SUGGESTED INFORMATION:
If a partnership also has employees on payroll, they will calculate the average payroll cost for all employees as normal + the equivalent wages for the partners based on 2019 net earnings. Partnerships are not allowed to include retirement or health insurance contributions for the partners since they are already included in their net self-employment income. Since the draws should have been reported on the individual net earnings reports, they will be included when calculating the total cash compensation for the period.
All employees’ wages are capped at $100,000 per employee. If the loan was received before June 5th, they can select between an 8-week covered period or a 24-week covered period. See below for the different formulas based on the selected covered period for employees and owners.
8 Week Period (Owners or Employees):
The total forgivable amount is capped at $15,385 = (8/52 weeks x $100,000).
24 Week Period (Owners):
The total forgivable amount is capped at $20,833 = (2.5/12 months x $100,000).
24 Week Period (Employees):
The total forgivable amount is capped at $46,154 = (24/52 weeks x $100,000).
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