Payroll Costs for PPP – Reports from Gusto, Paychex, and QBO – What numbers do you need?
Payroll reports can be notoriously confusing and complicated. So we took example payroll reports from three separate systems and reviewed what numbers you need to pay attention to, and what numbers to ignore - as related to PPP forgiveness.
When you apply for PPP forgiveness, you will need to calculate your payroll costs correctly. You will include those costs on your loan forgiveness application Form 3508 or Form 3508EZ.
Interim Rule 1 (https://home.treasury.gov/system/files/136/PPP--IFRN%20FINAL.pdf) states:
What qualifies as ‘‘payroll costs?’’
Payroll costs consist of compensation to employees (whose principal place of residence is the United States) in the form of salary, wages, commissions, or similar compensation; cash tips or the equivalent (based on employer records of past tips or, in the absence of such records, a reasonable, good-faith employer estimate of such tips); payment for vacation, parental, family, medical, or sick leave; allowance for separation or dismissal; payment for the provision of employee benefits consisting of group health care coverage, including insurance premiums, and retirement; payment of state and local taxes assessed on compensation of employees; and for an independent contractor or sole proprietor, wages, commissions, income, or net earnings from self-employment, or similar compensation.
We are reviewing reports form Gusto, Quickbooks Online (QBO), and Paychex - which are three of the most common payroll systems we see for small businesses.
Remember to DOCUMENT all the expenses related to the PPP loan. Find guidance here: https://youtu.be/6tlCbJaoDPo
Find Small Business PPP Resources here: http://learn.claracfo.com/
To book a time to talk about your PPP Loan go here: https://claracfo.as.me/claritysessions
Find us at: https://claracfo.com/
Disclaimer: This video is intended for educational purposes and should not be taken as legal or tax advice. You should consult with your financial professionals about your unique financial situation before acting on anything discussed in these videos. Clara CFO Group, LLC is providing educational content to help small business owners become more aware of certain issues and topics, but we cannot give blanket advice to a broad audience.