Small Biz Support 2020

[smmokan]

Yes. Additionally, the threshold for payroll expenses reduces to 60% from 75% meaning you have additional room for utility expenses to be used. This is a good thing.

Yeah, too bad they still didn't make an adjustment to allow for single-owner small businesses to claim net income (or distributions) as part of payroll.... instead, they're making it easier for the bigger companies to get more free money. Fuck them.

[Core Shot]

FYI the FTE definition has changed.

I was doing all my math on the Affordable Care Act reports, where 30 hours is one full time employee.

Fucking SBA spit out some jackass rule that 40 is full time. So for both your 8 weeks and your lookback periods you need to use the new formula.
I used the ACA report, took the total payroll hours, subtracted any OT, and divided by # of weeks and divided by 40 to get there.

ADP now has FTE PPP reports but they really suck ass. Lots of errors. I'm doing it manually since I don't trust their shit.

[Bunion 2020]

From my bank:

Good morning,



The following was just received from the SBA. This is not the definitive guide to the PPP forgiveness process we are waiting for, but it is a step in the right direction. This will give you an insight into which application will fit your circumstances and what documentation will be required.



Links to both forgiveness applications are found below and in the attached press release.



The PPP Interim Final Rule on Revisions to the Third and Sixth Interim Final Rules is also a good read and full of information. Link below.



More information will be coming regarding the timing of the application process. Please do not submit any forgiveness applications at this time.



But we are getting close!






__________________________________________________ __________________________________________________ ________________________________________________

SBA and Treasury have put up revised PPP loan forgiveness guidance and applications. I can assure you we have not fully digested this yet at the District Office since it is just out, but wanted to push the information out right away as I know it is of high interest to many. There are now two PPP forgiveness form options including an “EZ” form option and each form has a set of detailed instructions.



Note: The EZ application requires fewer calculations and less documentation for eligible borrowers. The new EZ version of the forgiveness application that applies to borrowers that:

Are self-employed and have no employees; OR
Did not reduce the salaries or wages of their employees by more than 25%, and did not reduce the number or hours of their employees; OR
Experienced reductions in business activity as a result of health directives related to COVID-19, and did not reduce the salaries or wages of their employees by more than 25%.



Summary and links to detail as follows:



Press Release (copy attached) - https://www.sba.gov/about-sba/sba-ne...eck-protection



PPP Interim Final Rule on Revisions to the Third and Sixth Interim Final Rules - https://home.treasury.gov/system/fil...inal-Rules.pdf
This rule incorporates a number of changes in the flexibility act relative to use of PPP loan proceeds and loan forgiveness.



PP EZ Loan Forgiveness Application - https://www.sba.gov/sites/default/fi...16.2020%29.pdf
PPP EZ Loan Forgiveness Application Instructions - https://content.sba.gov/sites/defaul...16.2020%29.pdf



PPP Loan Forgiveness Application (revised 6/16/20) - https://www.sba.gov/document/sba-for...ss-application
PPP Loan Forgiveness Application Instructions (revised 6/16/20) - https://content.sba.gov/sites/defaul...16.2020%29.pdf



Ok. I think that is all for this morning. We will be working on reviewing this information as well. As questions arise, please let us know and we’ll do our best to work through them with you.



Reminder – PPP guidance documents can be found at the SBA and Treasury websites as follows:

SBA - https://www.sba.gov/funding-programs...ection-program

Treasury - https://home.treasury.gov/policy-iss...all-businesses







PAYROLL PROTECTION PROGRAM INFO:

https://www.sba.gov/page/coronavirus...ction-header-0

[Rideski]

After I got rejected for the free $1,000 for the eidl, I put the whole thing out of my mind and started focusing on other things.

So I got an email from SBA Monday, they are offering me $13,000 on a 30 year note at 4%.

I mean thanks, but I’m not all that interested. Is any of that free money? I don’t really want a 4% interest loan.

[Bunion 2020]

OK so all you dentists out there here is something to help with before I actually call someone who really knows.

I have had a one man band of a business for 5 years. Sole Prop. LLC and I am the entire staff. I am starting to think in the direction of hiring an employee.

Start as P/T at a decent wage. How do I figure out what that wage is and what will W/C and taxes cost me?

Go ahead and hold forth. Meanwhile I am off to the googley.

[fastfred]

depends what your doing
I'm super high risk for blowing shit up flooding things and people hurting themselves
$9.00 per hr per person is my overhead includes W/C Liablity Ins. UE payments taxes and someone to process payroll twice a month

[Flyoverland Captive]

OK so all you dentists out there here is something to help with before I actually call someone who really knows.

