Talking with TaxSpeaker (Video 105)
1. Client has spent PPP funds. Just applied for EIDL Grant this week as portal was just opened again. If/ when Grant is received does it still go on the PPP Forgiveness form since it wasn’t included in original PPP calculation?
2. PPP approved on 04/27, funds deposited on 05/01, payroll on 05/01 with DD $s pulled on 04/30 and manual checked paid on 05/01. Does this payroll qualify for the PPP?
3. Bob you mentioned that the EIDL Promissory Note was full of holes and you were not recommending your clients take the loan. I have clients that need the funds so I have 2 questions…Do you think the SBA will provide additional guidance in this area? Secondly, Do you plan on doing a short webinar like you did on PPP Forgiveness to address the issues?
4. If you opt for the 24 week period should the 2019 % in Excel worksheet "Step 8 owners cost" be changed to 24/52 for the 2019 salary calculation from the current amount of 8/52?
5. Are the Employee Cafeteria 125 Health plan deductions, subtracted from the Forgivable Compensation on the PPP Loan forgiveness application. In the manual you mentioned expenses not on the W-2, Cafeteria 125 deductions are not part of Box 1 Wages but they are on boxes 3 and 5. Just trying to clarify.
6. I have a question regarding the original loan amount - Client is self-employed and has employees - received a PPP loan for the Sch C Profit & the Payroll for employees in one loan application - The bank is accounting for this as 2 separate loans for the Loan forgiveness - is this correct or is it based on the total of the loan?
7. If you are self-employed and have a home office, Is the percentage of your home office utilities and mortgage interest includible as utilities and interest for purposes of the PPP loan forgiveness calculation or is 100% includable or none includible for that purpose?
8. For an S Corp single employee 1) With the change to 24 weeks does the owner shareholder max amount change from 8/52 to 24/52 of 2019 W-2 wage or Schedule C? 2) if you elect the 24 week period but go through the funds within 16 weeks can you apply for loan forgiveness earlier but use the 24 week election. Main concern is that these loan forgiveness applications will run right into our tax season 2021.
9. Do employer contributions to an ESOP qualify?
10. While I have heard Bob say he didn’t recommend EIDL’s to his clients, there are plenty of us who have clients who did apply and received EIDL’s. Given the limited (almost non-existent) availability of EIDL guidance in general, a TaxSpeaker course sometime in 2020 would be greatly appreciated.
11. Will the maximum forgivable payroll cost for a self-employed person using the 24 week covered period still be limited to $15,385 or 8/52 of 2019 net self-employment income?
12. Payroll period: client who pays some employees every other week, some monthly. I assume the client cannot use alternate dates.
13. If you have weekly & month pay is there a issue
14. Is an owner limited to $20,833 payroll forgiveness total? Or can an owner take $20,833 payroll from more than one company and still qualify for forgiveness?
15. Regarding the PPP loan forgiveness, is the limitation on owner employee pay and annual salaries exceeding $100,00 now increased to 24/52?