If only w-2 wages are allowable payroll cost, how can cash and medical expenses be included? We are a LLC taxed as a C Corp. Our bus. reimburses employees for medical premiums etc. That was not included in our W-2's. QB prepared our w-2's. We always pay the reimbursement when we file our taxes, and the accountant helps to straighten it all out. Can you offer some advice please?
Cash stipends for employee Healthcare reimbursement are allowable costs. The tricky part for you will be showing the documentation..hopefully that shows on payroll reports?
@@ClaraCFO thank you for your reply. Yes, it will be on payroll reports. Being we are an LLC, taxed as a C Corp. I'm assuming we should check the LLC box on the PPP Loan application. I haven't been able to find an answer for that question anywhere. Our banker is acting like he may have to fill out the long form for us because of that. Thank you so much for your help.
I’m a truck driver with a LLC, so do I write a check from my business name to myself or a simple transfer from business account to personal checking account? Any maintenance will be under 40% rule correct?
Thank you for the helpful info. You mentioned Workers Comp premiums were eligible costs? This is from ADP's website from 2/10/21: NOTE: Loan proceeds may not be used to pay employer Social Security / Medicare or Federal Unemployment taxes. The definition of payroll costs also excludes *workers compensation premiums*, payments to independent contractors, and payments to employees for leave covered under the Families First Coronavirus Response Act I hope you're right!
Disability insurance has been included. I am unclear on any guidance from the SBA that specifically calls out Worker's Comp as being a dis-qualified disability insurance. I hope I am right too! We are reading between the lines on some of this!
As 1099 real estate agents, can we use 100% of PPP towards payroll? Would 100% that money have to be spent within the 8 or 24 week period or can you use reminant funds after that time frame to offset payroll cost incurred within the 8 or 24 month time frame? Is form 3508S (new) the appropriate form? Lastly, Does FTE play a part in 1099 workers forgiveness? Lots of qs so I'll accept any crumbs of knowledge you throw! You are doing God's work and I appreciate your insights 🙏🏾
State income tax paid by the EMPLOYEE is included in their gross wages, therefore included. But just include gross wages and dont add state income tax again. State unemployment paid by the employer is also included.
Hi Hannah. As a sole proprietor contractor can I claim my health, dental and life insurance premiums under allowable costs? If so; may I claim the whole thing?
No, you cannot if you have paid them for yourself, only if you paid them on behalf of an employee. Maybe watch this video too: ua-cam.com/video/7BAexnxuZ64/v-deo.html
Hi Clara. My bank/Lender informed me that SBA isn't accepting forgiveness applications yet.. Is this correct? This is related to me wanting to begin forgiveness process.
@@ClaraCFO Hi Hannah. I called the SBA this morning and they seem to agree with my Lender that its too soon to apply for 2nd round PPP forgiveness. Really unsure haha.
Thank you for the informative video. Did the SBA provide a guidance regarding the inclusion of workers' compensation insurance as a form of disability insurance for PPP1 & PPP Second Draw payroll costs?
Hi Dan, I haven't seen any SBA guidance saying that worker's comp IS a disability cost, but from my research, "disability insurance" means worker's compensation as well. I have had clients include worker's compensation in their PPP applications for round 2 and have not had any issues. I would like the SBA to confirm it directly, but until then, I believe "disability" is meant to incorporate worker's comp too.
Hi Hannah, thank you so much for your videos, they are awesome! I had a question about calculating my payroll costs...When I run a Payroll Summary in QuickBooks I show a Total Gross Pay for my 24 weeks to be $181,128 but my PPP loan was only $45,363...on the Chase Bank forms they seem to want my payroll costs for the period but you had mentioned in one of your videos to not put a number higher than your PPP loan...should I still just use my PPP loan amount as the amount I am asking to be forgiven? Thank you!
Under retirement contribution plan, Can retirement contribution for an S Corporation owner employee be included in PPP payroll cost? He is an employee and also an owner of S Corporation. Please clarify. Thank you so much.
If you have money left from the first loan ,and are eligible for the second loan ,do you need to spend the money you have left over from the first loan or return it back to apply for the second ppp?
