Need help filling out your PPP forgiveness 3508S form? Hannah did a training on how to fill out and calculate your PPP Forgiveness - it's available for only $47 here: claracfo.podia.com/3508s-course-how-to-get-your-ppp-loan-forgiven-loans-under-50-000
Does this training give guidance on those of us that had a YOY 25% reduction in revenue in 2020 and therefore were able to received the second draw in less than 8-wks from the dispersement of the first draw? Obviously, the calendar dates overlapped, but the covered periods cannot.
@@ClaraCFO hello, I just recieved the loan of 15559$ and I am sole proprietor refrigeration business repair without employees.what do you suggest to qualify for ppp forgivness with 0 problem. Also if I a write myself a check what should I write on memo?
Thank you, thank you, thank you so much for posting this video. I was racking my brain trying to figure out how to show payroll cost as a sole proprietor. I am sending you a great big internet hug. Thanks again.
I have been looking for a breakdown like this (namely whether or not I could transfer from a business checking to a personal checking out and if I could do it in one lump sum) and couldn't find that specific information. I also wasn't really sure what the deal was with the covered periods and when to apply. So, you seriously just answered all the questions I've been researching for hours in less than 8 minutes. lol THANK YOU!
You have provided such great detailed information here. One question about bank accounts. What if you are a sole proprietor and your business and personal funds are co mingled in one personal bank account? How do you pay yourself?
@@opsemail5529 so am I - I don't think it's known, I hope there is a cut and dry answer - I have all my monies going to the same account, I can't pay myself if my PPP goes to that account, its already there.
Sending virtual 🌺 🌹 to you. No one has explained any of this as clearly as you have. Thank you looking forward to hearing back on my questions on this and other video
Thank you for helping us and I know you are explaining it well, And I know it's me that getting confused on how and when to pay myself, but I will watch your video again to see if I can understand better the second time.
@@ClaraCFO please held me! I just got my first drawn ppp fund money today, but I am really nervous about using it the wrong way and it get forgiven. I wanted be able to get 100% forgiveness, otherwise I won’t have the money to pay back once I use the fund. On your video I can pay myself 100% the full amount? My question is that I am sole proprietor, but I don’t have a business name, LLC or DBA that register through state. I file taxes return on schedule C with SSN. Also I just opened 2 business account back in April of this year right before I applied for ppp. (Account 1 ) it for ppp fund money. (Accounts 2) it’s for my business income coming and out. So I planing on use it for 11 weeks for cover periods. I planing on paying myself by transfer from ppp account 1 to my regular personal checking account. And also thinking transfer monthly from personal checking to business checking account 2 to pay supplies and rental station. Would I be able to get forgiven base on the information I mention here? Please help and thank you.
@@sabrinachin5251 Hi pretty don’t over think it just pay your self like you said one bank Account to another if you have checks better if you have 24 weeks pay you self every week or like she said 1 lump sump ;)
From all I’ve seen is that as a sole proprietor/schedule c filer we are technically not an employee according to the irs and in turn technically don’t have “payroll”. So from what I’ve seen is that we can use the loan all at once and when the 11 weeks come we should be able to apply for forgiveness based on the same document used to get the loan which is just the schedule c.
Very helpful, thank you! I am still a bit fuzzy on the the 2.5 months to keep open account prior to applying for forgiveness. I am self employed with no employees, so I will just transfer 100% of loan now, how do I calculate the 2.5 months and what if I wait longer? I do not want to miss window, I do not have other expenses. Anyone with knowledge on this, I would appreciate you sharing! Thank you!
Soooo please help me. 60% the payroll cost can go to me for bills etc thats pretty much whatever I wanna spend it on and the 40% has to be specifically for the business correct?
hey so im still confused can someone help me please...So if i pay myself what does the check needs to say? and how do i know how much to pay myself weekly? and i pay myself for 8weeks then apply for the forgiveness?
Wow! Thank you!! This is exactly what I needed! A Like and subscribe for sure! Question: When you say “Close your covered period” are you referring to spending the total amount of your loan? So for example the day you received the loan would be the start and the day you spent all of the money would be your closing date of the your covered period? I know my bank did the full 168 days on the promissory note I signed. I plan on doing one lump sum for owner compensation well before the 2.5 month cutoff.
So if I pay myself once in a big lump sum but I want to both get the entire amount forgiven but also apply for the second draw what should I do? And how long should I wait for the cover period? I am having a hard time understanding the timelines and amounts for the second draw and forgiveness for both
@@ClaraCFO you can take 8 weeks to cover 100% not sure why youre only giving partial % payroll say you got 8000 pp1 8 wk period then take 1000 x 8wks total 8000 in 8 weeks done as a sp right?
