Oregon Pacific Bancorp · OTC:ORPB
Oregon Pacific Bancorp — PPP Forgiveness Applicant Educational Webinar (August 2020)
24 slides from Oregon Pacific Bancorp's conference presentation, Aug 25, 2020
Slide 1: Paycheck Protection Program Loan Forgiveness - Applicant Process
Paycheck Protection Program Loan Forgiveness - Applicant Process August 25, 2020 1
Slide 2: Agenda
AGENDA Introductions Software demonstration Owner compensation rules Supporting Documentation Resources Questions 2
Slide 3: Today's Presenters
Today’s Presenters Paula King Zach Langley Senior Adviser Senior Analyst 3
Slide 4: Disclaimer
Disclaimer This presentation is based on the latest guidance provided by the Small Business Administration (SBA) and United States Department of the Treasury as of the date of this presentation. We recognize that this guidance may be further updated and commit to having a compliant Paycheck Protecti
Slide 5: Owner Compensation Rules
Owner Compensation Rules 5
Slide 6: How is the amount of owner compensation eligible for loan forgiveness determined?
How is the amount of owner compensation that is eligible for loan forgiveness determined? • Identify your entity structure and/or type of tax return you filed in 2019. See following slides. • Generally, owner-employees and self-employed individuals’ payroll compensation are capped at$100,000 or - $2
Slide 7: Owner compensation: C Corporations
How is the amount of owner compensation that is eligible for loan forgiveness determined? C Corporations: • Owner-employee is eligible for loan forgiveness up to the amount of 2.5/12 of his or her 2019 employee cash compensation. So choose from actual paid during covered period, covered period caps
Slide 8: Owner compensation: S Corporations
How is the amount of owner compensation that is eligible for loan forgiveness determined? S Corporations: • Owner-employee is eligible for loan forgiveness up to the amount of 2.5/12 of their 2019 employee cash compensation • Include employer state and local taxes paid by the Members on owner-employ
Slide 9: Owner compensation: Self-employed Schedule C or F filers
How is the amount of owner compensation that is eligible for loan forgiveness determined? Self-employed Schedule C (or Schedule F) filers: • Compensation of self-employed Schedule C (or Schedule F) individuals, including sole proprietors, self-employed individuals, and independent contractors, is li
Slide 10: Owner compensation: General Partners
How is the amount of owner compensation that is eligible for loan forgiveness determined? General Partners: Compensation limited to 2.5/12 of their 2019 net earnings from self-employment that is subject to self-employment tax, which is computed from 2019 IRS Form 1065 Schedule K-1 box 14a (reduced b
Slide 11: Owner compensation: LLC owners
How is the amount of owner compensation that is eligible for loan forgiveness determined? LLC owners: LLC owners must follow the instructions that apply to how their business was organized for tax filing purposes for tax year 2019, or if a new business, the expected tax filing situation for 2020. (F
Slide 12: Supporting Documentation
Supporting Documentation 12
Slide 13: PPP Forgiveness Documents Submission: Payroll
PPP Forgiveness Documents Submission Payroll: Documentation verifying the eligible cash compensation and non-cash benefit payments from the Covered Period or the Alternative Payroll Covered Period consisting of each of the following: a. Bank account statements or third-party payroll service provider
Slide 14: PPP Forgiveness Documents Submission: Nonpayroll
PPP Forgiveness Documents Submission Nonpayroll: Documentation verifying existence of the obligations/services prior to February 15, 2020 and eligible payments from the Covered Period. a. Business mortgage interest payments: Copy of lender amortization schedule and receipts or cancelled checks verif
Slide 15: PPP Form 3508 Documents Submission
PPP Form 3508 Documents Submission FTE: Documentation showing (at the election of the Member): • The average number of FTE employees on payroll per week employed by the Member between February 15, 2019 and June 30, 2019; • The average number of FTE employees on payroll per week employed by the Membe
Slide 16: PPP Forgiveness Member Records
PPP Forgiveness Member Records Documentation supporting the certification, if applicable, that the Member was unable to operate between 2/152020 and the end of the Covered Period at the same level of business activity as before 2/15/2020 due to compliance with requirements or guidance issued between
Slide 17: PPP Forgiveness Member Records
PPP Forgiveness Member Records • Documentation regarding any employee job offers and refusals, refusals to accept restoration of reductions in hours, firings for cause, voluntary resignations, written requests by any employee for reductions in work schedule, and any inability to hire similarly quali
Slide 18: PPP Form 3508EZ Member Records
PPP Form 3508EZ Member Records Documentation supporting that annual salaries or hourly wages were not reduced by more than 25 percent during the Covered Period or the Alternative Payroll Covered Period for the period between January 1, 2020 and March 31, 2020. This documentation must include payroll
Slide 19: PPP Form 3508 Member Records
PPP Form 3508 Member Records • Documentation supporting the listing of each individual employee in PPP Schedule A Worksheet Table 1, including the “Salary/Hourly Wage Reduction” calculation, if necessary. • Documentation supporting the listing of each individual employee in PPP Schedule A Worksheet
Slide 20: PPP Forgiveness Forms Instructions/Resources
PPP Forgiveness Forms Instructions/ Resources 20
Slide 21: Forgiveness Submission Support
Forgiveness Submission Support Form 3508EZ Instructions link: https://home.treasury.gov/system/files/136/PPP-Loan-Forgiveness-Application-Form-EZ- Instructions.pdf Form 3508 Instructions link: https://home.treasury.gov/system/files/136/PPP-Loan-Forgiveness-Application- Instructions_1_0.pdf 21
Slide 22: Resource Page Member Videos
Resource Page Member Videos • Supporting Documentation Requirements • Accessing the Application and Getting Started • Form 3508 EZ Completion • Form 3508 Manual Input • For applicants using calculation spreadsheet: • Schedule A – Overview • Schedule A – Getting Started and Salary/Hourly Wage Step 1
Slide 23: Questions
«°) abrigo make big things happen. 23
Slide 24: Thank You
Thank You abrigo.com 24
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