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.
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
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!
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.
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.
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 ;)
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!
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.
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.
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.
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?
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?
Hi Clara. Ive watched your video a few times. I'm a sole proprietor and received a PPP loan in April 2021 for a covered period of 168 days and the loan is for 60 months. Please confirm, do I have to wait to the 2.5 months to pay the full loan to pay myself to be in compliance with the PPP loan? How do I know if the loan is forgivable? Must I apply for forgiveness, via the leading institution that facilitated the PPP loan? Thanks ! YOU ROCK, im loving your site. Greg
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.
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.
When applying for forgiveness, are both business and personal bank statements required? (Or simply the business bank statement showing disbursement to the personal account).
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
If you used Line 7 on Sch C to determine your ‘loan’ amount, all you need to do to be forgiven is send in form 3508S which uses the exact same formula. If you’re self employed you cannot ‘pay’ yourself therefore there is no payroll. That’s the way it was explained to me.
The documentation requirements also state that you need to have bank statements to support payroll if you don't have payroll reports. That's why we do this transfer to fully "CYA" our documentation needs here.
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?
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.
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
@@ClaraCFO so basically as a sole proprietor, just withdraw the money from one account , deposit it into another account an then apply for forgiveness?
Thank you! This was really helpful! So the only question I have left then is can I still have "paychecks" from my business during those 2.5 months as well? Or is this meant to be the only pay that we are allowed?
Hello I have a question. So what your saying is as a sole proprietor I can pay myself all the money from my loan ? I do not have any employees, so I can get forgiveness correct ? Please help haha thanks
What is the covered period mean. I know it’s 2.5 months but does that mean I can’t make additional income during this time? What does it mean? Thank you
Hello, I had another question. Being a person already had funds, etc. in their account prior to their loan approval, can one start a new business, LLC, etc. after getting this loan or should they wait until after the forgiveness process? I ask because I'm not sure if the SBA could look at this as the money was used for a business startup. Just want to be sure I'm using the funds correctly. Please advise. ( If you provide you cash app I would GLADY send you a tip for your advice as you have been extremely helpful to so many others)
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
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
Hello, so how long do I have to wait to pay myself the 60% as a sole proprietor? Also the funds are coming to my personal checking, can I transfer to savings or just write myself a check a be done?
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
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.
If I get funded on 4-15-21 for example and its $10,000 and I pay myself $1,000 every week for 10 weeks, can I apply for forgivness on week 11 or do I have wait the full 24 weeks because I passed the minimum 8 weeks? Hope the question makes sense!
As I understand it, the minimum is 8 weeks, the maximum is 24 weeks. Also you won't get full forgivness if you pay yourself over 10 weeks. Stretch it to 11 weeks.
@@shumakerart I'm not sure it matters how you actually pay yourself, but you have to use a covered period long enough to encompass a full 2.5 months, so 11 weeks.
Thanks for the video! I received the first loan in August of 2020 and paid myself over the next 19 days but I paid about 90%. I just paid myself the rest of the 10% (April 8th 2021) but am I only eligible for forgiveness for that 90% because that was within the 24 week period?
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....
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!
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?
Hi Clara you probably not gonna read my comment, but if you do please tell me if I can keep the full amount in my account and wait for 2,5 months then pay myself with the full amount. Thank you
Hello..thanks for this awesome for the ones that are completely confused like myself. Question..when you get your loan, do you have to pay yourself before spending anything? And is the covered period for everybody 2.5 months?
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?
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?
So if I received 1st draw March 31st, my 10/11 week covered period to qualify for full forgiveness as uber driver,(june16th) this would bring me passed 2nd draw deadline date... do I apply for 2nd draw b4 deadline, and hold that money to start 2nd draw money covered period at end of that 1st draw covered period?( June 16th) 2nd starting June 17th..
How do I pay myself the lump sum and not lose my PUA unemployment? Will the lump sum salary to myself immediately cut off my PUA? Or just for the week I paid myself the PPP loan and then the following week, certify for unemployment? I have 24 weeks to pay myself. Can I wait till my unemployment runs out in Sept and then transfer the PPP loan amount into my personal acct then for forgiveness?
So Basically I Can Pay My Self With The Loan (doesn’t matter if it’s every week or lump sum) Transfer from business account to personal in check form and as long as I keep them payroll statements to myself I will be forgiven ?
