). If the FTE as of June 30, 2020 is greater than or equal to the FTE for the February pay period, the safe harbor is satisfied and the FTE is. Maintain FTEs and not reduce wages by more than 25 percent for any employee (compared to the most recent full quarter prior to receipt of the PPP loan) during the eight weeks following your receipt of the PPP loan; or Eliminate FTE and/or wage reductions by June 30, 2020. See “Who is an employee for purposes of determining FTEs and average wages” for information on who may be counted in the FTE and average annual wage calculation. 0 for employees who work 40 hours weekly and 0. The Paycheck Protection Program (PPP) helps small businesses by offering a loan to cover payroll, mortgage, rent, utilities and certain benefits. For purposes of the employer shared responsibility provisions, a full-time employee is, for a calendar month, an employee employed on average at least 30 hours of service per week, or 130 hours of service per month. Accounting for employees who made more than $100,000 in 2019: One question in the FAQ asks, "When calculating the FTE Reduction Exceptions in Table 1 of the PPP Schedule A Worksheet on the Loan Forgiveness Application (SBA Form 3508 or lender equivalent), do borrowers include employees who made more than $100,000 in 2019 (those listed in. Background on the Use of FTEs in the PPP What does FTE stand for? • FTE stands for “Full Time Equivalent. On May 16, 2020, the SBA released its long-awaited forgiveness application that includes detailed guidance on calculating how much of a Paycheck Protection Program (PPP) loan may be forgiven. Request this number from the Lender if necessary. Payroll Costs (add lines 1, 4, 6, 7, 8, and 9): Full-Time Equivalency (FTE) Reduction Calculation If you satisfy. To manage this, recipients determine the baseline FTE and payroll amounts to calculate the forgiveness. At the end of the eight weeks you will need to calculate the average number of full-time equivalent employees you had during the 8-week period following the disbursement of your loan. FTE Calculation. Hello, IF you are in need of professional assistance to prepare your PPP loan forgiveness application documents then you came to the right place. 0 for employees who work 40 hours or more per week and 0. Page 4 contains the Summary Table. 10) Documents: Some have to be maintained but not submitted. The SBA may issue additional forgiveness-related guidance. SBA will forgive loans if all employee retention criteria are met, and the funds are used for eligible expenses. The IFR defines a "full-time equivalent employee" (FTE employee) as an employee who works 40 hours or more, on. Run the PPP FTE Countreport by clicking on that tab. The loan reduction is the 8-week equivalent of the annual salary or hourly rate reduction that exceeds the 25% threshold. If the loan forgiveness amount totals $100,000. Average number of full-time equivalent employees (FTEs) per month for the eight-week covered period Average number of FTEs per month from February 15 to June 30, 2019 or January 1 to February 29, 2020. The SBA released PPP Loan Necessity Questionnaires (Forms 3509 and 3510) for borrowers that received PPP loans of $2 million or more on October 30, 2020. To calculate the FTE number, Lucky Lanes first needs add the average number of hours worked for all 10 part-time employees: 20+20+20+20+20+15+15+15+15+15 = 175 hours. • The aggregate of employees who work less than 30 hours per week, where the hours worked of such employees add up to at least 30 hours per week. The PPP loan covered period, which is the period used to calculate forgiveness, has been extended from 8 to 24 weeks. PPP ForgivenessFAQsFTE Reduction Exception - There are certain situations whereyou can exclude an employee from the FTE calculation. • Background on the Use of FTEs in the PPP • Basics of Calculating Average Weekly FTEs • Hours Paid Method of Calculation of Average Weekly FTEs (aka Mathematical) • FTE stands for "Full Time Equivalent. FTE Reduction Safe Harbors. FTE Documentation (at the election of the Borrower): a. Calculate the Payroll Costs and Non-Payroll Costs spent with PPP Funds during the Covered Period. The SBA released PPP Loan Necessity Questionnaires (Forms 3509 and 3510) for borrowers that received PPP loans of $2 million or more on October 30, 2020. The first way to calculate FTE is to take the average number of hours paid each. To ultimately calculate the amount of the loan that can be forgiven, you’ll need to calculate your FTE reduction quotient. 8 FTE employee under the bill. The PPP Borrower Demographic Information Form WHAT IS A FULL TIME EQUIVALENT (FTE)?. Calculate the initial forgiveness amount by: Loan Amount x (Post-PPP FTE / Pre-PPP FTE) For example, a business receiving $100,000 in PPP Funds who reduces staff from 10 FTE (in the Pre-PPP period) down to 8 FTE (in the Post-PPP period) — the calculation would then be $100,000 x (8 / 10) or $80,000 in potential loan forgiveness. Club Capital Clients: Gusto calculates all FTE concerns for you in their PPP Forgiveness report! 8. , The average number of hours paid per week divided by 40. Full-time equivalent employees:To calculate the average FTE, borrowers take the average number of hours paid per week per individual employee, divided by 40, and round the total to the nearest tenth, capped at 1. The forms are not available at the SBA or Treasury websites, but were released through the PPP Loan Forgiveness portal to lenders. Estimate how many hours the employee will work during an average pay period within the contract dates to calculate FTE. > Forgiveness Calculation: $400,000 Loan, multiplied by 95% = $380,000 (a 5% reduction in forgiveness). Calculating your FTE Reduction Quotient looks like this: 3.