About Us Marino Advisory Group (MAG) is a Veteran owned and - - PDF document

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Outsourced Experts In:

• Financial Management
• Accounting & Payroll
• Full Charge Bookkeeping

Presentation For

About Us

• Marino Advisory Group (MAG) is a Veteran owned

and operated business founded with small to mid-size business leaders and owners in mind.

• We specialize in businesses that require outsourced

assistance in:

• Financial management
• Accounting operations
• Bookkeeping
• Payroll (effective July 1, 2020)
• Business management and operations support

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CARES Act Facts:

• CARES Act / Payroll Protection Program - life line to

small to mid size business

• Released in record time to get funds in company hands

to remain solvent

• Many questions left unanswered or undefined at time
• f release
• Rules and definitions change daily and will likely

continue to change

• Info presented herein is based on our interpretations
• f current guidance

Agenda:

1. How to Estimate Your Paycheck Protection Program Loan Forgiveness Amount 2. Limitations on PPP Loan Forgiveness 3. Benefits of Rehiring and Paying Your Employees 4. Q&A

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Loan Forgiveness Requirements:

 Keep track of expenses (payroll, mortgage interest,

rent, utilities).

 Ensure loan proceeds are used for authorized

expenses.

 Consider holding funds in a separate account.  Maintain proper documentation through the 8-week

covered period.

Calculator to estimate your PPP Loan Forgiveness:

Start with the following -

• Loan Amount
• Payroll Costs For the Covered Period
• Mortgage Interest, Rent & Utilities: Up to 25% Forgiveness
• Estimate Amount Eligible for Forgiveness Prior to FTE

and/or wage/salary calculation

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Calculator to estimate your PPP Loan Forgiveness (Con’t):

Adjustment for -

• Average Full-Time Equivalents (FTEs) per month during

the covered period

• Average FTEs per month for Comparison
• Percent of loan principal that must be paid back due to

FTE reduction

• Decrease in Wages greater than 25%
• Adj for amount of EIDL Grant under CARES act

Calculate -

• Amount of loan principal that may be forgiven
• Amount of loan principal that may be paid back

Example - Payroll

Loan Amount 500,000 $ Promisory Note Date: 4/14/2020 (Funded 4/15) Totals Payroll: gross with taxes 320,000 > $100k (16,000) foreign ee's (8,000) Benefits: Healthcare 70,000 Dental (TBD) 1,000 Workers Comp (TBD) 12,000 Life Ins. (TBD) 4,000 401(k) 4,000 (> 75%?) Total Payroll Related 387,000 80.79%

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Example – Non Payroll

Rents: Main Facility 20,000 Monthly Storage (no lease)

• Utilities:

Gas 14,000 Electric: Nat'l Grid 20,000 NYPA 8,000 Constellation 16,000 Water

• Phone/Internet

2,400 Interest: Note Payable 2,000 Equipment 1,600 Bank Operating Line ??? 8,000 Total Other Allowable 92,000

Example – FTE

TOTAL ALLOWABLE EXPENDITURES 479,000

• Avg. FTE during 8 weeks

60 85.71% Jan/Feb 2020 avg head count 70 Forgiven 410,571 Loan 89,429 $

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Documentation

 Payroll Reports to support weekly payroll  Payroll records may be useful in FTE calculations  Copies of Invoices and canceled checks for

• ther expenditures

 Copies of contracts for rents  Copies of loan agreements for debt (interest) Note: Each lender may require slightly different documentation

Benefits of Rehiring

Forgiveness is based on the employer maintaining or quickly rehiring employees and maintaining wages paid. Forgiveness will be reduced if FTEs declines, or if salaries and wages decrease during the covered period.

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Benefits of Rehiring

If FTEs and/or wages paid decline, you'll owe some money back. The same is true if salaries and wages decrease more than 25% for any employee making under $100,000.…

What to Expect from Your Bank?

…And Lastly, NONE of this may matter, because the banks are going to make the rules, and they don’t know what the hell they’re doing. Tony Nitti, Forbes.com

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Q & A

Rochester Market Harry Marino III, MBA

(585) 943-6740

Buffalo Market Wayne Wawrzyniec

(716) 799-3119

www.marinoadvisorygroup.com

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