Home Bank’s Zollinger Explains Details of Payroll Protection Plan

Businessperson Opening Envelope With Paycheck

NEW ORLEANS – John J. Zollinger IV, senior vice president and market president at Home Bank, provided the following information to help businesses owners determine the loan amount their company will be eligible for under the federal government’s Payroll Protection Plan. 

“Here is a good synopsis of what is included and not included in payroll,” said Zollinger. “Remember the loan will be two and a half times your average monthly payroll over the past 12 months. As you can see payroll is a broad definition and covers much more than wages. [Also], W2 statements, 1099s and payroll company information about the last 12 months of payroll will be invaluable and used to create your base of average monthly payroll.”

According to Zollinger, payroll costs include:

Sum of payments of any compensation with respect to employees that is:

  •       Salary, wage, commission or similar compensation
  •       Payment of cash tip or equivalent
  •       Payment for vacation and sick leave
  •       Allowance for dismissal or separation
  •       Payment required for the provisions of group health care benefits, including insurance premiums
  •       Payment of any retirement benefits, or
  •       Payment of state or local tax assessed on the compensation of employees
  •       Sole proprietor or independent contractor that is in an amount that is not more than $100,000 in one year, as prorated for the covered period

Payroll does not include:

  •       Compensation of an individual employee in excess of an annual salary of $100,000 as prorated for he covered period
  •       Taxes imposed or withheld under chapters 21, 22, or 24 of the Internal Revenue Code
  •       Any compensation of an employee whose principle residence is outside the U.S.
  •       Qualified Sick leave for which a credit is allowed under the FFCRA
  •       Qualified Family leave where a credit is allowed under section 7003 of the FFCRA

 

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