Paycheck Protection Program (PPP) loan recipients will be under scrutiny when applying for forgiveness, which makes conscientious recordkeeping essential. Extensive documentation is needed for loan forgiveness applications to verify that loans are being used for their primary intended purpose: to retain the workforce and maintain payroll costs.
1. Complete the applicable Paycheck Protection Program Loan forgiveness form.
2. Collect documentation on the compensation paid to employees during Covered Period/APCP
3. Gather tax forms for the Covered Period/APCP.
4. Aggregate employee health insurance & retirement plan contribution information.
5. Submit employee federal sick leave documentation.
6. Compile compensation information report for Covered Period/APCP.
7. Gather FTE data for the reference period.
8. Indicate and substantiate safe harbor eligibility.
9. Aggregate pre-Feb. 15, 2020 utility and debt obligations.
10. Collect Covered Period utility bills and service provider obligations data.
11. Submit data on FTE reductions unrelated to pandemic.
12. Track expenses paid from PPP loan proceeds.
13. Submit proof of 2019 from 1040 Schedule C submission.
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