{"id":898,"date":"2021-04-01T19:15:15","date_gmt":"2021-04-01T19:15:15","guid":{"rendered":"https:\/\/motiveloan.com\/loans\/?p=898"},"modified":"2022-06-08T17:07:15","modified_gmt":"2022-06-08T17:07:15","slug":"calculate-fte-for-paycheck-protection-program","status":"publish","type":"post","link":"https:\/\/www.motiveloan.com\/loans\/calculate-fte-for-paycheck-protection-program\/","title":{"rendered":"Know how to exactly calculate FTE for Paycheck Protection Program (PPP) Loan Forgiveness, April 2021"},"content":{"rendered":"\n

You might have applied for your PPP loan months ago, Received your PPP loan, and are now in the process of preparing to submit your loan forgiveness application once your lender is ready to accept it. <\/p>\n\n\n\n

Paycheck Protection Program & How to calculate FTE\/FTEE for it.<\/h2>\n\n\n\n
Table of Contents<\/div>
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    \"Paycheck
    Paycheck Protection Program (PPP Loan)<\/figcaption><\/figure>\n\n\n\n

    Borrowers who received a PPP loan before June 5, 2020 can elect to calculate their eligible costs using either an 8-week or 24-week Covered Period.\u00a0<\/p>\n\n\n\n

    Borrowers who received their PPP loan on or after June 5, 2020 must use the 24-week period. Any Borrower who files a loan forgiveness application using a 24-week Covered Period can file their loan forgiveness application before the end of the 24-week Covered Period.<\/p>\n\n\n\n

    Full-Time Employee<\/strong> equivalent, As businesses have stated to collect their Paycheck Protection Program (\u201cPPP\u201d) loan covered period or decide whether to extend a little longer, The very first question comes here is the full-time employee<\/strong> equivalent (\u201cFTE\u201d or \u201cFTEE\u201d) calculation.<\/p>\n\n\n\n

    So you have One condition to getting your Paycheck Protection Program loan completely forgiven is by proving that you maintained the same number of FTEs <\/a>(full-time equivalents) during the 24-week PPP period as before COVID-19.<\/p>\n\n\n\n

    Your FTE figure will not necessarily be the same as the number of actual people you had on payroll, especially if you had turnover and part-time employees. Using the FTE measurement will give you a more accurate view of your labor force.<\/p>\n\n\n\n

    Self-employed individuals with no payroll do not need to worry about calculating FTE. Self-employment PPP is based on 2019 net profit, not payroll numbers.<\/p>\n\n\n\n

    First, Determine which Loan Forgiveness Application Form to file – Form 3508 or Form 3508 EZ<\/strong><\/h2>\n\n\n\n

    Before you worried about how to calculate FTEs, You should know which form to file, as this will impact the computations the Borrower will need to perform for purposes of calculating loan forgiveness. <\/p>\n\n\n\n

    Does the Borrower meet the requirements to file Form 3508 EZ (the short-form filing) or will the Borrower be required to file Form 3508 (the long-form filing)? <\/p>\n\n\n\n

    If the Borrower meets one of three criteria as provided on Form 3508 EZ Instructions, they are able to avoid calculating an FTE Reduction Quotient (as discussed below). However, Borrowers who file Form 3508 EZ by meeting the second set of requirements (checking the second box on page 1 of Form 3508EZ), are still required to calculate FTEs, but as of January 1, 2020 and as of the last day of their Covered Period.<\/p>\n\n\n\n

    Key Definitions<\/strong>:<\/h2>\n\n\n\n

    When calculating FTEs, it is critical that you know certain definitions:<\/h3>\n\n\n\n