Senate had approved this last night, just needs President’s signature. Big win for all small businesses, as it should make it relatively easy to have the entire amount forgiven now.
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Small Business Support Group (1 Viewer)
- Thread starter ericttspikes
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Nick Vermeil
Footballguy
Need that signature! Our entire loan will be forgiven if itSayWhat? said:
Side note, anyone found free COVID office signs that don't look like they were designed by 5th graders?
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glvsav37
Footballguy
What do you need? I'm designing some for my Chamber of Commerce and I can send them to you too.
....I'm not a 5th grader, just a graphic design studio owner with a 5th grade sense of humor.
Nick Vermeil
Footballguy
I run a high end jewelry store/manufacturer and need "wear a mask" "how to wash your hands" and "please social distance" signs as required by NYC guidelines.
Shula-holic
Footballguy
Glancing over this, looks like the new bill moves the period of time to remain employed from 8 weeks out to 24 weeks. I did read that you can stay under the original 8 weeks as well. It sounds like if you exhaust your PPP loan for payroll after the 8 weeks that qualifies you for the forgiveness provisions even if you have people go on unemployment after week 8 but prior to 24 weeks.
glvsav37
Footballguy
Bossman
Footballguy
Paycheck Protection Program Flexibility Act Signed Into Law
Trying to wrap my pea brain around this ... might need some fellow FBG help ...
@Chemical X ??
Several changes ... but these are the ones that effect my business;
- 8 week forgiveness period changed to 24 weeks
meaning we now have 24 weeks to spend the 11 weeks worth of payroll, rent, and utilities, that we were PPP loaned?
- 40% of loan can be used towards rent / utilities vs. the previous 25%
meaning now only need 60% towards payroll?
- Cares Act can be combined with PPP loan
meaning payroll tax credit for employees that were forced to stay home due to having, caring for, or staying with children that were home because of the virus / school & day care closings
Trying to wrap my pea brain around this ... might need some fellow FBG help ...
@Chemical X ??
Several changes ... but these are the ones that effect my business;
- 8 week forgiveness period changed to 24 weeks
meaning we now have 24 weeks to spend the 11 weeks worth of payroll, rent, and utilities, that we were PPP loaned?
- 40% of loan can be used towards rent / utilities vs. the previous 25%
meaning now only need 60% towards payroll?
- Cares Act can be combined with PPP loan
meaning payroll tax credit for employees that were forced to stay home due to having, caring for, or staying with children that were home because of the virus / school & day care closings
Bossman
Footballguy
What is preventing companies that never shut down, never skipped a beat, ... from getting the PPP loan and loan forgiveness?
Your company manufactures paper towels and toilet paper ... you kept your full crew working 3 shifts throughout the pandemic.
You apply for, and gobmnt gives you PPP loan for 3 million, you qualify for forgiveness ... and pay none of it back.
Seems like free money for these companies.
Your company manufactures paper towels and toilet paper ... you kept your full crew working 3 shifts throughout the pandemic.
You apply for, and gobmnt gives you PPP loan for 3 million, you qualify for forgiveness ... and pay none of it back.
Seems like free money for these companies.
Grahamburn
Footballguy
Seems to me like the entire thing should be forgiven now if you followed the original 8 week parameters.
Grahamburn
Footballguy
Bossman
Footballguy
anyone utilizing this?
My accountant was only referencing the "Families First Cares Act" and told me that most of my employees do not qualify me for a payroll tax credit...
this seems to contradict what he's been telling me;
Link: Payroll Relief Under the CARES Act Softens the Financial Impact of COVID-19 for Employers
Payroll Tax Credit (Title II, Subtitle C)
Provides a refundable payroll tax credit for 50% of wages paid by employers to employees during the crisis. The credit is available to employers whose (1) operations were fully or partially suspended due to a COVID-19-related shut-down order, or (2) gross receipts declined by more than 50 percent when compared to the same quarter in the prior year. Credit is based on qualified wages paid to the employees.
================================
I shut-down due to state orders, non-essential business, ... continued to pay employees throughout the 6 week shutdown.
Certainly should qualify as "covid related shutdown" and a 50% payroll tax credit I would think. Maybe I'm reading this wrong? ... or the article is wrong?
My accountant was only referencing the "Families First Cares Act" and told me that most of my employees do not qualify me for a payroll tax credit...
this seems to contradict what he's been telling me;
Link: Payroll Relief Under the CARES Act Softens the Financial Impact of COVID-19 for Employers
Payroll Tax Credit (Title II, Subtitle C)
Provides a refundable payroll tax credit for 50% of wages paid by employers to employees during the crisis. The credit is available to employers whose (1) operations were fully or partially suspended due to a COVID-19-related shut-down order, or (2) gross receipts declined by more than 50 percent when compared to the same quarter in the prior year. Credit is based on qualified wages paid to the employees.
