Spreadsheeting for PPP - Gassman, Crotty & Denicolo, P.A.€¦ · 22/6/2020 · Monday, June 22, 2020. 9:00 a.m. to 10:00 a.m. EDT (60 minutes) Presented by: Alan S. Gassman. [email protected]

Monday, June 22, 20209:00 a.m. to 10:00 a.m. EDT

(60 minutes)

Presented by:

Alan S. [email protected]

Brandon L. [email protected]

Kevin [email protected]

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Spreadsheetingfor PPP

“A man is only as good as his tools.” -Emmert Wolf

4 minute summary video at https://youtu.be/mN8O5ViHVk046+ minute walkthrough video at https://youtu.be/pBCtAP0LVyw

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Spreadsheet Calculator Available at:https://leimbergservices.com/wdev/products.cfm?id=66

https://youtu.be/mN8O5ViHVk0https://youtu.be/pBCtAP0LVyw

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https://leimbergservices.com/wdev/products.cfm?id=66

[email protected]@gassmanpa.com

[email protected] © 2020 Gassman, Crotty & Denicolo, P.A

6.22.2020 - Spreadsheeting for PPP

Summary of Changes Under the Paycheck Protection Program Flexibility Act of 2020 (H.R. 7010)

1. Borrowers That Received Loans Before Passage of This Act Can Choose Between Having An 8 Week Period or a 24 Week Period During Which Expenditures Can Reduce the PPP Debt.

2. Borrowers That Receive Loans After the Date of Enactment Will Have the Shorter of (a) 24 Weeks, or (b) From the Date of the Loan to December 31, 2020.

3. Changes the 75% Test to a 60% Test. If At Least 60% of the Loan Amount is Not Spent on “Payroll Costs” During the 8 Week or Other Permitted Period, Then Forgiveness Will Be Limited.

4. Penalties and Calculations for the Reduction in Work Force – The Limited Exception to Reduction Causing Less Forgiveness if a Sufficient Number of Employees are Rehired by June 30th Now Only Applies Based Upon Employees on December 31st.

5. New “We Tried to Rehire but We Really Couldn’t” and “The Federal Guidelines Prevented Us From Meeting These Employees” Exception.

6. Repayment Period for Post H.R. 7010 Enactment Borrowers Extended to 5 Years. 1% Interest Will Be Paid During the 5-Year Term. Banks Can Agree with Borrowers to Extend the Term to 5 Years for Loans Already in Place.

7. Two Year Deferral of Employer’s Share of Payroll Taxes for All Employers.

8. Deductibility of Expenses Still at Issue.




1. A Simplified EZ Application is Now Available for Independent Contractors/Sole Proprietors and Other Borrowers That Did Not Reduce Their Workforce or Could Not Have Full Employment Due to Safety Guidelines

2. Independent Contractors who elect to use the 24 week period for their forgiveness calculation will be able to receive forgiveness for 2.5/12ths (20.83%) of their 2019 Schedule C net income

3. For borrowers using a 24 week Covered Period, owner compensation is capped at the lesser of (1) $20,833 (the 2.5 month equivalent of $100,000 per year) for each individual or (2) the 2.5-month equivalent of their applicable compensation in 2019.

4. For non-owner employees compensation is limited to $46,154 for 24 weeks and $15,385 for the 8 weeks.

5. Retirement Plan Contributions for owner-employees are capped at 2.5 months worth of the 2019 contribution amount according to EZ Form.

6. Owner-employees of an S-Corporation do not include health insurance on Line 6 of PPP Schedule A because "such payments are already included in their compensation." This appears to subject health insurance payments for S-Corporations owners to the cap on compensation.

7. For purposes of the FTE Reduction [Rehire] Safe Harbor 2 the Application makes it clear that you do not have to wait until December 31st to file application if relying on the FTE Reduction Safe Harbor so long as FTE employee headcount levels are restored on the date the application is submitted.

8. The exception to FTE employee reduction relating to businesses being unable to operate at the same level of activity due to compliance with social distancing guidelines now acts as a safe harbor.

PPP Recent Updates




1. The computations for keeping track of expenses are too much to do manually.

2. Software programs will not specifically identify qualified expenses, you need a separate way to track them.

3. Manually calculating compensation limits would be too time-consuming.

4. FTE computation is complicated and needs to be done in a simplified mechanism.

5. Using a spreadsheet provides for “full-disclosure” as you can see how the math works.

10 Reasons to Spreadsheet




6. Using a comprehensive Excel Workbook keeps all computations in one document.

7. Using the Excel Workbook for a client allows you to print it and professionally compile it for presentation (to your client and/or a lender).

8. It’s customizable, unlike other spreadsheets or online portal programs.

9. It’s an efficient way to do all of the complicated computations.

10. It’s cool!

10 Reasons to Spreadsheet, Cont’d




1. Using net pay instead of gross pay for the compensation amounts.

2. Using Employer FICA and Medicare taxes as “State and Local” taxes.

3. Not including all qualified utility expenses.

4. Using expenses paid before your loan was funded as qualified expenses.

5. Not checking for the “Safe Harbors” for FTEs before you start counting FTEs

10 Common Spreadsheet Errors




6. Using different methods for computing FTEs – not staying consistent.

7. Not checking to see if the optional FTE computation (1.0/.50).

8. Not using proper compensation amounts (caps) and not reconciling total gross payroll to the PPP Schedule A Worksheets totals.

9. Incorrectly computing the more than 25% pay rate reduction “penalty.”

10. Not double-checking your numbers.

10 Common Spreadsheet Errors, Cont’d




How To Handle Clients in Need of PPP Loan Assistance


C&L Value Advisors, LLCPPP Loan Forgiveness Application Assistance

In response to the overwhelmingly complicated Paycheck Protection Program Loan Forgiveness Application we are offering three levels of assistance for completion and submission of the Application with your Lender.

