Olsen Consulting has already prepared payroll calculations for several of our clients. If you're a Vista by Viewpoint user contact us. We can help guide you through the PPP application process. The new CARES Act (Corona-virus Aid, Relief, and Economic Security Act became US law last Friday (March 27). It contains a $350 billion provision for small (up to 500 employees) businesses called the Paycheck Protection Program. In essence the PPP is a low interest loan that if used to pay for operating costs like payroll and rent will be forgiven. The programs funds will likely be delivered on a first come, first serve basis so time is of the essence if you intend to apply. Applications open tomorrow (April 3). Here's the sample application released earlier this week. You can apply for up to 2.5 times your average monthly payroll costs for the previous 12 months. The upper limit for the loans is $10 million. The interest payments are deferred for 6 months and the loan is due in 2 years. However, if used correctly most, potentially all, of the loan will be forgiven. Qualifying costs are things like paying staff, rent and utilities. You may also use the loan for interest on mortgage obligations. If you've already laid off workers you can rehire them using the PPP loan. Payroll costs include salary, wages, commissions, and tips. However these costs are capped at $100,000 on an annualized basis for each employee. Employee benefit costs like parental, family, medical, or sick leave and vacation are covered as well as premiums for health care benefits and retirement benefits. You may also claim state and local taxes on compensation. It's critical to have an accurate application and to track how the loan monies are spent in order to qualify for the maximum amount of loan forgiveness. For a complete breakdown of the PPP here's an information sheet: https://home.treasury.gov/system/files/136/PPP--Fact-Sheet.pdf
Olsen Consulting has Viewpoint specialists that can accurately calculate payroll for the PPP application. Contact us for a free consultation.