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Get your non-payroll business expenses report to help you apply for Paycheck Protection Program loan forgiveness

by Intuit•8• Updated 2 months ago

Learn how to create and download your PPP Non-Payroll Expense Report.

Note: The PPP reopened on January 11, 2021. Please refer to the latest guidance from the SBA and Treasury to confirm current program rules and how they apply to your particular situation.

Within QuickBooks, you're likely to have access to the information you need to help you apply for PPP loan forgiveness through your lender. This document explains which nonpayroll expenses may be eligible for forgiveness, and how to create your PPP Non-Payroll Expense Report.

NOTE:
  • Before you pull your reports to help determine your forgiveness amount, be sure to check that you’ve uploaded all of your eligible expenses from your 8-week or 24-week covered period into QuickBooks.
  • If you need to see your payroll expenses that may be eligible for loan forgiveness, you can run a Payroll Costs for PPP Loan Forgiveness Determination Report.
  • Regulations and guidance from the SBA and the U.S. Department of the Treasury on the PPP are evolving rapidly. Please refer to the latest guidance from SBA and Treasury to confirm current program rules.

What non-payroll expenses are eligible for loan forgiveness?

Non-payroll costs eligible for forgiveness include:

  • Interest payments on business mortgage obligations for real or personal property incurred before February 15, 2020
  • Business rent or lease payments for real or personal property in force before
  • Business utility payments for the distribution of electricity, gas, water, transportation, telephone, or internet access for which service began before February 15, 2020
  • Covered operations expenditures
  • Covered property damage
  • Covered vendor costs
  • Covered worker protection expenditures

Eligible non-payroll costs may only account for up to 40% of the total forgiveness amount.

In order for Schedule C filers to seek forgiveness of these business costs, they must have been deductible on the 2019 Form 1040 Schedule C submitted with the loan application.

You must have paid or incurred these costs during your Loan Forgiveness Covered Period. If these costs were incurred during the Loan Forgiveness Covered Period, then you must pay for these costs before the next regular billing date. Your Loan Forgiveness Covered Period relevant to the calculation of your total loan forgiveness amount generally begins on the date you received your PPP funds from your lender.

If you received your PPP funds after June 5, 2020, your Loan Forgiveness Covered Period is 24 weeks. If you received your PPP funds before June 5, 2020, you can choose to use either an 8-week or a 24-week Loan Forgiveness Covered Period.

For example, if you received your PPP loan funds on Monday, April 20, the first day of your Loan Forgiveness Covered Period is Monday, April 20. Since your loan was made before June 5, 2020, you may elect to use either an 8-week or 24-week Loan Forgiveness Covered Period.

Your Loan Forgiveness Covered Period ends at the end of the 8 or 24 weeks.

For more detailed information about PPP Loan Forgiveness, including information about the documents you need to submit with your PPP Loan Forgiveness Application please view our Paycheck Protection Program loan forgiveness article.

Where can I find this info in QuickBooks?

Here's how to get the reports you need. Follow the steps below for your version of QuickBooks.

Notes:
  • Before you run your reports, be sure to check you have the correct covered period in your PPP Center. For more information about determining your covered period, refer to our Paycheck Protection Program loan forgiveness article.
  • Be sure you don't add your payroll costs to your business expenses reports. You can pull that information separately.
  1. Go to Business overview, select Reports (Take me there), then select Custom Reports and Summary.
  2. From the Display tab, enter the 8-week (56-day) or 24-week (168-day) Covered Period:
    • Set the From date to the day you received your PPP funds from your lender.
    • Set the To date to 8 or 24 weeks later.
  3. Under the Display tab, select the ‘Report Basis’ as Accrual. Note, the default is for the report to identify expenses on an “Accrual” basis, but you may change this default, so the report identifies expenses on a “Cash” basis.
  4. Select the Filters tab, then select the Multiple Account filter.
  5. Select the Account dropdown, then select the desired accounts as applicable to your business from the list of eligible expenses as described above.
  6. Select the Headers/Footers tab, and rename this report to “PPP Non-Payroll Expense Report for PPP Loan Forgiveness Determination”
  7. To run your report, select OK.
    • Note: To save the report settings, select Memorize then give the report a name and select OK.
  8. When you’re done, select either Print, Email, or Excel.
  1. Go to Banking services, then select PPP Center (Take me there).
  2. Select the Customize your PPP-related expenses to maximize your loan forgiveness link.
  3. Select the Customize button.
  4. Make sure the Accrual radio button is selected. Note, the default is for the report to identify expenses on an Accrual basis, but you may change this default, so the report identifies expenses on a Cash basis.
  5. Select the Filter dropdown, select one of the following options to breakdown your report:
    • Select Distribution Account checkbox and select all the categories that you've spent money on.
    • Select the Vendor checkbox and select all the vendors that you've spent money on.
  6. select Run report.
  7. Select the Save customization button, give your report a name, and select Save.
Note: Once you save your report, you can return to the same report by selecting Reports then Customized reports.
Notes:
  • Don’t forget to confirm that you have tagged each expense in accordance with the guidance above about eligible expenses.  The categories you use may not be the same as the categories eligible for forgiveness.
  • As described above, the default is for the report to run on an “Accrual” basis.  We recommend that you run the report on both an “Accrual” and “Cash” basis to confirm you have identified all expenses that may be eligible for forgiveness.  In addition to expenses that were paid in the 8-week or 24-week covered period, expenses incurred during the covered period and paid on or before the next regular billing date, even if the billing date is after the covered period, are eligible for forgiveness.

Disclaimers

The estimated eligible forgivable nonpayroll business expenses contained in this report are based on the expense categories you manually selected and how you input them into QuickBooks. The categories and nonpayroll business expenses you selected may not be the same categories or nonpayroll business expenses eligible for forgiveness as authorized by the SBA and Treasury. QuickBooks Capital does not guarantee that any part of the estimated eligible forgivable non-payroll costs will be forgiven or that they are accurate or complete.

The use of the PPP loan proceeds listed above pertain to the forgivable amount of a PPP loan, and are not the only allowable uses of a PPP loan.

Regulations and guidance from the SBA and the U.S. Department of the Treasury on the PPP are evolving rapidly and the above information may be outdated.  Please refer to the SBA and Treasury to confirm current program rules and how they apply to your particular situation.

The funding described is made available to businesses located in the United States of America and are not available in other locations.

This content is for information purposes only and should not be considered legal, accounting or tax advice, or a substitute for obtaining such advice specific to your business. Additional information and exceptions may apply. Applicable laws may vary by state or locality. No assurance is given that the information is comprehensive in its coverage or that it is suitable in dealing with a customer’s particular situation. Intuit Inc. does not have any responsibility for updating or revising any information presented herein. Accordingly, the information provided should not be relied upon as a substitute for independent research. Intuit Inc. does not warrant that the material contained herein will continue to be accurate, nor that it is completely free of errors when published. Readers should verify statements before relying on them.

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