Paycheck Protection Program QuickBooks Accounting
QuickBooks makes easy to apply for USA federal PPP Coronavirus Aid, Relief, and Economic Security (CARES) Act program under which Small business , self employed can apply for a loan to employee salary and other expense . USA government $659 billion budget gives relief to many companies which are effected and facing business loss due to Corona virus . More details you can found SBA.gov.
Intuit gives the option to Apply PPP program to TurboTax customer who filed their taxes in Year 2019 .If you are unable to view the option you have to Get PPP updates after registration . More details you can call TurboTax Contact Phone Number .
Intuit Simplify the Process in Three Steps
Apply : With QuickBooks Capital you can apply , when application is completed you will receive an Email for review , accept & then submit .
Get Fund Money : You can get upto $10 million and you can spend it for Employee salary , retirement , insurance premiums, PTO , also this money also can be used for paying utilities bills , rent or any loan or mortgage .
Loan Forgiveness Apply : If you pay your employee salary more than 8 weeks and you’r company expenses are eligible for forgiveness . More information go here SBA.gov.
Also its better get in touch QuickBooks Toll Free Number for more information .
Get the full details of PPP Program
- What Is QuickBooks Paycheck Protection Program ?
- Who Can Apply for Quickbooks PPP Program
- Quickbooks PPP Loan Interest Rate
- Quickbooks PPP Forgiveness Criteria
- Documents Required For QB Paycheck Protection Program
- How To Apply Paycheck Protection Program Via QuickBooks
What Is Paycheck Protection Program Or PPP?
It is an effort to provide impetus to businesses facing an unprecedented economic disruption due to the COVID-19 pandemic; the government is providing a direct incentive to small businesses to retain workers on their payrolls. The incentive is in the form of loans under the government’s Paycheck Protection Program. The program is a part of the new CARES Act or the “Coronavirus Aid, Relief, and Economic Security” under which $376 billion worth of relief will be disbursed to small businesses and American workers in form of government-backed loans as a part of to Coronavirus Aid program. It’s a government’s effort to offset businesses for bearing the payroll cost and certain operating expenses under the new Paycheck Protection Program.
Eligibility For PPP USA Companies
The guidelines are set by Small Business Administration (SBA)– a body that helps small businesses procure loans indirectly through its partnering lenders and sets guidelines for such loans.
The key factor determining the eligibility is that a small business owner (as defined by SBA) that has been impacted by COVID-19 will qualify for a PPP loan. These businesses need to meet the employee size threshold set by SBA or there should be less than 500 full-time employees working in the organization. Business in the Food & Hospitality industry, having more than 500 employees, BUT, employees less than 500 employees at each location will also qualify for a PPP Loan.
What is SBA’s definition for the Types of business qualifying for the PPP loan?
A business under 501(c) (3) nonprofit organization
A 501(c) (19) veterans organization
A Tribal Business
Self-employed individuals, Independent contractors or Sole proprietorships
To be eligible for this loan, a business or an organization should have been in operation on February 15, 2020.
What Are The Loan Terms For A PPP Loan?
All PPP loans have identical terms:
- Interest rates applicable – 1%
- Maturity time-period: 2 years
- First payment can be deferred for 6 months upon approval, however, it will incur interest
- There is No prepayment penalty
- No collateral or personal guarantees required from the borrower
- There is no fees payable to the SBA by the borrower or lender
When Can The PPP Loan Be Forgiven?
Under certain criteria, the PPP Loan can be forgiven; either in part or in whole. Foremost being that the loan is used as per the directions of the SBA. Check out the SBA guidelines to this below:
- 75% of the loan amount is used in payroll and other employee benefits
- Maintain the salary level of employees
- Those who were retrenched as a result of the Corona Virus during Feb, 15 – April 26, 2020, must be rehired and their wages restored by June 30, 2020*
Retain the same headcount on your payroll
*In case a business had to let go of its employees or reduces their wages and fails to re-employees them, the forgiven loan amount will be reduced.
How much loan an organization is eligible for will be decided based its average monthly payroll costs, depending on this, it may be eligible for up to $10 million under the PPP Loan Program.
When Can a PPP Loan Be Forgiven?
Certain expenses will allow for the loan forgivness in part or full.
Besides spending the 75% to cover its payroll the company can utilize the loan on other employee benefits such as insurance premium, PTO, and retirement and other term payments such as mortgage interest, paying state or local taxes, utility bills, rent among other expenses. Consult with QuickBooks Payroll Support Number to get full details .
Total loan forgiveness can be reduced (in whole or in part) due to the following:
The number of your employees* decreased: If after receiving the PPP loan and during the 8 weeks thereafter, an organization reduces the number of full-time equivalent employees to less than the average number of full-time equivalent employees it either had between Feb 15, 2019, to June 30, 2019 Or Jan 1, 2020, to Feb 29, 2020. It’s for the company to choose between these two time periods for comparison. Although seasonal employers only have the option of choosing the Feb 15, 2019, and June 30, 2019 period.
The total or salary employees* wages decreased: The total or salary employee wages are reduced by more than 25% for any employees during these 8 weeks after receiving the loan. For considering the total salary or wages of employees, the most recent full-quarter is taken into account while they were employed before receiving the PPP loan. Employees who had higher than $100k of salaries or wages in 2019 are not to be counted for this purpose. Also learn How To Create Covid-19 Payroll Item QuickBooks in simple steps .
What Are the Documents Required For PPP Loan
Although documentation requirements may vary by the lender you should be prepared with these before approaching a lender:
- Articles of incorporation
- Operating agreement
- A Copy of each owner’s driver’s license
- Payroll expense verification
- Certification that USA is the principal place of residence for all employees
- Also a detailed list of employees all living in the US and their corresponding salaries
- 12-month profit and loss statement
- Proof of expenses (includes interest payment, rent or mortgage, and utility payments, etc.
Potential borrower’s payroll details or related documents including:
- Gross pay.This includes gross wages including paid time off, vacation pay, and family medical leave in the last 12 months.
- Last 12 months Tax withholdings of federal, state, and local income taxes
- 2019 FUTA taxes including IRS Formsand 941 for federal unemployment taxes
- Company-paid group health insurance premiums for the last 12 months
- Business contributions to employee retirement plans for the last 12 months
How to Apply For A Loan Through QuickBooks?
Intuit and PayPal are a part of the federal government’s Paycheck Protection Program. The loan will be provided by the Intuit Financing Inc. subsidiary – QuickBooks Capital in the form of digital advances emergency loans. And the good news is that preference will be given to already existing customers of QuickBooks. It has plans to disburse loans worth billions of dollars in the form of PPP funds to this early lot of recipients.
QuickBooks Payroll or QuickBooks Self-Employed customer who filed their 2019 taxes with TurboTax Self-Employed, they can easily apply PPP through QuickBooks. Check out more in our next article on “What is Paycheck Protection Program in QuickBooks”
For application, business documents for completing the Paycheck Protection Program, criteria, you can also call for assistance on the toll-free support 📞1-855-836-9250.