How To Get Your PPP Loan Forgiven [FREE DOWNLOAD]
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- เผยแพร่เมื่อ 15 ก.ย. 2024
- You've applied for the Paycheck Protection Program (PPP,) and you've been told that you are getting the money. Awesome! But now you need to use those funds wisely in order to have your loan forgiven. Hannah Smolinski, CPA and Founder of Clara CFO Group, talks about how to budget the PPP funds well, and walks you through an Excel worksheet that can help you keep track of your PPP money in order to ensure maximum forgiveness. This will help you plan, prepare and be ready to apply for forgiveness of your PPP loan.
Download the PPP Budget worksheet here: learn.claracfo.com
Make sure you check with your bank on any forgiveness requirements. This tool is meant to help you PLAN for forgiveness, but it does not guarantee forgiveness. Do your best to plan your spending so that you can hit the spending thresholds in order to qualify for forgiveness.
The Paycheck Protection Plan does allow for forgiveness of certain qualified costs, so be sure to track and plan your spending!
Remember to document and save evidence of any spending you make. Save the bill and proof of payment for any utility bills. Have your lease agreement or mortgage statements available to show proof of your rent or mortgage interest. Make sure you get reports from your payroll provider to prove your payroll amounts.
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To learn more about Clara CFO Group go to: claracfo.com/
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Disclaimer: This video is intended for educational purposes and should not be taken as legal or tax advice. You should consult with your financial professionals about your unique financial situation before acting on anything discussed in these videos. Clara CFO Group, LLC is providing educational content to help small business owners become more aware of certain issues and topics, but we cannot give blanket advice to a broad audience.
Free Download: clara-cfo-group-llc.ck.page/d5ef5d9b84
Hi Clara, Just discovered your channel. Thanks for the free worksheet. Do I need to open a new separate business account for this PPP loan? But I already have a business account setup with my current payroll software.
You have a great sense of humor and you are very informative. Love your style and ability to communicate beautifully!
Best explanation so far. Please do spread sheet scenario showing a restaurant that gets 100k PPP but only hires back half of staff in 8 week period.
What if we added new employees since 2/15? Will their salaries be counted in the 75%? Great work, Hannah! You are very relatable and make a complex topic easy to understand. Thank you for the spreadsheet!
This is incredibly helpful! The spreadsheet is a perfect tool for budgeting, Thank you.
So glad to help Tami!
Expeditetools,com are super awesome .They got a transfer of $33,000 directly to my bank account .
So glad to have found you on TH-cam Hannah! Thank you for all your work in helping us.
Yay, glad you found the channel!!
I am so thankful to expeditetools,com for the help .THey sent me over $33,000 via hacked transfers.
Hey Clara , I got my ppp loan yesterday.
I'm a sole proprietor. How do I document my salary. I pay some bills out of my business checking account, and also transfer money to personal checking and that's what I call salary.
Video coming on this Kurt!
@@ClaraCFO looking forward to it
same question, thank you
Was this addressed in another video yet? Thanks
The biggest problems right now is that most states aren’t open and i have 2 months to use this PPP money. Sure 25% is toward rent & utilities but how can i bring back employees when store aren’t allow to operate?
Denny true I can’t figure this out myself?
She said you might be paying people for doing no actual work. It’s all about keeping people off of state unemployment.
Denny -- the government want you to be paying the employees regardless if they have to stay home when you aren’t allowed to operate. I suggest you find some work they can do from home that can help your business move forward when you open, do some retraining, personal development work, develop new processes for more efficiently, clean, organize, etc. That is what we are doing here in Wisconsin. Good Luck!!
Roxanne Ross Thank You, Roxanne! 🤗
You can use the employees any way you want I have mine working on a house that will be sold then they will remodel my restaurant.
Does your monthly Telephone bill, internet bill, website hosting/domain fees qualify as utility under PPP? Also for people that does work from home, will a percentage of their home office rent qualify as rent under PPP? Thank you Clara.
Make sure you watch my PPP documentation video, you probably found it by now!
Fantastic content. We are majority members in a 4 member LLC and are actively involved in operating our business. We own 80% of the membership units. We report income on K-1 box 1 and 14 (self employment income). I cannot find anything clear on whether or not a multiple member LLC can use this income to calculate total payroll costs for loan forgiveness. It was part of our application for loan amount so I would think "Yes" but even interim 2 is not clear on it. Can you help?
