Thanks!

Please like, subscribe, and share if this was a valuable 3+ minutes! Remember, payroll related expenses have to be at least 75% of the loan amount to be fully forgiven. Let me know other content you may need/want in the comments below! Make sure to watch my videos about completing the loan forgiveness application: kzread.info/dash/bejne/e6mBtsVrfci_aNY.html Part 1 - PPP LOAN FORGIVENESS APPLICATION - Documentation - STEP BY STEP kzread.info/dash/bejne/fZWD0sl9eZrghso.html Part 2 - PPP LOAN FORGIVENESS APPLICATION for Sole Props, LLCs, Self Employed with no employees

Hey there, a bit of an older video so sorry if you've covered it more. I saw you notice the paying yourself on the Owner's Compenstation Replacement so I have two questions: 1) I usually was paid monthly previously, would you reommend monthly or bi-weekly payments and 2) Any other things besides having 2 bank accounts you'd recommend me? ACH tranfers or checks, or anything of the sort? Thanks if you decide to answer! Lovely video.

@BrassHorseStudio

4 жыл бұрын

Thanks for writing! It actually doesn’t matter how often you pay yourself, as the calculation for Owner’s Compensation Replacement will be somewhat automatic and based upon your line 31 of your 2019 Schedule C in most cases. You should just be able to show evidence of payment for non-payroll related costs (mortgage interest or rent, utilities, etc). Two bank accounts can be helpful for tracking that, but so can a well organized and documented spreadsheet.

Hi thank you for your help l have one cuestion l'm in uber driver self employed my car payment can be my utility bill and my cell phone can be also ?? If you can help us with those cuestion please thank you ?

@BrassHorseStudio

4 жыл бұрын

This is a GREAT question, and I'd like to direct your attention to this document. Go to the 3rd page, middle column, about 2/3 of the way down the column to item d. "How can PPP loans be used by individuals with income from self-employment who file a 2019 Form 1040 Schedule C?" Go down to point (ii). It reads "interest on an auto loan for a vehicle you use to perform your business...and business utility payments...gas you use driving your business vehicle." Again, this is on the 3rd page, 2nd column, at the bottom. Please make sure this agrees with your lender, and/or take this with you when applying for forgiveness. This is guidance from the Secretary of the Treasury. www.federalregister.gov/documents/2020/04/20/2020-08257/business-loan-program-temporary-changes-paycheck-protection-program-additional-eligibility-criteria

Yes I used my line 31 on the schedule C to option our loan. It says we are approved but have yet to receive loan docs or funds yet.

@BrassHorseStudio

4 жыл бұрын

Approval can sometimes take up to 2 weeks. How long has it been?

@kaowtruck3900

4 жыл бұрын

Brass Horse Business Ed funds are now in our account. But wanted to share that many of our colleagues (I’m a food truckers) went through Square and it was much simpler a process than going through a small local bank (which is what I ended up doing). For some odd reason my Square invite to apply “went away”. I was in the middle of the application (that ti had working for about a week) when I was ready to upload my docs, the system said I was not eligible. It couldn’t have closed because I found out that many of my colleagues are still able to apply as late as last week. So we went through a small local bank and got approved with them.

Do I need to bring back the same employees I had for PPP foregiveness? For example- I had two employees I would rather not bring back and hire 2 new people. Thanks for the video!

@BrassHorseStudio

4 жыл бұрын

This is a great question. I think this is probably a question for an attorney to answer because the premise of your question is that the employees could work, but you don't want them to come back to your business, so in effect you're terminating them. That may not work out well for you. If, on the other hand, they choose not to come back to work for you, it is my understanding that you can hire different employees at those wages. The metrics you'll report are headcount and wages, and they need to be the same.

@greenleekids7281

4 жыл бұрын

@@BrassHorseStudio thank you for your help!

@BrassHorseStudio

4 жыл бұрын

@@greenleekids7281 You're welcome. Thanks for writing!

I am SE, no employees. I thought we had to take our line 31 and divide that amount by 52 weeks and multiply by 8 weeks and that was the amount we could get forgiven. Your info says the owners compensation is allowed to be 2 months worth of line 31. I have my funds and now I'm trying to navigate if I can replace the pay at the monthly amount instead of net profit/52*8. The difference is $665 during the 8 weeks.

@BrassHorseStudio

4 жыл бұрын

Hi Lisa, the CARES Act is pretty clear on this in Section 1102, Paragraph E, sub-paragraph (i): "the average monthly payment by the applicant for payroll costs..." multiplied by 2.5. I have been hearing the "divide by 52 and multiply by 8" which will create a small discrepancy. The issue I believe is in the difference between the language for the loan amount (average monthly) and the time to spend it (8 weeks). So, the language is fuzzy: you have 8 weeks to spend two months' worth! If you want to be extra careful, you can go with the net income/52*8 model, which will give you a bit less. If you go with the larger amount, and they don't forgive it, you can take 2 years to repay it at 1%. I hope this was clear...please let me know if it wasn't.

@BrassHorseStudio

4 жыл бұрын

BTW...I'm in the process of making another video exclusively for SE, no employees. I hope you'll subscribe and watch for it!

@lisaw4266

4 жыл бұрын

@@BrassHorseStudio Subbed! Thanks for the quick replies!

@BrassHorseStudio

4 жыл бұрын

Lisa W Lisa...I apologize...I just read the guidance given by the Treasury Department, dated April 20, explaining that the maximum loan amount is 2.5 X 2019 schedule C net income, but the amount eligible for forgiveness is 8/52 2019 net income. What a mess! So, they will allow you to borrow a bigger number then they will forgive. Again, my apologies, but please go with the smaller number for forgiveness.

@lisaw4266

4 жыл бұрын

@@BrassHorseStudio , we are all just trying to keep up with the ever changing guidelines so no need to apologize! I just was curious if I was reading it wrong. Thanks for checking in on it!