@@drjj1289 so im confused because it seems as though youre saying example PPP $8000 and we take all of it for payroll over an 8 week period what about the 60/40 for business rent or utilities isnt it mandatory that you use 40% on business exspenses
When applying for forgiveness, are both business and personal bank statements required? (Or simply the business bank statement showing disbursement to the personal account).
Absolutely awesome. I was so confused until I found you, Clara! That was so very clear. The only thing I didn't understand because I am so thick headed is what do you mean by "keep your cover period open"? Is that something I do on a form or what? How and when do I declare a "cover period." Sorry, no one would ever want to hire me as a bookkeeper. :)
I'm so glad I could help!! The covered period can be a minimum of 8 weeks after receiving the funds and maximum of 24 weeks after receiving the funds. When I say "closing the covered period" this just means the end date of your covered period. You don't declare the end of the covered period to anyone until you fill out your forgiveness application.
Lemme get this straight. Lets say my PPP loan is $25K. I can write myself a check out of my business account for the full $25K. Then wait 2.5 months and what?
Definitely more complicated than that. I'd recommend watching my "owners compensation" or "payroll costs" videos. Or if you want to skip the piecemeal approach, I have a workshop for purchase that goes into everything you need. Link a link to that is in the pinned comment above.
Not sure what you mean by "keep your covered period open for two-and-a-half months". Do you do this in the PPP application, in the forgiveness application or by some non-written down technique? Here is a simple example to discuss question around. Let's say my PPP loan hit my bank account March 1, for $3,000. Are you saying I can pay myself the $3000 by transferring to a personal account (before and close to 10 weeks from March 1)? Then file for forgiveness March 15? Potential issues: How can I pay myself the full PPP loan.? I indicated on the PPP application I make $500 a month. Can I claim a raise? I use my apartment as my office $1000 per month I pay $200 month utilities. How do I modify my covered period to 10 weeks? Is this done on the forgiveness application? Thank you for answering this. Hopefully others and myself will glean something from my questions. V
So I did just receive first draw ....I'm still not sure how to compensate myself. And what other expenses can I use the money for. I did Womply Fast Lane as I am the only person in my company. I file schedule C. your channel is great!
If your business is ran out of your home, so far I’ve gathered information stating the loan could be used to cover rent, insurance, business supplies bought only through the U.S, as well as machinery.
I have a question. What if you because of the lockdowns, had no income in 2020? I had income in 2019 as a seasonal worker. Lockdowns in 2020 kept me from working in the spring/summer which I make my money. So basically I would have 100 percent income loss in 2020. I have not been able to find any info on a situation like this. Thank you.
Can I pay myself in a lump sum at the beginning of my covered period in a lump sum for the next 24 weeks or must I wait until the last week to pay myself in a lump sum ?
You Can Pay Yourself In 8-10 Week Period. It’s Up To You If You Want To Pay Yourself a Lump Sum or Pay Yourself Weekly.(That’s Your Option) Either Way Is Ok, as Longs as You Using “at-least” 60% on payroll or If You Don’t Have Employees You Can Pay Yourself. Try To Leek Two Separate Account Business and Personal. When You Get Ppp Put it In Business Account and Pay Yourself To Your Personal Account, small payments or lump sum up to you. And as Long As You Keep Your Bank Statements Showing You Paid Yourself From One Account To Another You Should Be Forgiven
When you say "Close your covered period" what does this mean? Is closing the period out the act of asking for the loan forgiveness or is there somewhere you have to go online to do it?
I got a little confused. Could you please give me answers to these questions? 1. The lending company deposited my PPP loan in my checking account. Can I pay myself by transferring the money from my checking account to my savings account (same bank)? 2. 60% payroll 40 % business expenses How could I prove that 60% of my PPP went to my payroll when I make the transfer. Should I just transfer ONLY the 60% of the loan and LEAVE the 40% from where it was deposited (checking)? Thank you! Your video or very helpful.
So if we have a ppp loan put into our personal account do we transfer to a savings or business account to put yourself on “payroll” also after we transfer the money can we spend it for n anything?
Hannah, in terms of paying yourself as a sole prop, do you have to cut the check to yourself (or electronic deposit or whatever way works) within the actual covered period (either 8 or 24 weeks depending on whatever you pick as the owner) or can you do it after, or does it even matter in terms of complying with the rules and forgiveness? If you can shed some light on that, it'd be greatly appreciated! Oh, btw, your videos now are insanely better than last year when the pandemic first hit. Great job! All your hard work is clearly showing!!!
