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SLafourche07
New Orleans Pelicans Fan
Member since Feb 2008
6795 posts

PPP Loan Forgiveness App is finally out


cgrand
New Orleans Pelicans Fan
HAMMOND
Member since Oct 2009
21509 posts

re: PPP Loan Forgiveness App is finally out
right on
thanks!!


VABuckeye
Ohio State Fan
Oak Hill, VA
Member since Dec 2007
27264 posts

re: PPP Loan Forgiveness App is finally out
For those worried about pay period calculations. The 56 days can start on disbursement or the date of your first payroll after disbursement. A pay period that has days that were still within the 56 days on it can also be counted.


Im4datigers
LSU Fan
Northern Virginia
Member since Oct 2003
3252 posts

re: PPP Loan Forgiveness App is finally out
wonder how many will take a look at this over the weekend and safe harbor return the funds on monday. 10 pages (haven't read it all yet) looks like a college algebra test to complete for the forgiveness. Also, wonder if there will be a simplified version put out for sole props.


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11
tgrbaitn08
Rice Fan
Member since Dec 2007
100840 posts
 Online 

re: PPP Loan Forgiveness App is finally out
Holy shite..I just looked over that application

Man, my CPA is going to be BUSY!!!


cgrand
New Orleans Pelicans Fan
HAMMOND
Member since Oct 2009
21509 posts

re: PPP Loan Forgiveness App is finally out
if you need a CPA to fill that form out I don’t know what to say.
it’s addition/subtraction and division, not string theory


TigerDeBaiter
LSU Fan
Member since Dec 2010
8579 posts

re: PPP Loan Forgiveness App is finally out
quote:

does not exceed eight weeks’ worth of 2019 compensation for any owner-employee or self-employed individual/general partner, capped at $15,385 per individual.


Any CPAs want to make an interpretation as to if this includes wages only or wages plus draws? As an example, s-Corp llc, where owner takes wages but also takes schedules draws.


tgrbaitn08
Rice Fan
Member since Dec 2007
100840 posts
 Online 

re: PPP Loan Forgiveness App is finally out
He will demand that he does it to make sure its done correctly. I don’t argue with him. He’s been doing our accounting for almost 40 years


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NaturalBeam
LSU Fan
Member since Sep 2007
14155 posts

re: PPP Loan Forgiveness App is finally out
I'm a sole proprietor so my bank got me the largest loan available ($100k/12 months x 2.5 months) = $20,833.

But I can only pay myself $100k/52 weeks x 8 weeks = $15,385.

$15,385/20,833 = 73.85%. It sounds like the rule requires that 75% be used for payroll - but since I'm prohibited from paying myself 75% of the loan, might I have to pay back the whole thing?


castorinho
Oklahoma Fan
13623 posts
Member since Nov 2010
67838 posts
 Online 

re: PPP Loan Forgiveness App is finally out
quote:

$15,385/20,833 = 73.85%. It sounds like the rule requires that 75% be used for payroll - but since I'm prohibited from paying myself 75% of the loan, might I have to pay back the whole thing?
looks like it's time for a 1.6% cost of living increase.






Don't listen to me.


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NaturalBeam
LSU Fan
Member since Sep 2007
14155 posts

re: PPP Loan Forgiveness App is finally out
The rules say I can’t pay myself more than 15,385 so not sure what to do


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10
Tigerpaw123
USA Fan
Louisiana
Member since Mar 2007
14355 posts

re: PPP Loan Forgiveness App is finally out

Did you make 100k last year from this company???

Use 15 k for payroll, 5 k for rent and utilities Then 20 k would be forgiven and either pay back the 833 immediately or take as a 2 year loan


Double Oh
Louisiana
Member since Sep 2008
10099 posts

re: PPP Loan Forgiveness App is finally out
Wait in order for it to be forgiven we have to fill this out and send it in?


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VABuckeye
Ohio State Fan
Oak Hill, VA
Member since Dec 2007
27264 posts

re: PPP Loan Forgiveness App is finally out
You pay yourself weekly?


igoringa
LSU Fan
Tejas
Member since Jun 2007
11164 posts

re: PPP Loan Forgiveness App is finally out
quote:

$15,385/20,833 = 73.85%. It sounds like the rule requires that 75% be used for payroll - but since I'm prohibited from paying myself 75% of the loan, might I have to pay back the whole thing?


This is what I never got about the math of this thing.... the loan was 2 months payroll plus 25% ... with the requirement that you spend 75% on payroll. So the requirement is basically 2 months of payroll.

But the calculation period for forgiveness is not 2 months... it is 8 weeks which is 5 days or so shorter and thus if you keep your payroll exactly constant, you will come up short of the 75%.

I thought maybe it was semantics in language, but it is real life.

On another note, with non cash comp (like medical, do we prorate our 2 months of payments to 56 days too)?



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Magiklaw
Member since Apr 2020
12 posts

re: PPP Loan Forgiveness App is finally out
Rules appear to be pretty favorable. Most of the questions we had about how period for payroll would be calculated and whether expenses would be based on paid or incurred were all decided in favor of forgiveness.
This post was edited on 5/16 at 5:31 pm


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JohnWicksDawg
Member since Mar 2018
245 posts

re: PPP Loan Forgiveness App is finally out
quote:

PDF Link

Wonder how many times this will be modified/amended in the next 6 weeks. (The PPP FAQs seem to change weekly).
.
.

Eta: Found the answer to my question.
This post was edited on 5/17 at 11:23 am


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20
NaturalBeam
LSU Fan
Member since Sep 2007
14155 posts

re: PPP Loan Forgiveness App is finally out
quote:

Did you make 100k last year from this company???

Use 15 k for payroll, 5 k for rent and utilities Then 20 k would be forgiven and either pay back the 833 immediately or take as a 2 year loan

Yes.

And I get the utilities part but that isn’t the concern. The problem is that under the rules, I’m required to use 75% of the loan on “payroll”. But as the only employee of my firm, I’m also not allowed to use 75% of the loan on payroll.

There seems to be a hole in the rules here. If the answer is that I can only pay myself 73% of the loan and I have to pay the rest back, that’s fine. I just don’t want to be penalized and have to pay the entire thing back because I didn’t use 75% on payroll.


rlanders23
Member since Oct 2011
100 posts
 Online 

re: PPP Loan Forgiveness App is finally out
You have to use 75% of the forgivable balance on payroll. In your case, it’s impossible to have the whole thing forgiven, but you can still have the vast majority forgiven and the remaining difference treated like a 1% loan


NaturalBeam
LSU Fan
Member since Sep 2007
14155 posts

re: PPP Loan Forgiveness App is finally out
Thanks. That’s what I was looking for.


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