To get the PPP planning spreadsheet, get that here: clara-cfo-group-llc.ck.page/d5ef5d9b84
@GabrielRodriguez-um8fi
4 жыл бұрын
My business uses ADP for payroll. They are actually going to implement generator to generate reports for your PPP forgiveness application. I strongly recommend that you use it so you can submit to your bank.
@ClaraCFO
4 жыл бұрын
Yay!!
@patrikhertzog7385
4 жыл бұрын
Your videos are so helpful, thank you! As a sole proprietor I'd love to see a video explaining how the PPP 75% payroll requirement applies to my own pay, and how to document it for forgiveness. Keep up the great work and thanks again for the videos!
@ClaraCFO
4 жыл бұрын
It's coming! working on edits to the video - should be up on wed!
@mikedusenka3238
4 жыл бұрын
@@ClaraCFO Yes! I would love to see that for an S-Corp. Great info.
@ClaraCFO
4 жыл бұрын
@@mikedusenka3238 this one is based on an Scorp - HOWEVER, my spreadsheet has been updated a lot since this video. AND more guidance has come out. I wonder if I should do an update? kzitem.info/news/bejne/2JyYt6FsqaJ2npg
@Cowboybiglift
4 жыл бұрын
If I’m a sol prop can I just show bank statements for the money received, bank statements from feb 15 to now, check I wrote to my other bank account and bank statement that I deposited the check into my account for pay roll?
@lab325
4 жыл бұрын
Same for me. I am a sole proprietor. Before the pandemic, my clients' payments were deposited into my bank account (as one would with any paycheck) and used the money partially for my business but mostly to live. How do I calculate what I should pay myself on a weekly basis? Thank you for your clear, concise, and relevant videos. So helpful!
@madebymetaylor6173
3 жыл бұрын
Hello can you tell me if this includes your personal bills and personal rent payments or does it have to be from commercial business rent and utilities? Which one?
@jennifersarku23
3 жыл бұрын
Thank you for the Explanation
@ClaraCFO
3 жыл бұрын
Glad it was helpful!
@BimmerBabe
4 жыл бұрын
Thank you. I'm an entry level bookkeeper and needed this run down
@ClaraCFO
4 жыл бұрын
🙏
@michelemibelle
4 жыл бұрын
Why must we stumble upon a Video and the banks are not providing this information? Fascinating.
@taylormaidbeatrcetaylor1265
3 жыл бұрын
I’m so confused now! I thought I got it! Listening to some to others youtubers videos they say different?? Help!
@michelemibelle
4 жыл бұрын
I am a sole proprietor.... I got roughly $2,500.... I was under the impression that that money would have to be allocated over at 8 weeks span of time. So I took the 2500 and divided it over 2 months. I took the 1250 for my first four week., and of the $1,250 I paid myself my paycheck, 75% of the $1,250. The small remainder of that Monies, I allocated toward utility bills. The rest of the money is sitting in my account, waiting for my second for week. Which will be around the first week of June. I'm just starting to listen to your video and I'm so afraid I'm going to hear you say is that I did this incorrectly. But what I find so baffling is that the banks are not sending us any documentation on how to spend down the money.
@christopherschaffer8434
4 жыл бұрын
How would a Schedule C self-employed individual "prove" that they paid themselves the PPP funds?
@ClaraCFO
4 жыл бұрын
This is my next video!
@scottmassey4330
4 жыл бұрын
Christopher Schaffer ... see my answer below in reply to question from Carolyn Simmons.
@manictiger
4 жыл бұрын
Vid's up now.
@ll3731
4 жыл бұрын
The PPP Loan Forgiveness Application is now available! Finally! A couple of issues I have seen so far. FTE is based on 40 hours per week. That is good. The big problem for me is that it does not look like there is any rounding down for part-time employees. "Average FTE: For each employee, enter the average number of hours paid per week, divide by 40, and ROUND TO THE NEAREST TENTH". (The caps were added by me!) Hannah, what do you think about that? It makes a big difference in my situation. I was counting on the rounding down. Can you check it and give your opinion? Thanks so much!
@ClaraCFO
4 жыл бұрын
Im definitely recording new videos on the application this weekend!
@mxaguila
4 жыл бұрын
Question: Do you highly recommend opening a new checking account, moving the funds there, and then paying all appropriate expenses from that account? How much should I go out of my way to do this? It seems a little difficult to open a new account at another institution given that many branches are closed. Should I try to open a second one with our current bank (Chase)? I mostly want to understand how the lender will look at your revenue/sales and loan money. Given all the other general business expenses, how do they determine exactly what source of money was used to pay that expense? If your revenue coming in is in the same operating checking account as your PPP loan funds, how do to they pinpoint and say “this expense was paid with this money and that expense was paid with this other money? Thank you!
@ClaraCFO
4 жыл бұрын
although it's not a bad idea to have a separate account, it's not required. The bigger issue is that you keep receipts and document all your expenses. You are right, there's no way to say that THIS dollar paid THIS expense unless you had absolutely no other inflows-outflows of cash in the time period (unrealistic) - but ultimately, you need to prove that you spent money in the proper time period.
