Questions answering during the webinar:
Q# | Question | Answer | |
1 | Does that $100,000 include the retirement benefits and health insurance costs or just salary? | $100,000 is only wages/salary. Retirement/health are on top of that. | |
2 | When calculating payroll for PPP, is it only payroll for all employees or only Full-time employees ? | All employees. | |
3 | if employee takes unemployment do they still qualify for FFCRA? If they take unemployment do they count towards PPL salary (you have to pay as usual while on unemployment ?) | Are they taking partial unemployment, i.e. a furlough, or have completely left your employ? | |
4 | For #5 Kerin is talking about, would this not apply in Vermont to health care workers because VT is providing child care for essential workers? | Because Kerin practices in VT, she's given us a VT specific set of content for us to post to the forum which might address this question! | |
5 | Do we need to keep the same employees for the PPP loan or we are required to keep the same headcount? Example layoff poor performing employee, but hire a new person to keep the same headcount. | Headcount. | |
6 | Can on K-1 income be included in the PPP forgiveness (up to $100,000 per partner)? Or is it just for hourly/salaried employees? | I believe that you can use partnership distributions...but the entire thing is still up in the air! | |
7 | what if you have to fire someone due to lack of performance...how does that affect the PPP loan reimbursement | I'm assuming if you fire them for performance (as opposed to lay them off for lack of work), then you'd hire someone to replace them. That would replenish your numbers, and you would still get the loan repaid. | |
8 | Under the PPP loan, if an employee is furloughed, will that affect the forgiveness statute? | If by furloughed you mean "not receiving wages from me," then yes. If you paid them 100% of wages this time last year, and 0-50% this year, then that will affect whether you get to the 75%+ threshold of "this year's wages compared to last year's wages" | |
9 | Should employess (MD owners) earning > 100k reduce their monthly draws to $8333 in order to avoid borrowing morethan we need? | If you end up borrowing too much PPP, just return the rest of the principal in 6 months. No harm no foul. I think a better reason to pay yourself less is to conserve cash during this uncertain time. | |
10 | Does the EIDL loan need personal guarantee by the MDs? | If you receive >$200,000, yes. | |
11 | can malpractice insurance be covered by the forgivable loan? | It is not a forgivable expense, but you can use it. | |
12 | Can you pay office mortgage with PPP loan ? | Mortgage INTEREST is a forgivable PPP expense. Principal can be paid with PPP but is not forgiveable. | |
13 | For PPP, Can utilities include malpractice, EMR, medical supplies and vaccines??????????? | No. | |
14 | Can we apply for PPP with multiple banks? | No. The attestation you sign says you won't seek or receive another loan. | |
15 | does the PPP money only go to Full time employees? | No. You may also use it for part time folks' salary. | |
16 | our bank just turned our LOC application despite excellent guarantees told us we had to do it thru SBA loans | Not surprised, but keep asking! | |
17 | if we manage to get the PPP loan, then incase we lose one provider during the loan forgiveness period, will we have to pay back the entire money? | Not the entire money. The amount of money you set aside to pay for that provider's salary for 2 months you can either a) repurpose to another approved purpose (someone else's salary/retirement/healht insurance) or b) repay it. | |
18 | If we get the PPP loan can we furlough anyone? How long can the furlough last? | See previous question/previous answer. You CAN furlough people with impunity, although if your COVID-quarter-wages falls below 75% of your this-time-last-year wages, some of your loan will not be forgiven. | |
19 | The SBA PPP application requires you to acknowledge that you don't have other loans i.e. the disaster recovery loan. Is that your understanding that you cannot have bonth? | That guidance has changed. The current application requires you to attest that you have no other PPP loans, not that you have no other loans, and that you have never defaulted on any SBA loan. https://www.sba.gov/sites/default/files/2020-03/Borrower%20Paycheck%20Protection%20Program%20Application_0.pdf | |
