To qualify for the full amount of loan forgiveness, at least 60% of the loan proceeds must be used for payroll costs.
Payroll costs include:
- Salary, wages, commissions, or tips (capped at $100,000 on an annualized basis
- Employee benefits, including costs for vacation, parental, family, medical, or sick
leave; allowance for separation or dismissal; payments required for the
provisions of group health care benefits, including insurance premiums; and
payment of any retirement benefit.
- State and local taxes assessed on compensation.
Loan forgiveness may be reduced if:
- You decrease your full-time employee headcount.
- You decrease salaries and wages by more than 25% for any employee that
made less than $100,000 annualized in 2019.
You have until December 31, 2020 to restore your full-time employment and salary levels
for any changes made between February 15, 2020 and April 26, 2020.