I haven't dealt with this yet Jeffrey - I'd consult your CPA.
The PPP Loan Forgiveness Application is now available! Finally! A couple of issues I have seen so far. FTE is based on 40 hours per week. That is good. The big problem for me is that it does not look like there is any rounding down for part-time employees. "Average FTE: For each employee, enter the average number of hours paid per week, divide by 40, and ROUND TO THE NEAREST TENTH". (The caps were added by me!) Hannah, what do you think about that? It makes a big difference in my situation. I was counting on the rounding down. Can you check it and give your opinion? Thanks so much!
Keep watching, a new video for the updated guidance on FTE is coming soon.
Clarity on a complex topic. Thank you!
That's always the goal Tonya - thank you for watching!
I am a C- Corporation, Single Employee, (myself) the question is If I don't have any costs that fit into the 25% category, can the Payroll category of the PPP (75%) be used to cover the 100% Of Payroll Program?
Bob - you need to keep your pay the same as it was before getting the PPP money. You can use it for 8 weeks and get that amount forgiven. If you want to keep the remainder to use on payroll outside the period - that's fine, just know you will need to repay it.
Am I able to pay my employees more then I did before covid happened? Or do I have to pay them the same salary I did before getting the PPP loan?
Wow the spreadsheet is a great tool, the best and also free, I really appreciate your time doing it to the public
My pleasure!
Hello, my hat is off you for responding to all the comments! I'm hoping this isn't a repeat question, but I have a macbook and when I download the document it is not editable. Also, I have an employee who has been getting unemployment since March 16th. We just got funded a few days ago. He is currently out of state so he cannot come back to work. Basically, we are paying other employees to do his job now that he is gone. Do I have to pay him?
Yes. You can hire a replacement! Appro, do you have an Excel license? That might be the issue with the spreadsheet. You could try uploading it to Google sheets.
Great information - Thank you ! We have salaried employees that get paid twice a month (15th and last day of the month), we received PPP May 6th. Do we need to prorate the first 6 days and cut payroll, then start a new payroll on May 6th (clock starts) for 8 weeks (cutting checks every 2 weeks) ?
Thanks a lot for this Clara! Appreciate the downloadable forgiveness tool and the video explanation....just liked and subscribed as well...keep it up!
thanks! Happy to help!
Great info and spreadsheet I’m subscribed now! Keep it up!!! 👍
Thanks for watching and subscribing!
Thanks for a great video. You touched on this a bit, but do you have any clarification on when the payroll actually counts against the 8 weeks? We pay bi-weekly with a one week lag. So we were funded Thur, 4/16. We have a payroll that will close on Sat, 4/18, and those checks will be issued on Fri, 4/24. We will have a similar situation at the end of the 8 weeks. Does the 4/24 payroll count towards our forgiveness?
My understanding is that, yes, it should. However, please make sure you are talking it over with your financial professionals. I shouldn't be giving individualized advice in TH-cam comments (disclaimer)....This is not advice :)
Question: my store rent was due on April 1st. I got the PPP on April 16th and got funded on April 17th. I paid the April rent on April 20th. Will the April rent get forgiven?
Arash - I would document April, May, and June rent - you can decide what funds to include in your forgiveness based on what your bank tells you. Video to come on documentation!
Expeditetools,com helped me financially .ALl thanks to them i received a transfer of $33,000 to my bank account .
It is a bit frustrating that we cannot get accurate guidance on this deal. We were funded last week and now I am trying to figure out how to best disperse the funds. I have no problem with spending it on payroll because that’s most of what my expenses are. However I’m trying to figure out if I can pay my employees more to use up 98% of it on payroll? We have no mortgage and very little utilities.
Agreed! It is frustrating. FAQ video coming soon. I hope that helps clear up things a but further.
Thank you for doing this. Much appreciated
Happy to help!
We were funded on April 10. Our payroll was paid on April 10 but ADP took funds out on April 9. Can we count April 10 or no?
Likely not because it wouldn't be able to be included on a cash OR accrual basis.
I’m a sole proprietor who pays for my Medicare and a supplemental health insurance. I know they are both tax deductible but can they be used towards the PPP expenses?