@mrjp2149
4 жыл бұрын
@@ClaraCFO This is an issue I think many of us will have to deal with. As businesses start receiving normal income from the products/services we sell, who's to determine which source of income paid for what expenses? Even with having our funds appropriately categorized, per its revenue source, and having our expenses clearly documented, i.e. payroll=PPP, insurance=PPP, rent=PPP, interest=PPP, Supplies=Income, Materials=Income, Tools for Job=Income, and so on, I'm curious if taking in other revenues will have a negative impact of the forgiveness of the PPP. Sorry, I realize that was a run-on sentence, I was having difficulties putting my thoughts into text.
@vivianmadisonmahoney9457
4 жыл бұрын
@@mrjp2149 Excellent question, wish I knew the answer too. Actually to most of these questions.
@TopTop-rw2dw
4 жыл бұрын
Thank you for the video. Very useful! I have couple questions. 1. As a realtor working under a real estate firm and getting 1099-MISC, when I take money from PPP loan proceeds to pay myself, is it considered payroll (part of 75% forgiveness)? 2. If I work 90% from my home office, are my mortgage interest payment, utility bills, cell phone fee, internet fee considered utility payments which is part of 25% forgiveness? I can't find answers for my questions anywhere. Please help. Thank you very much.
@ClaraCFO
4 жыл бұрын
Hi there! these questions are answered in the video here: kzitem.info/news/bejne/yJ5v33aucIOWdII
@BledsoeConsultingServices
4 жыл бұрын
Great video, Hannah! Thanks for explaining this so well!
@sunrayvideosd
4 жыл бұрын
What documentation do you use to prove you paid yourself for those who are self-employed schedule C?
@allisonlocascio5443
4 жыл бұрын
I noticed you did not mention the transportation part of the non-payroll 25% - any suggestions? I've read an interpretation of "anything needed to get product to the customer". We are a small HVAC company with several vehicles, can we count fuel and repairs/maintenance? Also, can we hire an additional FTE during this time? I know their are lots of rules around decreasing. You have been SOOOO helpful, thank-you!
@ClaraCFO
4 жыл бұрын
sorry - i thought i answered this. From interim rule 2: business utility payments (e.g., the cost of electricity in the warehouse you rent or gas you use driving your business vehicle) home.treasury.gov/system/files/136/Interim-Final-Rule-Additional-Eligibility-Criteria-and-Requirements-for-Certain-Pledges-of-Loans.pdf
@cruisen6725
4 жыл бұрын
Becareful Business Owners. Am a Independent contractor, Sole proprietorship since 2015. I believe they will not forgive most of these "forgiveable loans". Remember the Forgiveable student loans that are not being forgiven. Also if it was a grant why would they need to run your credit. Sounds like a loan.
@ClaraCFO
4 жыл бұрын
It is a personal decision to take this money.There's certainly no guarantee of forgiveness, but following the rules will help maximize the forgiveness amounts.
@mahinaiki
4 жыл бұрын
Thank you for this!!! Clarified a lot. It’s so confusing!!!
@danielt3613
4 жыл бұрын
Nice video! I've sent the link to the clients in my practice! Thanks!!!
@ClaraCFO
4 жыл бұрын
Thanks Daniel! 🙌
@heatherbesignano8177
4 жыл бұрын
Does Spectrum internet and cable for my office count as a "utility bill" or does this only apply to things such as water, gas, electricity?
@ClaraCFO
4 жыл бұрын
Internet is included, but I believe Cable is not.
@heatherbesignano8177
4 жыл бұрын
@@ClaraCFO thank you!
@kam7056
4 жыл бұрын
Thank you for the thorough explanations. Can you please explain the best way to account for paying yourself “Schedule C”. Do I have to actually move money to my personal account or can I keep it in the business? Take care
@ClaraCFO
4 жыл бұрын
kzitem.info/news/bejne/yJ5v33aucIOWdII
@yopappy891
4 жыл бұрын
Clara, you are awesome. Thank you for your detailed explanations.
@ClaraCFO
4 жыл бұрын
🙏 thanks!
@draculadracula2414
4 жыл бұрын
Yes please let us know how we going to pay ourselves as self employee? Thank you
@ClaraCFO
4 жыл бұрын
It's coming! working on edits to the video - should be up on wed!
@francespeterson1926
4 жыл бұрын
Are general liability and workers compensation insurance considered part of your payroll costs in order to be forgiven? Also fuel for our vehicles? We are a construction company.
@ClaraCFO
4 жыл бұрын
No to both GL and workers comp (per guidance so far). I have seen fuel in work vehicles be included as a utility (in one of the interim rules).
@meganbrill8837
4 жыл бұрын
what is considered a Utility. I see below Internet is a covered expense. What about offce phones, Or cell phones
@camibrantley5471
4 жыл бұрын
I have the same exact question regarding utilities. Also, some CPAs say cable is covered.
@draculadracula2414
4 жыл бұрын
Thank you
@ClaraCFO
4 жыл бұрын
thanks for watching!
