Payroll costs are the sum of cash compensation earned during the covered period, along with associated employer-paid benefits and employer-assessed state and local taxes (as defined below). At least 60% of the covered loan amount must be used for payroll costs.
Cash Compensation
This includes cash earnings tracked through the system: salary, vacation, leave (sick, parental, family, and medical), severance pay, wages (including overtime), commissions or similar compensation, hazard pay, bonuses or similar payments, and cash tips or the equivalent. This is capped at $100,000 (annualized) per employee for your covered period. It doesn't include wages paid under the Families First Coronavirus Response Act.
Wondering which payrolls are included? The Estimator displays total compensation earned during the covered period with a check date on or before today. This means the final number will not display until the check date of the final payroll for the covered period.
Taxes and Benefits
The Estimator uses your employer-assessed state and local taxes. If you track retirement in the system, it also includes employer-paid retirement expenses. If you use the system to track healthcare benefits, it displays employer-paid health insurance.
If you have additional eligible expenses tracked somewhere else, you can manually enter or add these costs. There is no per-employee cap on benefits and taxes.
The numbers provided by the Estimator show amounts associated with wages earned during the covered period with a check date on or before today. You can add amounts paid during the covered period, even if they are associated with wages earned outside of the covered period. Avoid counting amounts earned during the covered period and paid during the covered period twice.
Employer-assessed state and local taxes is on total compensation (including taxes on wages over $100,000 annualized).
Employer-paid health and benefits costs includes group healthcare benefits, insurance premiums, and similar employer-paid benefits. You can include employer contributions to FSAs, HSAs, and HRAs.
Employer-paid retirement includes group retirement benefits, like contributions to 401(k) accounts.
Some employers who've reduced employee hours are picking up healthcare and retirement costs typically paid by employees. These can be included, too.
Who does this apply to?
Compensation, taxes, and benefits are included for employees. who live in the United States or one of its territories. Contractors are not included.
What is the covered period?
The covered period is the period when the loan funds you use for eligible expenses may be forgiven.
The covered period begins when you receive your loan funds. It ends 24 weeks from that date or by December 31, 2020, whichever is earlier.
If you received your loan funds before June 5, 2020, we have defaulted you to the extended covered period. You may also choose to use your original 8-week covered period which begins either (1) the date you receive your loan (the standard covered period); or (2) the first day of the first pay period after you receive your loan (alternative covered period). If you have a payroll frequency of bi-weekly or more frequent, you can choose between the periods. If your payroll frequency is twice per month or less frequent, you can only use the standard covered period.