It is extremely likely that the government will be announcing an update to the PPP Loan amount calculation to include GROSS wages and SS/MC in the Payroll Cost calculation. This is not how the program was initially rolled out last week as all federal withholding and SS/MC expenses were omitted from the loan calculation. This update will likely increase the loan amount for which you may qualify.
What this means for you:
If you have already submitted a PPP loan application to your bank, we strongly encourage you to be aware of any communication requesting updated information. You may want to be prepared to provide them with updated reports and a revised application using the updated 2019 total payroll cost figures that include gross wages and withholdings for your loan amount calculation. Pending their original documentation requests, they may not require any updates.
If you have requested assistance from BeanLab as a Payroll Client, our back-engine system has already updated its reporting capability to provide the anticipated new reports. Our team is at work for you now and will be emailing you revised reports by the end of the day.
If you have not submitted a PPP application yet, you may want to pause for another day or so as the documentation requirements, qualifications and loan amount calculations continue to be clarified. We recommend that you follow your financial institution’s website and/or communications regarding their specific implementation of this program. We understand that some banks have already announced that they have reached their capacity to process these loans while others have not even begun acceptance of applications.
The PPP program is unprecedented and extremely fluid. We are monitoring the situation and will be sure to keep you updated with any other confirmed information we receive.