@tigerlilly8848
4 жыл бұрын
For the 75% payroll portion, can an employer payout employees in 1 large sum, so long as the sum equals what the employee would have made over 8 weeks?
@ClaraCFO
4 жыл бұрын
I don't see why that would be a problem!
@dellacal
4 жыл бұрын
Insurance payments as well? Correct?
@ClaraCFO
4 жыл бұрын
Not liability or workers comp. Only health insurance in a group health program, but not for owners of a schedule C.
@amymckechnie8425
4 жыл бұрын
Thank you very much. What counts as utilities? Would a cell phone plan count?
@ClaraCFO
4 жыл бұрын
sba hasn't gotten with the times. land lines are included, so far....cell phones aren't :( watch my FAQ video here: kzitem.info/news/bejne/lqZ824yunpuSa3o
@donnajd1
4 жыл бұрын
I received the PPP using the 2019 1096 for my company. My workers are all contractors. My salary has been $0 since last fall, just to ensure the business stayed open & paid all bills. Since the bank issued the loan/grant using the 1096 record, what will they do to “grant” out the contractor expenses?
@peppywood01
4 жыл бұрын
Thank for the information! Is the employee/employer simple IRA payments a PPP deduction?
@ClaraCFO
4 жыл бұрын
Depends on the tax structure. Employer retirement contributions for employees are always deductible. However, for sole props, the owner's retirement contribution cannot be included.
@gregdebacker3569
4 жыл бұрын
The building is not owned by the corporation, but one of the stock holders. Rent is paid to the stock holder. Can that be part of the 25%?
@ClaraCFO
4 жыл бұрын
Are rent payments normally a business expense and a lease is in place?
@teresaoliveira935
4 жыл бұрын
Hello! Thank you for the explanation it was very informative!! I was wondering if I’m self employed and need to pay myself with some of the PPP loan, how does that work? How would I prove it?
@ClaraCFO
4 жыл бұрын
kzitem.info/news/bejne/yJ5v33aucIOWdII
@BledsoeConsultingServices
4 жыл бұрын
Thanks for the heads up about this!
@ClaraCFO
4 жыл бұрын
Thanks for watching! 🤗
@susanvalot5197
4 жыл бұрын
Definitely helpful. Is there a video where you go over the actual forgiveness form for sole proprietors? I've seen the one where you do the worksheet, but the form itself is confusing.
@danyalali9352
4 жыл бұрын
Clara cfo group. So no need to creat new account. It’s fine to keep money in existing account and just do all documentation you explained right ???? Thanks
@ClaraCFO
4 жыл бұрын
Yes! This depends on your personal accounting abilities too. Some people just want the ease of seeing the money in a separate account.
@danyalali9352
4 жыл бұрын
@@ClaraCFO ok thank you alot for your time!
@cynthias7757
4 жыл бұрын
Thank you and "Happy Documenting" to you too! 😄
@ClaraCFO
4 жыл бұрын
:)
@wyomingmade6381
4 жыл бұрын
What about Proving Self Employment Income like on line 31 on Schedule C
@ClaraCFO
4 жыл бұрын
kzitem.info/news/bejne/yJ5v33aucIOWdII
@LRob65
4 жыл бұрын
If I do use a separate bank account, I would then transfer money from that account to my operating account as qualifying money is spent is that right? Example, my payroll expense comes out of my operating account, let’s say it’s $4,000. And my utilities comes out of my operating account, let’s say $500. So at the end of the week would I transfer $4500 from my ppp account to my operating account? And the second question is, should I make this two separate transactions to tie things together better ... such as should I have a transfer for $4k and another for $500? Or can I transfer the $4500 in one transaction? Thanks!
@ClaraCFO
4 жыл бұрын
are you a sole prop? If so watch out for the video on this on Wednesday!
@juliemiller4122
3 жыл бұрын
I am a sole proprietor and don't ever "bill myself". Should I prepare an invoice from me (my name) to my business, then pay that invoice from my business account to my personal account. Should I do that twice, one for each month in the 8 wk period? Also, how do I apply for forgiveness? Thank you! Your videos are great.
@miguelmagallmm
4 жыл бұрын
Why you need to gather all documents since February if the loan was approved in may 2020. Can you explain?
@ClaraCFO
4 жыл бұрын
To prove that the liability was in place as of 2/15/2020. If you have something else to prove that, grab it!
@sergiogutierrez6091
4 жыл бұрын
What about self employed “payroll “ paying myself
@ClaraCFO
4 жыл бұрын
kzitem.info/news/bejne/yJ5v33aucIOWdII
@liviiiel9380
4 жыл бұрын
I run my business as S Corp, 100% shareholder. I have 10 employees on payroll including myself. I’m the only full time the rest is part time. Since I only have 1 employee and myself working since the pandemic. Is paying myself full time be covered under the PPP forgiveness? Thanks.
