Author Topic: SBA PPP and EIDL Small Business Loans (some money is forgivable)  (Read 174951 times)

Offline TBD

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Re: SBA PPP and EIDL Small Business Loans (some money is forgivable)
« Reply #2610 on: January 06, 2021, 03:24:37 PM »
What was the motivation for the govt to offer banks higher commissions??
That banks should offer smaller loans to small companies like this it looks nice that they are helping out small companies. The government will spend $10,000 to send the poor guy $5,000.... (like all child care programs in which if both parents work for $20,000 a year the government will spend $8,000 a year per child in child care benefits for 6 children, the parents should be able to work :'()

Offline AsherO

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Re: SBA PPP and EIDL Small Business Loans (some money is forgivable)
« Reply #2611 on: January 06, 2021, 04:01:27 PM »
All small employers are getting now CRAZY INCREASES with being able to apply for PPP, ERC, FFCRA concurrently if they meet eligibility. a company with 10 employees paying them $50k yearly wages for a total of $500K payroll, can get now approx $300k between all these programs. Its HUGE HUGE money. I think most people didn't digest it still and there is definitely no reason why not to raise the stimulus to $2,000 or even $4,000 per person after businesses getting such windfalls

Do independent contractors and/or firms with 1099 (but not w2) employees qualify for FFCRA and/or ETC? My guess is not, please CMIIW.

Online cgr

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Re: SBA PPP and EIDL Small Business Loans (some money is forgivable)
« Reply #2612 on: January 06, 2021, 04:10:46 PM »
Do independent contractors and/or firms with 1099 (but not w2) employees qualify for FFCRA and/or ETC? My guess is not, please CMIIW.
1099 'employees' are not eligible from the employers perspective for anything. They could be eligible in their own right.
FFCRA is available for independent contractors/self employed.
ERC is not available to owners or relatives of owners.

Offline AsherO

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Re: SBA PPP and EIDL Small Business Loans (some money is forgivable)
« Reply #2613 on: January 06, 2021, 04:15:38 PM »
FFCRA is available for independent contractors/self employed.

Thank you, very helpful. I claim this on my 2020 taxes? Details on your site?

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Re: SBA PPP and EIDL Small Business Loans (some money is forgivable)
« Reply #2614 on: January 06, 2021, 04:23:25 PM »
Thank you, very helpful. I claim this on my 2020 taxes? Details on your site?
Yep.
Regular employers claim this on their quarterly reports- I'm assuming your accountant will know how to claim this on your tax return (Schedule E?).

Offline AsherO

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Re: SBA PPP and EIDL Small Business Loans (some money is forgivable)
« Reply #2615 on: January 06, 2021, 05:33:32 PM »
Yep.
Regular employers claim this on their quarterly reports- I'm assuming your accountant will know how to claim this on your tax return (Schedule E?).

Accountant? Iím hoping TurboTax will cover this.

Online cgr

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Re: SBA PPP and EIDL Small Business Loans (some money is forgivable)
« Reply #2616 on: January 06, 2021, 05:42:01 PM »
Accountant? Iím hoping TurboTax will cover this.
Found the correct FAQ page for you: https://www.irs.gov/newsroom/special-issues-for-employees#specific-provisions-related-self-employed-individuals

Question 65

Based on the new bill Question 62 will be changed to allow SE's to use 2019 income for average daily income instead of 2020, so that they can up their credit.

