This is super important to read and understand how changing the bank account normally used for payroll to a new bank account that was opened to solely hold your PPP funds is going to produce unwanted results. We have found that a large number of companies, over the past few weeks, have requested to change the bank account in which their payroll is drawn. Upon questioning, it is discovered that the change is the result of the business owner receiving their Paycheck Protection Program (PPP) loan proceeds into a brand new separate bank account and wanting their payroll to be…
Posts published in “COVID-19”
The Paycheck Protection Program (PPP) of the CARES Act authorizes up to $349 billion in loans to small businesses to pay their employees and other expenses during the COVID-19 crisis. The loan amounts will be forgiven under Section 1106 of the Act as long as certain conditions are met, and knowing those conditions at the start of the loan process is crucial, because if you wait until the end of the process, it will be too late. There are four areas of concern to receive 100% forgiveness. 1. Let’s start with what the proceeds can be used for. Over the…
With the passage of the Families First Coronavirus Response Act, two new refundable payroll tax credits are available to employers with fewer than 500 employees. These refundable credits are designed to fully reimburse them, dollar-for-dollar, for the cost of providing Coronavirus-related leave to their employees. The Act allows two paid leaves for the employee’s own health needs or the care of family members. This will enable employers to keep their employees on payroll and ensure that employees are not forced to choose between their paycheck and the public wellbeing. Emergency Paid Sick Leave Companies with fewer than 500 employees,…