@ClaraCFO
4 жыл бұрын
You will need to look at your FTE calculation as you will likely have to reduce your forgiveness amount. Make sure you watch this one: kzitem.info/news/bejne/zYCYvGmbn5ekpn4
@rayannacole-dombroski7515
4 жыл бұрын
Thank you so much for the assistance! I appreciate the information. Question: My PPP was funded today. I have utility bills due this month. Some bill for usage, last month, and some bill for future use, next month. Can I use PPP funds for bills due this month, but service could have been for last month? How does that work and what if the dates don't exactly fit within the 8 weeks from today?
@ClaraCFO
4 жыл бұрын
I am including this Q in an upcoming FAQ video. It's a common Q!
@rayannacole-dombroski7515
4 жыл бұрын
@@ClaraCFO Thank you!
@CHINWE021706
4 жыл бұрын
@@ClaraCFO Can't wait for this FAQ video....I have a similar question
@cleanings1
4 жыл бұрын
three questions, does the ppp forgiveness , (1) cover workmans comp and general liablity coverage for employees, (2) what if you have 25 part time employees and no full time employees (3) and what if your a business who has lost some business and still have some income coming in how does that work , thankyou for your response
@ClaraCFO
4 жыл бұрын
workers comp question answered in a new video coming out today (afternoon).
@MetalBum
4 жыл бұрын
Shawn Jones so did you figure it out
@salier4184
4 жыл бұрын
Thank you so much for your videos on the PPP loan! Would you please explain how an single person that is either and independent contractor or a sole proprietor could document payroll for themselves? We don't have "a payroll" so do you suggest writing a check to oneself during that 8 week period? Also, I normally only make a one-time contribution to my retirement (SEP IRA) so can one large lump sum be taken out for that? Thank you for all you do for us!
@ClaraCFO
4 жыл бұрын
It's coming! working on edits to the video - should be up on wed!
@jkxiao4983
4 жыл бұрын
Hi is great to see you again in this video. my Bank still not proof for my ppp yet hopefully i can get it sooner, but my question for you is do you suggestion are butter we can open a different business account in the some bank but the new account for PPP loan use only to proof of obligation to pay is a good idea .
@ClaraCFO
4 жыл бұрын
Thanks for watching! Here's hoping you get your PPP funds 🙏 Although it's not a bad idea to have a separate account, it's not required. The bigger issue is that you keep receipts and document all your expenses.
@3MITRY
4 жыл бұрын
What about independent contractor? How do you do this?
@ClaraCFO
4 жыл бұрын
Here ya go! kzitem.info/news/bejne/yJ5v33aucIOWdII
@lubnasamara395
4 жыл бұрын
You are amazing
@ClaraCFO
4 жыл бұрын
🙏
@lubnasamara395
4 жыл бұрын
Clara CFO Group please keep making those beautiful videos we learned a lot from it
@carolynsimmons6541
4 жыл бұрын
I have received approval on a small PPP loan as an independent contractor. I do contract work for schools (teacher training) and the money is only to replace income. I will be depositing the loan in a separate bank account. The only thing I will be using it for is to replace income I will not receive because the trainings have been cancelled. So, once the money is in the bank, can I just write myself a check? Do I have to do it gradually over the 8 weeks, or can I do it in 1-3 chunks? Then what kind of documentation do I need? Once it's income to me, can't I use it for anything I want like I normally do? I have read and read and can't find any information that applies to my situation, nor can I find the application I'm supposed to use to apply for loan forgiveness. Any help you can give me will be appreciated!
@scottmassey4330
4 жыл бұрын
Carolyn Simmons hmm, will try to be nice, but you are totally off. Since you are an Independent contractor, your forgiveness piece for “ payroll” will be based on your 2019 Sch C. And it will be the net income on the Sch C x .15385. (Fraction 8/52) But you can also use costs incurred and paid in the 8 week period after the loan for rent, utilities and mortgage interest on biz debt. That is capped at 25% of the loan. That’s it. BTW, no need to take it out, it’s all ready yours. Good luck.
@ClaraCFO
4 жыл бұрын
Hi Carolyn - watch for my video on Forgiveness for Sole Props coming out on Wednesday!
@carolynsimmons6541
4 жыл бұрын
@@scottmassey4330 Thanks so much, Scott. This is the first I've seen this and it makes sense. I've read so much, but your reply was clear and makes sense. And I thought it was nice because it was clear and easy to understand.
@scottmassey4330
4 жыл бұрын
Clara CFO Group ...look forward to that. Very interesting. I guess you will conclude if I’m right or wrong....
@truthhurts5714
4 жыл бұрын
Hey Scott Sorry to bother you but just to be clear, so I don’t have to write out a check, withdraw money or nothing for my payroll if I’m self employed? how about for my expenses would I write a check out for those as usual? Thank you in advance for your help
@studioindustria
4 жыл бұрын
videos very helpful, thanks. Do you have any guidance on increasing salary (hazard pay) bonus etc. mostly to maximize PPP payroll costs.
