PPP Forgiveness Explained

From Dan Frier over at Frier & Levitt


1 Like

Thanks, good stuff and encourage others to read.

How exactly do we calculate the number of FTE? We have several part time employees, including providers who work 24 hours/week but are salaried. Do they need to be counted as full time? Also, do we only count employees with an average of 30+ hours/week, or do we add up the hours of all employees and divide by 40 hours/week to get the FTE? I have been looking for this answer everywhere and it there is no clear instruction.

Thanks, Robyn Pemberton

Question about the full time employees. Our average number of FTE was 14 according to our Paychex report, which is what we used when we applied for PPP. We had one employee resign (due to new employment) on 2/28/20 and another employee go out on maternity leave on 2/24/20. So we are currently at 12 FTE and we obviously were not going to replace anyone during this time. It is affecting our loan forgiveness - as far as the loan forgiveness calculator is concerned - and leaving us with $20,000 left. I know no one has actually reached the forgiveness stage, but do you think we could appeal the FTE with proof of why our number is lower?

According to the SBA, 30 hours is the number of hours to be full time. Simply add up the average number of hours each employee worked Jan-Feb and divide by 30 to get your calculated FTE. Then do it again for June 30, 2020…your accountant should be able to assist with this effort as it may take some time to run the various payroll reports and combine the results, etc…I would not worry about the number you reported on your initial application as there was leeway to count based on 2019 or the 12 months ending Feb 2020. It’s a murky area.

Please keep in mind that at least 75% of the funds spent needs to be on “payroll costs”…if you are unable to spend all the proceeds, that is ok as it was free money anyway that was unearned and practices simply give back what they don’t use…

1 Like

I have the same question. We also have providers who work 24 hours/week and are salaried. If you count the time that they spend charting, communicating with patients and specialists, and taking call the hours are over 30+ week. Would they be counted as full time or do you strictly count the hours they are scheduled to see patients in the office?


I would count each provider in the situation you described as full time.

Great information here. I am wondering if you get the PPP loan money, meet all the requirements, but do not use up all the money in the 8 week period what happens?

If there is a balance, you can pay back immediately or the balance is termed out to a 4 year loan at 1%