I am a massage therapist, I have an S corp. I’m the only employee and I do pay myself as an employee, but I am not sure if that is considered payroll. Will I be covered under CARES Act?
Sole proprietors are eligible.
Can a two-person sole proprietorship that hires consultants for its work apply for support to keep the consultants working?
Yes, 1099 are eligible.
Is the payroll covered by the loan only for full-time staff or part time and contractors too?
All the above. As long as you can show that you paid them for the period that is required under this program.
Are 501(c)(3) eligible for the PPP?
Yes. Non-profit organizations are eligible.
Can you apply for both PPP and EIDL and if you get approved for both can you accept both?
Economic Injury Disaster Loans (EIDL) can be converted to PPP.
Since non-profits hire 1099 contractors for consulting and other services, will these contractors be included in the PPP?
1099 are eligible.
Define “monthly payroll costs” in order to calculate the loan amount? Can benefits including healthcare insurance costs be included?
- Compensation (salary, wage, commission, or similar compensation, payment of cash tip or equivalent)
- Payment for vacation, parental, family, medical or sick leave
- Allowance for dismissal or separation
- Payment required for the provisions of group health care benefits, including insurance premiums
- Payment of any retirement benefit
- Payment of state or local tax assessed on the compensation of employees.
My rent is more expensive than my payroll. The program specifies 75% of the forgivable amount should apply to the loan, what would be my best approach?
The CARES Act makes possible forgiveness for non-payroll costs in excess of 25% of total forgiveness if employees are re-hired by June 30.
Can you use PPP to pay 1099 contractors?
Is there any help for 1099 contractors and business owners? For example a realtor.
The Payment Protection Program (PPP) applies for sole proprietors and covers 1099 employees.
Would the Payment Protection Program (PPP) loans allow for payments to 1099 or only W9 employees?
Both, W2 and 1099 employees.