July 23, 2020
We do not have any wage reductions and are using the January 1 through February 29, 2020 reference period for FTEs. Since our payroll company provided us with a report of all employees who made over $1,923 in any weekly pay period in 2019, do we still need to enter all the detailed payroll information for 2019?
Posted by Armanino Financial Advisory Team
No, you do not. If you have already made the decision to use the January-February 2020 period as your FTE baseline, you do not need to enter hours data for 2019. Similarly, if you can certify that you had no wage reductions that would trigger the Salary Reduction Factor and have the documentation to support it in an SBA audit, then you could skip entering the 2019 payroll data. Keep in mind that the rules around the Salary Reduction Factor are intricate and easy to mis-apply.