Slide 1: Paycheck Protection Program (PPP) Loan Forgiveness Frequently Asked Questions
Paycheck Protection Program (PPP) Loan Forgiveness Frequently Asked Questions
Slide 2: Disclaimer
DISCLAIMER: The information presented in these materials, and that is further provided by the presenter, should not be considered legal or accounting advice, and should not substitute for legal, accounting, or other professional advice in which the facts and circumstances may warrant. We encourage y
Slide 3: Today's Host: Thad Inge
Today’s Host Thad Inge Sr. Manager, Government Relations Thad Inge joined Paychex in 2016 and is based in Washington, D.C., where he serves as Senior Manager for Government Relations. As part of his portfolio, Thad works closely with Congress, the Executive Branch, trade associations, and public pol
Slide 4: Today's Speakers: Rebecca Wagner
Today’s Speakers Rebecca Wagner Senior Compliance Analyst Rebecca Wagner is a Senior Compliance Analyst at Paychex and an Accredited ACH Professional with extensive banking and payments experience. In her role at Paychex she manages payment industry relations with their banks, NACHA and various Paym
Slide 5: Today's Speaker: Connor Mykins
Today’s Speaker Connor Mykins Compliance Analyst Connor Mykins is a compliance analyst at Paychex. A Certified Anti-Money Laundering Specialist, Connor has more than 10 years of experience in the financial services industry. Copyright Paychex Inc. 2020 5
Slide 6: Agenda
Agenda 1 Overview: Paycheck Protection Program 2 What is loan forgiveness? 3 How does loan forgiveness work? 4 Q&A and Helpful Resources Copyright Paychex Inc. 2020 6
Slide 7: The Paycheck Protection Program (PPP)
The Paycheck Protection Program (PPP) Copyright Paychex Inc. 2020 7
Slide 8: Paycheck Protection Program
Paycheck Protection Program Background Benefits • A provision of the CARES Act designed to provide • Waivers quick access to SBA loans for companies with 500 or fewer employees to assist with payroll and certain • Forgiveness of up to 8 weeks of eligible costs, operating costs during short-term busi
Slide 9: How are we helping?
How are we helping? Paychex created a report that is currently available to current and former clients to help make applying for a Paycheck Protection Program loan simpler. This specialized report has the payroll cost calculations that you’ll need to be able to complete the PPP loan application foun
Slide 10: How are we helping?
How are we helping? Paychex created a report that is currently available to current and former clients to help make applying for a Paycheck Protection Program loan simpler. This specialized report has the payroll cost calculations that you’ll need to be able to complete the PPP loan application foun
Slide 11: PPP Loan Forgiveness
PPP Loan Forgiveness Copyright Paychex Inc. 2020 11
Slide 12: Paycheck Protection Program: Application vs Forgiveness
Paycheck Protection Program PPP Loan Application PPP Loan Forgiveness Calculation Period 2019 or rolling year 8 weeks after loan disbursed Payroll Costs – Definition the same Average Costs Actual Costs Non-Payroll Costs (Mortgage, Rent, Utilities) N/A Actual Costs Headcount/FTE Actual Employee Count
Slide 13: Paycheck Protection Program: Covered Costs
Paycheck Protection Program “Payroll Costs” means compensation paid to employees that is: What are “covered” costs? • Salary, wages, commission, or similar compensation • Payment of cash tip or equivalent • Payment for vacation, parental, family, medical or sick leave • Allowance for dismissal or se
Slide 14: Paycheck Protection Program: Forgiveness Rules
Paycheck Protection Program • Only the amount used on covered costs can be forgiven. • At least 75% of the loan amount must be used for payroll costs. • Not more than 25% of the loan forgiveness amount may be attributable to non-payroll costs. • Reductions in Full Time Equivalents (FTEs) and wages i
Slide 15: Loan Forgiveness Requirements
Loan Forgiveness Requirements • Keep track of expenses (payroll, mortgage interest, rent, utilities). • Ensure loan proceeds are used for authorized expenses. • Consider holding funds in a separate account. • Maintain proper documentation through the 8-week covered period. Copyright Paychex Inc. 202
Slide 16: Applying for Loan Forgiveness
Applying for Loan Forgiveness • Loans are not automatically forgiven. There is an application process. • Be prepared to show documentation verifying: • Payroll costs. • Number of full-time equivalent employees and pay rates. • Payments on covered: mortgage interest and/or lease obligations, and util
Slide 17: PPP Loan Forgiveness Examples
PPP Loan Forgiveness Examples Copyright Paychex Inc. 2020 17
Slide 18: Example #1 – Full Forgiveness
Example #1 – Full Forgiveness Copyright Paychex Inc. 2020 18
Slide 19: Example #2 – Payroll Costs less than 75%
Example #2 – Payroll Costs less than 75% Copyright Paychex Inc. 2020 19
Slide 20: Example #3 – Payroll Costs, and FTE & Wage Reduction
Example #3 – Payroll Costs, and FTE & Wage Reduction Copyright Paychex Inc. 2020 20
Slide 21: Questions?
Questions? Copyright Paychex Inc. 2020 21
Slide 22: Federal Resources
Federal Resources Centers for Disease Control and Prevention (CDC) • Interim guidance for businesses and employers • Cleaning and disinfecting recommendations World Health Organization (WHO) Be sure to check your local • How to protect yourself • Situation updates city, county and state websites Sma
Slide 23: Our Resources
Our Resources PPP Loan Forgiveness Estimator Paychex.com/support/coronavirus • Responding to COVID-19 at work • Families First Coronavirus Response Act and guidance • CARES Act • Payroll processing • Financial assistance tools and resources • Health insurance and workers’ compensation Paychex’s Stat
Slide 24: Thank You!
Thank { You! The information in these materials, and that provided by the presenter, should not be considered legal, accounting, or investment advice, and it should not substitute for legal, accounting, investment, and other professional advice where the facts and circumstances warrant. It is provid