I am quoting from a CPA here as "It does not matter". As a sole proprietor, you only get a very limited loan as PPP which you should be able to ask for forgiveness all in one easy form.
Can soneone who's business was closed and had a full-time job when they applied and received the loan and apply for loan forgiveness? And what would happen if it is found out that the person that applied for the loan used an address on their application that was not the location of their business?
Excellent information, just subscribed. I believe that before you apply for the 2nd draw you have to prove you've spent the 1st draw. For a SP, does the act of transferring to a personal account for Owner Compensation count as spending or do you have to prove how you used that money from your personal account. Thank you.
İf you Show on computer or on paper it’s easy to understand. I want to know how I write down check myself ? I watched may be 10 videos but don’t understand
Can my husband use 40% on gear for work and fix his office ? my husband needs a car for work put LOTS OF MILES ? Can you please make video on list that can be used for work sba approved.
Here's a possible repeat question, from what I am understanding in order to make sure we have the loan forgiveness we should have the last compensation payment during the after the 10th week to make sure the 11th week would be ideal, or after 8 weeks at 100% payroll would that be forgiven, I'm looking for 100% forgiveness....
Clara. You were great in explaining but I need to know to to pay my self from the personal checking account that my ppp loan was deposited too. My personal account is what I use for my contractor busisness. Thanks Clara
Hello! I have a question.. if owners comp = 100k for 52 weeks then 100k /52 = 1923.07 per week.. based on bi weekly payroll you would ACH yourself 3846.15 EOW? Now. That would cover 10 weeks (as the max owner pay is 100K.. Correct?) So then you get another PPP draw 2 for another 21,000. Do you continue to pay forward ie: 5-4 3846.15. 5-18 3846.15. 6-1 3846.15 6-15 3846.15 6-29 3846.15. THAT WOULD PAYOUT PPP1 LOAN OVER 10 Weeks @19,230.75. Now PPP2 Arrives and there is another 21000.00 on APPX 5-1 (First PPP was 4-20). So now you are ACHing yourself the above amounts, but PPP2 arrives on 5-1... Do you re-aggregate the second draw on top of the PPP1 Payments. Or do you merely start a NEW 10 week period commencing 6-29 .. This is a very common situation as any CEO is Capped at 100k over 52 weeks... your clarification would be appreciated. Regards, Rob robert@vpdnevada.com
@@ClaraCFO so basically as a sole proprietor, just withdraw the money from one account , deposit it into another account an then apply for forgiveness?
So once I get the funds if I were to transfer it from my checking to my savings and in the notes of the transfer put like “payroll” or something along those lines and then just saved the statement for that I’ll be good?
@@ClaraCFO After you do this can you begin to spend the money by transferring it back to yourself since savings accounts don’t have cards attached if that makes sense.
Can I transfer all the PPP loan money amount from my checking account to my savings account. And than transfer the 2 weekly payroll back to my check account from the savings account every two weeks? Thank you so much!
I have a question. I got the first draw of the ppp loan and they sent me paperwork to sign for the second draw but I do not need the second draw what do I do?
Hey Amazing video! But I suggest you doing a video clarifing what happens with people who received the loan under Schedule C line 7, they should get the forgiveness with line 31? There is a lot of confusion around the gross and net income. Or should they use all the loan as payroll in 10 weeks and apply for forgiveness after 24 weeks?
So, basically independent contractors with no employees don’t have to pay that 40% for other expenses? I’m about to be funded this loan and I’m scared to death I’m going to mess something up. Now I’m really confused.
One thing you haven’t addressed is showing that you didn’t reduce your payroll during the approved period. It is my understanding that for the quarter you submit your paperwork and statements in for forgiveness, you also have to show that you did not reduce payroll for that period of time.
I have a pet care business. I collected a percentage off my pet sitters and walkers plus the work I do. We are all 1099s. How would I pay myself like this and be part of the forgiveness?
@@ClaraCFO I got a question! I’m a S-Corp but don’t have a payroll. Is that a way to get PPP???. I don’t think I filed a scheduled C,my is K1 and 1120 form.
When I say "closing the covered period" this just means the end date of your covered period. You don't declare the end of the covered period to anyone until you fill out your forgiveness application. The covered period can be a minimum of 8 weeks after receiving the funds and maximum of 24 weeks after receiving the funds.
