Cash Compensation is the sum of gross salary, gross wages, gross tips, gross commissions, paid leave (vacation, family, medical or sick leave, not including leave covered by the Families First Coronavirus Response Act), and allowances for dismissal or separation paid or incurred during the Covered Period.
Do not include qualified wages taken into account in determining the Employer Retention Credit.
For each individual employee, the total amount of cash compensation eligible for forgiveness may not exceed an annual salary of $100,000, as prorated for the Covered Period.
For example, for an 8-week Covered Period, the maximum is $15,385, for a 24-week Covered Period, the maximum is $46,154.
A couple other relevant notes from the SBA on cash compensation:
- Should I include payments to an independent contractor or sole proprietor in my payroll costs?
- Should I include the cost of a housing stipend or allowance provided to an employee as part of compensation in payroll costs?
- Are salary, wages, or commission payments to furloughed employees; bonuses; or hazard pay during the Covered Period eligible for loan forgiveness?