Jimmy, have you hine back to see if you can claim any additional non-payroll costs and "spend" the money that way? You do have to have spent the money on eligible costs in order to qualify for a second loan.
@@ClaraCFO I can use the remaining money for payroll costs currently, but will that be forgiven? I only had a term of 8 weeks. I am eligible for a second loan and have had more than 25 percent loss in one or two quarters of 2020. With the money unused is that preventing me from getting a second ppp loan? I appreciate your help very much.
i applied PPP 1 from BlueVine, they told us not to apply for forgiveness yet due to SBA most recent guideline, Should I apply by myself using form 3508S (PPP is less than $10K) ? Thanks
You need to apply for forgiveness through your lender. They will open up their forgiveness process in time. Some lenders are still making changes to their sites to accommodate the 3508S new rules.
@@ClaraCFO Thank you, last time they send notice was January 8, 2021 No more update as of 2/10/2021. I also apply for PPP 2 with same lender, it went thru, thanks again
This amazing & elegantly beautiful Hannah, again with some awesome information, love it. Thank you so much! I have a question for you Hannah... I'm getting ready to implement a payroll service to our business (LLC) (In CA now but possibly moving to a non-state tax state in 3 months) & I have a total of 2 employees, (myself & helper). What payroll service do you recommend?
Hi Sergio - I have really been impressed with Gusto. Both before COVID and after COVID as they provided a lot of resources and support for PPP. They would be great if you were moving states too. They are "full service" for a DIY price. I like them a lot. Here's my code for $100 visa gift card if you do decide to sign up: gusto.com/r/hannah4653
This depends on what you applied for the loan with. If you used Line 7 or Line 31, you use that same number to help you calculate your owner compensation replacement.
ive not applied yet bc i dont know if it will be worth it since i do not plan on hiring more empls to reach my previous head count. can u go over the scenario if i, new self-empl & was at loss first yr 2019 and 2020 , & do not rehire more empls. i want to take unempl while busines takes ppp??? thank u for any explanation. Basically, i used to have 5 empl. & now i have 1. how will this affect me i do not hire any more empls as a s.m. llc & was at loss on schedule c? Thanks clara!! or anyone who can help please!:) !!~!!!?
@ClaraCFOGroup Thank You so much for helping us through the process, you are an Angel 👼 Do you know if this 2nd round is for just strictly Payroll Only?
I was only approved for a little less than payroll cost amount that I reported . Nothing to assist in business rent, business operations expenses, or PPE. It was a lot smaller that the 1st round.
Hey there thanks so much for all of your videos. I have like subscribe and share it with a few people. I would love to know if you could do a video explaining how to apply for forgiveness. And any stipulations or requirements to make sure the loan is forgiven. Thanks so much appreciate your time.
Can we include overtime pay for payroll cost?
yes!
I’m a Uber driver what about if I buy a new car no more than 40% of my Ppp loans be can that be considered as Utilities?
Good Morning, is their any available loan for small business right now?
PPP and EIDL loan programs are now closed. Traditional SBA loans are still available.
Thanks for yet another great video!!!
Thanks for watching!
If only w-2 wages are allowable payroll cost, how can cash and medical expenses be included? We are a LLC taxed as a C Corp. Our bus. reimburses employees for medical premiums etc. That was not included in our W-2's. QB prepared our w-2's. We always pay the reimbursement when we file our taxes, and the accountant helps to straighten it all out. Can you offer some advice please?
Cash stipends for employee Healthcare reimbursement are allowable costs. The tricky part for you will be showing the documentation..hopefully that shows on payroll reports?
@@ClaraCFO thank you for your reply. Yes, it will be on payroll reports. Being we are an LLC, taxed as a C Corp. I'm assuming we should check the LLC box on the PPP Loan application. I haven't been able to find an answer for that question anywhere. Our banker is acting like he may have to fill out the long form for us because of that. Thank you so much for your help.
Can workers comp expenses be included as a payroll cost for PPP forgiveness?
Disability insurance can be included as a payroll cost, so in my opinion, that includes worker's comp.
@@ClaraCFO thank you
I’m a truck driver with a LLC, so do I write a check from my business name to myself or a simple transfer from business account to personal checking account? Any maintenance will be under 40% rule correct?