Offline TBD

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Re: SBA PPP and EIDL Small Business Loans (some money is forgivable)
« Reply #2617 on: January 07, 2021, 01:52:02 AM »
ERC is not available to owners or relatives of owners.
It seems that it is available to owners and owner's spouse of a corporation just not to other relatives

https://www.irs.gov/newsroom/covid-19-related-employee-retention-credits-determining-qualified-wages-faqs

59. Are wages paid by an employer to employees who are related individuals considered qualified wages?
No. Wages paid to related individuals, as defined by section 51(i)(1) of the Internal Revenue Code (the "Code"), are not taken into account for purposes of the Employee Retention Credit. A related individual is any employee who has of any of the following relationships to the employee's employer who is an individual:

A child or a descendant of a child;
A brother, sister, stepbrother, or stepsister;
The father or mother, or an ancestor of either;
A stepfather or stepmother;
A niece or nephew;
An aunt or uncle;
A son-in-law, daughter-in-law, father-in-law, mother-in-law, brother-in-law, or sister-in-law.
In addition, if the Eligible Employer is a corporation, then a related individual is any person that bears a relationship described above with an individual owning, directly or indirectly, more than 50 percent in value of the outstanding stock of the corporation.
« Last Edit: January 07, 2021, 02:00:59 AM by TBD »

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Re: SBA PPP and EIDL Small Business Loans (some money is forgivable)
« Reply #2618 on: January 07, 2021, 08:37:00 AM »
It seems that it is available to owners and owner's spouse of a corporation just not to other relatives
https://www.irs.gov/newsroom/covid-19-related-employee-retention-credits-determining-which-employers-are-eligible-to-claim-the-employee-retention-credit-faqs
Q23

Need to look into the spousal thing but I believe I did see it somewhere.

Offline TBD

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Re: SBA PPP and EIDL Small Business Loans (some money is forgivable)
« Reply #2619 on: January 07, 2021, 08:45:22 AM »

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Re: SBA PPP and EIDL Small Business Loans (some money is forgivable)
« Reply #2620 on: January 07, 2021, 08:50:01 AM »
But it's only for SE not owner's of S/C corporations
Ah missed that.
I'm 99% certain they're not eligible either because of the 50% relation rule.
Need to check section 51(i)(1) of the Internal Revenue Code.

Offline TBD

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Re: SBA PPP and EIDL Small Business Loans (some money is forgivable)
« Reply #2621 on: January 07, 2021, 09:05:10 AM »
Ah missed that.
I'm 99% certain they're not eligible either because of the 50% relation rule.
Need to check section 51(i)(1) of the Internal Revenue Code.
It definitely seems that only SE are excluded
https://www.irs.gov/newsroom/covid-19-related-employee-retention-credits-general-information-faqs

2. Who is an Eligible Employer? (updated November 16, 2020)
Eligible Employers for the purposes of the Employee Retention Credit are employers that carry on a trade or business during calendar year 2020, including tax-exempt organizations, that either:

Fully or partially suspend operation during any calendar quarter in 2020 due to orders from an appropriate governmental authority limiting commerce, travel, or group meetings (for commercial, social, religious, or other purposes) due to COVID-19; or
Experience a significant decline in gross receipts during the calendar quarter.
Note: Governmental employers are not Eligible Employers for purposes of the Employee Retention Credit.  However, tribal governments and tribal entities may be Eligible Employers. See Are tribal governments and tribal entities eligible for the Employee Retention Credit? Also, self-employed individuals are not eligible for this credit for their own self-employment earnings, though they may be able to claim the credit for wages paid to their employees.

For more information, see Determining Which Employers are Eligible to Claim the Employee Retention Credit.

Offline yosefsv

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Re: SBA PPP and EIDL Small Business Loans (some money is forgivable)
« Reply #2622 on: January 07, 2021, 02:53:03 PM »
Income earned in box 3 of a 1099 Misc for the refer a friend programs, could be considered for the PPP or EIDL?
If it benefits even just one fellow DDFer, its worth posting it.

Offline TBD

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Re: SBA PPP and EIDL Small Business Loans (some money is forgivable)
« Reply #2623 on: January 07, 2021, 03:20:56 PM »
Ah missed that.
I'm 99% certain they're not eligible either because of the 50% relation rule.
Need to check section 51(i)(1) of the Internal Revenue Code.
@cgr any clarification on this?

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Re: SBA PPP and EIDL Small Business Loans (some money is forgivable)
« Reply #2624 on: January 07, 2021, 03:26:45 PM »
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