Filetype Excel XLSX | Posted on 07 Jul 2022 | 3 years ago
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256x Filetype XLSX File size 0.05 MB Source: www.mascomabank.com
Sheet 1: Welcome
| SMALL BUSINESS ADMINISTRATION PAYCHECK PROTECTION PROGRAM | ||||||||
| Expense Accounting and Loan Forgiveness Tool | ||||||||
| This accounting and forgiveness tool is intended to help walk you through the process of applying for forgiveness on your PPP loan. The information used to create this tool came from several sources, all of which referred to the lack of clarity provided by the SBA, and indicated that additional guidance is anticipated. Please seek professional legal and accounting guidance as you prepare your forgiveness application; do not rely solely on this tool. Here are a few suggestions that are strongly recommended: | ||||||||
| * | Keep meticulous records; you will need to document your use of proceeds. | |||||||
| * | Spend your loan proceeds with the following in mind: | |||||||
| * | For full forgiveness, you will need to spend the entire amount of your loan | |||||||
| * | You will have to spend your loan proceeds on eligible expenses | |||||||
| * | At least 75% of your expenditures will need to be for payroll | |||||||
| * | You will have to restore the number of employees (measured in FTEs) to prior levels. | |||||||
| * | Total individual employee wages during the 8-week period, divided by eight must be no less than 75% of the individual employee's average weekly wages during Q1 2020. | |||||||
| * | Helpful Hints Tab: This tab contains instructions and background information to help you complete the worksheet found in the “8 Week Accounting Tab” | |||||||
| * | 8 Week Accounting Tab: This worksheet should be used to summarize your weekly expenditures on eligible costs (payroll, mortgage interest, rent and utilities) for the eight week period following the advance of your PPP loan. In addition to entering your eligible expenses by week, please also enter on this spreadsheet the number of full time equivalent (FTE) employees that you entered on your PPP loan application. For this, and the other spreadsheets, the amounts you will need to enter are indicated by a yellow box. | |||||||
| * | Forgiveness Request Tab: This worksheet will begin the process of calculating the amount of your loan forgiveness based on the information you provide. Please enter your loan amount and the various FTE totals requested, and the worksheet will auto-fill the rest from the prior worksheet. The result will be an estimate of the maximum amount of loan forgiveness to which you may be entitled. Potential reductions to this estimate are discussed below. | |||||||
| Despite your best efforts, you may not be able realize 100% forgiveness of your loan amount or even the amount that you spend. Provisions within the CARES Act, under which the PPP loan program was created, have several benchmarks that must be met for forgiveness of your loan. Lack of clarity prohibits us at this time to give you absolute guidance. Not complying with, at a minimum, the following benchmarks will likely result in a reduction in the amount of your loan that will be forgiven. | ||||||||
| * | The monthly average of FTEs during the eight weeks following the date of loan funding must be no less than: 1) the monthly average of FTEs from the period 2/15/19 to 6/30/19 or 2) the monthly average of FTEs from the period 1/1/20 to 2/29/20. A third option to reduce the likelihood of a reduction in your forgiveness amount based on FTEs is to be sure that the number of FTEs on your payroll as of 6/30/20 is no less than the number of FTEs on your payroll as of 2/15/20. | |||||||
| * | Employees on your payroll during the 8-week period that were also on your payroll during the benchmark period (typically 1/1/19 through 12/31/19) must be paid at an annualized level no less than 75% of the benchmark period. However, if your aggregate payroll as of 6/30/20 is no less than what it was on 2/15/20, the prior sentence is not applicable. | |||||||
| * | Eligible payroll expenses (see Helpful Hints) must be at least 75% of your aggregate uses of PPP loan proceeds | |||||||
| * | Uses of your PPP loan proceeds other than for payroll must be for rent, mortgage interest, or utilities as described in Helpful Hints | |||||||
| There is no guarantee that this list of requirements is complete; it is the best information we have at this time. As more information becomes available, we will try to get that posted on the Bank's website (www.mascomabank.com). Please consult legal advice, your accountants and/or the SBA (www.sba.gov) or US Treasury (www.treasury.gov) websites for more information. | ||||||||
| Disclaimer: PPP loans may be eligible for forgiveness of all or a part of the loan balance, subject to conditions established by the United States Treasury Department and the Small Business Administration. Those agencies have not yet issued final guidance on the loan forgiveness, and the guidelines we have received are subject to change. Nevertheless, to assist our non-self employed PPP loan customers with assembling the information we expect that we will need to review requests for loan forgiveness, attached is a spreadsheet for tracking their eligible expenses during the eight week period following the advance of their PPP loan proceeds, with a “Helpful Hints” tab on how to fill in the spreadsheet. We caution again that this spreadsheet is based on the guidance we have received to date, and the requirements for loan forgiveness may change. Accordingly, our customers should make any final determination of their eligible expenses, employment levels, and other necessary information for their applications based on the final program guidelines and in consultation with their accountant and legal counsel. | ||||||||