@@ClaraCFO I still don’t understand? Can you give more details about this covered period. Do you mean that the Ppp loan can only be used within 8 weeks and then apply for forgiveness? I’m not sure.
Need help filling out your PPP forgiveness 3508S form? Hannah did a training on how to fill out and calculate your PPP Forgiveness - it's available for only $47 here: claracfo.podia.com/3508s-course-how-to-get-your-ppp-loan-forgiven-loans-under-50-000
Does this course cover figuring out payroll loan forgiveness, for a sole proprietor, with no employees, using form 3508S?
@@frankjordan8594 yes!
Does this training give guidance on those of us that had a YOY 25% reduction in revenue in 2020 and therefore were able to received the second draw in less than 8-wks from the dispersement of the first draw? Obviously, the calendar dates overlapped, but the covered periods cannot.
@@KB-uv7nz No it does not. Right now we believe that both loans will not be fully forgivable unless the SBA speaks up about this.
Big respect to this lady, well explained and straight to the point and not like other videos too much talk and nothing explained. Thank you again
Thanks so much!!
@@ClaraCFO hello, I just recieved the loan of 15559$ and I am sole proprietor refrigeration business repair without employees.what do you suggest to qualify for ppp forgivness with 0 problem. Also if I a write myself a check what should I write on memo?
Great.Finally someone who explains it so us dummies can understand. Thank you Clara...
It is a complicated subject! Glad it was helpful!
@@ClaraCFO How do we “close our cover period?”
Sorry 😞 guys I’m still confused 🤷♀️ but I’m a gig worker so I would like to pay myself
Thank you, thank you, thank you so much for posting this video. I was racking my brain trying to figure out how to show payroll cost as a sole proprietor. I am sending you a great big internet hug. Thanks again.
So glad it's helpful!!! 🤗
The only thing I’m confused on is coverage period.
OMG thank you!!!!!! I would have been totally lost had it not been for this video!
I’m confused 🤔
3:40 mark 🤌🏾 Haven’t touched my funds because I’ve been on the hunt for the answer to this question. Thank you!
So glad that's helpful!
I have been looking for a breakdown like this (namely whether or not I could transfer from a business checking to a personal checking out and if I could do it in one lump sum) and couldn't find that specific information. I also wasn't really sure what the deal was with the covered periods and when to apply. So, you seriously just answered all the questions I've been researching for hours in less than 8 minutes. lol THANK YOU!
Awesome!! Happy to provide some clarity
Thank you so much.
It was very helpful, specially how you broke down the owners compensation.
Awesome! thanks for watching!
You’re awesome and so smart to keep this so simple for everyone to understand
Thank you!! Thanks for watching!
You have provided such great detailed information here. One question about bank accounts. What if you are a sole proprietor and your business and personal funds are co mingled in one personal bank account? How do you pay yourself?
Interested in this answer ?
@@opsemail5529 so am I - I don't think it's known, I hope there is a cut and dry answer - I have all my monies going to the same account, I can't pay myself if my PPP goes to that account, its already there.
I would suggest opening another checking account and writing a check or transferring the money to that account.
Great question! I was getting this question a lot, so I made another video to answer it: czcams.com/video/6Pu27LcvmgU/video.html
I simply opened another account with my same bank (Chase) and set up weekly account transfers for the same day for next 9 weeks.
Thank you this is the only video on youtube that clarify the forgiveness process for me😘
You are so welcome
Sending virtual 🌺 🌹 to you. No one has explained any of this as clearly as you have. Thank you looking forward to hearing back on my questions on this and other video
Thank you for helping us and I know you are explaining it well, And I know it's me that getting confused on how and when to pay myself, but I will watch your video again to see if I can understand better the second time.
Hope it helps!
@@ClaraCFO please held me! I just got my first drawn ppp fund money today, but I am really nervous about using it the wrong way and it get forgiven. I wanted be able to get 100% forgiveness, otherwise I won’t have the money to pay back once I use the fund. On your video I can pay myself 100% the full amount? My question is that I am sole proprietor, but I don’t have a business name, LLC or DBA that register through state. I file taxes return on schedule C with SSN. Also I just opened 2 business account back in April of this year right before I applied for ppp. (Account 1 ) it for ppp fund money. (Accounts 2) it’s for my business income coming and out. So I planing on use it for 11 weeks for cover periods. I planing on paying myself by transfer from ppp account 1 to my regular personal checking account. And also thinking transfer monthly from personal checking to business checking account 2 to pay supplies and rental station. Would I be able to get forgiven base on the information I mention here? Please help and thank you.
