PPP Average Monthly Payroll Report

This average monthly payroll report is intended as a reference document to support PPP Loan applicants. Lenders will likely require borrowers input data from this report directly into their PPP application software. This table was designed to provide details lenders may request in one snapshot. Lenders will make the final determination in regards to PPP loan amounts. Data extracted in these payroll reports is based on the check date the wages were paid, as opposed to by pay period or other accrual methods.

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Average Monthly Payroll Report Example

Paid Employee Count: Simple headcount of employees paid during the month of payment (i.e. check date). This is not an FTE value.

Total Wages: Includes all taxable wages, including taxable memos such as a ski pass or the value of a 2% shareholder's health coverage if reported.

S125 Pre-Tax Deduction: Includes any Section 125 Health, Dental, Vision, AFLAC, HSA deductions that fall under a Section 125 cafeteria plan. Data is shown to assist those attempting to confirm wages against 941 forms. Column is not used in the PPP Cost Calculation.

Medicare Wages: Shown here to assist those attempting to confirm wage data against 941 forms. Column is not used in the PPP Cost Calculation.

Tips: Informational column listing all reported tips on payroll. Tips are already included in the Total Wages column, thus Tips column is to itemize in case lenders wish this data separate.

Sick/Vacation: Some lenders are requesting itemized Sick, PTO, or Vacation payments by month. These earnings are already included in the Total Wages column, so this is informational in case lenders would like to see separate from other wages. Does NOT include any FFCRA paid leave.

Over $100K Wages: These are any wages for an individual that exceed $100K in a calendar year; excluded from the PPP Loan Calculation.

PPP Applicable Wages: This is Total Wages column - Over $100K column

ER State/Local Taxes: Essentially the employer's State Unemployment Insurance (UI) and any Local Occupational Privilege Taxes (OPT), but in some states, other tax types are included as long as they are employer expenses.

ER Retirement Match: Any employer 401k/Simple IRA match expenses. Does not include any employee contributions or match expenses paid outside of payroll.

ER Health Expense: This column is left blank as employer's expenses are generally not tracked in payroll for small employers. However, employers that provide health, dental, or vision benefits should submit annual employer premium amounts to lenders as those expenses can be added to these totals. Please keep in mind, this would be the employer net expense only. If you deduct a portion of premiums from the employees, make sure you use the employer's net expense only.

Total PPP Costs: PPP Applicable Wages + ER State/Local Taxes + ER Retirement Match + ER Health Expense

12-Month Average: Total for period divided by 12 months = monthly average calculation

2.5x: 12-month average x 2.5

3.5x (NAICS 72): 12-month average x 3.5

Disclaimer: This information is provided as a self-help tool and does not constitute legal or financial advice. Laws, regulations and lending products are changing daily and decisions as to whether or how to use this information and/or what actions to take in response to the COVID19 Pandemic are solely those of the employer. The providers of this information disclaim any and all responsibility and liability for its accuracy, completeness or fitness for your particular business purposes.