| Check here to indicate you have read the disclaimer. | ||||||||
| Version 1, 4/30/20 | ||||||||
| Helpful Hints | |
| FTE Employees | Full Time Equivalent Employees |
| Enter the total hours worked by all employees (including owners) for each week. Divide that amount by 40 to compute the full time equivalents on payroll for the week. | |
| While you will not be preparing tax forms for the eight-week PPP loan proceeds spending period, the amounts you report on each of the line items on the "8-Week Accounting" worksheet tab must be consistent with tax reporting rules. Therefore, for each line item (wages, health insurance retirement, etc.), a reference is made by tax filing status as to what tax form and line number defines what is to be reported here. | |
| Employee Wages | Gross Employee Wages and Salaries |
| Business Type | Tax Form and Line Number |
| Self employed, no employees | not applicable |
| Self employed, has employees | IRS Form 941 Taxable Medicare wages & tips (line 5c-column 1) plus any pre-tax employee contributions for health insurance or other fringe benefits excluded from Taxable Medicare wages & tips, not to exceed $100,000 per employee on an annualized basis ($1,923 per person per week) and less any amounts paid to any employee whose principal place of residence is outside the U.S. |
| Partnerships | |
| C-Corporations | |
| S-Corporations | |
| Non-Profits | |
| Non-Profits - religious institutions, veterans’ organizations, and tribal businesses | |
| Limited Liability Companies (LLC) | LLCs should follow the instructions that apply to their tax filing situation, for example, whether they file as a sole proprietor, a partnership, or a corporation. |
| Employer Wages | Employer Wages and Salary (as defined by the SBA for PPP) |
| Self employed, no employees | For each week, enter your average weekly income based on your net income as reported on line 31 of your 2019 Schedule C. (line 31 divided by 52) |
| Self employed, has employees | For each week, enter your average weekly income based on your net income as reported on line 31 of your 2019 Schedule C. (line 31 divided by 52) |
| Partnerships | Schedule K-1 (IRS Form 1065) Net earnings from self-employment of individual U.S. based general partners that are subject to self-employment tax, computed from box 14a (reduced by any section 179 expense deduction claimed, unreimbursed partnership expenses claimed, and depletion claimed on oil and gas properties) multiplied by 0.9235,[1] up to $100,000 per partner on an annualized basis ($1,923 per person per week) (if 2019 schedules have not been filed, fill them out) |
| C-Corporations | N/A, included in employee wages above |
| S-Corporations | N/A, included in employee wages above |
| Non-Profits | N/A, included in employee wages above |
| Non-Profits - religious institutions, veterans’ organizations, and tribal businesses | N/A, included in employee wages above |
| Limited Liability Companies (LLC) | LLCs should follow the instructions that apply to their tax filing situation, for example, whether they file as a sole proprietor, a partnership, or a corporation. |
| Health Insurance | Company Paid Portion of Health Insurance |
| Self employed, no employees | Not eligible |
| Self employed, has employees | Employer contributions for employees (portion of IRS Form 1040 Schedule C line 14 attributable to health insurance) |
| Partnerships | Employer contributions for employees (portion of IRS Form 1065 line 19 attributable to health insurance) |
| C-Corporations | Employer contributions for employees (portion of IRS Form 1120 line 24 attributable to health insurance) |
| S-Corporations | Employer contributions for employees (portion of IRS Form 1120-S line 18 attributable to health insurance) |
| Non-Profits | Employer contributions for employees (portion of IRS Form 990 Part IX line 9 attributable to health insurance) |
| Non-Profits - religious institutions, veterans’ organizations, and tribal businesses | Employer contributions for employees health insurance |
| Limited Liability Companies (LLC) | LLCs should follow the instructions that apply to their tax filing situation, for example, whether they file as a sole proprietor, a partnership, or a corporation. |
| Retirement Benefits | Company Contribution to Employee Retirement Benefits |
| Self employed, no employees | Not eligible |
| Self employed, has employees | Employer contributions to employee retirement plans (IRS Form 1040 Schedule C line 19) |
| Partnerships | Employer contributions to employee retirement plans (IRS Form 1065 line 18) |
| C-Corporations | Employer contributions for employees (portion of IRS Form 1120 line 23) |
| S-Corporations | Employer contributions for employees (portion of IRS Form 1120-S line 17) |
