The CARES Act and/or Paycheck Protection Program (PPP) is a loan program designed to provide small business with access to cash so businesses can continuing paying their employees and other expenses such as health insurance premiums, rent or mortgage payments and utilities during the COVID-19 pandemic crisis.

CONSIDERATIONS:

• It has not yet been determined what portion of the loan funds may or may not be excused. Please contact your Accounting firm for advice regarding what payments can be made using the PPP loan funds.
• A Job can be setup in Job Cost to track all costs and payments related to the PPP loan.
• Set up new General Ledger accounts and a new bank account in Cash Management, as outlined in KB 104505 DocLink: What can I do to track the Paycheck Protection Program (PPP) loan we received?, for deposit of the PPP loan.

1. Set up a separate Regular Pay ID in order to track the pay amounts separately from existing pays:
   1. In Payroll, select Setup, Pays.
   2. Enter a new Pay ID and Description for this pay.
   3. Select Regular from the Pay type drop-down list.
   4. Do NOT select the Retain YTD totals at close year check box. You do not want to carry forward the amount of this pay on the Employee Pay records when you close the Payroll year.
   5. If you will be using a Job in Job Cost to to help track the costs related to the PPP loan, select the Distribute to JC check box.
   6. Select the Distribute to GL check box.
   7. Enter the appropriate Expense account to distribute this pay to when the time is NOT coded to a JC Job.
   8. Click Save.
   9. Click Close.
2. Add this Pay ID to the Employee Pay setup with their regular rate of pay.
3. Use this Pay ID when entering time to cover differences in an employee's usual wages.
4. Process and Print Checks and/or Generate Direct Deposits as usual.
5. Enter a bank transfer in Cash Management to transfer funds from the PPP loan bank account to the Payroll Bank account. See article 30123 DocLink: How do I enter a bank transfer in Cash Management?