- What does the PPP mean for employees?
- How do I calculate PPP payroll?
- How long can you use PPP loan?
- Can 100 of PPP loan be used for payroll?
- How does a PPP loan affect employees?
- Can PPP be used for hazard pay?
- Do you have to pay all employees with PPP?
- Can I refuse PPP from my employer?
- What if I made a mistake on my PPP application?
- How much can I pay myself with PPP loan?
- What if employees quit PPP?
- What if an employee quits during the PPP loan?
- What is full time employee for PPP?
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 do I calculate PPP payroll?
The easiest way to find an average is to add the total number of employees you had during each month of the year together, and divide by 12. Let’s say in this case that works out to 2.75—you should round to a whole number, three, and include this on your PPP application.
How long can you use PPP loan?
24 weeksThe eight-week period to use your PPP funds has now been extended to 24 weeks. Previously, you had to spend at least 75% of the funds on payroll. You now need to spend only 60% of the funds on payroll.
Can 100 of PPP loan be used for payroll?
Use it for eligible expenses. 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.
How does a PPP loan affect employees?
When your company gets a PPP loan, it can affect you in several ways. … You’re unlikely to get furloughed or laid off if your company received a loan, but it may decrease your pay rate — that said, some employers may choose to give raises to employees to entice them to come back to work.
Can PPP be used for hazard pay?
The Small Business Administration finally weighed in on using funds from the $649 billion program in its new guidelines issued Friday, saying the money can be used for bonuses or hazard pay, as long as the employee’s total compensation is less than $100,000.
Do you have to pay all employees with PPP?
Yes, possibly. Your PPP loan amount is determined by your 2019 payroll numbers (or net profit numbers if you’re self-employed). So if you had three employees in 2019 who made $3,000 each month, you will need to keep those three employees on payroll at the same salary.
Can I refuse PPP from my employer?
Q: My employer got a PPP loan and is asking us to do work other than what we usually do — cleaning the office for example — until the business reopens. … But if you refuse to do the work, your employer may be able to fire you for cause, which could jeopardize your eligibility for unemployment benefits.
What if I made a mistake on my PPP application?
Guidance on PPP loans has been a whirlwind to say the least. … Basically you can go back to the bank and amend your PPP application to include the partners compensation and the bank will fund that additional amount.
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.
What if employees quit PPP?
The Paycheck Protection Program Flexibility Act and exemptions to loan forgiveness reductions. … Now, business owners will not face loan forgiveness reductions if their employees voluntarily resign, don’t accept a good faith rehiring offer, or are fired/let go with cause.
What if an employee quits during the PPP loan?
You can also qualify for an exemption if you fired the employee for cause. If the employee voluntarily quit or asked for a reduction in hours and received that reduction, you could qualify for an exemption as well.
What is full time employee for PPP?
The Treasury defines a full-time employee as an employee who works 40 or more hours per week, so FTE is calculated on a scale of 1.0, with 1.0 being the equivalent of 40 hours per week.