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What payroll costs are eligible for PPP forgiveness?

Eligible payroll costs include the following, if paid or incurred during the covered period:

  • Gross salary, gross wages, gross tips, gross commissions, paid leave (vacation, family, medical or sick leave, not including leave covered by the Families First Coronavirus Response Act), and allowances for dismissal or separation;
  • Payments for employer contributions for employee health insurance, including employer contributions to a self-insured, employer-sponsored group health plan, but excluding any pre-tax or after-tax contributions by employees;
  • Payments for employer contributions to employee retirement plans, excluding any pre-tax or after-tax contributions by employees;
  • Payments for employer state and local taxes assessed on employee compensation (such as state unemployment insurance tax), excluding any taxes withheld from employee earnings;
  • Payroll costs may include bonus and hazard pay, and may include salaries paid to furloughed employees.

    Please Note: No business owner can earn more than $20,833 and no employee can earn more than $46,154 during the 8- or 24-week covered period.

    MoFi Tip: Using 100% of the PPP loan proceeds for eligible payroll costs is the simplest way to meet the requirements for full forgiveness from the Small Business Administration.