We wanted to bring you some resources and offer our help in getting through these tough times. With most of our team working remotely, rest assured we will work hard to help you.
First, we wanted to share the Maine resources available to you. You can find the programs available through FAME here:
Below is the information you may consider having on file as you prepare to apply for the Paycheck Protection Program loan:
The most important item you will need to calculate is “payroll costs”. It is not as simple as looking at the wages you pay to your employees and it encompasses several items. The CARES Act specifies the payroll costs to calculate the loan amount should be based on the one-year average prior to the loan disbursement, therefore, we recommend that you have data available from 01/01/2019 - 03/31/2020.
- Quarterly payroll filings reported to the IRS (Form 941) for the period 01/01/2019 - 03/31/2020 (5 quarters of reports). Since quarter 1 of 2020 has not ended yet, request that your payroll provider sends it to you as soon as it is prepared and filed.
- Quarterly Maine payroll filings (Form 941ME AND ME UC-1) for the period 01/01/2019 - 03/31/2020 (5 quarters of reports). Since quarter 1 of 2020 has not ended yet, request that your payroll provider sends it to you as soon as it is prepared and filed.
- Payroll journal for the period: 04/01/2019 - 03/31/2020. The journal should list each employee’s earning separately. Same payroll journal for the period 01/01/2019 - 12/31/2019.
- If your monthly payroll journals do not provide the amount of retirement plan benefits paid by the company for your employees, a monthly report from the payroll company OR retirement plan administrator showing employer payments to each employee’s retirement plan. If your company does not offer a retirement plan, this item will not apply. Period covered should be 04/01/2019 - 03/31/2020. You may need the same report for the period 01/01/2019 - 12/31/2019.
- Monthly cost of health and dental insurance premiums REDUCED by the amount that employees are paying for the period 04/01/2019 - 03/31/2020. We suggest that you put a folder together (paper or electronic) that includes monthly bills from your health and dental insurance carrier for this period). You may also need the cost of health insurance premiums for the period 01/01/2019 - 12/31/2019.
- Employer contributions to employee Health Savings Account (if applicable) for the period 04/01/2019 - 12/31/2019 and for the period 01/01/2019 - 12/31/2019.
- Be prepared to provide the information above for the period subsequent to April 1, 2020 as the Act specifies the data based on which the loan amount is calculated is for payroll costs incurred during the one-year period before the date on which the loan is made.
- It is not absolutely certain how much of the payments reported on 1099s to your independent contractors are eligible to be included in calculating the loan amount; however, we recommend that you have the 1099s for the year 2019 available plus a summary of the payments to the independent contractors for the period 01/01/2020 - 03/31/2020.
Having the above information available (as opposed to just the payroll data) will ensure the maximum amount of the loan your business can receive.
Should you need electronic copies of your three prior years’ tax returns, our administrative team is ready to supply you with those immediately and will prioritize these requests! Please remember, we cannot send the tax returns directly to your bank without a prior consent, therefore, you may want to have the electronic copies ahead of time.
Mike, Katie & Marc