Forgive me if this was already answered. Are there clear guidelines as to how self employed needs to spend the PPP loan? Is it necessary to write yourself checks? Is there rules about how quickly you can spend it?
Basically there's nothing you need to do and no limitation on how fast you can spend. It's based on your 2019 Schedule C instead of actual payments (unless you want to spend it on other eligible expenses). If you are concurrently on UI and want to stay that way, I suggest you stick to your state weekly limits even though on the PPP end it doesn't much matter.https://bench.co/blog/operations/ppp-forgiveness-contractors-sole-props/
Partnerships (K-1 1065) must cut themselves checks.C & S corps must pay themselves via payroll.
Source?
New SBA PPP interim rules released today.https://home.treasury.gov/system/files/136/PPP--Loan-Forgiveness-FAQs.pdf
Summary:While paid or incurred retirement and healthcare contributions are eligible for forgiveness, accelerated payments cannot be included. (employee and where applicable for employer as well)C & S Corporation owner's forgiveness on retirement contributions is capped by 2.5/12 of 2019 contributionsGeneral Partners (K-1 1065) compensation is only eligible for forgiveness if payments to partners are made during the covered period (this is not spelled out for sole props so perhaps it's not a requirement for them)Interest on unsecured loans are not eligible for forgivenessFTE reduction exceptions apply to those earning over 100k as well
(this is not spelled out for sole props so perhaps it's not a requirement for them)
Ok. Specifically for this I was asking for a source. Many sole props don't have payroll and did not start one up for PPP.
A sole prop (Schedule C) owner is not legally allowed to be on payroll.Did you check out the link in the previous post?
Updated version now available.Includes SBA rules as of 08/04/20 as well as a formula fix to the wage reduction calculations.If you downloaded a previous version I suggest you get the latest one to make sure your calculations reflect the latest guidelines.
I just downloaded it and entered my information, very straightforward Schedule C with no other expenses. It's showing 100% of the loan forgivable? Is that true?
As the calculator creator, yes it's true As a general rule all Schedule Cs will receive 100% forgiveness without needing to do a thing.
I guess we still need to apply for forgiveness, don't we?
Which bank did you use?
I opened a WhatsApp for status updates on NY, NJ, and Federal coronavirus aid available. I'm not sure if forum rules allow me to post links, so if you'd like to see them PM me for the WhatsApp link.