So we got our PPP $ today via BOA! But how to use…
We have one worker out with possible COVID, assuming she has it, seems we pay her NOT thru PPP so we then get the tax deduction via the FFCRA?
Rest of staff as of last week on shared work program thru CT- as we don’t need them full time now, not enough work. Anyone know if we can use PPP funds to pay them for part time work, and allow them to still collect shared unemployment benefits for the hours they are NOT working/needed?
Lastly, we did not include our K1 partner income as when we submitted originally the advice seemed to not include us. Now that we have one PPP loan without our income, any chance we can submit under the second act (should it be approved) for just the partner?
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I am going to jump to the last question first as it will make sense in a bit…
Each business can only submit one application. If funded, there are no “re-do’s”…as such, the total amount you can eligible to have forgiven may exceed the total PPP loan you recevied.
Since the owners were not included in the loan amount and you can get up to $8,333 forgiven per individual (including physicians on the payroll), you might have enough room on the forumla to have the entire loan forgiven without paying the employee who is out… My gut tells me, this would offset the employee who is out on COVID FFCRA leave but would have to see the numbers to see how it shakes out…you might consider finding someone who can sit down and calculate all the numbers, etc…
There is a lot of ambiguity around the loan forgiveness requirements with “clarification” coming out every day…as of today, there are three things that need to happen to qualify for the forgiveness:
- At least 75% of your loan must be used for payroll costs
- You must have the same number of FTE’s in the 8-week period after receiving the PPP funds (there are confliciting stories on whether the SBA will go off 30 or 40 hours as full time. This is a huge distinction that will need to be clarified).
- You must maintain at least 75% of the gross payroll wages
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thanks Paulie! I thought we needed to get up to full headcount by June- it has to be in the immediate 8 weeks post loan? we are down a few heads, some part-time, but our payroll is nearly the same since we have the same # docs on staff, it was an MA and part timer that are gone (one MA left prior to the COVID crisis and we had not replaced her before it all started)
Thanks Paulie!
Regarding the number of FTEs for the PPP loan forgiveness, is it the same number we wrote on the application that we need to have at the end of the 8 weeks or is it based on the 2019 employee count?
The FTE count does not have to be what you reported on the PPP application as of now…just need to be able to show documentation on how you came up with the number. There is a wrinkle if there are less than 10FTE employees and taking the $10,000 advance on the EIDL loan…if you have less than 11 employees, you will need to consult with your accountant about that…