As you know we published the CARES Act PPP Loan Expense Tracker & Forgiveness Calculator Excel Workbook (version 1.3 was released yesterday). Completing this Workbook will help you tremendously with the forgiveness process.

We are offering three levels of service pertaining to the assistance with the forgiveness application process:

Level OneReview your computations, provide advisory services on what expenses to include, provide feedback on the overall computation, and read the Application you prepare, if provided to us. We will not review any underlying data or supporting documents that you gather and maintain.


C&L Value Advisors, LLCPPP Loan Forgiveness Application Assistance, Cont’d

Level TwoReview your underlying data and supporting documents, confirm amounts reported are accurate, review your computations, edit or adjust the computations based on our review of the underlying data and supporting documents, provide advisory services on what expenses to include, and provide feedback on the overall computation and any corrections needed. Read the completed Forgiveness Application you complete.

Level ThreeSame as Level Two, but we will complete the Forgiveness Application for your final review and approval, assist you in the submission of the Application with your Lender; Address any follow up questions from the Lender, provide additional data to the Lender, per their requests; Review the Lender’s final report for accuracy.


If we begin at one level but move to another level, we will confirm that with you prior to proceeding.

Our Fees for each of the above levels will be set based on your loan amount, complexity of your business accounting system, number of employees you have and nature of the lender submission process.

If you would like a proposal for one of the above levels, please contact Heidi Wisneski at 813-286-7373 or [email protected].

Absent any written agreement or Change Order, any services provided will be billed at our current hourly rate for advisory services.

We have made it our mission to help our clients through this challenging process and we are here for you.

Thank you.

C&L Value Advisors, LLCPPP Loan Forgiveness Application Assistance, Cont’d

mailto:[email protected]




Hello Name:

We appreciate the opportunity to work with you on this special project.

In response to the overwhelmingly complicated Paycheck Protection Program Loan Forgiveness Application we are offering three levels of assistance for completion and submission of the Forgiveness Application with your Lender.

Please select the service Level you are requesting (initial only on oneline):

Level One _____ (Initial)

Review your computations, provide advisory services on what expensesto include, provide feedback on the overall computation and read theApplication you prepare, if provided to us. We will not review anyunderlying data or supporting documents that you gather and maintain.




Level Two _____ (Initial)

Review your underlying data and supporting documents, confirmamounts reported are accurate, review your computations, edit or adjustthe computations based on our review of the underlying data andsupporting documents, provide advisory services on what expenses toinclude, and provide feedback on the overall computation and anycorrections needed. Read the completed Forgiveness Application youcomplete.

Level Three _____ (Initial)Same as Level Two, but we will complete the Forgiveness Applicationfor your final review and approval, assist you in the submission of theApplication with your Lender; Address any follow up questions from theLender, provide additional data to the Lender, per their requests; Reviewthe Lender’s final report for accuracy.


If we begin at one level but move to another level, we will confirm that with you prior to proceeding.

Our fees for each of the above levels will be based on your loan amount, complexity of your business accounting system, number of employees and nature of the lender submission process.

Estimated fees are:Level One $Level Two $Level Three $

A retainer of $______ will be invoiced at the outset of this project.

We have made it our mission to help our clients through this challenging process and we are here for you.

Thank you for letting us serve you.

Kevin CameronKevin A. Cameron, CPA

Agreed:

Date:__________________ _________________________________________Client Name


C&L Value Advisors, LLC813-286-7373

CARES Act Paycheck Protection Program Loan Forgiveness Application Checklist

Company Name:Contact Name:Phone Number:

Enter the Following Information:Bank Name:Loan Amount:Date Loan Funded:Are you electing to use the Alternate Payroll Covered Period:Yes, No, or I don't know, help me decide?


Please provide the following items:

Check if attached or write "N/A"

For Payroll Costs:Payroll records, including Payroll Journal, Payroll Summary, Earnings Report, or similar reports for the applicable 8-week periodIf you use a payroll service or PEO, please provide your contact at the serviceRecords for Employee count and hours for:The applicable 8-week periodThe Reference Periods:January 1, 2020 to February 29, 2020February 15, 2020 to June 30, 2020Or other 12-week period, if your business is seasonal


For Group Health Insurance:Copies of invoices for the months covered in the 8-week period (please note this may require 3 months' of invoices).Copies of checks or proof of paymentDo your employees pay any portion of their health insurance? If yes, provide amounts paid, if not in your payroll records.

For Retirement Plan Contributions:Provide computation of applicable retirement plan contribution for periodProvide TPA contact information below:Name:Phone number:


For Mortgage Interest:Copies of payments made for period (please note this may require 3 months' of payments).Copies of statements from the lender for period (please note this may require 3 months' of statements)Copies of amortization schedules for loans, if you have themCopies of the original loan documents


For Rent or Lease Payments:Copies of payments made for period (please note this may require 3 months' of payments)Copies of statements from the lessor for period (please note this may require 3 months' of statements)Copies of the original lease documents

Utilities:Copies of payments made for periodCopies of statements from utility companies for periodCopies of at least one statement for any period prior to 2/15/20 to show the service was in place prior to that date

Monday, June 22, 20209:00 a.m. to 10:00 a.m. EDT

(60 minutes)

Presented by:

Alan S. [email protected]

Brandon L. [email protected]

Kevin [email protected]

68

Spreadsheetingfor PPP

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Documents

Spreadsheeting for PPP - Gassman, Crotty & Denicolo, P.A.€¦ · 22/6/2020 · Monday, June 22, 2020. 9:00 a.m. to 10:00 a.m. EDT (60 minutes) Presented by: Alan S. Gassman. [email protected]