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We are Here to Help you Navigate Through the COVID-19 Pandemic

The spread of COVID-19 has caused confusion, uncertainty and insecurity for just about every company throughout the United States and across the globe. Holbrook & Manter is here to help you navigate through these troubled times with up-to-date accounting resources, useful online tools and simplified explanations that tell you exactly what these government-issued updates mean for you, your business and your employees.

Helpful Resources and Websites:

Each week we will provide a detailed explanation of computations included on the SBA prepared PPP loan forgiveness application. In this blog, we will review the options for reporting payroll costs paid and payroll costs incurred during the 8-week period using either the covered period or alternative payroll covered period.

The covered period is defined as the 8-week (56 day) period of your PPP loan beginning on the day the loan proceeds were deposited into your bank account. Under this approach, payroll costs during the 8-week period are considered paid and eligible for forgiveness on the day the paychecks are…

Each week we will provide a detailed explanation of computations included on the SBA prepared PPP loan forgiveness application. 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.

To determine the average FTEs for the 8-week covered period (or the alternative payroll covered period, if elected) we must look at each qualifying employee per pay period. Any employees working at least 40 hours per week are counted as…

The Small Business Administration (SBA), along with the Department of Treasury, has released the application to request forgiveness of the Paycheck Protection Program (PPP) loans. The detailed instructions included with the application also helps to provide much needed guidance on how to calculate and provide the support needed for loan forgiveness. The instructions explain several options available to simplify the process including, but not limited to:

• Options to calculate payroll costs using an alternative payroll covered period to better align with the borrower’s payroll cycles
• Flexibility to include eligible expenses paid or incurred during the eight-week period after receiving…