Financial Advisory Blog

Armanino’s Financial Advisory blog is your source for thought leadership around cloud ERP and accounting solutions and integrations. Supported by the Cloud Accounting Institute and numerous experts in cloud, finance, reporting, integration, compliance, and technology, Armanino’s Financial Advisory blog features must-read content on what’s happening in the finance industry, case studies, white papers, and much more.

August 4, 2020

I am not clear why I have to provide every pay period for all of 2019 and 2020 through the Covered Period. I would think you only need the 2020 payroll from January 1 through the Covered Period. I am not using 2019 payroll for the forgiveness, only the 2020 year, and I will have enough payroll during the Covered Period. As well, I will have FTE met during the Covered Period equal to the January-February 2020 measurement period. Entering 24 pay periods for 2019 is a waste of time and effort. Can I provide only 2020 data?

Posted by Armanino Financial Advisory Team

As it relates to Table 2 in the Pay Cycle Input tabs, where you are to input Hours Worked for the February 15, 2019 to June 30, 2019 period, you can safely skip entering data here if you are choosing to use the other baseline period of January 1, 2020 to February 29, 2020 (entered in Table 4). However, you do not have this option available to you for Table 1 in the tab, where you are to enter the gross wages paid per pay period. This data is required by the SBA for determining which employees are to be placed in either Table 1 or Table 2 of the Schedule A Worksheet (which the SBA requires each borrower to maintain for six years) and therefore properly considered or excluded from the Salary Reduction Factor calculation.

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