20 | So to clarify, you can apply for both EIDL and PPP at the same time, correct? And you could receive both? | That is correct. | |
21 | Is there an expectation that the money will run out for the PPP loan so it will be first come first serve? Those coming late may lose out? | That is correct. There is no way that $350B can cover 2 months of payroll for all small businesses in the US. | |
22 | Is the first 10k in EIDL FORGIVEN???? | That's what it looks like! | |
23 | what “utililiites” count in the PPP loan application | The basics: water, power, gas, phone, Internet. | |
24 | If you get the PPP loan, use for payroll, but need more for payroll for some reason, I cannot use the EIDL??? | The PPP and EIDL are not mutually exclusive. You may be apply for both and you may be awarded both. | |
25 | It affects how much we request on the PPP. No one seems to really know the answer. Thank you! | This looks like a partial question. You are awarded 2.5x of your average monthly payroll... | |
26 | Can employees who we reduced hours for apply for unemployment and ct to draw salary on PPP | Unemployment compensation doesn't count towards wages you pay that can be forgiven in a PPP loan. | |
27 | What is the timetables for the loans? Can we apply for BOTH at the same time and then decline the EIDL if we get the PPP? | Yes, although frankly, if you get both, I'd keep them both until you're sure you're out of the woods. | |
28 | So to clarify, you can apply for both EIDL and PPP at the same time, correct? And you could receive both? | Yes, but you can't "double-dip" (i.e., use it to pay for the same things 2x). | |
29 | Do end of year bonuses count as wages? | Yes. | |
30 | can you get EIDL and PPP — I thought you could not but graph seems to show that you can | Yes. This is one of those guidance items that changed! | |
31 | In the cash flow, is there a deferral on tax payments? I read somewhere we can defer SS taxes but not Medicare? | Yes. That's the Social Security deferral provision. https://www.akingump.com/en/experience/industries/national-security/covid-19-resource-center/cares-act-summary-tax.html | |
32 | can we then get the 10K grant from the SBA and not have to pay back and also get PPP and have that be forgiven as well or are they mutually exclusive | You can get the 10k disaster grant from the SBA. And you can get a PPP. They are not mutually exclusive. |
Open Questions:
33 | @Tanikqua, as long as you keep 90% of your employees, you should be ok. You can also hire and replace the person that left. |
34 | 75% of the PPP money has to be spent on Payroll costs. |
35 | But if it is not forgiven and we have brought our employees back to full time from half time, we are covering that extra payroll cost. |
36 | Can partner MD salaries (not part of payroll, paid pre-tax as a monthly draw with quarterly distributions) be included up to %100k? |
37 | can PPP Loan be used to pay for vaccines/ |
38 | Can we apply for PPP with multiple banks? |
39 | Can we include partner physician compensation (up to $100,000) in our "payroll" calculation for the PPP loan or just employed physicians? |
40 | We’re cutting staff hours due to lack of business but if the employer chooses to pay staff their regular hours even if they didn’t work them, will those hours still be forgivable under PPP |
41 | Can you roll the EIDL into a PPP? |
42 | I was told you have to spend the money in 8 weeks or you have to pay it back. Has to be used for payroll during that 8 weeks. 25% can be used for rent/other but still has to be used during that 8 weeks. |
43 | If you apply for the EIDL loan, do you have to use your line of credit first? If yes, how do you bridge expenses between line of credit and EIDL loan funds? |
44 | if you wait to get a PPP loan do we run the risk of it not being available? |
45 | is it important to get the PPP in as soon as possible?? What if my area will peak in 3 weeks and I need it more for 8 weeks after that..and then what if I wait and there is no more money left?? |
46 | Is our eligibilty for the forgiven SBA loan adversely affected if some of our employee hours are cut? (Not furloughed but just cur back by between 25-75%) |
47 | We have applied for the EIDL loan. If we receive PPP funds, then the amount of the EIDL loan is reduced by the PPP loan amount, correct? |
48 | what if an employee quits or if you have to fire an employee for lack of performance, does this affect your PPP loan forgiveness |
