PPP Loan Step-By-Step Guide: Form 3508EZ

Employers that meet the conditions outlined below may fill out Form 3508EZ which, as its name suggests, is an easier loan forgiveness application form.

In this article, we show you how to produce the data you are looking for from our payroll system. The information is easily available in our CV-19 Dashboard, with keys that tell you which data element belongs where on the application.

For this form, you need just 3 elements from the payroll system: Employee count at the time of loan application, employee count at the time of forgiveness application, and the total payroll cost for the forgiveness period.

 

Can Your Company Use 3508EZ?

If you can answer yes to 1 of the following 3 options you can you may use this form:

  1. You are self-employed or an independent contractor, OR
  2. You are a sole proprietor with no employees, OR
  3. You didn’t reduce salary or wages for any employee by more than 25% during the covered period.
    If you qualify under this requirement, you also must meet one of the following 2 requirements:
    1. You did not reduce the number of employees or average paid hours of employees from January 1, 2020, through the end of the covered period, OR
    2. You were unable to maintain the same level of business activity as prior to February 15, 2020 during the covered period.

If you do not meet any one of the above 3 requirements, you will need to complete the regular (long version) of the form 3508 PPP forgiveness application. Follow PPP Loan Forgiveness: Step-By-Step Guide – Form 3508 to fill out that form. 

If you meet the requirements, you can proceed by obtaining the following 2 items from the payroll software and filling in the rest of the items you have outside the payroll software.

Jump to:

 

Employee Count

How it looks on the form:

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How to get the info:

To obtain the number of employees at the time of loan application and forgiveness application, run the PPP FTE Count report for each date range. The FTE Count Report will calculate your Full-Time Equivalency based on the dates selected. We suggest running the report for the month that includes the check date in which you want to test, to ensure all your employees are counted (but this is not required). You can run it for a smaller date range and only pay dates in that range will be counted.

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  1. Run the PPP FTE Count report by clicking on that tab.
  2. Click the Change Dates button and enter the date range for the month you applied for the loan. For example, if you applied for the loan in April, use 4/1/2020 to 4/30/2020 as the date range.
  3. The value in the FTE40 field is the value you use for “Employees at Time of...” 
  4. On your keyboard, press <ctrl>+P to print this report as verification documentation for each time period.
  5. Repeat these steps for Loan Application and Forgiveness Application date ranges.

 

Payroll Cost

For the Forgiveness Amount Calculations, we provide the payroll cost information you need for line 1 of the application.

How it looks on the form:

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How to get the info:

To get your Payroll Costs, follow these steps:

  1. Run the 3508EZ Payroll Costs report, by clicking on that tab.
  2. Enter your Coverage Period or Alternative Coverage Period, which is either an 8-week range or 24-week range.
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    1. The Coverage Period would start on the day your loan was funded.
    2. The Alternative Period would start on the first day of a pay period, following the day your loan was funded.
    3. You can choose either an 8-week or 24-week period.
  3. The Payroll Cost 8Wk or the Payroll Cost 24Wk fields on the bottom right is your payroll cost for the period you entered.
  4. On your keyboard, press <ctrl>+P to print this report as verification documentation.

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Webinar Recording:

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