Question: Can I Give My Employees A Raise Under PPP?

Can I refuse PPP and stay on unemployment

Businesses that received Paycheck Protection Program (PPP) loans can exclude laid-off employees from loan forgiveness reduction calculations if the employees turn down a written offer to be rehired, according to new guidance from the U.S.

Small Business Administration (SBA), which warned that employees who reject ….

Is PPP considered income for unemployment

If you are collecting unemployment benefits and also have a PPP you are claiming owner compensation replacement from, you should report your PPP loan as income to your state’s unemployment resource.

What documents do I need for PPP loan forgiveness

For the payroll portion of your PPP loan, you will need to provide documents from your payroll provider and proof of paying employment taxes with IRS and state forms. Eligible payroll costs include salaries and wages, health benefits, and paid leave (i.e. vacation, parental, family, medical, or sick leave).

Can I use my PPP loan for anything

PPP loans can be used for the following purposes: (a) “payroll costs” (defined in Question 17); (b) costs related to the continuation of group health benefits during periods of paid sickness, medical, or family leave, insurance premiums; (c) mortgage interest payments (but not prepayments or principal payments); (d) …

How much can I pay myself with PPP

Independent contractors who receive a PPP loan can use up to $15,384 of what they’re awarded as compensation for themselves for the eight-week period and still have at least that part of the loan forgiven. As compensation to themselves, it acts as a payroll cost.

What does FTE stand for on PPP

full-time employee equivalentAs businesses have begun to wrap up their Paycheck Protection Program (“PPP”) loan covered period or decide whether to extend a little longer, the number one question is around the full-time employee equivalent (“FTE” or “FTEE”) calculation.

Can employees get unemployment and PPP

There is no restriction on receiving both benefits, but you cannot use the PPP loan to cover your own compensation while at the same time receiving unemployment benefits.

How do I pay myself with PPP

You can pay yourself back under certain conditions. Sole proprietors, pass-through corporations, and the self-employed may also use the PPP loan/grants to pay themselves their back, current, and future wages during the 8 week period.

How is FTE calculated for PPP forgiveness

To calculate the average FTE for each employee, Borrowers need to accumulate the total hours paid during the Covered Period (and chosen Reference Period) and divide the average number of hours paid per week during the relevant period by 40, and round to the nearest tenth.

Is there a deadline to apply for PPP loan forgiveness

Question: The PPP loan forgiveness application forms (3508, 3508EZ, and 3508S) display an expiration date of 10/31/2020 in the upper-right corner. Is October 31, 2020 the deadline for borrowers to apply for forgiveness? Answer: No.

Can owners salary be included in PPP

As an owner of a corporation, this should only be the amount you have paid yourself by running payroll. … If you’ve been running payroll manually yourself or with the help of a CPA, so long as you have been remitting payroll taxes, you can use those salaries in your calculation to apply for the PPP.

What qualifies for forgiveness under PPP

Forgiveness for self-employed individuals You are eligible to claim 2.5 months’ worth of your 2019 net profit to replace pay. If you didn’t have any other payroll expenses factoring into your PPP loan amount, this means that your entire PPP loan could be forgiven for the 24-week period.

When should I file for PPP forgiveness

You must apply for forgiveness within 10 months after the end of the ‘Covered Period. ‘ which is the 24-week period that starts when you received your PPP loan. The lender (i.e. your bank) has 2 months to process your loan forgiveness application then SBA has three additional months to approve your forgiveness.

How do I apply for PPP forgiveness

To apply for PPP loan forgiveness, use the SBA’s Loan Forgiveness Application form, Form 3508. You might be able to use Form 3508EZ or Form 3508S if you meet the eligibility guidelines. Then, submit it to your lender.

Do I have to apply for PPP loan forgiveness

Most Paycheck Protection Program (“PPP”) borrowers are working toward full forgiveness of their PPP loans and are anxious to get this process started. … But that does not mean a borrower should submit a loan forgiveness application as soon as possible.

How does FTE affect PPP

The borrower’s count of FTE employees during their covered period is divided by the FTE count from the selected base period. … This ratio is referred to as the FTE reduction quotient. The FTE reduction quotient is multiplied by the total PPP loan amount to arrive at your maximum forgiveness amount.

What qualifies for PPP forgiveness

The loan will be fully forgiven if the funds are used for payroll costs, interest on mortgages, rent, and utilities (due to likely high subscription, at least 60% of the forgiven amount must have been used for payroll). PPP loans have an interest rate of 1%. Loans issued prior to June 5 have a maturity of 2 years.

What are the rules for PPP loans

In general, PPP loans are forgivable if your business used at least 60% of the loan for eligible payroll costs over a span of 24 weeks. Non-payroll costs, including mortgage interest, business rent and utilities are also eligible for forgiveness, but the new rules tweak certain eligibility requirements.

How long do you have to keep employees for PPP

24 weeksIf after the 24 weeks the PPP covers, your business’s financial situation has not improved, or the PPP funds have run out, you are able to put employees on furlough or lay them off if necessary. The employees would be eligible to claim unemployment benefits.