Preparing for the PSP2 Application for Passenger Air Carriers and Contractors (December 29, 2020)
Summary
A U.S. Department of the Treasury document, Preparing for the PSP2 Application for Passenger Air Carriers and Contractors, dated December 29, 2020. It states that it is not an application form and is meant to let potential applicants prepare information for the Payroll Support Program extension (PSP2) under the Consolidated Appropriations Act, 2021 (enacted December 27, 2020). It lists the basic information all applicants must submit, additional items for passenger air carriers and for contractors, and how awardable amounts are determined for Form 41 filers, other passenger air carriers and contractors. It states that applicants will be required to certify under penalty of perjury and cites 18 U.S.C. §§ 287, 1001 and 31 U.S.C. §§ 3729, 3802 in a warning about false claims.
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“Preparing for the PSP2 Application for Passenger Air Carriers and Contractors (December 29, 2020).”
Original at home.treasury.gov. Archived at Pandemic Darlings, https://pandemicdarlings.com/source-documents/u-s-treasury-preparing-for-the-psp2-application-dec-29-2020-89a8968e0b/
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PREPARING FOR THE PSP2 APPLICATION
for Passenger Air Carriers and Contractors
U.S. Department of the Treasury
December 29, 2020
This document is not an application form. Do not submit this document to the
Department of the Treasury (Treasury.) Treasury is not accepting applications yet,
but in the coming days, Treasury will post a web-based application form.
This document is intended to enable potential applicants to begin preparing information
that will be required to apply for the Payroll Support Program extension (PSP2)
under the Consolidated Appropriations Act, 2021 (enacted December 27, 2020).
The definitions of important terms in this document appear in the Guidelines and Application
Procedures for Payroll Support to Passenger Air Carriers and Contractors dated December 29,
2020 (the PSP2 Guidelines), available on Treasury’s website.
PSP2 applicants should expect to provide the information listed below in their PSP2 application.
Treasury encourages applicants to gather the listed information in preparation for the release of
the web-based application form. The application form may also require the submission of
certain information not listed here.
Affiliated entities that apply for PSP2 will be able to submit a single application through the
web-based application form. Only an entity (whether in the form of a corporation, limited
liability company, sole proprietorship, or otherwise) that is individually eligible for PSP2 may
receive payroll support. If an application includes more than one legal entity, the application
must clearly identify each included entity, and Treasury will review each entity individually to
determine eligibility and verify the allowable payroll support amount.
Treasury will provide subsequent guidance regarding PSP2 application deadlines.
BASIC APPLICANT INFORMATION
Information All Applicants Must Submit:
1) Identifying information:
a) Company name, address, and contact person details
b) Applicant taxpayer ID number and DUNS number
c) SAM.gov registration confirmation
2) Financial institution (bank) information:
a) Financial institution contact information
b) Applicant routing transit number (ACH or Fedwire)
c) Applicant account number
3) Applicant assistance under the Payroll Support Program (PSP1) under the Coronavirus
Aid, Relief, and Economic Security (CARES) Act:
a) If the applicant participated in PSP1, the PSP1 Agreement Number
b) If the applicant applied to PSP1 on or before April 27, 2020 and was not
approved, the PSP1 Application Number
4) Bankruptcy
a) Whether the applicant has taken or is currently contemplating any action to
commence a bankruptcy or insolvency proceeding in any jurisdiction
b) If the applicant has taken action to commence a bankruptcy or insolvency
proceeding in any jurisdiction:
i. Debtor name
ii. Bankruptcy court
iii. Case/petition number
iv. Date of bankruptcy filing
v. Type (chapter) of bankruptcy filing
5) Employment levels:
a) Applicant’s average number of U.S. employees active and on payroll in 2019
b) Applicant’s number of U.S. employees active and on payroll as of the following
dates:
i. March 27, 2020
ii. October 1, 2020
iii. December 1, 2020
iv. The date of the application submission
c) The number of U.S. employees the applicant has involuntarily furloughed or
terminated on or after March 27, 2020 (if the applicant did not receive assistance
under PSP1) or October 1, 2020 (if the applicant received assistance under PSP1)
Additional Information Passenger Air Carriers Will Be Required to Submit. Applicants
that are passenger air carriers must also submit:
1) The applicable Federal Aviation Regulation (FAR) under which the applicant operates
(e.g., 14 CFR part 121 or 14 CFR part 135)
2) The applicant’s Certificate of Public Convenience and Necessity, Commuter Air Carrier
Authorization under 14 CFR part 298, or Air Taxi Registration under 14 CFR part 298, if
available
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3) Whether the applicant is an indirect air carrier (e.g., a Public Charter Operator under 14
CFR part 380, an Air Charter Broker under 14 CFR part 295, an Air Freight Forwarder
under 14 CFR part 296, or an Air Ambulance Indirect Air Carrier under Civil
Aeronautics Board Order 83-1-36)
4) Whether the applicant is an air carrier that exclusively provides intra-state service in
Alaska
Additional Information Contractors Will Be Required to Submit. Applicants that are
contractors will be required to submit the following information:
1) Which of the following eligible functions the applicant performs: catering; loading and
unloading of property on aircraft; assistance for disabled passengers; security; airport
ticketing and check-in; ground-handling of aircraft; aircraft cleaning, sanitation, and
waste removal; or other functions that are directly related to the air transportation of
persons, property, or mail
2) The names of all passenger carriers conducting operations under 14 CFR part 121 for
which the applicant performs eligible functions under a contract or subcontract
3) Whether the applicant performs the identified eligible functions under contract or
subcontract with a passenger air carrier conducting operations under 14 CFR part 121 on
the property of an airport
4) Copies of contracts (and subcontracts, if applicable) with passenger air carriers
conducting operations under 14 CFR part 121 for which the applicant performs the
identified eligible functions
AWARDABLE AMOUNT DETERMINATIONS
FOR
FORM 41 FILERS
For passenger air carriers required to submit Form 41 to the U.S. Department of
Transportation (DOT):
If the applicant participated in PSP1, the applicant must elect whether the amount of payroll
support for PSP2 will be based on:
a) the amount the applicant was approved to receive (without taking into account any
pro rata reduction) under PSP1; or
b) the amount of salaries and benefits reported to DOT on Form 41 for the period from
October 1, 2019, to March 31, 2020.
