How to Get QuickBooks PPP Non-Payroll Expense Report

In QuickBooks, you are expected to have access to the details you require to assist you in applying for PPP(Paycheck Protection Program) loan forgiveness via your lender. In today’s article, we will discuss non-payroll expenses that are eligible for forgiveness and how you can find, get, create, and download the QuickBooks PPP Non-Payroll Expense Report.

Note: It is important to note that the PPP reopened on January 11, 2021. Please take the help of the current guidance from SBA and Treasury to verify present program rules and how they are relevant to your specific situation. This is because the regulations and guidance from the U.S. Department of the Treasury and SBA on the PPP are changing at a rapid pace.

Let us begin by understanding what non-payroll expenses are qualified for loan forgiveness.

What Non-Payroll Expenses are Eligible for Loan Forgiveness?

Non-payroll costs that are qualified for forgiveness comprise:

• Lease payments or business rent for personal or real property in force prior.
• Covered operation expenses.
• Covered vendor expenses.
• Interest payments on business mortgage requirements for personal or real property sustained before February 15, 2020.
• Business utility payments for the delivery of gas, transportation, electricity, telephone, water, internet access, etc., for which the service started before Feb 15, 2020.
• Included property damage.
• Included worker protection expenses.

Note:

• Prior to getting your reports to assist you in analyzing your forgiveness amount, make sure to review that all the eligible expenses are uploaded from the 8-week or 24-week covered period in QuickBooks.
• In case you wish to see the payroll expenses that are qualified for loan forgiveness, a Payroll Costs for PPP(Paycheck Protection Program) Loan Forgiveness Determination Report can be run.

Qualified non-payroll expenses can account for nearly 40% of the overall forgiveness amount.

Schedule C filers, who are looking for forgiveness of such business costs, are likely to have been deductible on the 2019 Form 1040 Schedule C that was presented with the loan application.

You have likely sustained or paid such costs during the Loan Forgiveness Covered Period. In case such costs were sustained during the Loan Forgiveness Covered Period, then you must pay for such costs before the next regular billing date.

The Loan Forgiveness Covered Period, applicable to the calculation of your overall loan forgiveness amount, usually starts on the date you got your PPP funds from your particular lender.

If you get your PPP funds post-June 5, 2020, your Loan Forgiveness Covered Period is 24 weeks. If you get your PPP funds before June 5, you can select to use either an 8-week Loan Forgiveness Covered Period or a 24-week Loan Forgiveness Covered Period.

For instance, you get your PPP loan funds on Tuesday, April 21, and then the Loan Forgiveness Covered Period for the very first day is Monday, April 20th. If a loan was made before June 5, either an 8-week or a 24-week Loan Forgiveness is covered.

Where can you locate the QuickBooks PPP Non-Payroll Expenses report?

Here is the report you require. You need to implement the steps below for your QuickBooks version:

Note:

• Prior to running the reports, make sure to check that you have the right covered period in your PPT.
• Ensure that you do not include your payroll costs to your business expenses reports, it is possible to get that information separately.

In QuickBooks Desktop, locate the Paycheck Protection Program(PPP) expenses report

Here are the steps for locating the PPP expenses report in QuickBooks Desktop:

1. Navigate to the Business Overview option and choose Reports.
2. Now choose the Custom Reports and Summary tab.
3. Now from the Display tab, add the 24-week or 8-week covered period.
   • Fix the From date to the day you got your PPP funds from your particular lender.
   • Fix the To date to 8 or 24 weeks later.
4. In the Display tab, choose the Report Basis as Accrual. It is important to note that the default is for the report to recognize expenses on an Accrual basis, however, it is possible to change this default, and hence the report recognizes expenses on a Cash basis.
5. Choose the Filters tab and then choose the Multiple Account Filter.
6. Choose the Account dropdown and then choose the desired account as applicable to your business from the eligible expenses list.
7. Choose the Footers/Headers tab and then rename this particular report to PPP Non-Payroll Expense Report for PPP Loan Forgiveness Determination.
8. To run the report, choose Ok. To save the report settings, choose Memorize and then add a name to the report, and choose OK.
9. When it is complete, choose either Email, Print, or Excel.

In QuickBooks Online, locate the Paycheck Protection Program(PPP) expenses report

Here are the steps for locating the PPP expenses report in QuickBooks Online:

1. Navigate to Banking Services and then choose PPP Center.
2. Choose the link and customize your PPP-related expenses to maximize your loan forgiveness.
3. Choose the Customize button.
4. Ensure that you choose the Accrual radio button. It is important to note that the default is for the report to classify the expenses on an Accrual basis, however, this default can be changed, so the report accepts expenses on a Cash basis.
5. Choose the Filter dropdown and opt for any one of the following options to break the report:
   • Choose the Distribution Account checkbox and choose all the categories on which you have spent money.
   • Choose the Vendor checkbox and choose all the vendors on which you have spent money.
6. Choose the Run Report.
7. Choose the Save Customization tab, add a name to the report, and choose Save.
8. After the report is saved, get back to the same report by choosing Report and then Customized Report.

Note: Make sure not to forget to verify that each expense is tagged as the guidance mentioned above about qualified expenses. The categories you use may differ from the categories qualified for forgiveness.

Final Words

In this article, we shared valuable and required information about creating a PPP Non-Payroll Expenses Report in QuickBooks. After reading this article, all your queries about the topic have been resolved. Still, if you are facing any issues or need to resolve any query, you need to get in touch with our team of QuickBooks experts.