July 23, 2020
If payroll was reduced because people resigned, but were not laid off, does that affect forgiveness?
Posted by Armanino Financial Advisory Team
The FTE Reduction Factor specifically excludes from the baseline period any FTEs who were fired for cause, resigned and were not replaced, or asked for and received a reduction in their hours (which we believe includes FMLA leaves). The Salary Reduction Factor also excludes such employees by listing them at the bottom of Table 1 of the Schedule A Worksheet with no reduction listed.