How does the calculations work for a self-employed employer who also have payroll?

Last Updated 07.08.2020

If a self-employed individual also has employees on payroll, they will calculate the average payroll cost for all employees as normal +  the equivalent wages for the owner based on 2019 net profit.  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).