PPP Forgiveness

Working on my first 3508EZ. I have seen and read so much information on all of this, now I can't find half of what I think I read. Am I correct in that if a client satisfies the forgiveness just with gross payroll, there is no need to input all of the other information (ie utilities, interest, etc), or submit backup for anything other than the payroll? For example, if the PPP loan was for $150,000 and their gross payroll for the covered period was $300,000, can we just submit the payroll information and quarterlies? Can anyone think of any drawbacks to doing it this way?

I agree. Only show the minimum necessary to avoid documentation requirements.

The only drawback I can think of - If it's true that we need to reduce QBI-payroll expenses for the excluded PPP income, then you will want to throw in the other expenses to preserve QBID. This is only necessary if you expect the QBID to be subject to phaseout and the remaining wages will not eliminate the phaseout.

What about the Qbi wage safe harbor where you’re allowed the amounts reported on all w2 to be your qbid wages.

Thanks for the feedback. It will sure simplify things if only using payroll numbers! I have been wondering if any of this would have any effect on the QBID, but have not seen it addressed anywhere.

I forgot I had more I wanted to say about this. Main point is that it depends on the circumstances. 1) If you're borrower's application is modified or denied then the appeal is based off of your submission, generally, it does not mean that new information can't be added later, but it is better to set the (literal) record straight right from the start. 2) I also believe that if your application presents spending well above the amount you needed the SBA is less likely to wonder about its accuracy and possibly spend less time on it. In short, i see nothing wrong with doing this for many dependnig on the circumstances.

Has Treasury addressed the issue of whether QBID wages must also be reduced for payroll forgiven?

The instructions on most of them straight up say that you can show only payroll if you wish, and it covers the entire loan.

I thought QBI asked for wages reported on W-3? does it reference deductibility?