- What is full time equivalent employee for PPP?
- Is PPP forgiveness all or nothing?
- What happens if you don’t apply for PPP forgiveness?
- What happens if an employee quits during PPP?
- Do employees have to be full time for PPP loan?
- Who determines PPP forgiveness?
- Has anyone got PPP forgiveness?
- What are the requirements for PPP loan forgiveness?
- Do you have to hire same employees for PPP?
- What does the PPP loan do for employees?
- Can you use PPP for new hires?
- How long do I have to use my PPP loan?
- What is the last day to apply for PPP forgiveness?
- Can I back pay employees with PPP loan?
- What counts as utilities for PPP forgiveness?
What is full time equivalent employee for PPP?
The Small Business Administration (SBA) defines a Full-Time Equivalent employee [FTE] as “an employee who works 40 hours or more, on average, each week.” The hours of employees who work less than 40 hours are calculated as proportions of a single FTE employee and aggregated..
Is PPP forgiveness all or nothing?
The good news is that PPP loan forgiveness is not all or nothing. It’s possible to have the portion of your loan that fit the criteria forgiven, and that the remaining funds must be paid back. … The interest rate on PPP loans is 1%, making it one of the lowest-cost loans you can get for your business.
What happens if you don’t apply for PPP forgiveness?
You must begin repaying your loan six months after you receive the funds. However, if you don’t apply for forgiveness within 10 months of the end of your covered period, you must begin repaying your loan 10 months after the end of that period.
What happens if an employee quits during PPP?
You can also qualify for an exemption if you fired the employee for cause. If the employee voluntarily quit or asked for a reduction in hours and received that reduction, you could qualify for an exemption as well.
Do employees have to be full time for PPP loan?
When you applied for your PPP loan, you included all employees you employed—full-time and part-time workers—in the calculation. But for loan forgiveness, the CARES Act looks at your average full-time equivalent (FTE) employees during the covered period.
Who determines PPP forgiveness?
For purposes of determining forgiveness of the borrower’s PPP loan, the March 2020 renewed lease is deemed to be an extension of the original lease, which was in force before February 15, 2020. As a result, the lease payments made under the renewed lease during the Covered Period are eligible for loan forgiveness. 6.
Has anyone got PPP forgiveness?
Agency has yet to forgive any Paycheck Protection Program loans and has been slow to prevent theft, watchdogs tell Congress. … SBA announced last week that it had received only 96,000 loan applications — less than 2 percent of the total number of loans — and has not processed any applications so far.
What are the requirements for PPP loan forgiveness?
Requirements include: Funds are allowed to be used for payroll costs, rent, utilities and interest on mortgages. At least 60% of loan must be used for payroll costs. While the loan is being used, employers must attempt in good faith to maintain similar levels of employment and pay that they had prior to the pandemic.
Do you have to hire same employees for PPP?
The PPP is designed to help employers impacted by the pandemic continue to pay their employees whether or not their business is open or their employees are working. … A business does not have to rehire the same employee, but it has to have the same number of employees it had prior to Feb.
What does the PPP loan do for employees?
The purpose of the PPP is to help you retain your employees, at their current base pay, and cover other essential business costs. To be eligible for full loan forgiveness, you must use at least 60% of PPP funds to cover qualifying payroll costs and the remainder may be used for qualifying non-payroll costs.
Can you use PPP for new hires?
If you hire new employees or rehire those who have been laid off (which you can do), everyone must be paid at the same rate as in the payroll documents submitted for the loan. … The funds for payroll have to be covered by your PPP loan—you can’t “double dip.”
How long do I have to use my PPP loan?
The eight-week period to use your PPP funds has now been extended to 24 weeks. Previously, you had to spend at least 75% of the funds on payroll. You now need to spend only 60% of the funds on payroll.
What is the last day to apply for PPP forgiveness?
Question: The PPP loan forgiveness application forms (3508, 3508EZ, and 3508S) display an expiration date of 10/31/2020 in the upper-right corner. Is October 31, 2020 the deadline for borrowers to apply for forgiveness? Answer: No.
Can I back pay employees with PPP loan?
Forgivable payroll costs must be incurred during the 8-week covered period. You can use the PPP loan funds to pay back-pay since they are an allowable use of PPP loan proceeds – but they may not be forgiven.
What counts as utilities for PPP forgiveness?
Utility payments include electricity, gas, water, transportation, telephone, and internet related to business and would be considered an eligible expense for debt forgiveness.