@커피빈-w5r
4 жыл бұрын
Can you tell the date of expense we can count on the expenses of forgiveness? Our loan doc they signed on 5/2 We were informed and signed the loan doc on 5/7 Our finding date 5/9. Our first payroll date after funding is 5/9 Our rent for May due is 1st but we didn't pay yet. Can judge the expense based on paid date or due date? And also which date is start count the 8weeks?
@ClaraCFO
4 жыл бұрын
Check out this video: kzitem.info/news/bejne/yJ5v33aucIOWdII
@alexwong1686
4 жыл бұрын
What is your take on having an expense forgiven if you have a credit to lower the bill? We pay 5% for employer contribution to retirement for our employees, but we received a credit because an employee who wasn't fully vested forfeited the balance. So although the expense is $10,000, we only paid $7,000 because $3,000 was the unvested balance that was credited to the bill. Is our forgivable amount $10,000 or $7,000?
@ClaraCFO
4 жыл бұрын
Could you use the credit in the future after the covered period? This is a nuance that is definitely not specified anywhere. I'd assume the $10k could be allowable it if is legitimate current expense in the period. Not sure though!
@alexwong1686
4 жыл бұрын
@@ClaraCFO Thanks, unfortunately it gets applied automatically. Guess we'll have to wait to see if there will be guidance on that.
@dixon4855
4 жыл бұрын
Thank you! This is very helpful :)
@ClaraCFO
4 жыл бұрын
So glad!
@tylerterry9915
4 жыл бұрын
Great video! Quick question; do you have to file your 2019 schedule C in order to apply for forgiveness? I usually wait to file in October. Thank you!
@ClaraCFO
4 жыл бұрын
This would be a question for your bank! I would get it filed and recommend that people do.
@JOSEMARTINEZ-gv7ms
4 жыл бұрын
Can 100% be used on payroll? Also what about company vehicle monthly payments?
@ClaraCFO
4 жыл бұрын
yes to payroll being used 100% - the interest on your vehicle loans is allowable.
@JOSEMARTINEZ-gv7ms
4 жыл бұрын
Than you so much
@meganbrill8837
4 жыл бұрын
@@ClaraCFO i thought it was 75% when did that change?
@debbehill7657
4 жыл бұрын
How is payroll payment as an independent contractor verified? Can I just write a check to me?
@draculadracula2414
4 жыл бұрын
Debbe Hill thank you Debbie good question! 🤔
@mrjp2149
4 жыл бұрын
www.irs.gov/businesses/small-businesses-self-employed/self-employed-individuals-tax-center This is where you will find the information you need.
@draculadracula2414
4 жыл бұрын
Mr JP sure, can you be more specific?
@mrjp2149
4 жыл бұрын
@@draculadracula2414 assuming you are already an independent contractor who has been in business and applied for the PPP. Assuming you received the funds and you are now wondering how you pay yourself. You would pay yourself exactly as you have prior to receiving the PPP. You would file all your taxes just as you always have. The way you pay yourself as an independent contractor does not change. I'm not an independent contractor, though I have 35 employees. We perform payroll just as we always have, except for where we show the funds coming from. Printing /writing the check does not change. However, there are restrictions to anyone making over $100k annually. I have several employees in this category and I cannot exceed paying them from the PPP funds more than roughly $1900 per. I'm offseting their remaining payroll another way. The same applies to independent contractors, you cannot exceed $100k which you would have factored on the application. The figures you provided to receive these funds is what you want to maintain. Do everything you use to but have excellent tracking and poof just like this video emphasize. Hope this helps.
@scottmassey4330
4 жыл бұрын
dennis latay see my answer below, to the question posed by Carolyn Simmons. Explained there.
@furslave53115
4 жыл бұрын
I run a bar for an American Legion . Utilities are covered which I. Understand but I am questioning Internet which is supplied by cable vendor who furnishes the Internet, VoIP which is my telephone expense and the third is CableTv can I submit Cable Tv as an accepted Utility Expense.
@jimwaxer8166
4 жыл бұрын
Are retirement plan expenses part of the forgiveness? If so, are they pro-rated? Say for simplicity there are 5 employees and they each make $100,000 and get 3% for profit sharing. The total the company puts in then is $15,000. The company writes a check during this 8 week period for $15,000. Would the calculation for the forgiveness be $15000 or would it pro-rated and be $15000/52 *8 = $2307 for forgiveness?
@ClaraCFO
4 жыл бұрын
Would this be an accrued expense? It's unclear if accrued expenses can be included.
@jimwaxer8166
4 жыл бұрын
@@ClaraCFO I am not sure the definition of accrued expenses to be honest. I know we have to make the employer matching contribution for 2019 before we file our taxes for 2019. I believe retirement plan expense was included as payroll to determine the size of loan. Are retirement plan expenses part of payroll for forgiveness? And how are they calculated for forgiveness?
@philt1771
4 жыл бұрын
My head is spinning, it's so complicated. Do I need to apply for ppp loan forgiveness, can I simply treat it as a 1% loan and pay it off completely?