Absolutely glowing today, keep it up!
🌟🌟🌟🌟
Thank you
I follow you on Tik Tok as well
Thank you!
Thank you for the helpful info. You mentioned Workers Comp premiums were eligible costs?
This is from ADP's website from 2/10/21:
NOTE: Loan proceeds may not be used to pay employer Social Security / Medicare or Federal
Unemployment taxes. The definition of payroll costs also excludes *workers compensation
premiums*, payments to independent contractors, and payments to employees for leave
covered under the Families First Coronavirus Response Act
I hope you're right!
Disability insurance has been included. I am unclear on any guidance from the SBA that specifically calls out Worker's Comp as being a dis-qualified disability insurance. I hope I am right too! We are reading between the lines on some of this!
@@ClaraCFO Logically, it should be. Thank you!
Thank you Hannah! You are a Godsend. 🙂🙂
You're so welcome! Glad this helped!
Brilliant!
Thank you Hannah for the very good information!
Thanks for watching!
If the SCorp owner is a W2 employee, is forgiveness capped at $20,833 or can that person be treated as any other employee?
As 1099 real estate agents, can we use 100% of PPP towards payroll?
Would 100% that money have to be spent within the 8 or 24 week period or can you use reminant funds after that time frame to offset payroll cost incurred within the 8 or 24 month time frame?
Is form 3508S (new) the appropriate form?
Lastly, Does FTE play a part in 1099 workers forgiveness?
Lots of qs so I'll accept any crumbs of knowledge you throw!
You are doing God's work and I appreciate your insights 🙏🏾
Hi Hannah, Is there a reason on why the sba has established federal employer taxes as not eligible payroll costs?
Hi, is the TRS (Teacher Retirement System) eligible for payroll cost?
Hi Hanna, can you clarify is it the state income tax or the state unemployment tax is included in the payroll costs?
State income tax paid by the EMPLOYEE is included in their gross wages, therefore included. But just include gross wages and dont add state income tax again. State unemployment paid by the employer is also included.
@@ClaraCFO Awesome! Thank you Hanna!
In your video you mention cash tips but do not mention credit card tips. What about those?
Any tips paid on payroll would be considered "cash tips" - even if the customer had originally paid in CC.
Hi Hannah. As a sole proprietor contractor can I claim my health, dental and life insurance premiums under allowable costs? If so; may I claim the whole thing?
No, you cannot if you have paid them for yourself, only if you paid them on behalf of an employee. Maybe watch this video too: ua-cam.com/video/7BAexnxuZ64/v-deo.html
@@ClaraCFO thank you for your response. You are the best :)
Hi Clara. My bank/Lender informed me that SBA isn't accepting forgiveness applications yet.. Is this correct? This is related to me wanting to begin forgiveness process.
Nope, that's not correct. Is that recent?
@@ClaraCFO yes I was told today by Benworth Capital
@@gregoryreveret4102 I'd the the annoying one and push back :) they should be accepting applications.. if they aren't, it is the bank, not the SBA.
Thank you Hannah 💜
@@ClaraCFO Hi Hannah. I called the SBA this morning and they seem to agree with my Lender that its too soon to apply for 2nd round PPP forgiveness. Really unsure haha.
Thank you for the informative video. Did the SBA provide a guidance regarding the inclusion of workers' compensation insurance as a form of disability insurance for PPP1 & PPP Second Draw payroll costs?
Hi Dan, I haven't seen any SBA guidance saying that worker's comp IS a disability cost, but from my research, "disability insurance" means worker's compensation as well. I have had clients include worker's compensation in their PPP applications for round 2 and have not had any issues. I would like the SBA to confirm it directly, but until then, I believe "disability" is meant to incorporate worker's comp too.
Sole Proprietor, Taxi Business: Can I pay my gas card with PPP funds???
The non-payroll cost video is coming out on Friday - watch for it!
