New COVID-19 PPP Loan Forgiveness Guidance

68 Glasses On Paper

Please visit our COVID-19 resources page with more information for business owners and employees.

PPP loan forgiveness application and instructions are available

On Friday, May 15th, the Treasury and Small Business Administration released an application and instructions for Paycheck Protection Program (PPP) loan forgiveness, available here.

Please note that the SBA has also stated that additional “regulations and guidance to further assist borrowers” on their responsibilities are still forthcoming.

The SBA application and instruction give guidance on questions PPP loan borrowers have been asking for:

  • Is the loan forgiven based on the pay period or pay date? The application instructions state that you’ll be able to choose either the pay date or the pay period (called the alternative pay period). In either case, the covered period is eight weeks, 56 days.
  • How exactly will the full-time equivalent (FTE) be calculated? The application instructions give two options for the borrower.
    1. For each employee, take the average number of hours paid per week, then divide by 40 and round the total to the nearest tenth. The maximum for each employee is capped at 1.0.
    2. This option is a simpler method that assigns a 1.0 for employees who work 40 hours or more per week and 0.5 for employees who work fewer than 40 hours per week.

With this guidance from the SBA, the Nextep team is working to create the necessary reports and payroll information you’ll need to apply for PPP loan forgiveness. This information will be available soon in the COVID-19 Resources section of your Nextep account. We’ll let you know as soon as it’s available.

The PPP was created to help businesses affected by COVID-19 make payroll, mortgage, lease, and utility payments. A portion of the loan could be forgiven if used for payroll, mortgage, and lease payments.

For our Nextep clients, if your company received a PPP loan and hasn’t completed the COVID-19 relief questionnaire, log into your Nextep account and click the banner at the top of the page. You can also find this questionnaire in the COVID-19 resources section of your account. Log into your Nextep account here.

We have much more info about the PPP and CARES Act in our blog. Take a look and reach out to us if you have any questions!

To find many more resources on COVID-19, check out our resources page.

Also on Nextep

Year-End Tax Prep As we begin to wrap up 2022, we want you prepared for tax season and a smooth transition into the new year. That’s why we’ve compiled the tax prep key details in one place.  W-2s You and your employees can opt-in to receive W-2s securely and electronically instead of receiving a mailed […]
Read more
We’re coming to that time of year when you need to know about paying year-end bonuses. With Nextep, we’ve got you covered. Here are the details: Timeline for bonuses All requests for 2022 bonuses should be made by Friday, December 23. Requests made after December 23 must be paid in the 2023 tax year.  Requests […]
Read more
ALEXANDRIA, Va., October 27, 2022 (Newswire.com) – The National Association of Professional Employer Organizations (NAPEO) announced today that Hank Johnson, Director of Risk Management & Legal Compliance of Norman, OK-based Nextep, Inc., has been elected to the association’s Board of Directors during its annual member meeting last month.  Johnson is among nine new industry leaders elected to […]
Read more
It’s more critical than ever to make sure your business has a stable foundation. Businesses must be able to adjust to unforeseen circumstances and keep a solid financial footing through hard times. Here are 4 ways a PEO can help your business have more financial stability and weather trying times: PEO + OVERALL COST SAVINGS […]
Read more
Get the low down on how to handle pay correctly. Should you pay your employees for working during lunch? Yes.  Easy answer! Right? Well, no. Though the simple answer is an emphatic yes, it’s a bit more nuanced.  The topic of lunch and compensable time can be tricky. There are many ways an employee could […]
Read more
It’s no surprise benefits are one of the top reasons for employees staying with a company or going elsewhere. The Society for Human Resource Management (SHRM) study shows that 36% of employees leave for better benefits. Employee retention can be daunting, but we’re here to break it down! Therefore, we’re talking today about benefits. We’ll look […]
Read more
In our employee retention series, we’ve talked about flexibility, employee growth, and diversity, equity, and inclusion (DEI). Now, let’s look at another topic that has a massive impact on attracting and retaining top talent: pay! The Great Resignation and the impacts of an ongoing pandemic have long-lasting effects. As a result, employees are evaluating their […]
Read more
Now is the time for employers to carefully review any arbitration or employment agreements they have in place. On March 3, 2022, President Biden signed the Ending Forced Arbitration of Sexual Assault and Sexual Harassment Act (HR 4445).  In cases of sexual assault or harassment in the workplace, many employers ask employees to sign arbitration […]
Read more
How often do you get the chance to expand beyond your current retention or recruiting strategies? It’s common for managers to get stuck in the daily work routine and overlook the growth opportunities their employees want. That neglect may mean a greater chance of talented employees leaving in the short run. Around 48% of employees […]
Read more
When employees can’t bring their whole self to work, they leave. Creating a diverse, equitable, and inclusive (DEI) workplace is imperative to increasing employee engagement and retention. Also vital: talking to your employees about it “Black and Hispanic workers are more likely than white workers to say they’re actively looking for new employment opportunities,” according […]
Read more
The Great Resignation: a term most leaders are probably tired of hearing but can’t ignore. So, instead, let’s talk about The Great Retention! We know tackling retention can be a daunting task, which is why we’re here to help you break it down and take it one step at a time.  The Great Resignation Retention […]
Read more
Finding a PEO can be a daunting task. You should feel confident in your partnership with Nextep or any PEO for that matter. To ensure you do, we’ve put together a short checklist of questions to ask in your meetings with PEOs.  1. What accreditations and certifications do you hold?  A few credentials you’ll want […]
Read more

Download Our App