@zm3234
3 жыл бұрын
for sole prioreter can i show my home utility bill
@VTWINWILLY
4 жыл бұрын
Great video clear information. For Insurance and interest payments I'm not sure why my bank statements wouldn't serve as Proof of Payment? As an LLC (taxed as an s_Corp) I assume my 941 filings and supporting bank statements will cover me for the payroll portion. . . yes?
@xpez9694
4 жыл бұрын
If you have PPP funds self employed and my only employee is myself. How do I pay myself in accordance with PPP forgiveness compliance? Can I just make a cashiers check from the funds and pay myself monthly as a contractor? Or can I just make a transfer from PPP funds in savings account to personal checking account and assign the deposit as a payment? I am trying to minimize costs so if I can do this without spending money on a payroll service would be best. Thank you
@juggernaut3065
4 жыл бұрын
Are you speaking about after you get the loan you have to show how it's being used. Example, are establishment has been been closed since the lock down, so does the money have to show that we are using the money to pay those bills accrued from the lock down as well as employees payroll that you intend to pay in order to get the loan forgiven after we reopen? . Another question is what if you pay your employees in cash is that a problem or can you start paying them with a w-2 after we received the money? Thank you very much.
@danaranda4249
4 жыл бұрын
If we don’t use the entire amount of the PPP loan received on expenses and return the unused portion, is the 75% for payroll calculated on amount originally received (before the return of unused funds) or on the amount actually used (after the return of unused funds)?
@robertjaques6181
4 жыл бұрын
I’m a self employed sub contractor and don’t have a payroll. I usually just transfer from business to personal. I will only use ppp for that. None of it will be used for utilities or rent. How can I prove I paid myself to get that forgiven? Thank you for the response on the other comment!
@vivianmadisonmahoney9457
4 жыл бұрын
I have same question... please?
@lorrietimberlake7721
4 жыл бұрын
Great video as always! We have a dedicated bank account for our PPP loan funds. We weren't clear about forgiveness at first so we couldn't spend any money out of it for a couple of weeks. Once we understood, I did, however, make "exact amount" transfers to our other accounts for reimbursement for each bill, payroll, etc. out of it. Do you think that even though the transactions are only transfers, that that account's statement will be enough, when paired with the bills and payment receipts, payroll summaries, etc? I'm hoping to only have to provide statements for that account. Thanks for the Jan-Jun documenting tip. We had just been saving the actual bills paid and their documentation, etc. The question below was similar but he was a sole proprietor and we are not.
@ClaraCFO
4 жыл бұрын
I think so! This is how I am doing it for some clients. I am working on an "accounting for PPP" video soon.
@lorrietimberlake7721
4 жыл бұрын
@@ClaraCFO Thanks Hannah
@lorrietimberlake7721
4 жыл бұрын
@@ClaraCFO Looking forward to that Accounting for PPP video. I'm already accounting but would love to hear your take. :)
@Jack-Surreal_Panes
4 жыл бұрын
So, if using QB, should we add, maybe different expense items like PPP-rent, PPP this that or the other, etc. Our PPP funds are combined into a new acct at the bank, our Sole-P and S corp were done together. We will be paying payroll out of this acct for both businesses and portions of the 25% will assist in utilities, rent, card readers, ins, online server, etc... The 25% will only cover a portion of the costs for 2 months period so guess we need to track like a split payment 50% from the business accts and the other 50% from the PPP acct.
@ClaraCFO
4 жыл бұрын
Jack - I am working on an accounting for the PPP video. Stay tuned!
@milceaguilar-fredhiconsult1167
4 жыл бұрын
Hello! I'm a Single Member LLC, but I do have a bookkeeper on 1099 that helps me regularly. Would her monthly pay be considered for loan forgiveness? Thank you!!!
@ClaraCFO
4 жыл бұрын
No. 1099 are not employees!
@milceaguilar-fredhiconsult1167
4 жыл бұрын
@@ClaraCFO Thank you!
@norajkramer
4 жыл бұрын
I am an LLC that files as an S-Corp. I have one employee - myself. The PPP funds were deposited into my regular business checking account, which doesn’t have a ton of activity. I normally electronically transfer money from that bank account to my personal bank account (same bank), when I pay myself, which is monthly. Am I right to assume that it would be best to write myself a physical check for the next two months instead, as proof that I have used the funds for payroll? I have always been on a monthly check for my payroll. I am assuming the pay period doesn’t have to be weekly or bi-weekly, correct? Since I have a home office (exclusively for business), I believe payroll is going to be my only qualified expense. Am I correct on that?
@ClaraCFO
4 жыл бұрын
Scorps should be paying owners on payroll.
@norajkramer
4 жыл бұрын
i’m not sure my question translated properly. I AM on payroll and my 941s for years have reflected that. What I am saying is I electronically transfer MY payroll from my business account to my personal account monthly. Is it better to just write a paper check for documentation during this period?
@jharristhetruth21
4 жыл бұрын
Great info!!! Thanks!
@ClaraCFO
4 жыл бұрын
🙌
@inderpalgarcha5634
4 жыл бұрын
If I have questions how to ask you thanks very informative thanks
@ClaraCFO
4 жыл бұрын
1:1 time can be booked here: Claracfo.as.me/QuickFireClarity
@zorymory
4 жыл бұрын
Great video! I'm self employed and i don't do payroll for myself, how will I show that I paid myself with the PPP?
