How Much Can You Pay Yourself On PPP?

Can I use 100% of my PPP loan for payroll?

For PPP loan forgiveness, you must use 100% of the loan for eligible expenses.

Eligible expenses include payroll costs, interest on mortgages, rent, and utilities.

And, the SBA requires you to use the majority of your loan for payroll expenses..

What is the deadline for PPP loan forgiveness?

October 31, 2020Question: 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.

Can you lay off employees after PPP loan?

Once my PPP funds run out, can I make layoffs again? Yes. If after the 24 weeks the PPP covers, your business’s financial situation has not improved, or the PPP funds have run out, you are able to put employees on furlough or lay them off if necessary. The employees would be eligible to claim unemployment benefits.

Can I hire new employees under PPP?

If you hire new employees or rehire those who have been laid off (which you can do), everyone must be paid at the same rate as in the payroll documents submitted for the loan. … The funds for payroll have to be covered by your PPP loan—you can’t “double dip.”

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.

How much can I pay myself with PPP loan?

Independent contractors who receive a PPP loan can use up to $15,384 of what they’re awarded as compensation for themselves for the eight-week period and still have at least that part of the loan forgiven. As compensation to themselves, it acts as a payroll cost.

Can you 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?

Does PPP cover owners salary?

When it comes to the PPP, your payroll will be limited to the wages that you are taxed on. As an owner of a corporation, this should only be the amount you have paid yourself by running payroll.

Can I use my PPP loan for anything?

The funds from the PPP can be used for the following purposes: Payroll—salary, wage, vacation, parental, family, medical, or sick leave, health benefits. Mortgage interest—as long as the mortgage was signed before February 15, 2020.

When should I apply for PPP forgiveness?

Borrowers may submit a loan forgiveness application any time before the maturity date of the loan, which is either two or five years from loan origination.

What happens if you don’t use all your PPP loan?

To be eligible for full loan forgiveness, you must use at least 60% of PPP funds to cover qualifying payroll costs and the remainder may be used for qualifying non-payroll costs. If you do not use PPP for these purposes, your PPP loan will not be forgiven and you will be required to pay back the loan.