What counts as payroll costs?

Payroll costs include:

• Salary, wages, commissions, or tips (capped at $100,000 on an annualized basis for each employee);

• 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; and

• For a sole proprietor or independent contractor: wages, commissions, income, or net earnings from self-employment, capped at $100,000 on an annualized basis for each employee.

How To Calculate the Average Monthly Payroll:

The average total monthly payments for payroll costs is calculated for the 1-year period before the date on which the loan is made. However, if the applicant is a seasonal employer, the average is determined based on either the period of February 15, 2019 until May 10, 2019, or March 1, 2019 until June 30, 2019 (this choice is up to the applicant). In making this calculation, payroll costs are capped at $100,000 on an annualized basis for each employee.

If you were not in business prior to June 30, 2019:

The average total monthly payments for payroll costs is calculated over the period beginning on January 1, 2020 and ending on February 29, 2020.