Hi Hannah, thank you so much for your videos, they are awesome! I had a question about calculating my payroll costs...When I run a Payroll Summary in QuickBooks I show a Total Gross Pay for my 24 weeks to be $181,128 but my PPP loan was only $45,363...on the Chase Bank forms they seem to want my payroll costs for the period but you had mentioned in one of your videos to not put a number higher than your PPP loan...should I still just use my PPP loan amount as the amount I am asking to be forgiven? Thank you!
Thank you Hannah ❤️
You're and Angel 😇
Under retirement contribution plan, Can retirement contribution for an S Corporation owner employee be included in PPP payroll cost? He is an employee and also an owner of S Corporation. Please clarify. Thank you so much.
If you have money left from the first loan ,and are eligible for the second loan ,do you need to spend the money you have left over from the first loan or return it back to apply for the second ppp?
Jimmy, have you hine back to see if you can claim any additional non-payroll costs and "spend" the money that way? You do have to have spent the money on eligible costs in order to qualify for a second loan.
@@ClaraCFO I can use the remaining money for payroll costs currently, but will that be forgiven? I only had a term of 8 weeks. I am eligible for a second loan and have had more than 25 percent loss in one or two quarters of 2020. With the money unused is that preventing me from getting a second ppp loan? I appreciate your help very much.
@@jimmyl324 you can use the money over 24 weeks instead! That applies as an option for everyone!
If you want to book a call, I can talk you through this. Too much detail to advise over UA-cam comments 😅
@@ClaraCFO thanks so much . I will do so.
i applied PPP 1 from BlueVine, they told us not to apply for forgiveness yet due to SBA most recent guideline, Should I apply by myself using form 3508S (PPP is less than $10K) ? Thanks
You need to apply for forgiveness through your lender. They will open up their forgiveness process in time. Some lenders are still making changes to their sites to accommodate the 3508S new rules.
@@ClaraCFO
Thank you, last time they send notice was January 8, 2021 No more update as of 2/10/2021. I also apply for PPP 2 with same lender, it went thru, thanks again
This amazing & elegantly beautiful Hannah, again with some awesome information, love it. Thank you so much! I have a question for you Hannah... I'm getting ready to implement a payroll service to our business (LLC) (In CA now but possibly moving to a non-state tax state in 3 months) & I have a total of 2 employees, (myself & helper). What payroll service do you recommend?
Hi Sergio - I have really been impressed with Gusto. Both before COVID and after COVID as they provided a lot of resources and support for PPP. They would be great if you were moving states too. They are "full service" for a DIY price. I like them a lot. Here's my code for $100 visa gift card if you do decide to sign up: gusto.com/r/hannah4653
Which line of Schedule C would I enter cash compensation?
This depends on what you applied for the loan with. If you used Line 7 or Line 31, you use that same number to help you calculate your owner compensation replacement.
ive not applied yet bc i dont know if it will be worth it since i do not plan on hiring more empls to reach my previous head count. can u go over the scenario if i, new self-empl & was at loss first yr 2019 and 2020 , & do not rehire more empls. i want to take unempl while busines takes ppp??? thank u for any explanation.
Basically, i used to have 5 empl. & now i have 1. how will this affect me i do not hire any more empls as a s.m. llc & was at loss on schedule c? Thanks clara!! or anyone who can help please!:) !!~!!!?
@ClaraCFOGroup Thank You so much for helping us through the process, you are an Angel 👼 Do you know if this 2nd round is for just strictly Payroll Only?
I was only approved for a little less than payroll cost amount that I reported . Nothing to assist in business rent, business operations expenses, or PPE. It was a lot smaller that the 1st round.
@Clara CPO Group Yes this is the 2nd round.approval.
@Clara CPO Group At the minimum I was expecting $9,400- $9,900. That would at least cover payroll and some rent like the 1st Round.
Hi @ladyreign21 the responder is "Clara CPO Group" and a fake account. Please do not click on any links from them.
Hey there thanks so much for all of your videos. I have like subscribe and share it with a few people. I would love to know if you could do a video explaining how to apply for forgiveness. And any stipulations or requirements to make sure the loan is forgiven. Thanks so much appreciate your time.
An independent contractor who are getting unemployment , can apply for forgiveness of PPP loan ?
Yes - watch out for my video next week all about independent contractors/schedule C filers!