August 4, 2020
Our company is a corporation with 17 employees, no salary reductions and no FTE reductions. Do we use the EZ form or Standard Form?
Posted by Armanino Financial Advisory Team
You can use either form you wish. The instructions for choosing the EZ form are listed on the website of the U.S. Department of Treasury under a link called “Loan Forgiveness Application Form EZ Instructions”. There you will find the relevant criteria for determining eligibility to use the EZ form, one of which reads:
“The Borrower did not reduce annual salary or hourly wages of any employee by more than 25 percent during the Covered Period or the Alternative Payroll Covered Period (as defined below) compared to the period between January 1, 2020 and March 31, 2020 (for purposes of this statement, “employees” means only those employees that did not receive, during any single period during 2019, wages or salary at an annualized rate of pay in an amount more than $100,000); AND The Borrower did not reduce the number of employees or the average paid hours of employees between January 1, 2020 and the end of the Covered Period. (Ignore reductions that arose from an inability to rehire individuals who were employees on February 15, 2020 if the Borrower was unable to hire similarly qualified employees for unfilled positions on or before December 31, 2020. Also ignore reductions in an employee’s hours that the Borrower offered to restore and the employee refused.) See 85 FR 33004, 33007 (June 1, 2020) for more details.”