July 23, 2020
If we reduce hours by only 20% for our staff to aid in cost savings, will that impact our forgiveness amount?
Posted by Armanino Financial Advisory Team
Yes. Remember, it is the Salary Reduction Factor that allows a decrease of up to 25% without penalty. The FTE Reduction Factor, which is calculated based on the hours worked and not the pay given, does not have such a feature. Even a 1% reduction in FTEs will lower your forgiveness amount.