Non-Employee Payroll Forgiveness
What are eligible non-employee payroll costs for forgiveness?
Health insurance & retirement costs.
Amounts spent on payroll during the 8 week Covered Period are not the only “payroll costs” that can be forgivable under a PPP loan. Your contributions to your employees health insurance, including to a self-insured employee-sponsored group health plan can also be forgivable. This excludes any pre-tax or post-tax contributions by the employee themselves (eg. employee 401k contributions). However, your contributions to your employees retirement plan are forgivable (eg. employer 401k contributions).
Page 5 of Form 3508
Line 6: Enter the total amount paid by the Borrower for employer contributions for employee health insurance, including employer contributions to a self-insured, employer-sponsored group health plan, but excluding any pre-tax or after tax contributions by employees.
Line 7: Enter the total amount paid by the Borrower for employer contributions to employee retirement plans, excluding any pre-tax or after-tax contributions by employees.