PPP Loan - Applicable Payroll Costs Report

Jan. 6, 2021 PPP Update: The SBA released initial guidance for PPP loan updates per the Economic Aid Act passed on Dec. 27, 2020. We’re still diving into the details, which may affect the following information. Stay tuned for updates!

PPP Applicable Payroll Costs (B639) is a custom Evolution report that employers can set up to track specific payroll costs as defined under the CARES Act. Per the Paycheck Protection Program (PPP), this new definition of payroll costs excludes certain traditional payroll expenses from the calculation, such as ER Social Security & Medicare tax expenses. This report allows users to select which earnings codes to track in order to calculate the gross wages amount, which excludes FFCRA payment types or NT payments that are not allowable uses of funds under PPP.

This report also provides statistical data to help monitor full-time equivalent (FTE) employee headcount as best understood at this point in time. We are still awaiting guidance from the US Treasury to understand specifically how to determine the FTE calculations. 

As of April 24th, we are suggesting employers review the full-time vs. part-time status on each employee's set up in the payroll software. Once input, this report will then total the number of employees paid during the pay period along with their hours by full- vs. part-time status.  

Employers then can take the PT hours and calculate the full-time equivalent employee (FTEE) count, which would represent the number of equivalent to FT employees based on the sum of all hours worked by part-time employees divided by a corresponding number depending on your pay frequency (similar to the ACA logic). In the below example, the payroll is for a semi-monthly pay period. The employer had 25 full-time employees and 5 part-time employees in the pay period.  Taking the 234.72 part time hours, you would divide by 65 to determine your full-time equivalent employees to add to your full-time employee count.

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.