Navigating COVID-19: Paycheck Protection Program for Nonprofits - - PowerPoint PPT Presentation
Navigating COVID-19: Paycheck Protection Program for Nonprofits April 10, 2020 Webinar Goals Provide information on the Paycheck Protection Program. Provide helpful tips for how to do the payroll calculation and complete the
Navigating COVID-19: Paycheck Protection Program for Nonprofits
April 10, 2020
Webinar Goals
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Protection Program.
calculation and complete the application process.
Sarah Pinder Engagement Director
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DISCLAIM AIMER: ER: Our ur BEST un unde dersta tand ndin ing g as as of this is momen ment t in in tim ime Pres esen enti ting g gu guid idance e NOT leg egal or fin inancia ial adv dvic ice You u shoul uld d mak ake e al all de decis isio ions ns af after er consulti nsulting ng your r attorn rney y and C d CPA. MNA staf aff f ar are e NOT lawyers or CPA’s
Agenda
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Donna Murray-Brown
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President and CEO
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MNA’s Framework for Responding to COVID-19
sponse
mmedia diate e and Ongoin
g)
lief (Next xt 3 t to 6 m months ths)
ery (Ong ngoin
g)
during relief phase
nths and beyond) d)
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Presenter: Bob Weins
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Navigati gating ng Covid id-19 – Pa Paycheck heck Protection ection Program
its 3 ne new Covid id-19 relat ated ed acts s have gene nerat rated ed 10+ programs grams
Today’s Discussion: Paycheck Protection Program
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Navigati gating ng Covid id-19 – Pa Paycheck heck Protection ection Program
its What is the Paycheck Protection Program (PPP)? Federal loan program providing:
*discussed later
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Navigati gating ng Covid id-19 – Pa Paycheck heck Protection ection Program
its Wh Who qua ualif ifies ies for a PPP PP loan? n?
500 or fewer employees What are the PPP PP Loan Terms? rms?
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Navigati gating ng Covid id-19 – Pa Paycheck heck Protection ection Program
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Payroll Costs * 360,000 $ Allowance for dismissal or separation 12,000 $ Retirement benefits (on the first $100,000 of each US Resident employee's compensation) 14,000 $ 2,200 $ Total Payroll Costs (for 12-month period) 388,200 $ Less: Employee Cash Compensation in Excess of $100,000 (for 12-month period) (10,000) $ Sick Pay and FMLA payments reimbursed under the Families First Coronavirus Response Act Payroll Costs Qualifying for PPP Loan 378,200 $ Average Monthly Payroll Costs (Payroll Cost Qualifying for PPP Loan / 12) 31,517 $ Average Monthly Payroll Costs X 2.5 78,792 $ Plus: Economic Injury Disaster Loan (EIDL) made between1/31/2020 and 4/3/2020, less any "advance" Maximum PPP Loan 78,792 $ For payroll after Februay 14, 2020, subtract federal employment taxes (i.e. employee withholding and employer/employee FICA)
* Exclude compensation and benefits of employees whose principal residence is outside the USA. ** Assumes compensation of one employee was $110,000 during the 12-month period.
Salary, wage, commission or similar compensation ** Payment for vacation, parental, family medical, or sick leave Group health care benefits and workers compensation insurance premiums Unemployment Insurance
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Navigati gating ng Covid id-19 – Pa Paycheck heck Protection ection Program
its
Payroll Costs * 360,000 $ Allowance for dismissal or separation 12,000 $ Retirement benefits (on the first $100,000 of each US Resident employee's compensation) 14,000 $ 2,200 $ Total Payroll Costs (for 12-month period) 388,200 $ Less: Salary, wage, commission or similar compensation ** Payment for vacation, parental, family medical, or sick leave Group health care benefits and workers compensation insurance premiums Unemployment Insurance
Pa Payroll
sts:
(i) Contractor payments (1099’s); (ii) Employees with principal residence outside the USA
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Navigati gating ng Covid id-19 – Pa Paycheck heck Protection ection Program
its Subtr trac acti tions
m Pa Payroll
sts
(doesn’t apply if you use calendar year 2019 to calculate Payroll Costs)
Less: Employee Cash Compensation in Excess of $100,000 (for 12-month period) (10,000) $ Sick Pay and FMLA payments reimbursed under the Families First Coronavirus Response Act Payroll Costs Qualifying for PPP Loan 378,200 $ Average Monthly Payroll Costs (Payroll Cost Qualifying for PPP Loan / 12) 31,517 $ Average Monthly Payroll Costs X 2.5 78,792 $ Plus: Economic Injury Disaster Loan (EIDL) made between1/31/2020 and 4/3/2020, less any "advance" Maximum PPP Loan 78,792 $ For payroll after Februay 14, 2020, subtract federal employment taxes (i.e. employee withholding and employer/employee FICA)
* Exclude compensation and benefits of employees whose principal residence is outside the USA.
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Navigati gating ng Covid id-19 – Pa Paycheck heck Protection ection Program
its How much of my PPP PP loan can be forgiv iven? en? Loan can be forgiven if following costs are incurred and paid within 8-weeks of receiving the loan:
employer/employee FICA
* Non-payroll costs cannot exceed 25% of the total amount to be forgiven. To quickly estimate this limit, divide your forgivable Payroll Costs by 3. ** Contracts and utility service agreements must predate February 15, 2020
Deta etail of Loan Forgiv iven eness ess will be covered ered in a later session sion
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Navigati gating ng Covid id-19 – Pa Paycheck heck Protection ection Program
its How to apply ly for a PPP P loan? n?
https://home.treasury.gov/system/files/136/Paycheck- Protection-Program-Application-3-30-2020-v3.pdf
(see chart on following page)
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Navigati gating ng Covid id-19 – Pa Paycheck heck Protection ection Program
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Documents / Information
B of A Chase Comerica First Indep Huntington Level One
Organizations legal name and Tax EIN
X X X X X X
Employer’s Quarterly Federal Tax Return (form 941) for 2019 and Q1 2020
X X X X X X
UIA Employer’s Quarterly Wage/Tax Report (form UIA 1028)
X X X X X X
Agent signing the online application: Name, work address, phone number, email. title, birthdate, SSN and residential address
X X X X X X
Payroll processor payroll summary report (PPP Report)
X X X X X
2019 and YTD 2020 Monthly Payroll Report (Quickbooks, Gusto, ADP, etc)
? X
Employer’s Annual Federal Unemployment (FUTA) Tax Return for 2019 (Form 940)
X ?
W-3 for 2019
X
2019 revenues and loan expense budget (payroll, rent, utilities and interest)
X
Agent signing the online application: copy of front/back of valid driver’s license, social security card (if not available, submit copy of valid passport)
X
NOTE: P&L's and Tax Returns are often requrested if your organization does not have an existing business relationship with the bank.
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Poll: Are you going to apply for a Paycheck Protection Program Loan?
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Pa Payche check ck Protecti ection
gram am Res esour urce ces s
Discussion Question (use chat box to respond): What specific resources do you need? What topics do you need more support in?
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MNA Res esour urce ces s spe pecif ific ic to COVID-19 9 Res espon ponse
ine. e.org
loan programs for nonprofits
response to the COVID-19 Crisis for organizations and employees.
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Join MNA’s Link nked edIn In group: up: Leading ding No Nonprof
its Throug ugh h COVID VID-19 19
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