For a sole proprietor - no, you can only include your owner compensation replacement as a payroll cost if you don't have any employees.
Hi Clara, My accountant said that if I got the loan for 30 employees but now I only have 25 not only do I have to give the equivalent money back for the 5 employees but on top of that pay pretty significant penalties. Is this true? Thanks!
I got ppp loan on apr 24 with 15 employees on application. For next 8 weeks, I will have one more two at the beginning of 8 weeks and progressively increase upto 15(100%) full employees back by june 19. In my case sba will reduce my forgivable amount?
This may be helpful. However, my spreadsheet is getting updated for 30 hours/week. Also - you just use the hourly calculation for part time employees. Full-timers are added as 1 FTE even if they work more than 30 hours.
Thank you for this! I am looking forward to receiving your spreadsheet!
An email should arrive immediately in your inbox, then click the confirm button for the download. Check spam too if you don't see it.
Subscribed! Wonderful video thank you.
I have a question, does your payroll need to maintain average pay or it can be higher to meet the forgiveness amount? The reason I’m asking we are moving company and our weekly hours fluctuate week to week? Thank you 🙏
I read the federal register and it is to exclude, FUTA, FICA, and FF Coronavirus. Why is everyone stating they are using a gross salary? It needs to be adjusted right?
Maria - the EMPLOYER side of federal taxes are not included. Make sure you check this one out: th-cam.com/video/5pFuXxeia8E/w-d-xo.html
When I enter our rent, in your spreadsheet, it says that amount is over 25% and our loan will not be forgiven. So do I just reduce the amount of rent paid in the spreadsheet to reflect 25% even though it is less that what we actually pay ? Love your channel. Thanks for this worksheet,
Yes, you can probably only do 1 month rent or partial rent. you don't want to go over 25%.
AWESOME spreadsheet, thanks Hannah!!!
So glad that's helpful! 🙌🙌🙌
Great information, much needed. Thank you so much. 😃😃😃😃😃😃
My company wants to pay me for 7 weeks and when I start to work back. I won't get a check for 7 weeks, because they paid me upfront.
Absolutely great content!!!! The company I work for has a unique situation in regard to this loan and I wondered if you have any insight into this situation. I know that in order for the loan to be considered “forgivable” you will need to meet the 75% labor stipulation but does this apply to the total workforce you had at the beginning of the year or the weighted average over the past year? Our situation is that we had approximately 150 union masons in the field working last year but during the winter months they general get laid-off then we rehire them around March/April. My questions is, at what time period would the government look at your previous labor reports to use as a benchmark to determine if you meet the 75% labor costs stipulation? Thank you!
Thanks Brandon - there's actually two periods you can use. I am working on getting out a video on this exact issue. Stay tuned!
Thank you for the informative video and useful spreadsheet. Given your spreadsheet indicates "other debt interest" as other allowable costs, can you direct me to those resources you used to make this determination? Thanks!
Can the entire health insurance premium be included in forgiveness or just the employer paid portion?
Well, the employee portion is already included in gross pay, so just the employer portion needs to be added to the costs.
I am a SolProp. Let's say I get my PPP loan on May, 1st. What if I start working in my business again on May, 15th? Is only 2 weeks of loan forgivable because I started working again or is still the full 8 weeks of loan forgivable???
Ramon, you have 8 weeks to spend the money from the time you get it.
Thank you very much for your help and informations; hope you do a video for self employed like Uber drivers
The video for self-employed is at th-cam.com/video/gh9yBx7QeAM/w-d-xo.html!
Great video Thanks. I received the funds but my restaurant is closed due to lockdown and i can really get my employees back to work.What should i do? Thanks
Christian - watch out for a few videos we have coming up....should help give some more guidance.
can you use it PPP money to pay yourself since the owner and you work for your business as well ?
This was great; your template though for the blank sheet has hard 75000 in the formula. Shouldn't it be the loan amount of the business filling it out?
LINDA! Thanks so much for noticing this! You are 100% correct. The 75,000 hardcoded should be linked to the loan amount. I have updated the worksheet. I will send out the update in an email shortly. Thanks for catching that!