@@sabrinachin5251 Hi pretty don’t over think it just pay your self like you said one bank
Account to another if you have checks better if you have 24 weeks pay you self every week or like she said 1 lump sump ;)
This was so helpful. So many people are saying we are unable to pay ourselves. Thank you for this video! 💆🏾♀️
Just what I needed to know, thank you!
So glad!
From all I’ve seen is that as a sole proprietor/schedule c filer we are technically not an employee according to the irs and in turn technically don’t have “payroll”. So from what I’ve seen is that we can use the loan all at once and when the 11 weeks come we should be able to apply for forgiveness based on the same document used to get the loan which is just the schedule c.
yes basically!
👍
What do you mean all at once?
@@ClaraCFO what does you mean all at once?
This was good and straight to the point!! Thank you 🙏
Thanks so much!
I love this video and it was very very helpful for me as a SP. thank you so much
Glad it was helpful! Thanks for watching!
Thanks for helpful tutorial
Happy to help! Thank you for watching!
@@ClaraCFO I really enjoyed your instructions, do more and covered everything pls
Very helpful, thank you! I am still a bit fuzzy on the the 2.5 months to keep open account prior to applying for forgiveness. I am self employed with no employees, so I will just transfer 100% of loan now, how do I calculate the 2.5 months and what if I wait longer? I do not want to miss window, I do not have other expenses. Anyone with knowledge on this, I would appreciate you sharing! Thank you!
Thank you so much for this! You just answered my question!
I'm so glad!
THANK YOU!!
Thank you for helping us all!
Happy to help!
Listened to hundreds of videos and got tons of great info. Thank you...you're the only one who answered this question/subject clear and concise!!!
You're very welcome! Thank you for watching!!
Soooo please help me.
60% the payroll cost can go to me for bills etc thats pretty much whatever I wanna spend it on and the 40% has to be specifically for the business correct?
hey so im still confused can someone help me please...So if i pay myself what does the check needs to say? and how do i know how much to pay myself weekly? and i pay myself for 8weeks then apply for the forgiveness?
Very helpful info!!! I was doing this all wrong but I can recover. Thank you!!!
You are awesome girl. Thank you very much! You explained it to the tea
So glad! Thanks for watching!
You put the PPP loan straight into you personal checking account. You paid yourself. BOOM. Done!!!!
Basically!
@@ClaraCFO and then you can spend that $ on anything you want? and the loan is still forgiven?
Ok so I’m confused if I use my personal bank account how to I show it went towards payroll since there won’t be any transactions?
@@coachzbasketball same question since it’s in my account already can I spend on anything
@@ClaraCFO any more to it? How do I prove that i paid me to get it forgiven?
The best information I get so far, thank you so much.
Glad it was helpful!
I agree
Thank you for explaining! Liked and subscribed.
Thanks so much!!
Love your smile, thanks for all the value
Wow! Thank you!! This is exactly what I needed! A Like and subscribe for sure! Question: When you say “Close your covered period” are you referring to spending the total amount of your loan? So for example the day you received the loan would be the start and the day you spent all of the money would be your closing date of the your covered period? I know my bank did the full 168 days on the promissory note I signed. I plan on doing one lump sum for owner compensation well before the 2.5 month cutoff.
So you have to wait 8 weeks before you spend the whole thing?
Hi, I got my PPP deposited on a personal account. (I'm self employed, Gig Worker) How the SBA sees that in term of applying for forgiveness?
I would like to know as well
Hopefully she answers I have the same Question !
Yes same here! Trying to get an answer!
Same thing I’m wondering. Has this been answered.?
Same. Please answer this question.
Wonderful explanation! The others are chock full of confusion!
Happy to provide some clarity!
Thank you, you made it easy to understand
Glad to hear that!
So if I pay myself once in a big lump sum but I want to both get the entire amount forgiven but also apply for the second draw what should I do? And how long should I wait for the cover period? I am having a hard time understanding the timelines and amounts for the second draw and forgiveness for both
You are in luck my friend! this video is for you: czcams.com/video/Y3ngwuMoMxs/video.html
@@ClaraCFO you can take 8 weeks to cover 100% not sure why youre only giving partial % payroll say you got 8000 pp1 8 wk period then take 1000 x 8wks
total 8000 in 8 weeks done as a sp right?
@@drjj1289 so im confused because it seems as though youre saying example PPP $8000 and we take all of it for payroll over an 8 week period what about the 60/40 for business rent or utilities isnt it mandatory that you use 40% on business exspenses
in order to get full forgiveness
@@barbarabrown6840 you can pay yourself 100% easier way
When applying for forgiveness, are both business and personal bank statements required?
