The Sixty-Forty Rule requires that at least sixty percent of the Forgiveness Amount must be covered payroll costs. The maximum forgiveness amount for covered non-payroll costs is limited to forty percent.
You can submit a Forgiveness Amount that ONLY includes payroll costs. Some borrowers have been told by their CPAs that they should include some non-payroll costs. That is not true. The Paycheck Protection Program was designed PRIMARILY to help small businesses pay their employees.
If you use your entire PPP loan for employee costs, it simplifies the process of calculating forgiveness.
Once you’ve recorded eligible costs equal to your PPP loan, there is no need to add additional costs.