Online Job Name Ppp Loan Forgiveness Application Owner Compensation

Business legal name.

Job lot montgomeryville application software logo. The ppp initially capped the loan forgiveness amount of pay for owner employees and self employed individuals at 852 of their 2019 compensation or 15385 per individual whichever is lower. This means that your ppp loan should roughly be. 2019 form 1065 schedule k 1 employee cash compensation.

Third party payroll processor reports includes ppp compliance cost reports or 2b. The ppp loan forgiveness program offers borrowers with a unique opportunity to have someor allof their loan forgiven so long as they meet certain criteria. How to complete the ppp loan forgiveness application.

Union bank is a registered trademark and brand name of mufg union bank na. The calculation form schedule a and the schedule a worksheet. A concept called owner compensation replacement was introduced to help answer that exact question.

The sba has released the new ppp loan forgiveness application form 3508ez which is designed to streamline ppp forgiveness for certain businesses who qualify. Knowing the ppp loan forgiveness rules and which ppp loan forgiveness application to use can help maximize your forgivable amount. The ppp loan forgiveness application form 3508ez or ez forgiveness requires fewer calculations and documentation than the full forgiveness application.

Previous guidance related to the reporting of payroll costs for owner employees which capped the amount of loan forgiveness for payroll compensation attributable to an owner employee provided no exception based on the owner employees percentage of ownership. If you have received a paycheck protection program loan you must complete ppp loan forgiveness application if you want your ppp loan to be forgiven. The application contains three major parts.

At the top of the application provide the following information about your business just as you did on the ppp loan application. While applying for forgiveness may still seem daunting even with this simper form the ez form requires fewer calculations and less documentation for eligible borrowers. Owner compensation replacement calculated based on 2019 net profit as described in paragraph 1b plus employee payroll mortgage interest rent utilities and eidl refinances all are na in my scenario and allowing such a self employed individual to treat the full amount of a ppp loan as net income would result in a windfall.