Our team has been praying for you and your Business
AND WE WANT TO HELP YOU BOUNCE BACK AS QUICKLY AS POSSIBLE.
Tips
Look into payroll tax credits.
Contact your bookkeeper for the numbers you need.
Check with your bank about an SBA Loan - PPP Program.
DON’T PANIC. We have had slow seasons before and we will again. It doesn’t have to mean the end of your business.
Get creative and stay positive as much as you can.
If this is a slow time for you, take the opportunity to do all the things you haven’t had time for during busy seasons! Tweak your website. Make a social media content calendar. Take inventory. DO YOUR BOOKKEEPING (or finally hire us to do it. 😉) Make the most of the extra time you may now have!
Take a deep breath. So much is scary and unknown right now but we can all get through it together, I promise.️ 💕
People are probably spending more time than ever online right now due to social distancing. Focus on products that will meet your customers’ needs during this crazy time.
Ask questions! We’re in this together!
FAQ’s
Q. Should we still be paying employees during this time or will it hurt our chances of qualifying for the PPP?
A. It definitely helps. The PPP requires anyone who laid them off to rehire them. Basically, you would hire back your employees and the loan would pay for their salary for two months. I would talk to a SBA loan officer ASAP.
Q. If I have a full time employee who I could use for a few hours a week but can't pay full-time, what should I do?
A. Yes you can lay-off your employee so they would be eligible for unemployment and yes you can still pay them as an independent contractor. If they earn less than 600.00 as an independent contractor then it wouldn't be reported on a 1099 for 2020. Keep in mind though that you can pay your employees under the new law for sick-leave and it will be reimbursed to you via the 2nd Q 941. There are a few stipulations but that is also an option.
Q. What if I already applied for the EIDL Loan advance, can I still apply for the PPP Loan?
A. If you have applied and received EIDL Loan Advance you are still eligible to apply for the Payroll Protection Program (PPP)! The funds received in the EIDL will be rolled into your PPP Loan if approved.
Q. How can I spend with the Payroll Protection Program (PPP) money?
A.
Compensation (limited to $100,000 per person annually)
Mortgage or Rent Payments
Utilities
Q. What if I don’t pay myself as an employee – do I still qualify for the Payroll Protection Program (PPP)? If so, how is it calculated?
A. Yes, however Independent Contractors and Self-employed individuals cannot start applying until April 10th. Your payroll cost will basically be your net income: wages, commissions, income or net earnings from self employment, capped at $100,000 on an annualized basis per employee. You can also refer to your tax return, schedule SE .
https://home.treasury.gov/system/files/136/PPP--Fact-Sheet.pdf
Q. What do I do when I receive the Payroll Protection Program (PPP) Funds?
A.
a. Hire back laid-off employees by 06/30/2020
b. Book your loan funds as an “Other Current Liability”
c. Email your Bookkeeper and CPA that you have received these funds so they can be prepared
d. Keep detailed excel sheet (maybe even a Google Sheet) and share it with your bookkeeper. Keep a running list of all expenses that you have applied to the loan. Include, Date, Name, amount and reason for the expense.
Q. Can I claim subcontractors as an expense for the Payroll Protection Program (PPP)?
A. No, a ruling/clarification announced late the week of 3/31/20 that subcontractors can apply for their own PPP loan.
Q. What do I need to get prepared for the Payroll Protection Program (PPP) loan process?
A.
a. If eligible, apply for the Disaster and Payroll Protection Program loans.
b. Accept the EIDL 10k grant, if offered.
c. Get financials and tax schedules ready - you'll need them for the application process.
d. Call your banker NOW!!
e. Calculate average monthly payroll costs from last year; Also calculate your total payroll for 2/15/2019 to 6/30/2019 (this will be the potential loan forgiveness amount).
f. Run 2019 and 2020 YTD monthly P&L reports.
g. Run 2019 and 2020 YTD payroll reports.
h. Include state income, payroll and unemployment filings.
i. List all owners, tax identification numbers and ownership percentages.
Q. If a business is closed, do they qualify for anything?
YES! First, apply for the EIDL and PPP as soon as possible!!
Next, if you're awarded one of these loans, rehire your employees by June 30, 2020 and those payments will qualify for forgiveness. You can pay rent, salaries, utilities, payroll taxes, health care premiums, etc.