Page 20 - 57074 iNet May Online Flip
P. 20

Are You Balancing


                                                          COVID19 And Coming


                                                          Out On TOP!! Here’s A

                                                          Major Tip



                                                                           By Alysia R Dahir, MBA










          You  received  PPP  Funding,  but  MAJOR QUESTIONS:                       Payroll  costs  that are eligible for
          now  what?  Forgiveness  or  loan                                         loan forgiveness:
          repayment? Or maybe not applied  When will I be required to provide

          at all?                              documentation for forgiveness?       ●  Salary,  wages,  commissions,
                                               Forgiveness  calculations  begin  or  ti ps  (capped  at  $100,000  on

          Alysia R. Dahir, MBA is the owner  in  June.  At  that  ti me,  SBA  and  an  annualized  basis  for  each
          and  Managing  Partner  at  Dahir  your  lender  will  be  requiring  employee);

          Tax  &  Accounting  Firm  located  documentati on  for  payroll  and
          in  Fountain  Hills  and  Scottsdale,  expenses  then  they will  calculate  ●  Employee  benefi ts  including

          Arizona. Last month, she recently  the  balance  of your  1%  loan  this  costs  for  vacati on,  parental,
          helped many of her clients secure  loan has a maturity of 2 years. Loan  family,  medical,  or  sick  leave;
          the funding through the Paycheck  payments  will  also  be  deferred  allowance        for   separation   or

          Protection  Program  (PPP.)    The  for  six  months.  No  collateral  or  dismissal;  payments  required  for

          PPP  is  a  special  loan  funded  by  personal guarantees are required.   the  provisions  of  group  health

          The Cares Act using SBA Lenders                                           care  benefits  including  insurance
          in  which  the  balance  can  be  Forgiveness is based on the employer  premiums;  and  payment  of  any
          forgiven instead of repaid if certain  maintaining  or  quickly  rehiring  reti rement benefi t;
          guidelines are met.                  employees  and  maintaining  salary
                                               levels.  Forgiveness  will  be  reduced  ●  State  and  local  taxes  assessed
          Alysia  states,  “Business  owners  if full-ti me headcount declines, or if  on compensati on; and
          need  to  be  very  careful  how  they  salaries and wages decrease.
          spend their PPP funds or they may                                         ●  For  a  sole  proprietor  or
          forgo forgiveness and owe the entire  What costs  are eligible for loan  independent  contractor:  wages,

          balance.  This  can  be  avoided  by  forgiveness?                        commissions,  income,  or  net
          following  the  SBA  guidelines  and                                      earnings  from  self-employment,
          submitting paperwork before stated  The  loan  will  be  fully  forgiven  capped  at  $100,000  on  an


          deadlines.”                          if  the  funds  are  used  for  payroll  annualized   basis   for   each
                                               costs, interest on mortgages, rent,  employee.
          SBA  has  addressed  the  following  and  uti liti es  (due  to  likely  high
          questions      regarding      loan  subscripti on,  at  least  75%  of  the  Payroll costs that are not eligible

          forgiveness,  however  procedures  forgiven amount must have been  for loan forgiveness:
          are  rapidly  changing.  It  is  always  used for payroll).               ●  Payments  to  an  independent
          best to check with the SBA for the                                        contractor


          most up to date information.                                              ● Cash compensation in excess of
                                                                                    $100,000
     20
   15   16   17   18   19   20   21   22   23   24   25