Contributed by Becky Robinson EA
PPP (paycheck protection program)
….SBA will lend an amount to all companies who have payroll with a caveat that the candidate company employees must maintain their status of employment with no lay-offs or dismissals. The loan will be forgiven if all employees are kept on the payroll for 8 weeks and the money is used for payroll and business expenses such as rent, mortgage interest and utilities.
The calculation is simple. Add all employees’ earnings, (not in excess of $100,000 per person) plus all pension plan contributions paid by the employer, and health insurance paid by the employer plus California unemployment. Divide the total by 12, then multiply the quotient by 2.5%. The resulting amount will be your anticipated Federal Loan amount. To qualify to have the loan forgiven you must use at least 75% of the loan for payroll expenses and the rest for rent, interest and utilities. For any loan not forgive n the interest rate is 1% and its due in two years,
The forgiven amount of the loan is not taxable to the taxpayer. The application is downloaded from the SBA website and must be submitted to your bank, which is the administration vehicle. You should submit your application to the bank that your payroll goes through.
This program has been opened up to self-employed individuals to apply also. They need to have filed their 2019 tax return and the “payroll” amount is determined by dividing the NET schedule C income by 12 and multiplying by 2.5 to come up with what they would be eligible for as far as the PPP loan. Self-employed individuals would apply through their normal banks.
EIDL (economic injury disaster loan)
SBA will lend an amount up to $2,000.000.00 @ 4% interest with negotiable terms to businesses that are experiencing temporary difficulties. There is up to a $10,000 loan advance to provide economic relief to businesses that are experiencing temporary difficulties. This loan advance is forgivable. Businesses can get both loans (PPP and EIDL) but not for the same expenses. These loans can be used to cover any business expenses. This loan is for employers with less than 500 employees.
This loan is applied for and submitted directly through the SBA website at sba.gov.
$10,000.00 Grant
For those who apply for EIDL, above, you may exercise your option for an advance of up to $10,000.00 that will be forgiven in the event your loan application is approved. This is not a separate loan but part of the EIDL program. The loan placed will be considered a deposit on the final loan consent but will be included in the full amount on the balance of the approved-loan.
Stay at home so they can get home….
SAN FRANCISCO INTEREST FREE LOAN
For San Francisco Business who fund PTO, Paid Time Off, who under minimum limits, will receive a $50,000.00 loan interest-free. Applications must be filed no later then April 22nd see San Francisco Web site.
STIMULUS CHECKS
Economic Stimulus checks have begun being issued. If you have previously requested direct deposit of your refunds on your tax return the checks will be deposited in your bank account. If you haven’t elected direct deposit before you can go to the IRS.gov website and check to see if your stimulus check has been issued. If it has not you are able to enter your direct deposit information now. There are income thresholds associated with the checks. The full amount is $1,200 per taxpayer and $500 per child.
Additional Information for non-filers
Eligible U.S. citizens or permanent residents who:
• Had gross income that did not exceed $12,200 ($24,400 for married couples) for 2019
• Were not otherwise required to file a federal income tax return for 2019, and didn't plan to
You can provide the necessary information to the IRS easily and quickly for no fee through Non-Filers: Enter Payment Info. We will use this information to determine your eligibility and payment amount and send you an Economic Impact Payment. After providing this information you won’t need to take any additional action. If you are receiving social security benefits there is nothing that you need to do – the stimulus check will be issued automatically.
Below is link what to do if you otherwise were not required to file taxes: https://www.irs.gov/coronavirus/non-filers-enter-payment-info-here
UNEMPLOYMENT
Beginning April 28th self-employed people will be able to file for unemployment. Once the self-employed person applies the check will be issued in 24 to 48 hours and will include retroactive pay from the date of quarantine. The minimum will be $ 767 and the maximum will be $1,050 per week. These amounts include the pandemic payment of $600 per week.
Commentaires