(Or simply the business bank statement showing disbursement to the personal account).
Absolutely awesome. I was so confused until I found you, Clara! That was so very clear. The only thing I didn't understand because I am so thick headed is what do you mean by "keep your cover period open"? Is that something I do on a form or what? How and when do I declare a "cover period." Sorry, no one would ever want to hire me as a bookkeeper. :)
I'm so glad I could help!! The covered period can be a minimum of 8 weeks after receiving the funds and maximum of 24 weeks after receiving the funds. When I say "closing the covered period" this just means the end date of your covered period. You don't declare the end of the covered period to anyone until you fill out your forgiveness application.
So simple.Thank you!!
Thank you for watching!
Great video. Clear and specific information. Thanks so much!
Glad it was helpful!
Thank you so much for very helpful information. I just like the video, follow and subscribe.
Awesome, thank you so much!
Thanks for clarifying
Thanks for watching!
Thank you so much for the clarity!
Glad it was helpful!
Thank you sooo damn much. I looked through a shit load of vids and I found this video. Very helpful!!! ❤
So glad it helped!
Lemme get this straight. Lets say my PPP loan is $25K. I can write myself a check out of my business account for the full $25K. Then wait 2.5 months and what?
Definitely more complicated than that. I'd recommend watching my "owners compensation" or "payroll costs" videos. Or if you want to skip the piecemeal approach, I have a workshop for purchase that goes into everything you need. Link a link to that is in the pinned comment above.
Not sure what you mean by "keep your covered period open for two-and-a-half months". Do you do this in the PPP application, in the forgiveness application or by some non-written down technique? Here is a simple example to discuss question around.
Let's say my PPP loan hit my bank account March 1, for $3,000.
Are you saying I can pay myself the $3000 by transferring to a personal account (before and close to 10 weeks from March 1)? Then file for forgiveness March 15?
Potential issues:
How can I pay myself the full PPP loan.? I indicated on the PPP application I make $500 a month. Can I claim a raise?
I use my apartment as my office $1000 per month
I pay $200 month utilities.
How do I modify my covered period to 10 weeks? Is this done on the forgiveness application?
Thank you for answering this. Hopefully others and myself will glean something from my questions.
V
So I did just receive first draw ....I'm still not sure how to compensate myself. And what other expenses can I use the money for. I did Womply Fast Lane as I am the only person in my company. I file schedule C. your channel is great!
Following
If your business is ran out of your home, so far I’ve gathered information stating the loan could be used to cover rent, insurance, business supplies bought only through the U.S, as well as machinery.
@@apriljohnson4319 You're awesome thank you!
Can I transfer and pay myself from checking's to savings?
Great question! I was getting this question a lot, so I made another video to answer it: czcams.com/video/6Pu27LcvmgU/video.html
Thank you Ms clara
Thank you for watching!
Great information! Great video. Thank you ...
Thanks for watching!
very informative and clear. Thank you
Thanks for watching!
I have a question. What if you because of the lockdowns, had no income in 2020? I had income in 2019 as a seasonal worker. Lockdowns in 2020 kept me from working in the spring/summer which I make my money. So basically I would have 100 percent income loss in 2020. I have not been able to find any info on a situation like this. Thank you.
Can I pay myself in a lump sum at the beginning of my covered period in a lump sum for the next 24 weeks or must I wait until the last week to pay myself in a lump sum ?
You Can Pay Yourself In 8-10 Week Period. It’s Up To You If You Want To Pay Yourself a Lump Sum or Pay Yourself Weekly.(That’s Your Option) Either Way Is Ok, as Longs as You Using “at-least” 60% on payroll or If You Don’t Have Employees You Can Pay Yourself. Try To Leek Two Separate Account Business and Personal. When You Get Ppp Put it In Business Account and Pay Yourself To Your Personal Account, small payments or lump sum up to you. And as Long As You Keep Your Bank Statements Showing You Paid Yourself From One Account To Another You Should Be Forgiven
@@rapcltcatchup2536 Can I use two personal checking accts if I don't have a business acct?
Yes of course you can
@@rapcltcatchup2536 what is the 8 to 10 week period? Is this when you first get the ppp or is it 8 weeks after you get the ppp?
@@rapcltcatchup2536 can we pay all 100% of the loan to myself and be forgiven. I included bonuses
Thank you
Welcome!
You're Great Thanks for the clarification
Glad it was helpful!
Great Video.
