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Started By
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PPP Loan Forgiveness App is finally out
Posted on 5/15/20 at 9:50 pm
Posted on 5/15/20 at 9:50 pm
6
Posted on 5/16/20 at 8:32 am to SLafourche07
right on
thanks!!
thanks!!
Posted on 5/16/20 at 9:02 am to cgrand
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.
Posted on 5/16/20 at 10:18 am to VABuckeye
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.
Posted on 5/16/20 at 11:17 am to VABuckeye
Holy shite..I just looked over that application
Man, my CPA is going to be BUSY!!!
Man, my CPA is going to be BUSY!!!
Posted on 5/16/20 at 11:19 am to tgrbaitn08
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
it’s addition/subtraction and division, not string theory
Posted on 5/16/20 at 11:30 am to SLafourche07
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.
Posted on 5/16/20 at 11:38 am to cgrand
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
Posted on 5/16/20 at 1:30 pm to SLafourche07
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?
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?
Posted on 5/16/20 at 1:41 pm to NaturalBeam
quote:looks like it's time for a 1.6% cost of living increase.
$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?
Don't listen to me.
Posted on 5/16/20 at 2:44 pm to castorinho
The rules say I can’t pay myself more than 15,385 so not sure what to do 
Posted on 5/16/20 at 3:24 pm to NaturalBeam
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
Posted on 5/16/20 at 3:47 pm to SLafourche07
Wait in order for it to be forgiven we have to fill this out and send it in?
Posted on 5/16/20 at 4:06 pm to NaturalBeam
You pay yourself weekly?
Posted on 5/16/20 at 5:13 pm to NaturalBeam
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)?
Posted on 5/16/20 at 5:30 pm to VABuckeye
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 5/16/20 at 5:31 pm
Posted on 5/16/20 at 6:45 pm to SLafourche07
quote:Wonder how many times this will be modified/amended in the next 6 weeks. (The PPP FAQs seem to change weekly).
PDF Link
.
.
Eta: Found the answer to my question.
This post was edited on 5/17/20 at 11:23 am
Posted on 5/16/20 at 9:23 pm to Tigerpaw123
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.
Posted on 5/16/20 at 9:30 pm to NaturalBeam
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
Posted on 5/16/20 at 9:32 pm to rlanders23
Thanks. That’s what I was looking for.
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