We don’t need to tell you what a challenging time this has been for all small businesses. In addition to the health concerns for our families, employees, and co-workers, we have all had to consume a dizzying amount of information about new programs designed to help small businesses survive.
At PayPlus, we have assisted many of you, providing reports, tax returns, and other information to help you complete your applications for the PPP Loans.
We are delighted that many of you have been approved for the PPP loans. Many others are waiting for Congress to approve additional funding for these loans.
Now is the time to think about your next steps.
The PPP program has the potential for the loan to be fully forgiven,
provided you use the funds appropriately over the first 8 weeks.
The loan forgiveness is not automatic.
You
need to apply
for forgiveness and provide
documentation to back up your claim
that the funds were used for approved expenses.
Your 8-week countdown starts from the day you are funded.
If you were funded, April 17
th
, your measurement period ends June 12, 2020.
How you use the funds during this 8-week period determines how much, if any, of your loan will be forgiven.
The first test is whether you spent at least 75% of the funds on payroll. The remaining 25% can be used on rent and utilities. What constitutes “utilities” is still open for clarification. Your bank can advise you what utilities are acceptable.
We strongly advise you to keep accurate records
,
because you will need to account in extreme detail how you use the loan funds.
Every bank has different requirements for what records to keep. We strongly encourage you to review those requirements now and to
start collecting the records and receipts now
.
Some banks require a separate bank account for depositing the PPP funds. If so, do not use that account to pay for expenses that do not qualify for forgiveness, such as dues or advertising.
If you are setting up a new bank account,
we must have a
new ACH form
signed by you, and a voided check submitted to PayPlus.
The change form needs to be submitted at least 3 days prior to your check date.
If you are not maintaining a separate bank account, set up a spreadsheet or work with your bookkeeper to
track your expenses
.
You can get your
payroll expenses from the payroll reports you receive each pay period
.
If you use Employer on the Go, you can generate the reports yourself from the Report Wizard.
Save those records now and so you won’t have to scramble to get them in June or July.
Here is a
guide
for small businesses about the loan program.
For past emails from us regarding Covid-19 programs, see our
blog
.
If you need assistance, or additional payroll reports including a Payroll Expenses report by month, please reach out to your Payroll Specialist.
We wish you and your families continued good health. We will get through this together.
Thank you as always for the trust and confidence you place in our team.
Sincerely,
Leslie, Greg, Melissa, and Judy