Q. What if you want to RETURN/REPAY the PPP Loan "if you changed your mind" ❓
Following
following
When you say "Close your covered period" what does this mean? Is closing the period out the act of asking for the loan forgiveness or is there somewhere you have to go online to do it?
Direct message me
+1 (360)
453 * 7521
I got a little confused. Could you please give me answers to these questions?
1. The lending company deposited my PPP loan in my checking account. Can I pay myself by transferring the money from my checking account to my savings account (same bank)?
2.
60% payroll
40 % business expenses
How could I prove that 60% of my PPP went to my payroll when I make the transfer. Should I just transfer ONLY the 60% of the loan and LEAVE the 40% from where it was deposited (checking)?
Thank you! Your video or very helpful.
Great information! Thank you so much.
Glad it was helpful!
So if we have a ppp loan put into our personal account do we transfer to a savings or business account to put yourself on “payroll” also after we transfer the money can we spend it for n anything?
Following because I’m looking for the same answer. My loan went to my personal account and I have a business account of course but now what do it do..
@@jaeleelomba9745 go to her other video she has another one explaining in great detail what to do.
I still lost 🤦🏽♀️I need help
Are you an independent contractor ?
Best video !! Thank you !!
Thanks so much!
Wow great video ,answered all my questions,thank u
Glad it helped! Thanks for watching!
Hannah, in terms of paying yourself as a sole prop, do you have to cut the check to yourself (or electronic deposit or whatever way works) within the actual covered period (either 8 or 24 weeks depending on whatever you pick as the owner) or can you do it after, or does it even matter in terms of complying with the rules and forgiveness? If you can shed some light on that, it'd be greatly appreciated! Oh, btw, your videos now are insanely better than last year when the pandemic first hit. Great job! All your hard work is clearly showing!!!
I am quoting from a CPA here as "It does not matter". As a sole proprietor, you only get a very limited loan as PPP which you should be able to ask for forgiveness all in one easy form.
@@Revolutionized Thanks for taking the time to reply. I appreciate you bro!
@@nationalnesteggsolutions2335 Oh no problem bro. At the end of the day we understand our situation better than everyone else.
Can soneone who's business was closed and had a full-time job when they applied and received the loan and apply for loan forgiveness?
And what would happen if it is found out that the person that applied for the loan used an address on their application that was not the location of their business?
Thanks girlfriend!
Thanks for watching!!
Is this good for schedule C people who do online sales and pay taxes on them every year?
Excellent information, just subscribed. I believe that before you apply for the 2nd draw you have to prove you've spent the 1st draw. For a SP, does the act of transferring to a personal account for Owner Compensation count as spending or do you have to prove how you used that money from your personal account. Thank you.
You cover things most everyone else just skips.....thank you.
Happy to help! Thanks for watching!
İf you Show on computer or on paper it’s easy to understand. I want to know how I write down check myself ? I watched may be 10 videos but don’t understand
Can I use 100% in payroll expenses?
Can my husband use 40% on gear for work and fix his office ? my husband needs a car for work put LOTS OF MILES ? Can you please make video on list that can be used for work sba approved.
Yes my husband needs to purchase a car every couple of years for his job since he puts about 100k miles on it every year. Great question
New subscriber you are so helpful and beautiful ☺️
Thank you for the clarification 💪
Thanks for the sub!!
Here's a possible repeat question, from what I am understanding in order to make sure we have the loan forgiveness we should have the last compensation payment during the after the 10th week to make sure the 11th week would be ideal, or after 8 weeks at 100% payroll would that be forgiven, I'm looking for 100% forgiveness....
You can use 100% for payroll
What abt if the money is deposited to ur personal acc directly what do u call that?
Yourself being paid because it technically was directly deposited into your hand
@@jordalebrewster Thanks
Hi @Natuicaa Fash, I was getting this question a lot, so I made another video to answer it: czcams.com/video/6Pu27LcvmgU/video.html
@@ClaraCFO thanks for taking ur time to make us understand this. Thanks once again
This is line 7 on Schedule C for Gross Income, correct? Just wanted to make sure. Thank you SO much for this!!
Oh! and when I'm rounding up the week to be 2.5 months, do I round up to Sunday? Or Friday?
