- Can I apply for both PPP and Eidl?
- How do you calculate PPP forgiveness?
- Can an independent contractor with no employees apply for PPP?
- What documents do I need for PPP forgiveness?
- What expenses are eligible for PPP?
- Does phone count as utilities?
- Can I pay 1099 employees with PPP?
- Is cell phone considered a utility for PPP?
- Do employees have to be full time for PPP?
- How do I apply for PPP loan as an independent contractor?
- What does the IRS consider utilities?
- What can I use instead of a utility bill?
- What is full time equivalent for PPP?
- How are PPP loans calculated?
- Can you use PPP to pay yourself?
- What are included in utilities expense?
- Who is eligible for PPP loan forgiveness?
Can I apply for both PPP and Eidl?
Yes, you can apply for both.
But you can’t use the funds from both loan programs for the same purpose.
For the most updated and complete information, read the FAQs on the EIDL and FAQs on the PPP.
For more information, visit The SBA has a hotline to help answer questions 1-800-659-2955, 7 days a week from 7:00a..
How do you calculate PPP forgiveness?
PPP forgiveness calculationCalculate payroll and non-payroll costs. Line 1: Payroll costs. … Make adjustments for full-time equivalency* (FTE) and salary/hourly wage reductions. Line 5: Total salary/hourly wage reduction of more than 25% … Calculate potential forgiveness amounts. Line 8: Modified total (line 6 X line 7) … Arrive at the forgiveness amount.
Can an independent contractor with no employees apply for PPP?
For sole proprietors or independent contractors with no employees, the maximum possible PPP loan is therefore $20,833, and the entire amount is automatically eligible for forgiveness as owner compensation replacement.
What documents do I need for PPP forgiveness?
Documentation Needed for PPP Loan ForgivenessDocumentation verifying the number of employees on payroll and pay rates—including IRS payroll tax filings and state income, payroll, and unemployment insurance filings.Documentation verifying payments on covered mortgage obligations, lease obligations, and utilities.More items…•
What expenses are eligible for PPP?
What counts as a utilities expense? Business expenses on electricity, gas, water, transportation, telephone, or internet access are eligible uses of PPP funds and qualifies for forgiveness.
Does phone count as utilities?
Generally, utility expenses include electricity, gas, water/sewage and garbage disposal. Sometimes, other services such as internet, cable TV and phone services are considered to be additional utilities since they are now considered standard in most American households.
Can I pay 1099 employees with PPP?
No, 1099 employees should not be included in a small business’s payroll calculations for their PPP loans. 1099 employees are considered their own businesses under the PPP.
Is cell phone considered a utility for PPP?
UTILITIES. Utilities are the last qualified expense under the PPP program. … Similar to previous qualified expenses, it is important that these service contract agreements predate February 15, 2020. CWA Interpretation: For our clients, we feel that both office telephone lines and cell phones are qualified expenses.
Do employees have to be full time for PPP?
Q. Who is eligible for a PPP loan? … Congress authorized PPP loans up to $10 million for any business, nonprofit organization, veterans’ organization, or Tribal business that employs 500 or less employees. Full-time and part-time employees are counted for this purpose.
How do I apply for PPP loan as an independent contractor?
In order to apply for a PPP loan as a self-employed individual or independent contractor, you have to meet the following criteria:Must be in operation before February 15, 2020.Must have income from self-employment, sole proprietorship, or as an independent contractor.Must live in the United States.More items…•
What does the IRS consider utilities?
Housing and Utilities standards include mortgage or rent, property taxes, interest, insurance, maintenance, repairs, gas, electric, water, heating oil, garbage collection, residential telephone service, cell phone service, cable television, and Internet service.
What can I use instead of a utility bill?
Utility company billsGas bill.Electricity bill.Water bill.Cable company bill (but not from satellite TV companies)Landline telephone bill.
What is full time equivalent for PPP?
The Treasury defines a full-time employee as an employee who works 40 or more hours per week, so FTE is calculated on a scale of 1.0, with 1.0 being the equivalent of 40 hours per week.
How are PPP loans calculated?
PPP loans are calculated using the average monthly cost of the salaries of you and your employees. But if you’re a sole proprietor, your PPP loan will be calculated based on your business’ net profit. Your salary as an owner will be defined through the way your business is taxed.
Can you use PPP to pay yourself?
Anything SMBs pay above that threshold will be a loan that SMBs will need to repay. You can pay yourself back under certain conditions. Sole proprietors, pass-through corporations, and the self-employed may also use the PPP loan/grants to pay themselves their back, current, and future wages during the 8 week period.
What are included in utilities expense?
What is a Utilities Expense. A business utilities expense is a cost a business pays for using the infrastructure provided by public utilities companies, they can include electricity, natural gas, water, sewage, and telephone services.
Who is eligible for PPP loan forgiveness?
The loan will be fully forgiven if the funds are used for payroll costs, interest on mortgages, rent, and utilities (due to likely high subscription, at least 60% of the forgiven amount must have been used for payroll). PPP loans have an interest rate of 1%. Loans issued prior to June 5 have a maturity of 2 years.