COVID-19: PPP & EIDL Loan Information

payroll report periods

Form 3508 requires payroll reports, which includes paid hours and pay rates for each employee, for all six periods listed in the setup under the Payroll Report Periods.

The hours for each employee should be entered into the Excel Forgiveness Calculator. Pay rates for each employee should be entered for the covered period and the preceding quarter.

Covered Period

The Covered Period starts on the date the PPP loan proceeds are deposited in your bank account and ends, based on your selection, between 8 and 24 weeks. The Covered Period is the period when you can use your PPP loan proceeds on eligible expenses for forgiveness.

All of the proceeds for the First Draw PPP Loan must be used for eligible costs prior to the disbursement of the Second Draw PPP Loan. Therefore the Covered Period for the First Draw PPP Loan cannot overlap with the Second Draw PPP Loan.

Reference Period

The Reference Period is the base period used to compare FTEs during the Covered Period. If the FTEs during the Covered Period is less than the Reference Period, then the business may have a FTE Reduction Adjustment. The borrower must select a Reference Period:

  • February 15, 2019 through June 30, 2019
  • January 1, 2020 through February 29, 2020
  • Seasonal employers may choose either of the two preceding options or a consecutive 12-week period between February 15, 2019 and February 15, 2020.

Safe Harbor Period

The Safe Harbor Period is period between February 15, 2020 and April 26, 2020. This is the initial pandemic period when almost 20% of the work force in the United States was unemployed. The Paycheck Protection Program was designed to help small businesses during their Covered Period to get those laid-off back on the payroll.

Preceding Quarter Period

The preceding quarter period is the full quarter preceding the covered period.

February 15 Period:

This period should include the pay period that includes February 15, 2020.


If you have any questions or comments, please feel free to contact me.