Apply For Ppp Loan Forgiveness Self Employed – On May 18, the SBA released an official form that must be completed to apply for PPP loan forgiveness, also known as SBA Form 3508. However, this is not the easiest form to fill out.
Note: If you are self-employed, you can save time applying for his PPP exemption using our new EZ form. Here’s how to complete the simplified SBA Form 3508EZ: For loans under $150,000, you can use the new Form 3508S.
Apply For Ppp Loan Forgiveness Self Employed
This guide will walk you through each section and show you exactly how to complete this form to forgive your debt.
Self Employed Should Do This For Ppp Loan To Be Forgiven
Enter the same company name that you used in your PPP application. This should be the same name you use on your tax return.
This is the E-tran number generated by SBA. Each company gets his E-tran number for each PPP loan. If you have multiple businesses and multiple PPP loans, you will have multiple E-tran numbers. If you don’t know where this number is, ask your lender.
The number assigned to the loan by the lender in the system. This can be verified on the signed loan document. If you can’t find one, your lender will provide it for you.
The full amount of the loan you received. You can find this amount on your banknote, PPP loan agreement, or confirmation email. Lenders may not charge fees or otherwise receive amounts.
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The date the funds were deposited into the bank account. You should be able to see this in your bank records or online banking portal. For installments, enter the first date.
Calculate the period up to 24 weeks (168 days) from the date of payment. If you received your PPP loan before June 5, 2020, you can use the 8-week (56-day) term. If the loan was received before December 27, 2020, the Covered Period cannot exceed December 31, 2020.
You can skip this page for now. To get the required number, you must complete Schedule A first. You can see this by starting with the Schedule A worksheet first.
Lists all employees on payroll during the covered period (or covered period for alternative payroll). Do not include non-U.S. residents, independent contractors, yourself, or your partners.
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We also exclude anyone whose annual income exceeded his $100,000 in 2019. These employees are listed in Table 2.
Calculate the average number of hours paid per week, divide by 40, and round to the nearest decimal. Maximum value 1.0. For simplicity, you might choose to use 1.0 for people who work more than 40 hours and 0.5 for everyone else.
Compare the employee’s salary during the compensation period (or alternative pay period) with the salary from January 1st to March 31st. Enter 0 if the salary decrease is less than 25%. Otherwise proceed to the next step.
If these conditions apply, the employee meets Safe Her Harbor’s requirements. Enter 0. Otherwise, proceed to the next step.
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If you have an employee who cannot be rehired, you can include her FTE for that employee here. Positions can be included if they are not filled by new employees and meet one of the following conditions:
Follow the same process as in Table 1, but consider only those employees with an annual rate greater than $100,000 for any pay period in 2019.
If all employees were paid at least 75% of their original salary (January 1st to March 31st), check the box and enter 0.
Enter the fee you will pay yourself and your partner. If you are self-employed, you can enter your employer’s compensation here. Partnerships (or where another individual is usually paid as owner) will include another table showing how the reward was paid (name and amount).
Ppp Loan Forgiveness For Businesses
If you meet any of the following three criteria, check the appropriate box to get Safe Harbor, skip lines 11 and her 12, and enter her 1.0 on line 13 increase.
Did not reduce the number of employees or average paid hours worked by employees between January 1 and the end of the covered period.
From February 15 through the end of the covered period, any government health agency (Secretary of Health and Human Services, Director of the Centers for Disease Control and Prevention, or Director of the Occupational Safety and Health Administration).
Refer back to the FTE Reduction Safe Harbor section of the Schedule A worksheet. If step 2 is less than step 1, complete lines 11, 12, and 13. Otherwise, if step 4 is greater than step 2, check the box and enter 1.0 in line 13. Otherwise, complete lines 11, 12, and 13.
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Seasonal employers can use any period from May 1, 2019 to September 15, 2019, or any consecutive 12-week period.
If you do not meet the FTE reduction waiver, divide line 12 by line 11 and enter the result. If the result is greater than 1.0, enter 1.0.
Enter the total business mortgage interest payments due before February 15, 2020. Prepayment is not allowed. You don’t have to report expenses that you don’t want to ask for forgiveness.
If the lease was in effect before February 15, 2020, enter the total rent or lease payments for your business. You don’t have to report any costs you don’t want to claim waivers for.
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Enter the total utility payment for businesses whose utility contract was in effect before February 15, 2020. You don’t have to report any costs you don’t want to claim waivers for.
Enter your total software, cloud computing, or other human resource and accounting needs (such as ). You don’t have to report expenses that you don’t want to ask for forgiveness.
Enter the total cost of public disturbance damage not covered by insurance in 2020. You don’t have to report expenses that you don’t want to ask for forgiveness.
Enter the total number of purchase orders or product orders placed prior to receiving a business-critical PPP loan. You don’t have to report expenses that you don’t want to ask for forgiveness.
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Beginning March 1, 2020, take personal protective equipment or harden your property to stay COVID compliant. You don’t have to report expenses that you don’t want to ask for forgiveness.
Line 10: Add the values from lines 1 to 8 and subtract the value entered in line 9
This is the initial amount of qualifying waiverable expenses that take into account the reduction for not meeting the 75% payment requirement, but does not yet take into account FTE requirements.
This is the final amount of eligible waiverable expenses after considering any reductions for not meeting FTE or payment requirements.
Self Employed Guide To The Ppp Forgiveness Application
This post is for informational purposes only and does not constitute legal, business or tax advice. Each person should consult their own attorney, business adviser, or tax advisor regarding the matters discussed in this post. No liability is assumed for any action taken based on the information contained herein.
Get expert-curated educational guides and resources every week to help you make the right decisions with confidence to grow your business. No Spam. Unsubscribe anytime. The Paycheck Protection Program (PPP) is a large part of the CARES stimulus package aimed at helping small businesses and nonprofits survive at the start of the pandemic. Although the program is full of administrative changes and nuances, it still generated 5.2 million loans totaling approximately $525 billion. The PPP aims to provide payroll support, and the SBA reports that the PPP has had a positive impact on his 51 million jobs. The big question is when to apply for forgiveness. Now, as my bank wants, or later?
The most pressing problem you face as a PPP borrower is ensuring that your loan is forgiven. For most applicants, her PPP loan is calculated using his 2.5 months of salary or self-employed income in 2019. Originally, the PPP loan proceeds had to be used by him within eight weeks of receiving the loan. That period he extended to 24 weeks. Received her PPP loan of $350,000 in March, waived the same amount of fees within 24 weeks, and 100% of her debt forgiven if she met the other rules (always have “other rules”) . Allowable expenses are labor costs (including the owner’s salary cap, well-paid staff, and some benefits), plus rent, utilities, and mortgage interest.
The deductible amount is tax-free. However, the IRS has ruled that expenses paid with the proceeds of his forgiven PPP loan cannot be deducted. So if your company gets a $350,000 PPP loan and uses it
A Simple Guide To Fill Out Your Ppp Forgiveness Application Form
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