PPP - some folks confusing eligible expenses with payroll

Have seen lots of folks do this. None of them for nefarious purposes IMO.

Some are trying to add mortgage payment expense, rent, utilities, etc. into the figure that is averaged over 12 months, then is multiplied by 2.5

In order to come up with your “loan” amount, your payroll is the determining factor.

Payroll costs include:

Salary, wages, commissions, or tips (capped at $100,000 on an annualized basis for each employee);

Employee benefits including costs for vacation, parental, family, medical, or sick leave; allowance for separation or dismissal; payments required for the provisions of group health care benefits including insurance premiums; and payment of any retirement benefit;

State and local taxes assessed on compensation; and

For a sole proprietor or independent contractor: wages, commissions, income, or net
earnings from self-employment, capped at $100,000 on an annualized basis for each employee.

Expenses that are allowed for loan proceeds to be spent on and it be “forgiven” include:

Payroll costs, including benefits;

Interest on mortgage obligations, incurred before February 15, 2020;

Rent, under lease agreements in force before February 15, 2020; and

Utilities, for which service began before February 15, 2020.

Source: Treasury.gov