Below is the scenario (our interpretation) of the Paycheck Protection Act 3.29.20 forgiveness provisions on wages paid during the Forgiveness Period and the resulting Forgiveness Amount.
- -Wages above $100K annualized are not included in forgiveness amount
- -Any wages paid during the period are eligible up to the 2019 amount.
- -Interest on Mortgages, Rent and Utility payments
*The loan amount will be limited to 2.5 tinmes the average monthly salary which is in this case is $50,000 ($440,000/12 = $36,600 multiplied by 2.5 = $91,666
| Employee |
Wage/yr |
| 1 |
$80,000 |
| 2 |
$80,000 |
| 3 |
$80,000 |
| 4 |
$80,000 |
| 5 |
$120,000 |
Total Yearly Salary $440,000
| Wages Feb 15-June 30th |
|
37.50% |
of a year |
|
Scenario – |
|
|
|
| Employee |
Full |
|
Part-time |
|
Lay Off |
| 1 |
$30,000 |
|
$15,000 |
|
$0 |
| 2 |
$30,000 |
|
$15,000 |
|
$0 |
| 3 |
$30,000 |
|
$15,000 |
|
$0 |
| 4 |
$30,000 |
|
$15,000 |
|
$0 |
| 5 |
$45,000 |
|
$22,500 |
|
$0 |
| Total |
$165,000 |
|
$82,500 |
|
$0 |
| Adjust for above 100K wages |
-$7,500 |
|
$0 |
|
$0 |
| Forgiveness Amount |
$157,500 |
|
$82,500 |
|
$0 |
|
|
|
|
|
|
| Loan Amount |
$91,666 |
|
$91,666 |
|
$91,666 |
|
|
|
|
|
|
| Total Payback |
$0 |
|
$9,166 |
|
$91,666 |