@ClaraCFO
4 жыл бұрын
Check out Min 5!
@AkramKhan-fk3ye
4 жыл бұрын
How I show owners comp money expense please and thanks for making those videos with beautiful smile
@molp1974
4 жыл бұрын
Does Spectum bundle(cable,phone and internet) count as a utility?
@ClaraCFO
4 жыл бұрын
Not clear on bundles! Cable is probably not allowable. Is this a home bundle? Or business? Personal utilities are not allowed.
@molp1974
4 жыл бұрын
@@ClaraCFO Thank you addressing my question. This is for a business (restaurant) and Internet, phone, And cable are all tied together under one bill statement.
@ruslan0824
4 жыл бұрын
Great video. I just wondering if ppp loan is going to be helpful for a trucking company? It’s just me and my wife in the company..
@tonychavez3442
4 жыл бұрын
How would I be able to provide proof of payroll for myself as an Independent contractor? I am guessing a check from where the funds where deposited. thank you
@ClaraCFO
4 жыл бұрын
kzitem.info/news/bejne/yJ5v33aucIOWdII You just need your schedule C
@CHINWE021706
4 жыл бұрын
Thanks for your videos....super helpful....two questions. (1). C corporation with a company leased vehicle used to perform work responsibilities....the lease contract dates back to Feb 2018...can the PPP funds be used to make 2 lease payments for the vehicle during the 8 week covered period. (2). Payroll is due on April 16 and PPP funds were received on April 15, can the PPP funds be used towards the April 16 payroll even though the work was performed prior to receipt of the funds since the payroll payment posted to the business entity's bank account the day after receipt of funds and after the 8 weeks clock has started running. Thanks in advance.
@taylormaidbeatrcetaylor1265
3 жыл бұрын
I don’t have employees does that matter can’t I pay myself.
@deniseb6215
4 жыл бұрын
Can you do this for sole proprietor
@ClaraCFO
4 жыл бұрын
Denise - watch for my video on Forgiveness for Sole Props coming out on Wednesday!
@cindyvansickle6571
4 жыл бұрын
@@ClaraCFO looking forward to that video. Thank you for all your advice and knowledge.
@tom.1656
4 жыл бұрын
So if you are self employed, can you prove you spent 75% of PPP by moving that money from business to your personal account?
@ClaraCFO
4 жыл бұрын
Here ya go! kzitem.info/news/bejne/yJ5v33aucIOWdII
@tom.1656
4 жыл бұрын
@@ClaraCFO thank you!
@allmosts123
4 жыл бұрын
So the forgivable amount cover the qualified expense that INCURRED during the 8 weeks right not the CASH PAID out from that 8 weeks. Will the last week payroll of the 8 weeks (ex. Jun30 pay period) but will be paid in July qualified?
@ClaraCFO
4 жыл бұрын
Allmosts - this has not been clarified by the SBA yet! can you believe it!? I just recommend documenting any payroll that overlaps your 8 week covered period.
@allmosts123
4 жыл бұрын
Clara CFO Group thank you Clara.
@lagrande42
4 жыл бұрын
What if my PPP loan is purely used for payroll? What do I need to show? Is my bank statement and payroll software statements good enough?
@etsets974
4 жыл бұрын
THATS EXACTLY WHY I CAME TO THIS VIDEO BUT SHE DID NOT TALK ABOUT IT
@jesseschannel3686
4 жыл бұрын
can we use the funds for insurances like General Liability and Workers Comp?
@ClaraCFO
4 жыл бұрын
no :(
@carpentrylover145
4 жыл бұрын
I'm glad I paid my loan back almost immediately and filed for unemployment instead
@July4.1776
4 жыл бұрын
Sounds like you don't have employees
@carpentrylover145
4 жыл бұрын
@@July4.1776 I don't
@lesliesaari2417
4 жыл бұрын
Kurt Rodammer how do you pay it back ... if you get unemployment ?
@carpentrylover145
4 жыл бұрын
I had the credit union (where I got the loan) take the money back out of my account before I received unemployment
@mrjp2149
4 жыл бұрын
@@carpentrylover145 You could have given yourself a raise, paid all of your healthcare, any business related interest, and or pay your business location rent, any 401k if you have it, and whatever isn't forgiven after 8 weeks, you'll have a 1% loan for 2 years. What's more, if after the end of 8 weeks things didn't workout with the forgiveness, then go on unemployment and spend anything you might have left on anything you want to possibly restart your business. I think you should have kept the money honestly and used it as intended.
@seventhgrader
4 жыл бұрын
Is there any info on if I had a lease in place that ended on March 31, 2020 and then signed another lease for April 1, 2020-March 31, 2021? The lease is in the same building w/ the same owner, if that makes a difference. Just my luck 😬
@ClaraCFO
4 жыл бұрын
If it's the same building and under a lease the whole time, should be no problem! You can't control change in ownership!