I have had a one man band of a business for 5 years. Sole Prop. LLC and I am the entire staff. I am starting to think in the direction of hiring an employee.

Start as P/T at a decent wage. How do I figure out what that wage is and what will W/C and taxes cost me?

Go ahead and hold forth. Meanwhile I am off to the googley.

DOL has a prevailing wage website you can use to figure roughly what the job pays in your area.

[MakersTeleMark]

OK so all you dentists out there here is something to help with before I actually call someone who really knows.

I have had a one man band of a business for 5 years. Sole Prop. LLC and I am the entire staff. I am starting to think in the direction of hiring an employee.

Start as P/T at a decent wage. How do I figure out what that wage is and what will W/C and taxes cost me?

Go ahead and hold forth. Meanwhile I am off to the googley.

Why not just 1099 them?

[Bunion 2020]

Thought of that as well.

Our DLI had a crackdown on I/Cs back in the last boom (05-07). Seems everyone was a Contractor, just get G/L, pay the State a small fee, sign the W/C waiver and you work on a crew who are doing whatever but you are paid 1099 with all the good and bad that involves.

The DLI started asking for all sorts of proof that you were an IC and not part of a crew etc. That was some time ago and with the gig economy it should be easier now, right?

[TBS]

DOL has a prevailing wage website you can use to figure roughly what the job pays in your area.

DOL “Prevailing wage” is for government contracts. Reflects union scale in metro areas, not private non-union work

You could check on Craigslist For your hood to get an idea of what similar jobs are paying. Then bump it some for part time status.

You could probably get away with 1099 status. State isn’t going to even know you added a part time body unless that person tries to file a Unemployment claim.

[Core Shot]

FYI I got an email that the forgiveness application has been simplified.
Wayyyyy easier.

To lazy to post link, but it’s a must read. Been on the road having fun. I needed a vacation.

[Core Shot]

Why not just 1099 them?

If you tell them what to do and when, 1099 is a risk.

Work comp is state by state. Your state website will have the rates for each job. Or your insurance agent can help.
The rest is payroll tax and unemployment insurance. Plus any state mandates for sick time or other benefits.

Most states have a good page about starting a biz and what to do.

[Flyoverland Captive]

DOL “Prevailing wage” is for government contracts. Reflects union scale in metro areas, not private non-union work.

Oh, I know; I use it often (one of my clients is an immigration attorney). I just suggested it as a place to start, to determine a rough pay range.

And I wouldn’t 1099 anyone unless I knew they were temporary; having someone work every month is a red flag.

[TBS]

Respectful disagreement about 1099 personnel...

Large companies like Intel, Google etc. regularly “employ” large numbers of contractors for 18 mos. I was an independent contractor for a global $6bill manufacturer for two years. I just switched all our people from 1099 to W2 after 2.5yrs, mostly to take advantage of PPP.

The key is good documentation that gives the contractor broad latitude over how discrete objectives are accomplished.

The agencies aren’t equipped to chase down small businesses to figure out how many people work there and whether they are properly W2 or 1099. The risk is if a contractor decides to file an unemployment claim.

I’ve had this happen only once - after a mass layoff. It wasn’t worth it to fight over $1000 in back SUTA. State didn’t want to delve into our personnel files looking for other opportunities and they didn’t turn us into the Feds for back FUTA.

The kicker in all of this was she was brought in to develop HR policies/procedures. It was her fucking independent contractor agreement they signed.

[BobMc]

Respectfully, fuck that shit.

[Core Shot]

SBA and Treasury Announce New EZ and Revised
Full Forgiveness Applications for the
Paycheck Protection Program (PPP)
Release Date: June 17, 2020

WASHINGTON – Today, the U.S. Small Business Administration, in consultation with the Department of the Treasury, posted a revised, borrower-friendly Paycheck Protection Program (PPP) loan forgiveness application implementing the PPP Flexibility Act of 2020, signed into law by President Trump on June 5, 2020. In addition to revising the full forgiveness application, SBA also published a new EZ version of the forgiveness application that applies to borrowers that:

Are self-employed and have no employees; OR
Did not reduce the salaries or wages of their employees by more than 25%, and did not reduce the number or hours of their employees; OR
Experienced reductions in business activity as a result of health directives related to COVID-19, and did not reduce the salaries or wages of their employees by more than 25%.