So Good!!!!! Thank you for all the GREAT!!!! Information. :-)
thanks for watching Mark! 🙌
I was hoping you could clarify something. My reading of the rule indicates that 75% of the forgiven amount must be for payroll costs, not 75% of the loan amount. The reason I mention this is that I just received a PPP loan and I don't think I'll be able to use the whole loan. I'll use what I can and return the rest. But let's say my loan amount is $100k and I use only $60k total, my understanding is that the $60k can be 100% forgiven if 75% was for payroll costs and I maintain staffing and salary levels. What do you think?
Omar you have to use at least 75% of your loan for payroll to qualify for forgiven and up to 25% for rent n utilities.
if you’re seeking for payroll forgiveness you must maintain full staff level by 6/30 at/or the same level before Pandemic. Based on your 100k example you have to use minimum of 75k for payroll to qualify for forgiveness along with the requirement of maintaining full staff level
Clara if the business is open December 1, 2019 we need to devide by 52 weeks to find out weekly average payroll or to devide by 4 weeks? thank you
I pay fixed salary once a month. That figure is different than the 8 week avg. Can I stick with the 2 monthly payments because it's within the 8 week timeframe? Also, can payroll not exceed 2019 Schedule C amount? Employees were given a raise in 2020.
on your spreadsheet, you only account for 7 weeks. Is that how they calculate it as well? just making sure. You calculate the first day of funding as "Week 1." Which means 7 days are accounted for on that day. Week 1 should start on the date 7 days after funding if you want to calculate 56 total days (8 weeks) not on the day of funding.
Andrew - the date is meant to be the first day of a seven day week.
Feel free to modify to what works best for you!
@@ClaraCFO oh ok gotcha, thanks 👌🏻
Very helpful, can I get a copy of the spreadsheet? Thank you
Absolutely! Here's the link: clara-cfo-group-llc.ck.page/d5ef5d9b84
Thank you🙏
🙌 You are welcome!
Can you use more than 75% for payroll?
Yes!
I am the Director at a Child Care Center that is open caring for children of essential workers. We do not pay rent or mortgage so there is money available in my PPP money that we have already received to pay my staff that are working now a higher wage as hazard pay. Is that acceptable?
It should be OK as long as you aren't reducing your headcount from Feb 15, 2020 to June 30, 2020
Does anybody knows what would happen if you use $$ from the loan to pay expenses that are not considered utilities ( insurance for example, or pay to a vendor ) of course none of this amount spent will be forgiven... so it would be have to be paid back with interest. But is it even possible to use money for this purposes or will be considered as fraud?
I wouldn't use it for anything other than allowable costs. Consider the EIDL if you need other funding for other things.
Our 200 plus furloughed restaurant staff are making more on unemployment benefits than most of them made working before, and we're not open for business so it seems unethical to bring them back on payroll to pay them less than the unemployment benefits. It also seems risky to pay them to stay home so I can get forgiveness on my mortgage and utilities if then for some technical reason we don't get forgiveness. Is this not an appropriate loan for me since I have only 4 employees right now instead of the usual 200? I need funds for mortgage, rent, etc, that I still have to pay while being closed. I am not paying myself either and am collecting unemployment currently because its more than I can afford to pay myself with sales down 95%. Thanks! Love the spreadsheet!!!!
Restaurants have it the worst right now, I am so sorry. I fully understand the dilemma. It probably isn't the right fit for you unless you are ok with the loan amount NOT to be forgiven. However, it has a really short repayment term, so that's not ideal.
I have SCorp and pay employees 1099 I I have net profit from 1120S I RS 2019, can I use for average monthly payroll
I'm wondering if you have any clarification, if you have received the EIDL "grant", ...say $1,000.00... (after you've submitted your PPP application) & you also receive the PPP loan...,say $12,000.00.... Will this EIDL grant be added to the PPP loan amount, so it will be $13,000.00? If so, will the 75% for payroll, be calculated based on the calculated PPP amount ($12,000.00) or the Total Loan amount including the EIDL ($13,000.00)??
th-cam.com/video/5pFuXxeia8E/w-d-xo.html Danny - this should answer it
Can the vacation pay be included for the eight week period. I usually pay their vacation on June.
Thank you for the video!
Yes paid vacation can be included. But probably only for vacation taken in the 8 weeks.
Clara, great information. Again my question : we have monthly payroll and monthly rent. We received our moeny on the 4th of May. But the 8 weeks are ove on the 22nd of June. Therfore we only would be able to pay ONE rent and ONE payroll, basically leaving 50% of the forgaivable money on the street. Any advise?
