Correct. All W-2 and 1099 subcontractors can be included in "payroll costs". Exclude any amount of W-2 and 1099 wages for individuals that are in excess of $100,000/year. Also, it's salaries, wages, tips, health care insurance costs, and all federal/state payroll taxes. Add it all up for last 12 months, take the monthly average, and multiply by 2.5x.
That's the max amount of the loan you can receive.
For loan forgiveness, you may get up to 8 weeks of relief of payroll costs, rent, utilities, and mortgage interest expense. There are a couple of "tests" that can lower the amount of loan forgiveness:
#1: are the number of your FTE (full-time-employees) for the 8-week period beginning on date of loan less than the average # of FTEs between Jan. 1, 2020 and Feb. 29, 2020? If so, this reduces the amount of loan forgiveness.
#2: are any salaries reduced by 25% or more during this period? If so, this reduces the amount of loan forgiveness.