================================
I shut-down due to state orders, non-essential business, ... continued to pay employees throughout the 6 week shutdown.
Certainly should qualify as "covid related shutdown" and a 50% payroll tax credit I would think. Maybe I'm reading this wrong? ... or the article is wrong?
Ron Swanson
Footballguy
Isn't there an affidavit that requires an office to declare there was a need or something along those lines?What is preventing companies that never shut down, never skipped a beat, ... from getting the PPP loan and loan forgiveness?
Your company manufactures paper towels and toilet paper ... you kept your full crew working 3 shifts throughout the pandemic.
You apply for, and gobmnt gives you PPP loan for 3 million, you qualify for forgiveness ... and pay none of it back.
Seems like free money for these companies.
Chemical X
Footballguy
yes
yes
yes
https://www.irs.gov/newsroom/faqs-employee-retention-credit-under-the-cares-act
Also;
The Coronavirus, Aid, Relief and Economic Security Act (CARES Act) allows employers to defer the payment of the employer share of FICA taxes (6.2%) and certain railroad retirement taxes. The amount of the employer share of FICA taxes due for the period beginning on March 27, 2020, and ending December 31. 2020, can be deferred. The deferred amounts will then be paid as follows:
50% of the deferred amount will be paid December 31, 2021
Remaining 50% of the deferred amount will be paid December 31, 2022
The employer must still deposit the employer’s share of the hospital insurance tax (1.45% portion) as well as all of the employee’s share of the payroll taxes withheld.
Any taxpayer that has a portion of their loan forgiven under the CARES Act is not eligible for this deferral. However, the IRS has issued frequently asked questions (FAQ) allowing employers to defer a portion of their payroll taxes even if they have received a Paycheck Protection Program (PPP) loan that it expected to be forgiven. Under the FAQ, an employer is eligible to defer the payment of the employer share of FICA taxes up to the date that the lender provides notice that the (PPP) loan is forgiven. Once the PPP forgiveness notice has been received, the employer will no longer be able to defer paying the employer share of FICA taxes. Any amounts that were deferred will be due in 2021 and 2022 as outlined above.
This may give many employers who are expecting PPP forgiveness an opportunity to defer a portion of the payroll taxes for many months. Considering that some employers may have to wait until after June 30, 2020 for submission of the loan forgiveness request and then the lender has another 60 days after that to respond, it may be a 4- or 5-month (or longer) payroll tax deferral for some PPP recipients.
In addition, self-employed individuals can apply the above rules by deferring 50% of the social security tax on their net earnings from self-employment.
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Shula-holic
Footballguy
Got our PPP, it has ran out already here. We are still shut down. I know you weren't eligible to have employees on unemployment and obtain the PPP. I'm assuming there is a sunset date on that though for businesses impacted so that once those funds are gone if business is not operating that employees could then still be eligible.. Does anyone have any info on that type situation? I've been unable to find it.
Chemical X
Footballguy
bumping this to see if anyone has had the opportunity to apply for forgiveness and how your lender is handling this. we are doing QA reviews to make sure of numbers still. still finding calculation errors.
Freak Show
Footballguy
I'm waiting to see if Congress passes automatic forgiveness under $150,000.
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Chemical X
Footballguy
GoBirds
Footballguy
Tom Hagen
Footballguy
I’m holding out hope for automatic forgiveness but am also waiting because the rules continue evolving. A couple weeks ago, the SBA announced rent paid to a related party is limited to mortgage interest they pay during the covered period. If that was in the original guidelines I completely missed it.
All you small businesses that got hit hard this year, you're checking with your city and county to see if they have any grants/programs happening, right?
The states got a buttload of money and a lot of that went to the local areas to be distributed in various ways. Many counties are calling them their CARES program.
The states got a buttload of money and a lot of that went to the local areas to be distributed in various ways. Many counties are calling them their CARES program.
Chemical X
Footballguy
fyi - with auto debit first payments starting yesterday, i got roped back into helping people that haven’t filed for forgiveness due to overfunding. kill me. these conversations are brutal and i know way too much about PPP.
Grahamburn
Footballguy
Chemical X
Footballguy
not if you are considered overfunded based on a QA review. everyone wants to blame the bank. why did you give me the money? rinse repeat
Grahamburn
Footballguy
I see. They didn’t use it for a qualifying reason.Chemical X said:
Chemical X
Footballguy
no, they may have….but the initial calculation that got them X amount was calculated incorrectly and they qualify for less. they won’t receive full forgiveness.