Clara. You were great in explaining but I need to know to to pay my self from the personal checking account that my ppp loan was deposited too. My personal account is what I use for my contractor busisness. Thanks Clara
Great question! I was getting this question a lot, so I made another video to answer it: czcams.com/video/6Pu27LcvmgU/video.html
Hello! I have a question.. if owners comp = 100k for 52 weeks then 100k /52 = 1923.07 per week.. based on bi weekly payroll you would ACH yourself 3846.15 EOW? Now. That would cover 10 weeks (as the max owner pay is 100K.. Correct?) So then you get another PPP draw 2 for another 21,000. Do you continue to pay forward ie: 5-4 3846.15. 5-18 3846.15. 6-1 3846.15 6-15 3846.15 6-29 3846.15. THAT WOULD PAYOUT PPP1 LOAN OVER 10 Weeks @19,230.75. Now PPP2 Arrives and there is another 21000.00 on APPX 5-1 (First PPP was 4-20). So now you are ACHing yourself the above amounts, but PPP2 arrives on 5-1... Do you re-aggregate the second draw on top of the PPP1 Payments. Or do you merely start a NEW 10 week period commencing 6-29 .. This is a very common situation as any CEO is Capped at 100k over 52 weeks... your clarification would be appreciated. Regards, Rob robert@vpdnevada.com
This a great breakdown of how to 🙌
Glad it was helpful!
GREAT info, thank you! Are there a lot of applicants under $50,000 getting their loans forgiven?
Yes!
@@ClaraCFO so basically as a sole proprietor, just withdraw the money from one account , deposit it into another account an then apply for forgiveness?
This helped so much! Thank you!!
I'm so glad!
Am I the only one still not getting this im still confused
So once I get the funds if I were to transfer it from my checking to my savings and in the notes of the transfer put like “payroll” or something along those lines and then just saved the statement for that I’ll be good?
Yep! And save your schedule C that you used to apply for the loan.
Good question
@@ClaraCFO After you do this can you begin to spend the money by transferring it back to yourself since savings accounts don’t have cards attached if that makes sense.
So basically after transferring the whole sum to myself I need to wait 2 and a half weeks to ask for forgiveness?
Can I transfer all the PPP loan money amount from my checking account to my savings account. And than transfer the 2 weekly payroll back to my check account from the savings account every two weeks?
Thank you so much!
I’d like to know this also
Same here, it’s my plan but I want to make sure it’ll work.
Exactly my question
Thank You Ma'am.... Much Appreciated
My pleasure 😊
I have a question. I got the first draw of the ppp loan and they sent me paperwork to sign for the second draw but I do not need the second draw what do I do?
Hey Amazing video! But I suggest you doing a video clarifing what happens with people who received the loan under Schedule C line 7, they should get the forgiveness with line 31? There is a lot of confusion around the gross and net income. Or should they use all the loan as payroll in 10 weeks and apply for forgiveness after 24 weeks?
you will get forgiveness for gross income.
So, basically independent contractors with no employees don’t have to pay that 40% for other expenses? I’m about to be funded this loan and I’m scared to death I’m going to mess something up. Now I’m really confused.
Same
Same 🙂
This explanation wasn't clear. Too much back n forth.
Thank you very much. I appreciate you..
Happy to help!! Thank you for watching!
One thing you haven’t addressed is showing that you didn’t reduce your payroll during the approved period. It is my understanding that for the quarter you submit your paperwork and statements in for forgiveness, you also have to show that you did not reduce payroll for that period of time.
Good morning! If my business is run from my home, are rent/utilities considered qualified expenses?
I have a pet care business. I collected a percentage off my pet sitters and walkers plus the work I do. We are all 1099s. How would I pay myself like this and be part of the forgiveness?
Great information.
Thanks for watching!
excellent explanation. Thanks for sharing!
Glad it was helpful! Thanks for watching!
Thank you Clara
I appreciate your time
Blessings 👏
Thanks for watching!!
@@ClaraCFO I got a question! I’m a S-Corp but don’t have a payroll. Is that a way to get PPP???. I don’t think I filed a scheduled C,my is K1 and 1120 form.
Could you address the period after 8 weeks? What can you do or pay in that window of 10 weeks to 24 weeks?
Thank you very much for the info!!
How do we “close our cover period?” Thank you!
yes, how do we open and close the covered period?
When I say "closing the covered period" this just means the end date of your covered period. You don't declare the end of the covered period to anyone until you fill out your forgiveness application. The covered period can be a minimum of 8 weeks after receiving the funds and maximum of 24 weeks after receiving the funds.
@@ClaraCFO I still don’t understand? Can you give more details about this covered period. Do you mean that the Ppp loan can only be used within 8 weeks and then apply for forgiveness? I’m not sure.
Very helpful. Thank you
Glad it was helpful!
Again thank you sis, and I’ve got 8540.00 keep making great videos.