What qualifies as Payroll Costs?

Payroll costs consist of compensation to employees (whose principal place of residence is the United States) in the form of salary, wages, commissions, or similar compensation; cash tips or the equivalent; payment for vacation, parental, family, medical, or sick leave; allowance for separation or dismissal; payment for the provision of employee benefits consisting of group health care coverage, including insurance premiums, and retirement; payment of state and local taxes assessed on employee compensation.

How do I document Payroll Costs?

Submit the following forms of supporting documentation and include identification of specific dollar amounts used in calculating your requested loan amount, and provide documentation showing all supporting calculations completed in arriving at your requested loan amount.

  • Proof of wages, tips, and other compensation paid to employees
    • Federal payroll tax filings – Form 941 for each quarter of 2019 and for the 1st quarter of 2020, if available
    • 2019 full year and 2020 first quarter payroll register from payroll processor summarizing compensation paid to each employee, or if you do not use a payroll processor
    • Other supporting documentation, such as bank records, sufficient to demonstrate the qualifying payroll amount
  • Proof of payment of employee group health care coverage paid by employee
    • Payroll processor records, or
    • Other supporting documentation, such as bank records, sufficient to demonstrate the qualifying payroll amount
  • Proof of payment of state and local taxes assessed on employee compensation paid by employer
    • Payroll processor records, or
    • State payroll tax filing records
  • Proof of payment of employee retirement benefits paid by employer
    • Payroll processor records, or
    • Other supporting documentation, such as bank records, sufficient to demonstrate the qualifying payroll amount
  • For an independent contractor or sole proprietor, wage, commissions, income, or net earnings from self-employment or similar compensation
    • Form 1099-MISC
    • Proof of income and expenses from a sole proprietorship, or
    • Other supporting documentation, such as bank records, sufficient to demonstrate the qualifying payroll amount

Helpful tips for completing your Paycheck Protection application

  • Please have the following documents ready before starting your application:
    • 2019 IRS Form 940 or 2019 IRS Form 941 (All four Quarters of 2019)
    • 2019 Year End Annual Payroll Summary (Report(s) need to include and specify Employer paid Benefits and State Taxes)
    • 2019 Year End Payroll Summary (Report that shows Year End Gross salary for each employee)
    • 2019 Year End Profit & Loss Statement
    • Quarterly FMLA Filing (To include employer paid portion)
    • Quarterly LNI Filing (To include employer paid portion)
    • Quarterly Unemployment Filing (To include employer paid portion)
    • Retirement Benefit Statement (To include employer paid portion)
    • Health Benefit Statements (To include employer paid portion)
    • A copy of your Driver’s license
    • SS Card (Only need to provide this if you are not already a member of WECU)
  • To assist in speeding up the process, please highlight the payroll figures on your uploaded documents that may be used to calculate your loan amount. These include compensation to employees; payment for vacation, parental, family, medical, or sick leave; employer paid portion of state and local taxes assessed on compensation of employees; employer paid group health care coverage; and employer paid retirement benefits.
  • You will need to know your business’s NAICS code to complete the application. This can be found on your tax return. Start typing your NAICS code into the field and wait for it to populate. Then you will be able to make the correct selection from the drop down box.
  • All fields must be completed to move onto the next page and to submit. If the field does not apply to you, enter $0 or N/A.
  • Each email address can only be used once.
  • The back arrow ß cannot be used within the application. If you need to make changes to a previous page, please use the navigation on the left side of the page.
  • You will be timed out of the system after one hour. If you cannot complete the application within the hour, click to Save and Come Back Later or your information will not be saved and you’ll need to start the application process over.
  • Your application will not be reviewed until the required documents are uploaded.
  • If a document is being requested that does not apply to your business (Health Benefit Statement requested but your business does not offer health benefits) you may leave that blank, no upload is needed. Your application will still be processed.
  • Once your application is submitted, you will need to go to the Dashboard to upload your documents. The Dashboard link is available after you submit your application. It can also be accessed using the link in the email you received at the time of your application.
  • When uploading your documents, you do not have to click next or submit. They will automatically be tied to your application once they show next to the document name.
  • The application does not request specific benefits information. Once your forms are uploaded, those numbers will be factored into your loan amount.
  • The Loan amount that is generated initially does not take all factors into consideration and may not reflect your final loan amount. You will be notified once the final loan amount is calculated.

Get started on your Paycheck Protection application now.