@anthonygriffin1147
4 жыл бұрын
Have the same situation. A lease extension is not a new lease just an amendment to a lease so you should provide your entire lease agreement including the extension amendment.
@MrMendoza0
4 жыл бұрын
Q: What if I had to use funds from a personal line of credit to cover Aprils biz rent. Can I use the PPP funds to repay what I took out from the personal like of credit. Im not talking about paying the interest but let say I user 2k to pay my biz rent. Can I pay that back with the PPP?
@ClaraCFO
4 жыл бұрын
was april in your covered period? You could use the PPP to pay May and June, right? You will likely not be able to include more than 2 months of rent in your PPP forgivable amount.
@mattingray5651
4 жыл бұрын
Does it count if I use that money to pay COMPANY credit card debt? btw, I normally pay electronically and not the old fashion check, so no other records besides bill payments transaction.
@worksmile8652
4 жыл бұрын
I'm In NY, I received my PPP loan on April 17, but our state is still on lockdown and my business remains closed until at least May 15 (also looking like it'll be extended). I have had no payroll since then and my 8 weeks to use these funds is running out. If I pay my staff their vacation days, it'll affect their unemployment benefits. They'll end up with less money if I do so. I'm suck in this quandary with no guidance from the SBA regarding this issue. Do you have any advice?
@ClaraCFO
4 жыл бұрын
I am sorry you are in this situation. This is a personal choice. Ultimately, you could either pay them for not working, or wait and have them stay on UI until you get back to work. There's talk of allowing the 8 week timeline to shift, BUT I am not counting on it.
@thebeachcomber8048
4 жыл бұрын
Does trash removal count as a utility bill? I have had the contact for years.
@ClaraCFO
4 жыл бұрын
I haven't found garbage specifically included as a utility, but that seems logical to me. I hope they will issue more specific guidance on this!
@hiddeouterr
4 жыл бұрын
Is the PPP/EIDL loans only for US citizens/Green card holders.
@ClaraCFO
4 жыл бұрын
You need to be a us employer (federal tax payer) - all employees need to be in the US.
@bentouli2
4 жыл бұрын
You are awesome thank you so much for the info
@ClaraCFO
4 жыл бұрын
You are welcome!
@hameedazeez6981
4 жыл бұрын
Hello how are you ? Iam Uber driver and I just got the PPP loan Last Monday 05/04/2020, so my questions is what will happen in the Uber company call the drive to go back to work ? Thanks
@ClaraCFO
4 жыл бұрын
This is the benefit of PPP over unemployment - you can still work and take the PPP!
@SP-on6wm
4 жыл бұрын
Great video and glad I subscribed. Just to confirm and disregarding the 75/25 rule, if you are a few months behind on a utility, would payments on those past due balances qualify if made within the 8 week period? We received our loan 5/7/20, however we had not paid some of our utilities for March and April, so just hoping those will qualify for forgiveness. Thanks in advance!
@roberthuneke2615
4 жыл бұрын
Independent Contractor Uber driver, sole proprietor DBA, home address is also Business address: can I pay all, or a portion of rent, w/ PPP funds???
@Kimya85
4 жыл бұрын
As a sole proprietor, I used the schedule C of 2019 to apply for the PPP loan, which already means that my business started before Feb 2020. Do I still need to provide expense documents from Feb 2020 to Jun 2020?
@ClaraCFO
4 жыл бұрын
Yes - if you have any other allowable costs besides your "compensation replacement" then you will need to support the expenses.
@susankhanhhuynh5046
4 жыл бұрын
Do we need to contact the bank before the 8th week or after? Thanks
@ClaraCFO
4 жыл бұрын
After, or potentially after you've exhausted the funds if it's before the 8 week time period.
@nickl7537
4 жыл бұрын
If I have one lease that renewed in April for a mall that I've been in for 9 years, and another lease renewal that I signed in May effective June 1 for a mall that I'm in for over 4 years, would that be acceptable on your opinion, as they're not new business that I entered into, but rather renewals of existing location's?
@ClaraCFO
4 жыл бұрын
I would assume so! they were both in place as of 2/15/2020.
@nickl7537
4 жыл бұрын
@@ClaraCFO Thank you. Your videos are interesting, capture the viewer's attention, and straightforward. I subscribed after watching the first few minutes.
@marwanshidawa744
3 жыл бұрын
For Example my lender is fountainhead and they deposited the loan to my account number so After spending money , Do I have to fill out the form 3508s and send it to the bank or to the lender address ?
@kathycosme6213
4 жыл бұрын
Great video but hard to hear
@shooterallen
4 жыл бұрын
Independent contractor/ seasonal 2019 financial ruin Able to secure $2,500 from PPP No house payments Office out of home Payroll for myself % of utilities because of office Is that going to get it? Independent contractor you have no employees and you're paying yourself. You own your own home perhaps you've been running off and office at your home so some of your utility can count so could it just be payroll and utilities ?
@ClaraCFO
4 жыл бұрын
Be sure to watch the video on sole props coming out on Wednesday!
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