$100,000 salary limit

Does the $100,000 salary limit used in calculating the PPP loan amount also apply during the forgiveness calculation?

Yes.

When applying for the PPP loan, the loan amount was derived from a calculation of salary costs, with all salaries capped at $100,000. Many people are wondering if the same cap applies to the forgiveness calculation. The answer is yes, the forgiveness calculation cannot exceed an annualized salary of $100,000. So if you are paying an employee an annualized salary of more than $100k, you can only be forgiven for a pro-rated $100k. You will be able to include health care and retirement plan costs on top of the $100,000 but no cash salary.

Page 2 of Form 3508
For each individual employee, the total amount of cash compensation eligible for forgiveness may not exceed an annual salary of $100,000, as prorated for the covered period. Count payroll costs that were both paid and incurred only once.