- Can I give my employees a raise under PPP?
- Can I pay employees more with PPP?
- What if employees quit PPP?
- Can I terminate employees after PPP loan?
- What is full time employee for PPP?
- Can I get both Eidl and PPP?
- What if I made a mistake on my PPP application?
- Can employee refuse PPP?
- Can I refuse PPP and stay on unemployment?
- What is the last day to apply for PPP forgiveness?
- How much of PPP is forgiven?
- Can employees collect unemployment and PPP?
- Do you have to keep all employees for PPP?
- What does the PPP mean for employees?
- What if employee quits during PPP?
- How can I get my PPP loan forgiven?
- Can you apply for both Eidl and PPP?
Can I give my employees a raise under PPP?
A business owner could give employees raises or bonuses, but the forgiveness limit is a maximum of $100,000 per employee on an annualized basis.
Both houses of Congress have approved legislation that would extend the time that business owners have to use their PPP loans to 24 weeks, from 8 weeks..
Can I pay employees more with PPP?
Yes, you can hire additional employees during the 8-week covered period and any eligible payroll costs associated with them are eligible for forgiveness. 12) Must PPP loan proceeds be spent within the 8 weeks after receiving the funds?
What if employees quit PPP?
The Paycheck Protection Program Flexibility Act and exemptions to loan forgiveness reductions. … Now, business owners will not face loan forgiveness reductions if their employees voluntarily resign, don’t accept a good faith rehiring offer, or are fired/let go with cause.
Can I terminate employees after PPP loan?
With respect to the FTE/salary reduction events that will not reduce potential PPP loan forgiveness, including termination of employment either voluntarily (i.e., retirement) or involuntarily for cause, the SBA application requires that the employer maintain documentation of such terminations, but it does not require …
What is full time employee 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.
Can I get both Eidl and PPP?
The SBA has two loan programs to help small businesses impacted by COVID-19: Economic Injury Disaster Loans (EIDL) and the Paycheck Protection Program (PPP). If your business is eligible, you can get both loans, using the funds simultaneously, as long as the use of funds are not the same.
What if I made a mistake on my PPP application?
Guidance on PPP loans has been a whirlwind to say the least. … Basically you can go back to the bank and amend your PPP application to include the partners compensation and the bank will fund that additional amount.
Can employee refuse PPP?
It states: Question: Will a borrower’s PPP loan forgiveness amount (pursuant to section 1106 of the CARES Act and SBA’s implementing rules and guidance) be reduced if the borrower laid off an employee, offered to rehire the same employee, but the employee declined the offer? Answer: No.
Can I refuse PPP and stay on unemployment?
If your business receives a PPP loan and you make an offer to retain your employees, they will likely not be eligible for unemployment benefits. … This is one reason why your employees may possibly be upset if you get a loan to keep them on your payroll.
What is the last day to apply for PPP forgiveness?
Question: The PPP loan forgiveness application forms (3508, 3508EZ, and 3508S) display an expiration date of 10/31/2020 in the upper-right corner. Is October 31, 2020 the deadline for borrowers to apply for forgiveness? Answer: No.
How much of PPP is forgiven?
100%The best part of the Paycheck Protection Program is that 100% of the loan can be forgiven—if you meet certain criteria. Here’s our comprehensive guidance on setting yourself up for full loan forgiveness. Note: in order to get your loan forgiven, you’ll need to fill out a PPP Loan Forgiveness Application Form.
Can employees collect unemployment and PPP?
It’s possible to take advantage of both programs, but you cannot have both at the same time. If you are collecting unemployment benefits and also have a PPP you are claiming owner compensation replacement from, you should report your PPP loan as income to your state’s unemployment resource.
Do you have to keep all employees for PPP?
Your PPP loan amount is determined by your 2019 payroll numbers (or net profit numbers if you’re self-employed). So if you had three employees in 2019 who made $3,000 each month, you will need to keep those three employees on payroll at the same salary.
What does the PPP mean for employees?
Payment Protection ProgramAs part of the $2 trillion aid package unveiled in the Coronavirus Aid Relief & Economic Security (CARES) Act, $349 billion was dedicated to the Payment Protection Program (PPP). This offers federal guaranteed loans to businesses with fewer than 500 employees to cover payroll and other essential costs.
What if employee quits during PPP?
The short answer to the question is that a borrower’s PPP loan forgiveness will not be reduced if the borrower laid off an employee, and makes a written offer of re-employment to the employee which the employee refuses and which refusal is documented by the borrower.
How can I get my PPP loan forgiven?
How to get your PPP loan forgivenessUse it for eligible expenses.Keep your employee headcount up.Don’t reduce an employee’s wages by more than 25%Document everything.Talk with your lender.Apply for loan forgiveness.
Can you apply for both Eidl and PPP?
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.