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colorado460
Level 1

PPP Payroll Prorated salary

PPP Payroll: Loan started May 11, first pay period ends May 25. how do I split the pay check and deductions between normal payroll bank account and the new PPP loan. 10 days per PPP and 11 days after PPP. I know they can be prorated but how do I do that in QuickBooks Payroll.

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Best answer May 26, 2020

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john-pero
Community Champion

PPP Payroll Prorated salary

 

 

The 8 week period includes ALL paychecks written during the 8 weeks regardless of when prior to the 8 weeks the work was performed PLUS it includes any and all payroll ACCRUED up to the end of the 8 weeks but paid AT A LATER DATE.

 

You were funded May 11.  Any payroll for ANY time up through when the checks are cut on or after 5/11 is PPP payroll. So, your paychecks through 5/25 are monthly? You had no other paychecks one week ago, 2 weeks ago?  Example if bi-weekly instead of monthly::Payroll for 5/15 date and pay period of 4/25-5/10 would have been your first FULL PPP payroll

 

But if you only pay once per month, your pay period ending 5/25 started 4/26=/-   IT IS 100% PPP PAYROLL. The only time you must (if you wish) to allocate is at the end of the 8 weeks since any accrued but unpaid wages, salary, bonus, PTO, etc that is earned through 7/5 but will be paid at some date after 7/5 (your 8 week end date)

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1 Comment 1
john-pero
Community Champion

PPP Payroll Prorated salary

 

 

The 8 week period includes ALL paychecks written during the 8 weeks regardless of when prior to the 8 weeks the work was performed PLUS it includes any and all payroll ACCRUED up to the end of the 8 weeks but paid AT A LATER DATE.

 

You were funded May 11.  Any payroll for ANY time up through when the checks are cut on or after 5/11 is PPP payroll. So, your paychecks through 5/25 are monthly? You had no other paychecks one week ago, 2 weeks ago?  Example if bi-weekly instead of monthly::Payroll for 5/15 date and pay period of 4/25-5/10 would have been your first FULL PPP payroll

 

But if you only pay once per month, your pay period ending 5/25 started 4/26=/-   IT IS 100% PPP PAYROLL. The only time you must (if you wish) to allocate is at the end of the 8 weeks since any accrued but unpaid wages, salary, bonus, PTO, etc that is earned through 7/5 but will be paid at some date after 7/5 (your 8 week end date)

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