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?
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!!! 🤗
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 this is the only video on youtube that clarify the forgiveness process for me😘
You are so welcome
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!
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
OMG thank you!!!!!! I would have been totally lost had it not been for this video!
I’m confused 🤔
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
You’re awesome and so smart to keep this so simple for everyone to understand
Thank you!! Thanks for watching!
Thank you so much.
It was very helpful, specially how you broke down the owners compensation.
Awesome! thanks for watching!
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?
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: ruclips.net/video/6Pu27LcvmgU/видео.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 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 ;)
Very helpful info!!! I was doing this all wrong but I can recover. Thank you!!!
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!
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!
This was so helpful. So many people are saying we are unable to pay ourselves. Thank you for this video! 💆🏾♀️
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.
Thank you so much for very helpful information. I just like the video, follow and subscribe.
Awesome, thank you so much!
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!!
Just what I needed to know, thank you!
So glad!
Thank you for explaining! Liked and subscribed.
Thanks so much!!
The only thing I’m confused on is coverage period.
Wonderful explanation! The others are chock full of confusion!
Happy to provide some clarity!
Thank you so much for this! You just answered my question!
I'm so glad!
THANK YOU!!
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.
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?
Love your smile, thanks for all the value
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?
You are awesome girl. Thank you very much! You explained it to the tea
So glad! Thanks for watching!
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?
Thanks for helpful tutorial
Happy to help! Thank you for watching!
@@ClaraCFO I really enjoyed your instructions, do more and covered everything pls
Great video. Clear and specific information. Thanks so much!
Glad it was helpful!
Great information! Great video. Thank you ...
Thanks 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?
Hi Clara. Ive watched your video a few times. I'm a sole proprietor and received a PPP loan in April 2021 for a covered period of 168 days and the loan is for 60 months. Please confirm, do I have to wait to the 2.5 months to pay the full loan to pay myself to be in compliance with the PPP loan? How do I know if the loan is forgivable? Must I apply for forgiveness, via the leading institution that facilitated the PPP loan? Thanks ! YOU ROCK, im loving your site. Greg
This was good and straight to the point!! Thank you 🙏
Thanks so much!
Thank you, you made it easy to understand
Glad to hear that!
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.
HI! GREAT VIDEO
I'm self employed can use the whole PPP loan fund 100% to pay my self for 10 weeks without expenses
Great Video.
Q. What if you want to RETURN/REPAY the PPP Loan "if you changed your mind" ❓
Following
following
Again thank you sis, and I’ve got 8540.00 keep making great videos.
Thank you sooo damn much. I looked through a shit load of vids and I found this video. Very helpful!!! ❤
So glad it helped!
So simple.Thank you!!
Thank you 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.
Wow great video ,answered all my questions,thank u
Glad it helped! 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.
very informative and clear. Thank you
Thanks for watching!
When applying for forgiveness, are both business and personal bank statements required?
(Or simply the business bank statement showing disbursement to the personal account).
Great information! Thank you so much.
Glad it was helpful!
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: ruclips.net/video/Y3ngwuMoMxs/видео.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
Thanks for clarifying
Thanks for watching!
The best information I get so far, thank you so much.
Glad it was helpful!
I agree
Thank you for helping us all!
Happy to help!
If you used Line 7 on Sch C to determine your ‘loan’ amount, all you need to do to be forgiven is send in form 3508S which uses the exact same formula. If you’re self employed you cannot ‘pay’ yourself therefore there is no payroll. That’s the way it was explained to me.
What about the ppp1 covered period overlapping possibly with ppp2
I understand the calculations part but what happens when we try to do the covered.
The documentation requirements also state that you need to have bank statements to support payroll if you don't have payroll reports. That's why we do this transfer to fully "CYA" our documentation needs here.
You're Great Thanks for the clarification
Glad it was helpful!
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?
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Thank you for these Videos. Are you saying that you must use the PPP money within the covered time period ??
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.
Best video !! Thank you !!
Thanks so much!
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
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?
Thank you! This was really helpful! So the only question I have left then is can I still have "paychecks" from my business during those 2.5 months as well? Or is this meant to be the only pay that we are allowed?
Hello I have a question. So what your saying is as a sole proprietor I can pay myself all the money from my loan ? I do not have any employees, so I can get forgiveness correct ? Please help haha thanks
Thank you so much for the clarity!
