This is a general ‌methodology, but the specific methodology depends on the tax filing status for your business.‌ See the FAQs below for your type of business. ‌â—Step‌ ‌1:‌ ‌Aggregate‌ ‌payroll‌ ‌costs‌ ‌from‌ 2019 or ‌the‌ ‌last‌ ‌twelve‌ ‌months‌ for‌ ‌employees‌ ‌whose‌ ‌principal‌ ‌place‌ ‌of‌ ‌residence‌ ‌is‌ ‌the‌ ‌United‌ ‌States.‌ ‌â—Step‌ ‌2:‌ ‌Subtract‌ ‌any‌ ‌compensation‌ ‌paid‌ ‌to‌ ‌an‌ ‌employee‌ ‌in‌ ‌excess‌ ‌of‌ ‌an‌ ‌annual‌ ‌salary‌ ‌of‌ ‌ $100,000‌ ‌and/or‌ ‌any‌ ‌amounts‌ ‌paid‌ ‌to‌ ‌an‌ ‌independent‌ ‌contractor‌ ‌or‌ ‌sole‌ ‌proprietor‌ ‌in‌ ‌excess‌ ‌of‌ ‌$100,000‌ ‌per‌ ‌year.‌ ‌â—Step‌ ‌3:‌ ‌Calculate‌ ‌average‌ ‌monthly‌ ‌payroll‌ ‌costs‌ ‌(divide‌ ‌the‌ ‌amount‌ ‌from‌ ‌Step‌ ‌2‌ ‌by‌ ‌12).‌ ‌â—Step‌ ‌4:‌ ‌Multiply‌ ‌the‌ ‌average‌ ‌monthly‌ ‌payroll‌ ‌costs‌ ‌from‌ ‌Step‌ ‌3‌ ‌by‌ ‌2.5.‌ ‌â—Step‌ ‌5:‌ ‌Add‌ ‌the‌ ‌outstanding‌ ‌amount‌ ‌of‌ ‌an‌ ‌Economic‌ ‌Injury‌ ‌Disaster‌ ‌Loan‌ ‌(EIDL)‌ ‌made‌ ‌between‌ ‌January‌ ‌31,‌ ‌2020‌ ‌and‌ ‌April‌ ‌3,‌ ‌2020,‌ ‌less‌ ‌the‌ ‌amount‌ ‌of‌ ‌any‌ ‌“advanceâ€â€Œ ‌under‌ ‌an‌ ‌EIDL‌ ‌COVID-19‌ ‌loan‌ ‌(because‌ ‌it‌ ‌does‌ ‌not‌ ‌have‌ ‌to‌ ‌be‌ ‌repaid).‌ ‌
The‌ ‌examples‌ ‌below‌ ‌illustrate‌ ‌this‌ ‌methodology.‌ ‌â—Example‌ ‌1‌ ‌–‌ ‌No‌ ‌employees‌ ‌make‌ ‌more‌ ‌than‌ ‌$100,000‌ ‌○Annual‌ ‌payroll:‌ ‌$120,000‌ ‌○Average‌ ‌monthly‌ ‌payroll:‌ ‌$10,000‌ ‌○Multiply‌ ‌by‌ ‌2.5‌ ‌=‌ ‌$25,000‌ ‌○Maximum‌ ‌loan‌ ‌amount‌ ‌is‌ ‌$25,000‌ ‌&²Ô²ú²õ±è;‌â—Example‌ ‌2‌ ‌–‌ ‌Some‌ ‌employees‌ ‌make‌ ‌more‌ ‌than‌ ‌$100,000‌ ‌○Annual‌ ‌payroll:‌ ‌$1,500,000‌ ‌○Subtract‌ ‌compensation‌ ‌amounts‌ ‌in‌ ‌excess‌ ‌of‌ ‌an‌ ‌annual‌ ‌salary‌ ‌of‌ ‌$100,000:‌ ‌$1,200,000‌ ‌○Average‌ ‌monthly‌ ‌qualifying‌ ‌payroll:‌ ‌$100,000‌ ‌○Multiply‌ ‌by‌ ‌2.5‌ ‌=‌ ‌$250,000‌ ‌○Maximim‌ ‌loan‌ ‌amount‌ ‌is‌ ‌$250,000‌ ‌&²Ô²ú²õ±è;‌â—Example‌ ‌3‌ ‌–‌ ‌No‌ ‌employees‌ ‌make‌ ‌more‌ ‌than‌ ‌$100,000,‌ ‌outstanding‌ ‌EIDL‌ ‌loan‌ ‌of‌ ‌$10,000.‌ ‌○Annual‌ ‌payroll:‌ ‌$120,000‌ ‌○Average‌ ‌monthly‌ ‌payroll:‌ ‌$10,000‌ ‌○Multiply‌ ‌by‌ ‌2.5‌ ‌=‌ ‌$25,000‌ ‌○Add‌ ‌EIDL‌ ‌loan‌ ‌of‌ ‌$10,000‌ ‌=‌ ‌$35,000‌ ‌○Maximum‌ ‌loan‌ ‌amount‌ ‌is‌ ‌$35,000‌ ‌ ‌&²Ô²ú²õ±è;‌â—Example‌ ‌4‌ ‌–‌ ‌Some‌ ‌employees‌ ‌make‌ ‌more‌ ‌than‌ ‌$100,000,‌ ‌outstanding‌ ‌EIDL‌ ‌loan‌ ‌of‌ ‌$10,000‌ ‌○Annual‌ ‌payroll:‌ ‌$1,500,000‌ ‌○Subtract‌ ‌compensation‌ ‌amounts‌ ‌in‌ ‌excess‌ ‌of‌ ‌an‌ ‌annual‌ ‌salary‌ ‌of‌ ‌$100,000:‌ ‌$1,200,000‌ ‌○Average‌ ‌monthly‌ ‌qualifying‌ ‌payroll:‌ ‌$100,000‌ ‌○Multiply‌ ‌by‌ ‌2.5‌ ‌=‌ ‌$250,000‌ ‌○Add‌ ‌EIDL‌ ‌loan‌ ‌of‌ ‌$10,000‌ ‌=‌ ‌$260,000‌ ‌○Maximum‌ ‌loan‌ ‌amount‌ ‌is‌ ‌$260,000‌ ‌