If the applicant did NOT participate in PSP1, the amount of payroll support will be based on the
amount of salaries and benefits reported to DOT on Form 41 for the period from October 1,
2019, to March 31, 2020.
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AWARDABLE AMOUNT DETERMINATIONS
FOR
PASSENGER AIR CARRIERS THAT DO NOT FILE FORM 41
For passenger air carriers that are NOT required to submit Form 41 to DOT:
If the applicant participated in PSP1, the applicant must elect whether the amount of payroll
support for PSP2 will be based on:
a) the amount that the applicant was approved to receive (without taking into account
any pro rata reduction) under PSP1, plus an additional 15 percent of such amount; or
b) the sum of (i) the amount of total salaries and benefits that the applicant would have
reported to DOT if the applicant were required to submit Form 41 during the period
from April 1, 2019 through September 30, 2019; and (ii) an additional amount equal
to the difference between such amount and the amount the applicant received under
PSP1. Applicants that elect this option (b) will be required to provide documentation
to support the calculation of such amount. Further information on how to determine
the amount under this option and the required supporting documentation will be
included in subsequent program guidance.
Applicants that participated in PSP1 may be required to demonstrate that the awardable amount
for PSP1 included only the amount of wages, salaries, benefits, and other compensation that the
applicant paid its employees. This may include demonstrating that such amounts did not include
(a) payments to corporate officers or independent contractors or (b) employer-side payroll tax
contributions. See the PSP2 Guidelines for the definitions of “employee,” “salary,” “wage,” and
“benefits.”
If the applicant did NOT participate in PSP1, the amount of payroll support in PSP2 will be
based on the amount of total salaries and benefits that the applicant would have reported to DOT
if the applicant were required to submit Form 41 during the period from October 1, 2019 through
March 31, 2020. Further information on how to determine the amount under this option and
required supporting documentation will be included in subsequent guidance.
All applicants will be required to provide copies of completed IRS Forms 941 “Employer’s
Quarterly Federal Tax Return” covering the relevant periods described above.
AWARDABLE AMOUNT DETERMINATIONS
FOR
CONTRACTORS
For contractors:
For applicants that participated in PSP1, the amount of payroll support will be based on the
amount that the applicant was approved to receive (without taking into account any pro rata
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reduction) under PSP1, which was based on the amount of wages, salaries, benefits, and other
compensation that the applicant paid its employees during the period from April 1, 2019 through
September 30, 2019.
Applicants that participated in PSP1 may be required to demonstrate that the awardable amount
for PSP1 included only the amount of wages, salaries, benefits, and other compensation that the
applicant paid its employees. This may include demonstrating that such amounts did not include
(a) payments to corporate officers or independent contractors or (b) employer-side payroll tax
contributions.
If the applicant did NOT participate in PSP1, the amount of payroll support in PSP2 will be
based on the amount of wages, salaries, benefits, and other compensation that the applicant paid
its employees during the period from October 1, 2019 through March 31, 2020. Officers and
independent contractors are not considered to be employees for this purpose and may not be
included in the awardable amount. In addition, employer-side payroll tax contributions are not
wages, salaries, benefits, and other compensation paid to employees, and may not be included in
the awardable amount. See the PSP2 Guidelines for the definitions of “employee,” “salary,”
“wage,” and “benefits.”
All applicants will be required to provide copies of completed IRS Forms 941 “Employer’s
Quarterly Federal Tax Return” covering the relevant periods described above.
CERTIFICATIONS
Applicants will be required to certify under penalty of perjury that:
1) the information and certifications provided in the application and its attachments are
true and correct; and
2) the applicant has documentation to support the calculation of the awardable amount
requested in the application.
WARNING: Anyone who knowingly submits a false claim or makes a false statement is
subject to criminal and/or civil penalties, including confinement for up to 5 years, fines,
and civil penalties. (18 U.S.C. §§ 287, 1001; 31 U.S.C. §§ 3729, 3802).
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