Glad it was helpful!
What is the covered period mean. I know it’s 2.5 months but does that mean I can’t make additional income during this time? What does it mean? Thank you
Hello,
I had another question. Being a person already had funds, etc. in their account prior to their loan approval, can one start a new business, LLC, etc. after getting this loan or should they wait until after the forgiveness process? I ask because I'm not sure if the SBA could look at this as the money was used for a business startup. Just want to be sure I'm using the funds correctly. Please advise. ( If you provide you cash app I would GLADY send you a tip for your advice as you have been extremely helpful to so many others)
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
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
Hello, so how long do I have to wait to pay myself the 60% as a sole proprietor? Also the funds are coming to my personal checking, can I transfer to savings or just write myself a check a be done?
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: ruclips.net/video/6Pu27LcvmgU/видео.html
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
This helped so much! Thank you!!
I'm so glad!
If I get funded on 4-15-21 for example and its $10,000 and I pay myself $1,000 every week for 10 weeks, can I apply for forgivness on week 11 or do I have wait the full 24 weeks because I passed the minimum 8 weeks? Hope the question makes sense!
I’m wondering this too
As I understand it, the minimum is 8 weeks, the maximum is 24 weeks. Also you won't get full forgivness if you pay yourself over 10 weeks. Stretch it to 11 weeks.
@@BRTowe Oh shoot! That's interesting. I have it set to autopay 10 times but I'll change it to stretch the full 11 weeks.
@@shumakerart I'm not sure it matters how you actually pay yourself, but you have to use a covered period long enough to encompass a full 2.5 months, so 11 weeks.
how would i know how much to pay myself weekly?
You can use 100% for payroll
Thanks for the video! I received the first loan in August of 2020 and paid myself over the next 19 days but I paid about 90%. I just paid myself the rest of the 10% (April 8th 2021) but am I only eligible for forgiveness for that 90% because that was within the 24 week period?
Thanks girlfriend!
Thanks for watching!!
Thank you Ms clara
Thank you for watching!
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....
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
Great information.
Thanks for watching!
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: ruclips.net/video/6Pu27LcvmgU/видео.html
Thank you
Welcome!
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?
Thank you very much. I appreciate you..
Happy to help!! Thank you for watching!
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.
Hi Clara you probably not gonna read my comment, but if you do please tell me if I can keep the full amount in my account and wait for 2,5 months then pay myself with the full amount. Thank you
New subscriber you are so helpful and beautiful ☺️
Thank you for the clarification 💪
Thanks for the sub!!
Hello..thanks for this awesome for the ones that are completely confused like myself. Question..when you get your loan, do you have to pay yourself before spending anything? And is the covered period for everybody 2.5 months?
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?
Thank You Ma'am.... Much Appreciated
My pleasure 😊
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?
I still don't understand but I still like the video
So if I received 1st draw March 31st, my 10/11 week covered period to qualify for full forgiveness as uber driver,(june16th) this would bring me passed 2nd draw deadline date... do I apply for 2nd draw b4 deadline, and hold that money to start 2nd draw money covered period at end of that 1st draw covered period?( June 16th) 2nd starting June 17th..
That's my situation too so I'm watching for this answer
mine as well! Thanks Clara CFO for this info to help us!
@@lakeshaames1759 i got my first draw march 26th applied for 2nd march 29th
I hope she sees your question because this is where I'm at too
How do I pay myself the lump sum and not lose my PUA unemployment? Will the lump sum salary to myself immediately cut off my PUA? Or just for the week I paid myself the PPP loan and then the following week, certify for unemployment? I have 24 weeks to pay myself. Can I wait till my unemployment runs out in Sept and then transfer the PPP loan amount into my personal acct then for forgiveness?
Clara, may I ask you to show us how to fill out the Forgiveness Form for sole proprietors? That would be very helpful! Thank you.
Here you go! ruclips.net/video/ti6qEAxPFhQ/видео.html
Is there a certain amount we should be paying ourselves a week or can it be however much we want?
Focus on the total, not each week!
60% of the loan. Period!
So Basically I Can Pay My Self With The Loan (doesn’t matter if it’s every week or lump sum)
Transfer from business account to personal in check form and as long as I keep them payroll statements to myself I will be forgiven ?
That was how I understood it.