The EZ application requires fewer calculations and less documentation for eligible borrowers. Details regarding the applicability of these provisions are available in the instructions to the new EZ application form.

Both applications give borrowers the option of using the original 8-week covered period (if their loan was made before June 5, 2020) or an extended 24-week covered period. These changes will result in a more efficient process and make it easier for businesses to realize full forgiveness of their PPP loan.

https://content.sba.gov/sites/defaul...16.2020%29.pdf

[fastfred]

the 1099 subcontractor employee is misused all the time
who wants to pay all the overhead
you guys keep mentioning unemployment claims as a red flag, well wait till someone gets hurt, even a paper cut, on a construction site they can sue anyone and everyone including the property owner if there is no WC to cover their injury
the state of colorado is ramming small businesses hard, it's not if you get audited its when, sure most of the chuck and the truck types are flying under the radar running their mostly cash businesses, run it for a year or three and then fold it because they finally realized they were loosing money
Insurance companies are the worst when it comes to subs vs employees

as far as ppp fuck that shit, it still is a joke, was a joke, and I"m laughing all the way
my guys all got their scheduled spring raises, 6 paid holidays, and pto as usual
I keep loosing out on jobs left and right because I'm one of the most expensive businesses around and no customer cares to pay extra to make sure workers are covered by wc and their taxes are being paid

possibly a big friday of bong hits in a few and driving around handing out atta boys this afternoon

[Bunion 2020]

Depends on the State. Montana you either have W/C or you sign an exemption and cover yourself.

The vast majority of my work is inside the walls of a billionaires club. You don't get in the gate unless you are a registered I/C with 2 Million G/L and a Million for vehicle insurance.

My rates reflect that.

[AdironRider]

Yeah, too bad they still didn't make an adjustment to allow for single-owner small businesses to claim net income (or distributions) as part of payroll.... instead, they're making it easier for the bigger companies to get more free money. Fuck them.

So you are all pissed because they wouldn't guarantee profits for you? Come on man.

[GoldMember]

Yeah, too bad they still didn't make an adjustment to allow for single-owner small businesses to claim net income (or distributions) as part of payroll.... instead, they're making it easier for the bigger companies to get more free money. Fuck them.

So you are all pissed because they wouldn't guarantee profits for you? Come on man.

We've had this portion of discussion earlier in this thread but the gist of it is that, by paying no or low salary to yourself with the rest of income being distributed profits, you're avoiding payroll taxes. Then, turning around when things go to shit, you're wanting to have stimulus that replicates what should have been paid in salary. Can't have it both ways.

[Core Shot]

We've had this portion of discussion earlier in this thread but the gist of it is that, by paying no or low salary to yourself with the rest of income being distributed profits, you're avoiding payroll taxes. Then, turning around when things go to shit, you're wanting to have stimulus that replicates what should have been paid in salary. Can't have it both ways.

Yep. I make a thou a week on payroll
In good years I make a lot more with distribution

But ppp helped me pay my team. And I get the bonus of two months rent etc.
not crying. Except for my kids debt laden future.

[TBS]

On another subject, I would really appreciate some advice from bankers here about reporting large (like say $200,000) cash transactions.
Don't want to get into details here. Please PM me.
TIA

[Core Shot]

On another subject, I would really appreciate some advice from bankers here about reporting large (like say $200,000) cash transactions.
Don't want to get into details here. Please PM me.
TIA

That’s a lotta cash. Damn bro.
My fear would be getting it to the bank. Asset forfeiture laws suck. They steal granny’s life savings as she drives to live with her grandkids. They ain’t got no heart.

I asked my lawyer if I could accept a duffel bag of $40k for a car. He said yes, but just document the transaction. It’s not your job to ascertain the source of the cash.

It may raise some flags when you deposit it. But if you have legit documentation of a biz transaction you should be fine. Or so I was told.

[AdironRider]

It’s legal tender so they gotta take it, but yeah document everything or you are going to get hassled. You already will, but the paperwork should make it easier.

[Mustonen]

It’s a lot of cash, but it isn’t all that wild.

Give your FI a heads up that you’re bringing it in for deposit. They can be ready for you and count it in an office. Have a clean story about the money. Bonus points if it’s true.

They’ll have to file all the paperwork; it’s all routine stuff, though, that nobody is going to spend a lot of time worrying about. Just make sure you have ID.

I’d spend more time worrying about security now and in transit than about the transaction. They probably don’t see it every day, at least not as a single deposit, but it’s not otherwise all that remarkable for them.