What documentation is needed for PPP forgiveness?
What documentation is needed for PPP forgiveness?
Payment receipts, cancelled checks, or account statements documenting the amount of any employer contributions to employee health insurance and retirement plans that the Borrower included in the forgiveness amount.
What is the journal entry for PPP loan forgiveness?
To do this, debit your PPP Loan Payable account and your Accrued Interest Payable account. Then, credit your Debt Forgiveness account. Say 100% of both your PPP loan and accrued interest is forgiven. Your loan is $100,000 and your accrued interest is $208.22 (accrued interest from example above).
How do I check my PPP expenses?
How to track Paycheck Protection Program funds and expenses
- Setup the PPP Loan Account on the Chart of Accounts. • This loan is a liability until it is determined how much of the loan will be forgiven.
- Create the PPP Bank Account. •
- Record the PPP Loan Income. •
- Record Expenses. •
- Create Reports. •
How do you account for debt forgiveness?
When a debt is cancelled or forgiven, an adjusting entry must be made on the company books to reflect the cancellation as income. It is usually done by debiting (reducing) debts payable on the balance sheet and crediting (increasing) an income entry on the profit and loss statement.
How do I get my check protection loan forgiven?
Download our FREE guide to Paycheck Protection Program Forgiveness.
- Use it for eligible expenses.
- Keep your employee headcount up.
- Don’t reduce an employee’s wages by more than 25%
- Document everything.
- Talk with your lender.
- Apply for loan forgiveness.
How much of a PPP loan can be forgiven?
40%
What can be paid with PPP funds?
Generally, PPP funds can be used for four purposes: payroll, mortgage interest, rent/lease, and utilities. Payroll should be the major use of the loan.
Are cell phones considered Utilities for PPP loan?
Both are used at our store. o Electricity, gas, water, transportation, telephone, or internet are all covered utility expenses. No, dumpsters and portable restrooms are not considered a utility and are not covered as a forgivable amount.
