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Truck Driver Salary Calculations – PPP Loan Forgiveness Workbook

05-15-2020

A truck driver’s salary is typically paid in one of 3 ways:

  1. Mileage pay + extras (safety bonus, maintenance bonus, etc.)
  2. Percentage of load
  3. Hourly wage

When calculating a driver’s wages in the PPP Loan Forgiveness Workbook, the focus is determining the employees weekly wage to maximize loan forgiveness. If the employee is paid an hourly wage, that will be the easiest to calculate, but if the drivers are paid by mileage or by percentage of load, how do you calculate their wages per week under the PPP loan? To do this, some assumptions should be made.

Calculating ‘Mileage pay + extras’ and ‘Percentage of Load’

  1. Determine total wages paid to the driver in the first quarter of 2020 (January 1 – March 31)
  2. Determine how many weeks were in that pay quarter
  3. Calculate an average weekly wage for the driver

NOTE: FTE (Full-Time Equivalent) is based on hours driven per week (30 hours) or bi-weekly (60 hours).

Example: Driver A is paid $12,000 in first quarter; assumes an FTE of 30 hours driven per week
(NOTE: Total miles driven, and total loads delivered are somewhat irrelevant factors)

Calculation to get a weekly wage (estimated), and minimum PPP weekly wages:

NOTE: Under the PPP loan, an employee should be paid no less than 75% of their normal wage to maximize loan forgiveness. Employees can be paid in excess of 75%, but not to exceed $100,000 annualized.

NOTE: Under the PPP loan, an employee is deemed to meet the $100,000 exception if the employee was paid greater than $100,000 on an annualized basis, for ANY pay period during the prior year.

Example: Employee was paid $90,000 for calendar year 1/1 – 12/31.

For one bi-weekly pay period, employee was paid $4,000 due to a bonus. The annualized bi-weekly wages of $4,000 per pay equates to $104,000 ($4,000 * 26 bi-weekly pay periods). This employee would be identified as a ‘yes’ for the $100,000 exception, even though total wages were only $90,000 for the year.

 

Example: Driver B is paid $12,000 in first quarter; assumes part-time of 25 hours driven per week
(NOTE: Total miles driven, and total loads delivered are somewhat irrelevant factors)

Calculation to get an hourly wage (estimated), and minimum PPP hourly wages:

 

Related Resources:

PPP Loan Forgiveness Workbook

PPP Loan Forgiveness Workbook – Instructional Video

 

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PPP Loan Forgiveness Workbook

With this download, you will receive a total of 4 documents. Two simplified and two average, one for weekly and one for monthly/semi-monthly. Use the document that works best for your company.