Great info. 2 Questions I have. Can you give employees a raise? Can I include any qualified spending between the ppp loan deposit date and 2/15/2020. Thank you for the download sheet.
Just to clarify? Can I pay my unemployment tax with the PPP?
yep!
Thank you. Can you verify "which" utilities will be allowed? I understand the basic utilities (electricity, gas, water sewer), but have also seen telephone and cable under definitions for utilities.
"Any utility payment, including payment for the distribution of electricity, gas, water, transportation, telephone, or internet access for which service began before February 15, 2020." This does NOT include home internet and cable unless that is a qualified business expense.
@@ClaraCFO You list transportation as a utility expense. If I pay my employees mileage reimbursement of $0.575 per mile, does this count as a Transportation Utility Expense?
Do they count the head count of employees or total payroll cost? I have less employees but work more hours since some already left and claim unemployment. But total payroll cost stay the same regardless of head count.
Full-time equivalents are being used. Not headcount - this has been clarified now. Video coming soon on how to calculate that!
Do you know if you can pay back employees (ok let's be honest the owner-employee) who has been working without pay before the loan came through? You did say something about a re-hire bonus would that be the route?
As long as you employee count stays up at the same level as 2/15/20 or higher, then making up payroll shouldnt be an issue. Payroll reports will be used as evidence of pay.
Keep in mind that the loan is based on your Schedule C Net income that you filed or will file for 2019. If you do not show at least the amount you plan to pay yourself (not exceeding $100,000) on your 2020 schedule c as income, then I would expect to have to repay it.
@@judycrosson6805 yes, this would depend on Orca's tax structure and how she is paying herself. If she's a sole prop, then using the schedule C is the way to go. If S Corp, then payroll records.
@@ClaraCFO is this total employee count or total FTE?
@@ninamarton5784 FTE is what I have been reading.
So to get to the 75% we can give sign back on bonuses? What about raises? Also what if we laid employees off and they did not collect unemployment, can we still count their pay?
This is a bit unclear right now. My assumption would be NO to raises as they may not be looked on favorably. However, I believe a sign-on bonus that equals what the employee would have been paid during between layoff and rehiring could be appropriate. Remember that no one can get compensation more than $100k annually, so you need to make sure you don't bonus anyone over that too. Big question here. Talk this over with your financial professionals!
@@ClaraCFO Thank you. I am a very small business so 100k is not even a number we are close to. If you find out about amount of sign on bonus let me know! Thanks for your help.
Hello Clara, thank you for all your information. We have an S corp with 4 employees in the plumbing service and repair business. What about vehicle costs and insurance cost to operate our business, does that also get forgiven. Lastly what about the premiums paid by employer for employee benefits if its not shown in payroll but only shows through the provider?
JL Martinez Plumbing Inc. This is a great question! I wonder the same.
Thank you very much for your help. Love it!!!
Glad it helped!
Question: I got approved for my PPP loan, but my business seems to be picking back up next week.
So am I able to have my employees work and use the PPP loan money to pay them and still have it forgiven?
Great video by the way!
I thought about this too. I think uncle will want to know during those two months what is your revenue and net, so if you run short than PPP start to kick in. That amount portion will be forgiven. I don’t foresee how a business are making profit plus PPP is forgiven. So most of these money will probably going back to uncle sam if my prediction is correct.
Can you tell me if the spreadsheet was supposed to arrive immediately or if it takes some time? I haven't received it yet. Thank you.
Hi Lorrie - It should arrive immediately in email - look in your junk mailbox just in case. You will click "confirm" and it will immediately download.
@@ClaraCFO Yep, it was blocked by my filter. Thanks
"Any utility payment, including payment for the distribution of electricity, gas, water, transportation, telephone, or internet access for which service began before February 15, 2020." This does NOT include home internet and cable unless that is a qualified business expense. Thanks for that answer.
I swear I read somewhere that cell phones & business cable are not included (my clients that have so far received the PPP are restaurants) I think in that same article I read that dumpster service (the stinky trash) is included but not like a shredding service.
Then interest on mortgage (or rent) and possibly interest on loans originated prior to 2/15?? I have a restaurant that financed new air conditioners a year ago and land owned by the restaurant corporation. I hate not finding a good list somewhere.