49 | shouldn't we be going for an increase in our LOC in the mean time? |
50 | If a provider is moving in April ( planned since January) and we can not replace her until the summer or fall, how will that affect the forgiveness statute? |
51 | what if an employee quits...how does that affect the PPP load reimbursement? |
52 | Addendum to my question-if end up getting bought out by a hospital group can I still have the loan payback garnted if I have employees again from June till the end of the year |
53 | SBA: Is there any clarification on “employee and compensation levels are maintained.” Clause of the PPP? We dropped non-exempt staff down to 20 hours a week on 3/22. Are we obligated to maintain those 20 hours or bring them back 40 hours/week prior to all this? |
54 | Can this money be used to discharge loans for the practice, such as mortgage loans? |
55 | Is it true that if we are back to same full FTE status on 6/30/20 that we averaged in the preceding 12 months that we will get full forgiveness for the portion of the loan that went toward payroll, rent and utilities even if we do intermittent layoffs during the 8 week period? |
56 | While we are waiting for PPP application and funds, should we still be maintaining full employment to preserve the terms of forgiveness? This will get progressively harder! |
57 | When we apply for the loan, can we include the amount of distribution that goes to the docs, we are a pass through entity on get K-1’s, not W2 wages? |
58 | Would an employee who had to take a medical leave with a note from their doctor negatively affect the PPP loan forgiveness |
59 | (Background - Privately owned practice suburbs of Philadelphia, 3 physicians) We are thinking of reducing all docs to 75% of current salary and anything above the $100k will have to be paid back. Employees hours are really cut back but they’re still being paid regular hours for now. Should we continue that since it will be forgiven? Thoughts on paying the doctors the 75%? |
60 | What happens if you take the PPP loan and use it to float payroll x 8 weeks and then sometime after that 8 week mark have to close? Is the forgivable part of loan still forgiven b/c you stayed afloat and kept payroll going for those 8 weeks? |
61 | If we let a doctor go now (she was planning to move anyway), does that count as losing staff with regard to the PPP? The doctor salary is over 100K. |
62 | So to clarify, total payroll is to be higher than 75% regardless how it is dispersed to forgiven. |
63 | re. PPP- what if our payroll comes in at at least 75% but number of employees decreases due to replacing 2 part timers with one full timer? |
64 | Are funds from the PPP allowed to be used for Physician owner salaries? |
65 | Should we include contractual bonuses acrrused but not yet paid? |
66 | are physician owners included in the payroll calculation for PPP? |
67 | We have seen that payroll taxes and federal income taxes need to be deducted from your wages. |
68 | Does my 401k employer contribution for safe harbor and profit sharing count as part of the last 12 months wages? |
69 | What if any salary is included for owners under PPP calculation? |
70 | Do we have to subtract the state tax paid on income greater than $100,000 when we do the PPP calculation? |
71 | Paulie in your ppp calculation what is the “wages”. Is it gross wages? And does that not already include state tax? |
72 | Are 1099 wages included in the payroll cost? |
73 | Are people getting confirmation emails when they apply for an EIDL loan? We got a confirmation # but not an email. Not sure if we should reapply. |
74 | Are phones and internet considered utilities in this scenario? |
75 | Does the EIDL loan need personal guarantee by the MDs? |
76 | With decreased volumes physicians are using one of the three methods based on my discussions 1. Reduced employee salary to half , so they can still work but see less patients. 2. Keep salary same but work alternate day because we need less staff 3. Furlough Very few if any are using last choice! May be fear of loosing staff. Does any of these choices make our chances of Having our PPP Loan be not a forgiven loan? |
77 | Paulie in your ppp calculation what is the “wages”. Is it gross wages? And does that not already include state tax? |
78 | If I pay an employee who is out on the 80 hours sick leave, how does that affect use of PPP? |
79 | To qualify for max loan forgiveness what is being considered, FTEs or the employee head count ? |