How to Pay Yourself with Ppp Loan Independent Contractor

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If I still receive PUA unemployment benefits, depending on how much I work each week. Can I apply for a PPP loan while getting a discount? I don`t want to do „Double Dip“. Would it work for me to pay myself from my separate PPP account that you suggested during the weeks when I am not eligible to receive PUA money? Thank you, Bambi Thank you for your leadership, so enjoy it! And with such clarity. However, I have a question: I just received my first PPP on March 22, 2021, can I still apply for the second draw? I read in an article that the first PPP had to be registered in my account before February 3, 2021 in order to request the second draw. It`s true? A good idea is to pay yourself as you normally would, whether weekly, bi-weekly, bi-month, or quarterly. Just keep paying yourself in your own routine. Hi Rich, so does it matter what I do with the money after transferring it to the new bank account? Does the SBA or my lender investigate the end use of the money? I intend to use it to pay off a debt after transferring it to my new account. Take this value, add up your labor costs for 2019 or 2020, and then divide your average monthly labor costs by 12. If you multiply this by 2.5, you will get the amount of your PPP loan. This is simply not necessary from the point of view of PPP credit forgiveness. Hi Rich, I am an gig worker who works full time for Uber/Lyft and Doordash.

I received a second-round PPP loan of approximately $17,500 on March 27, 2021, based on my gross income, which is $84,400. But my net income is $9000 Sound familiar? These are the same criteria for determining the amount of your loan. Fellow PUA, you would use your loan amount divided by 10 (2.5 months or the same as 10 weeks) and report it to your weekly unemployment agency as a salary from yourself (sole proprietor). Just take the loan amount 20,833/10 = 2,083.30 per week. I`ve heard a lot of people try to pay themselves once a month or in some other creative way and collect the other weeks that month or all at once. In my interpretation of regulations and rules that don`t allow in states that don`t allow both PPP and UI/PUA, it seems that trying to get around the fact that you received a loan to offset your weekly salary for 2.5 months will only lead to problems. This could be a double immersion and lead to problems with the state or interfere with the PPP pardon. I would like to point out that there are some states that allow both PPP and unemployment (UI or PUA).

If you get PUA in any of these states, you shouldn`t have to worry about double immersion issues if you follow their guidelines. This way, you can use the money and show that you paid yourself over ten weeks or 2.5 months. The correct amount of compensation from the owner is worth 2.5 months, so you can do it on both draws. Exactly, the loan amount depends on your net or gross income. that is the amount of the pardon. Can I pay myself the full loan amount (sole proprietor) in one shot for Owen`s 100% compensation dose, it must be weekly? I know that the EIDL is now available on the website. I also don`t know what loan I`m asking for, it`s a bit confusing, but thank you. Without your help, I would miss the opportunity to continue the business as I have done for over 30 years.

In fact, in the most common structures for small businesses, the owner of a business cannot be put on the payroll. In general, you must have created an S-Corp or C-Corp tax structure to get on the actual payroll. My first article on PPP covers the basics and many changes as well as the path. It`s detailed and useful, so check it out here. There have also been recent updates on Cycle 2 of the PPP, so read that too. I am a sole proprietor without employees. I use my gross income from line 7 to calculate my PPP. Can I use the total amount as compensation from the owner (transfer PPP from the business account to the personal account) and spend it as I like it and how I am forgiven? Or should I leave 40% ppp in my business account and pay the company`s rents/utilities, and put the remaining 60% in my personal account and spend as I wish (owner`s remuneration) and be forgiven? Exactly, there is no payroll.

„Pay yourself“ only documents how you used the money in case they asked for bank statements. Independent contractors collect Forms 1099-MISC (but for the PPP, you must file a Schedule C, not your 1099). I would wait the 10 weeks again, and then you can use the revised Form S if your loan was less than $150,000. Hi Rich, the remittance rules for PPP loan change quickly from day to day. Is it possible that the SBA wants tax documentation on your company for 2021? and is it possible that you will have to repay your company`s taxes based on the information used to apply for the loan application? I applied through the blue glans and they prevent you from getting in touch with the lender who granted you the loan, His name is on my docusign agreements, but no email to reach or business number. Sole proprietorships and independent contractors must submit a Schedule C for 2019 or 2020 showing the income and expenses of the sole proprietorship. If they gave me the 2. Grant PPP loans within 2 weeks, do I have an additional 24 weeks for this loan? Or does it combine with the first one, so I have to pay myself more? However, it is important to note that you cannot get unemployment benefits and a PPP loan at the same time. You can use PPP funds to pay yourself through what`s called the owner`s share of compensation or the owner`s costs. This is to compensate you for a loss of business income. To receive the full amount of the owner`s portion of the compensation, you must use a covered period of at least 11 weeks.

This way, you will not be eligible for unemployment benefits for the full 11 weeks (as part of pandemic-related unemployment benefits). What does that mean? They don`t really define it well. And it seems that they don`t care as an SBA, if we`re completely honest. Paying yourself only means that there is money in your bank account. I`ve also read this article and I`m so confused as to why Rich doesn`t offer this as an option. I don`t pay myself with any „paycheck“ and I don`t see any difference in paying myself every week or at a flat rate. and nowhere do I see in this statement if you have to let it rest a week before the start of your weekly payments. I`m sitting here confused. Good accounting allows you to keep track of how you spend your PPP and helps you take control of your business. Bench`s monthly reports provide you with what you need for ancillary requests and beyond. Learn more about how we can help you stay up to date with your business.