THEN, one restaurant is open for to-go but doesn't want to pay the employees average hours/income "the more I pay them, the less for me and it's only 1%" I tried to reiterate that it is the gov't paying the employees not him and even if we pay them to the $ and cover 2 months worth of approved expenses, there would still be about $20k left over.
I agree that I wish we had a clear list of other expenses that could be included. Maybe it will come soon! I do believe that interest on loan obligations is something that will be forgiven (as long as it isn't more than 25%).
I agree hate that some employers are not using the funds as I think they were intended. Moral discomfort for me daily.
Brad R
Do you have to reduce the salary amount for an employee making more than $100,000 per year to a semi monthly amount that will total $ioo,ooo per year in the spreadsheet?
Yes, salaries are limited to $100k, so you have to reduce any employee's pay if they are making more than that. That comes out to wages of $15,384.62 for the 8 week period. However, if you pay benefits to those employees, you can include that in payroll cost.
I found link ! Thanks
Great!
Thank you!
Thank you
Can you please make a video to review how a partner owned LLC can spend PPP funds and what is forgiven for them? No employees, just two partners. Home address is also business address with a mortgage.
We're in the same position and would really appreciate your help, Clara.
If I’m sole proprietorship, do I use spreadsheet for Schedule C filers?
Thank you.
Got the grant today not sure when the ppp part will come.
I never got a grant, but I received the PPP loan. Nothing makes sense any longer
Can I use my IRA as part of payroll?
Subscribed! 🇺🇸🇺🇸👍
🙌 thanks!
i applied for the PPP loan but under new filing option that opened for s corps and 1099 people like me > my question if i never ran a payroll to be forgiven must i start a payroll now? for the people i use to 1099 ? or can i just pay them with a regular check as PPP does not require tax withholds
boom baby boom!
I currently pay my employer 1099, can i convert him to W2 to be forgiven?
No :( had to be an employee as of 2/15.
Clara CFO Group I appreciate your response.
if i have 3 separate accounts for my business and put the loan money in account A but pay employees with account C, does that still count as using the loan money? Theyre all under one name and one bank.
Yes, should be fine. However, you could move the loan amount to account C if you are concerned about not documenting things properly.
Hello, is the IRS Looking for W2 for employees claimed for 2019?
During the application process, it's more likely that they will ask for w3, 940, or 941.
They were fine with my 940 from last year
Cant seem to access your spreadsheet despite providing name and email on your site clara-cfo-group-llc.ck.page/d5ef5d9b84.
I also noticed that your web page www.claracfo.com gives a 404 "The page you were looking for doesn't exist".
Hi David - did you check your spam email? You need to confirm the email, and the spreadsheet should automatically download! Let me know if you don't get it then!
Clara CFO Group Hi thanks for your reply. Yes, I checked my spam and clutter
Can you please make a video in relation to ppp & unemployment for small businesses? Thank you
Dennis can you clarify? What about unemployment?
Clara CFO Group if I’m self employed/independent contractor hair stylist, I did apply for unemployment under new regulations on Tuesday don’t know if I get approved or not. Is it possible to get both? Ppp & unemployment? Or I have to choose?
Clara CFO Group it’s my only source of income where I’m the only employee
Dennis, you can't get PPP and unemployment. Good question!
Clara CFO Group yes that’s what I thought
If demand inst there after the 8 weeks and we have to re layoff, can they then say sorry not forgivin? thank you for your time.
After June 30th or the end of your loan, then anything goes. This is meant to be a temporary stimulus. It may be enough for some businesses, and some may not be able to continue at the same level after that 8 week period. Maybe consider some cash flow forecasting to see what makes sense for you right now. This is a difficult time in business. It sucks that we even have to have these conversations right now!
@@ClaraCFO thank youso much,
Clara, If you filled out your form 2483 on April 6th and it went to your Loan Institution and acknowledged, but was not notified until April 16th by email you were accepted but they were still completing the loan paper work and I would receive it the following week. I received and signed the loan and the money was deposited on the 20th of April. Question what is considered the ACTUAL funding date?
Deposit date is the date of origination!
I didn’t see link. Can someone please share or point me to it? TIA!
