What do you mean by owners are not included, many s-corp have applied to the PPP and many are 1-2 owners with no employees, and their application was accepted. Can you please clarify? I appreciate your answer.
Owner's compensation is allowed although it is reported separately and limited in the forgiveness application. Owner's forgivable pay is the lesser of actual pay in the 8 weeks, $15,385 (8 weeks of the $100k limit), or the 8 weeks equivalent of their 2019 wages.
Contrary to the video, the Covered Period begins ON the date of loan disbursement. The end date is 55 days later, for a total of 56 days. There is an example in the application instructions.
@@cassandrakj Correct. However, at the 5:20 point on the video it is incorrectly stated that the regular Covered Period starts on the day AFTER funds are deposited. It starts on the day OF deposit. May not seem significant, but could cost the person thousands of dollars if they got it wrong.
What do you mean by owners are not included, many s-corp have applied to the PPP and many are 1-2 owners with no employees, and their application was accepted. Can you please clarify? I appreciate your answer.
Owner's compensation is allowed although it is reported separately and limited in the forgiveness application. Owner's forgivable pay is the lesser of actual pay in the 8 weeks, $15,385 (8 weeks of the $100k limit), or the 8 weeks equivalent of their 2019 wages.
They are included but capped at lower of $100k or 2019 gross wages.
Contrary to the video, the Covered Period begins ON the date of loan disbursement. The end date is 55 days later, for a total of 56 days. There is an example in the application instructions.
There is an "alternative" covered period.
@@cassandrakj Correct. However, at the 5:20 point on the video it is incorrectly stated that the regular Covered Period starts on the day AFTER funds are deposited. It starts on the day OF deposit. May not seem significant, but could cost the person thousands of dollars if they got it wrong.
That is correct - the normal covered period begins on the date of disbursement. The speaker misspoke.
We apologize for the inaccurate information. The covered period starts on the day you receive the funds not the day after.