Sick Leave Included Payroll Calculation

Do PPP Loans cover paid sick leave?

Yes. payroll costs covered by the PPP include costs for

Vacation leave
Parental leave
Family leave
Medical leave
Sick leave

Linked here and pasted below is the text from the official question and answer document published by the Department of the Treasury on April 10, 2020, which you should reference:

https://home.treasury.gov/system/files/136/Paycheck-Protection-Program-Frequently-Asked-Questions.pdf

Below is the official question from Q8 as of April 10, 2020

8. Question: Do PPP loans cover paid sick leave?

Below is the official answer from Q8 as of April 10, 2020

Answer: Yes. PPP loans covers payroll costs, including costs for employee vacation, parental, family, medical, and sick leave. However, the CARES Act excludes qualified sick and family leave wages for which a credit is allowed under sections 7001 and 7003 of the Families First Coronavirus Response Act (Public Law 116–127). Learn more about the Paid Sick Leave Refundable Credit here.

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