How To Apply Payroll Protection Program In QuickBooks
The original $349 billion worth of funds allocated under the CARES Act was exhausted in just 2-weeks. However, on April 27, 2020, the government has announced to pump in additional $310 billion for the expansion of the Paycheck Protection Program under the next round of PPP funding and this is expected to go even faster. QB customer can get instant help for PPP loan Call Toll Free 📞 +1-855-836-9250 .
Here’s a piece of good news for the users of Intuit service as these funds are now provided through them. PayPal and Intuit QuickBooks were the first non-bank lenders to have been approved by the SBA as they are able to streamline the application process due to their existing framework. According to Intuit, one out of twelve American workers gets paid through QuickBooks and they already have a big database of pre-validated payroll information for companies. Their “Real-Time Lending” process can process applications faster and deliver funds much sooner than traditional banks.
How To Prepare For Paycheck Protection Program QB
The only advice is to know the rules, get prepared, and act fast so you don’t miss out on this second wave of funding.
Businesses Utilizing Quickbooks’ Financial Services Can Apply For the Loan
Users can sign in to their accounts and check if the PPP application is available. Others can sign up to get notified about when QuickBooks Capital will start lending to additional businesses.
Who Qualifies For A Paycheck Protection Program Loan?
- If a business was operational before February 15, 2020
- Businesses that have 500 employees or fewer
- Small businesses / 501 (c)(3) nonprofits / and 501(c)(19) veterans’ organizations having 500 or fewer employees. And also the Tribal businesses under (sec. 31(b)(2)(C) of Small Business Act).
- Business must have been affected by the Coronavirus
- Multiple locations
Companies under food or hospitality service having fewer than 500 employees at each location, but their overall employee strength is over 500 are also eligible.
- Self-employed individuals
Sole proprietors, independent contractors, and gig workers who are a principal residence in the U.S and were operational on or before Feb. 15, 2020 and have filed Form 1040 Schedule C for 2019.
- There isn’t any pending loan applications (except Economic Injury Disaster Loans)
- Organization is impacted by COVID and such a loan request is seen as necessary
Who Is Eligible To Apply For the PPP Loan with QuickBooks
- Payroll customer or a QuickBooks Self-Employed – Those who have filed 2019 taxes with TurboTax Self-Employed. These customers can sign in to see if the PPP loan applications are available in their product.
- Please note that availability may vary. QuickBooks will soon start adding additional customers.
How to Apply for a Paycheck Protection Program (PPP) Loan?
There is a standardized downloadable loan application that’s to be filled and submitted to the SBA approved lenders. The documents to be submitted along with the application may vary upon your lender.
QuickBooks Paycheck Protection Program Preparation guide to apply (PPP) Loan?
The first batch of QuickBooks paycheck protection program funds dried up fast. But, there will soon be a new drive. Here’s what you should be prepared with for the next round of QuickBooks PPP loans.
How to Prepare For Paycheck Protection Program?
Get your documents in order
If you filed your taxes for the year 2019 with TurboTax Self-Employed or you are a QuickBooks Self-Employed customer you’ll need the following:
- Articles of incorporation or operating agreement for each borrowing entity
- A list of all stakeholders owning 20% or more stakes in the business with a copy of each stakeholder’s driver’s license
- Payroll expense verifying documents including:
- Payroll expenses records including payroll summary report with corresponding bank statements
- Form 940: Employer’s Annual Federal Unemployment (FUTA) Tax Return
- Tax withholding from form 941: Employer’s Quarterly Federal Tax Return
- Form 1099-MISC if you’re an independent contractor
- Breakdown of the employees benefits such as health insurance, group healthcare benefits, pension plan, retirement benefits, vacation allowance, etc.
- A list of your employees living within the US and those not living in the US with proof of residency their salaries.
- A profit and loss statement for a period of 12 months for all applicants before your application date
- Most recent mortgage/rent payments/utility bills copy
QuickBooks will help import the rest of the information from TurboTax info to verify applicant’s eligibility and requested loan amount.
If you are self-employed and applying outside of QuickBooks Capital:
- Form 1040 2019 Schedule C
- Document proving about your self-employment such as1099-MISC for 2019, bank statement, books of record, invoice, etc
- Documentation proving that you were in operation on Feb. 15, 2020 (same as above)
Also for the companies they have to make right setup for PPP to know all about Payroll Items Covid-19 In Quickbooks .
Tax Withholdings From Your Form 941
Important: Small Business Administration (SBA) Recent Changes To PPP Loan Requirements
Loan applications not yet approved may need to provide additional information for loan approval. Here’s a recap:
The U.S. Small Business Administration (SBA) continues to fine-tune the terms of the Paycheck Protection Program (PPP) with interim rules:
- Lenders will have to make one-time, full loan disbursement within 10 calendar days upon the loan approval.
- Lenders won’t be responsible for delays in loan disbursements if the borrower fails to provide the required loan documentation.
- If the borrower doesn’t submit the relevant loan documents within 20 calendar days of loan approval, the PPP loan will be canceled.
- SBA will release Form 1502 in on which the disbursed loan and its processing fee is to be mentioned by the lending institution.
- Businesses that are part of a single corporate group (owned, directly or indirectly by a common parent) may now not receive in the aggregate more than $20 million of PPP loans.
- SBA will review all PPP loans for compliance that are in excess of $2 million and “other loans as deemed appropriate”.
- Where an employee was earlier laid off by the borrower and later they decline to accept the borrower’s offer of rehiring on the same salary/wages and the same number of hours. Such laid off cases will not impact the loan forgiveness; provided the offer is written and made in good faith and the rejection of the offer is documented by the borrower.
- For seasonal employer maximum PPP loan amount is based on the average monthly payroll costs during any consecutive 12-week period. Such a period was set according to the CARES Act to February 15, 2019, or March 1, 2019, to June 30, 2019. But now, the period between May 1, 2019, and September 15, 2019 can be taken as an alternative period for the calculation.
Help For QB PPP Application Submission
Get the information about PPP loans and federal relief options and protect employees, and get tips on how to secure a PPP loan to overcome the coronavirus pandemic – Call QuickBooks 24/7 toll-free support number .