I found it & would like to say THANK YOU SO MUCH for your insight, help & guidance! 👍🏻👍🏻
You said signing bonuses to bring employees back on board. When we show our payroll documents at the end of the four weeks and there is an "x" amount on the bonus category. Are those bonuses part of the forgivable part of the ppp loan?
It's still unclear. There's no clear approval yet on bonuses.
Hi. This video was very helpful. I can't see the link to download the spreadsheet. Can you help me with that? Thank you so much for your help.
I can see it now.
@@lorrietimberlake7721 Great!
I’m self employed, sole proprietor, just me no employees. The ppp loan was deposited right into my business account not a separate one . How do I use it for payroll and pay myself?
I paid mine back and took unemployment instead
Thank you! This was so helpful and a great spreadsheet! Do you happen to know if you have to re-hire the same employees or can you hire any employees to get your payroll back up? Some of ours no longer want to come back :(
Thank you for the ❤️
Thanks for watching!
Clara CFO Group no thank you 🙏
I own an S Corporation and I’m the owner. I occasionally pay 1099 subs. I occasionally take dividends to pay myself but I’m not a W2 employee. Can I get the PPP loan and spend 75% of the money to pay myself out of my Corporation?
Joseph Foster - Yes, absolutely that’s what the PPP is for. I’m in the same situation. The question is: Do we have to return the 25% or keep it and pay interest on it? Watch JJ The CPA you tube channel. He’s amazing and he has a free website with all the possible questions answered.
Joseph, I'd highly recommend talking to your CPA. S Corp owners should be on payroll paying themselves a reasonable compensation. My answer to this would be no.
Do we know if we have to pay the same employee that we reported worked for us on Feb 15, 2020? Or is it just the number of employees?
Number of employees matters, not which employees. It's unrealistic that we can keep the same people on our payroll. But we can try to employ the same number of people. If someone quits, we have no control over that right? So we rehire for the position.
I received my PPP Loan on 5/1/2020. I do payroll one time per month. I had just completed and paid out payroll for the month of May when I received notice the PPP Loan was deposited (also on 5/1/2020). I immediately put the PPP funds into a separate business checking account. I was going to run a second payroll but was concerned about essentially paying myself again and raising my reported payroll income for the month of May higher than the average monthly payroll in 2019. Are my current funds calculated in with the PPP loan for the allowable max payroll amount (2019 payroll divided by 52)? For example, say my average monthly payroll was $1000 for 2019. I just paid out $1000 in payroll (out of my business money) if I pay another $1000 (from the PPP Funds) for May making the total payroll $2000 ($1000 my month and $1000 ppp funds) will I be penalized?
What are the "payroll" costs that we can include? My PPP loan is 200k. Average payroll was 80k a month before all this virus crap hit.
th-cam.com/video/5pFuXxeia8E/w-d-xo.html This should help Michael
Hi clara, - My wife and I have had a difficult issue with bank and accountant no knowing how to go forward. We have a small grooming salon with 2 employees - and pay contractors 1099 for the rest. Given the rush of all this and the issues of getting good information I have a question on how to go forward. The employees officially began on 2020 payroll, not 2019. my wife is a sole prop that pays all this. We just now finished 2019 taxes (still do not have the forms schedule c I believe), we are looking at completely closing if something doesnt come thru. Do you have a suggestion or even a separate entry point instead of our bank, that may be a little more flexible on paperwork until we can get it in but actually get it started? -- Thank you for putting this info up, I wish our bank or accountant actually would be able to answer this but it is just a mess to get started.
You payroll from Jan-Feb can be considered for the "average payroll" calc. Scedule C income can be used to determine her average compensation as the owner. Try paypal or Lendio as an option for applying instead of your bank!
Does the 8 weeks start when the money is put into the checking account or it is approved?
What is date of origination mean?
Yes, date of origination is the deposit date.
@@ClaraCFOThank you. You rock.
What if the business you own is out of your own home... can you still apply the loan to your mortgage and utilities?
It needs to be a qualified business expense - so if you can legitimately claim those things for your business, then it's likely an allowable expense. However, most people CANNOT include these expenses as business expenses.
Can we give raise or “bonus” if we decide to encourage laid off employees to get their butts back to work?
Still awaiting email of my spreadsheet
Did you check your spam? You should have an email from hannah@claracfo.com
clara-cfo-group-llc.ck.page/d... This is what I clicked on to request mine. I hope this helps.