Talking with TaxSpeaker (Video 101)
1. I have clients who are making some of their independent contractors employees to help increase their payroll expenses and FTE headcount for the PPP forgiveness calculation. It seems bogus to me. What are your thoughts?
2. I attended your technology course two years ago, and you recommended Sharefile as a portal. I have been using it ever since - with no complaints. Why did you switch to filecenter dms?
3. I had a conversation today with a client regarding their PPP loan and forgiveness. The controller sent me a spreadsheet showing his calculation, week by week. He only had seven weeks from the date of receiving funds in late April 2020. I questioned why he didn’t show eight weeks. His answer, the bank said we only get seven weeks. Have you heard of this happening? I’m inclined to use eight weeks anyway. Your thoughts?
4. When a bonus is given to employees for working during stay-at-home order on top of the regular pay, is the bonus amount forgivable under the PPP loan program?
5. I heard that a client could not change entities with the PPP. I am concerned because i have a couple of LLC's who were formerly taxed as a sole prop that we were going to make the S election this year. (Actually--we didn't make the election yet, but we started treating him as an S by beginning giving him payroll in January. He stopped PR when Rona hit so he could keep his employees paid, but we were going to start up this month since he was PPP funded. I better be talking to him -- like now.... Could you help me with where to begin learning about this.
6. A Question on the deadline for the PPP Loan proceeds for forgiveness. We know that it must be used within the 8 weeks from funding. Banks are saying 60 days, I don’t trust them. But we thought there was also a deadline of 6/30/2020 for forgiveness. I can’t find that in the law. I’ve got a church with members “who know” and I need some ammunition to hopefully save them from a mistake and have the church owe loan proceeds that could have been forgivable if we had just listened to us. Stay safe. And thanks for 100 episodes. Hopefully we can see you in real life before episode 200.
7. I have a client in the construction industry that applied for the PPP back when it was first available, however, due to a banking error they did not receive the PPP until May. They continued to pay their employees based on their average weekly hours. Can those wages be considered for the ERC up to the point they received the PPP?
8. I’ve refrained from bugging you guys with this, but absolutely nobody else can seem to answer this. All the various organizations I belong to don’t know. A client of mine is self-employed. Doing great in business. I put him in an SCorp to help with taxes. Pays himself $100K in salary. Pays all the regular FICA taxes and such. Now he went out and got another job, and earns $200K at that job, on a W2. Pays all the necessary FICA taxes. He currently works at both, making $300K now. On his personal return, he gets a credit for the FICA taxes he personally paid. But on his SCorp, he matched those FICA taxes and there doesn’t seem to be a way to get them back. So my question is how can I relieve this? Or is it possible? A), is there a way on a payroll form (941) for the employer to get a credit for those taxes paid in? B), since he and I control his salary from the SCorp, can I simply not withhold either just the employer matching, or even the employee portion too, since we know he’s over the limit? If not, I’m doing him a disservice by being an Scorp, and perhaps he needs to just go back to a Single Member LLC and the SE/FICA taxes would be taken care of on his personal return. Maybe the SCorp issues him a 1099 instead of a W2 which would alleviate the problem too Any ideas?
9. Tongue firmly in cheek! We all know that contributions to higher education facilities in which the contributions that are connected with “Seating” availability for attending our favorite teams are no longer deductible. Usually a fairly substantial amount! In light of the current Covid-19 situation and “if” the fall 2020 games are restricted and played without anyone in the stands, do you see taking a position that “no value or rights” were given with these contributions making them now a general contribution to the athletic fund?
10. For purposes of the $100,000 limit on compensation for the PPP loan forgiveness - do SIMPLE IRA company match contributions count as compensation?
11. Have a client that runs two separate and distinct businesses in unrelated fields that obtained PPP Loans. Can an individual that is on the separate payrolls be paid more than the $15,384 in total and those Companies still be in compliance for the forgiveness of the loans. The $15,384 being the maximum payroll paid on each of the Companies.