How to Complete Your Schedule A Worksheet
1. Launch the PPP Forgiveness module.
2. Navigate to the Schedule A Worksheet at the top of the page. To first complete your $100,000 validation, click 1. 2019 $100,000 Validation.
3. Here, you will identify any employees that received compensation at an annualized rate of more than $100,000 for any pay period in 2019. This will place the identified employee(s) in table 2 of the SBA forgiveness application and exempts the employee(s) from the salary reduction calculations.
Note: The SBA is not asking for which employees actually made $100,000 or more. They are only requesting that you identify the employees who were paid at a rate that, if annualized, would total $100,000 or more at any time during 2019.
To validate, check the box for each highlighted employee to verify your selection of any employees with an annualized rate of $100,000 or more. Our system will highlight the employees and list the check date, compensation, and annualized rate of those who qualify based on your historical payroll data. Once all highlights are removed, click Confirm and Continue.
4. Next, click 2. Identify Owners to move on to the next section of your Schedule A.
5. Check off any owners (owner-employees, a self-employed individual, or general partners). Then, click Confirm & Continue.
6. Next, click on 3. Calculate Payroll Costs.
7. Verify that all earning codes are checked off that you would like to include in your calculation in each category. The system has defaulted several codes in each category to be included in your report. However, if you have any highlighted codes, you will need to check or uncheck each to validate your selection. Then, click Confirm & Continue.
- Payroll costs include employee earnings (including PTO) with the exception of FFCRA emergency paid leaves
- Payroll costs include state and local employer-paid taxes (not federal, and not employee-withheld!)
- Payroll costs also include employer contributions to retirement and healthcare plans (not employee contributions!)
Note: For a full list of which earnings will be eligible to be considered Payroll Costs, refer to sections f and g on Page 3 of the Treasury's official guidance here. For more specific guidance, please consult with your lender.
8. Review your selections and click Add Calculations to Schedule A.
9. Next, click on 4. FTE Calculations.
10. From here, select if you would like to use a Regular or Simplified FTE calculation method to identify full-time equivalent employees (FTEs).
Note: The SBA has defined Full Time as employees who work 40+ hours per week or 8+ hours per day for the purposes of your forgiveness application (even if your organization defines this differently). The regular calculation takes the average number of hours paid per week, divides it by 40, and rounds the total to the nearest tenth for each employee. The maximum for each employee is capped at 1.0. On the other hand, the simplified method assigns a 1.0 for employees who work 40 hours or more per week and 0.5 for employees who work fewer hours may be used at the election of the Borrower.
11. After this, review your list of employees to ensure all employees who worked 40 hours or more are identified as "Full Time".
You can change this by clicking the employee's status to reveal a drop-down menu. If you have any orange-highlighted employees in this area, you will need to click on them to validate your selection before you can proceed.
In the next step, all employees set as "Full Time" will be counted as 1 FTE while "Part-Time" employees will be calculated using your specified method (regular or simplified).
12. Below your list of employees is a list of all of your check dates in each of the look-back periods the SBA has specified. By default, we have checked off all of your check dates in each of the covered periods to be included in your calculation.
Typically, employers do not need to make any changes here. However, if for any reason you would like to exclude a particular check date from your calculation, you may uncheck this. Once you are ready to move forward, click Proceed to FTE Calculation at the bottom of the page.
13. Review the data and click Add Calculations to Schedule A. (If you need to make any changes, you can do so by clicking Back.)
Note: Employee FTE calculations are based on the number of payrolls worked out of all payrolls considered. As a result, you may see some simplified calculation FTE values of other than 1.0 or 0.5. The most common reason for this is that there are one or more included payrolls that were not full payrolls (i.e. a single manual check), and this should not be a reason for concern.
14. After adding your FTE calculation to Schedule A, click on 5. FTE Reduction Exceptions.
15. To indicate your FTE Reduction Exceptions check off:
- Any terminated employees who you made a good-faith, written offer to rehire during the Covered Period or the Alternative Payroll Covered Period which was rejected by the employee; and
- Any terminated employees who during the Covered Period or the Alternative Payroll Covered Period (a) were fired for cause, (b) voluntarily resigned, or (c) voluntarily requested and received a reduction of their hours.
Note: In all of these cases, include these FTEs on this line only if the position was not filled by a new employee. Any FTE reductions in these cases do not reduce the Borrower’s loan forgiveness.
16. Once completed, click Add Calculations to Schedule A to return to the main menu.
17. Next, click 6. Calculate Salary Reduction.
18. Verify that all salaried employees are checked off in the Salary? column. If you have any highlighted employees, you will need to check or uncheck each to validate your selection.
19. If there are any terminated employees (hourly or salaried) that the borrower made a good faith, written offer of rehire, and the employee’s rejection of that offer was documented by the borrower, you may exclude them from your Salary Reduction calculation by checking the box next to their name in the Exclude? column. Then, click Add Calculations to Schedule A.
20. Once all steps have been completed, click Calculate Schedule A Worksheet to generate your Schedule A Worksheet.
21. Review the information on your Schedule A Worksheet. If needed, you can override any of the inputted data using the Override fields. (For example, to enter employer-paid health insurance premiums that were not recorded in payroll.)
If any changes were made, click Save and Recalculate at the bottom of the page, then click Done to return to the main Forgiveness Estimator tab.
22. Once back on the Forgiveness Estimator tab, you can complete your PPP Loan Forgiveness Calculation using the steps here.
NOTE: This tool is provided for informational purposes only and, as it is designed to be used for estimations only, we are not responsible for the accuracy of the content or how you may use the results. These calculations are based on guidance which is evolving and may change at any time. The information in these materials should not be considered legal, accounting, investment or fiduciary advice. Each lender has some discretion in how they will administer forgiveness. Please contact your lender for their specific requirements.