| Non-Profits | Employer contributions for employees (portion of IRS Form 990 Part IX line 8) |
| Non-Profits - religious institutions, veterans’ organizations, and tribal businesses | Employer contributions for employees health insurance |
| Limited Liability Companies (LLC) | LLCs should follow the instructions that apply to their tax filing situation, for example, whether they file as a sole proprietor, a partnership, or a corporation. |
| State and Local Taxes | State and Local Taxes assessed on employee compensation, primarily state unemployment insurance tax |
| Self employed, no employees | Not eligible |
| Self employed, has employees | assessed on employee compensation, primarily state unemployment insurance tax (from state quarterly wage reporting forms). |
| Partnerships | |
| C-Corporations | |
| S-Corporations | |
| Non-Profits | |
| Non-Profits - religious institutions, veterans’ organizations, and tribal businesses | |
| Limited Liability Companies (LLC) | LLCs should follow the instructions that apply to their tax filing situation, for example, whether they file as a sole proprietor, a partnership, or a corporation. |
| Rent | Rent |
| Covered rent is rent obligated under a leasing agreement in force before February 15, 2020, and presumably includes bona fide equipment leases in addition to office leases | |
| Mtg Int Pmts | Mortgage Interest Payments |
| Covered mortgage interest means interest on any pre-February 15, 2020 indebtedness or debt instrument incurred by the borrower in the ordinary course of business, if secured by a mortgage on real estate or personal property. | |
| Utilities | Utilities |
| Covered utilities means payment for a service for the distribution of electricity, gas, water, transportation, telephone, or internet access for which service began before February 15, 2020 | |
| Version 1, 4/30/20 | |
| Eight Week Accounting Worksheet | |||||||||
| Input in Yellow Boxes Only | |||||||||
| Borrower Name: | |||||||||
| Date of Loan Disbursement: | |||||||||
| Week | 1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 | TOTAL 8 |
| End Date | 1/6/1900 | 1/13/1900 | 1/20/1900 | 1/27/1900 | 2/3/1900 | 2/10/1900 | 2/17/1900 | 2/24/1900 | WEEKS * |
| Total Hours Worked | 0.00 | 0.00 | |||||||
| FTE Employees | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 |
| Employee Payroll | $0 | ||||||||
| Employer Payroll | $0 | ||||||||
| Health Insurance | $0 | ||||||||
| Retirement | $0 | ||||||||
| State/Local Taxes | $0 | ||||||||
| Total Payroll Costs | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
| Rent | $0 | ||||||||
| Mtg Int Pmts | $0 | ||||||||
| Utilities | $0 | ||||||||
| Total Non-payroll Costs | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
| Total Covered Expenses | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
| Payroll % | 0% | 0% | 0% | 0% | 0% | 0% | 0% | 0% | 0% |
| * | the "FTE Total 8 Weeks" is the average weekly FTE | ||||||||
| I certify that loan funds were used exclusively to retain workers and maintain payroll or make mortgage interest payments, lease payments, and utility payments, as specified under the Paycheck Protection Program Rule; I understand that if the funds were knowingly used for unauthorized purposes, the federal government may hold me legally liable, such as for charges of fraud. | |||||||||
| I certify and attest to the Lender that the information provided above is a true and accurate representation of the number of full-time equivalent employees on the my payroll, as well as the dollar amounts of payroll costs, covered mortgage interest payments, covered rent payments, and covered utilities expended for the eight-week period following the date of loan disbursement. | |||||||||
| I understand that loan forgiveness will be provided only for the sum of documented payroll costs, covered mortgage interest payments, covered rent payments, and covered utilities, and not more than 25% of the forgiven amount may be for non-payroll costs. I agree to promptly provide to the Lender any documentation requested to support this schedule of covered expenses, and understand that failure to do so could jeopardize or delay my loan forgiveness. | |||||||||
| I further certify that the information provided in this application and the information provided in all supporting documents and forms is true and accurate in all material respects. I understand that knowingly making a false statement to obtain a guaranteed loan from SBA is punishable under the law, including under 18 USC 1001 and 3571 by imprisonment of not more than five years and/or a fine of up to $250,000; under 15 USC 645 by imprisonment of not more than two years and/or a fine of not more than $5,000; and, if submitted to a federally insured institution, under 18 USC 1014 by imprisonment of not more than thirty years and/or a fine of not more than $1,000,000. | |||||||||
| I understand, acknowledge and agree that the Lender can share any tax information that I have provided with SBA's authorized representatives, including authorized representatives of the SBA Office of Inspector General, for the purpose of compliance with SBA Loan Program Requirements and all SBA reviews. | |||||||||
| Signature of Authorized Representative of Borrower | Date | ||||||||
| Print Name | Title | Version 1, 4/30/20 | |||||||
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