Does anyone want to explain how the 25% reduction in revenue calculation works for PPP? I did not participate in R1 of PPP due to not needing it at the time but my business has really declined the last few months mostly due to still not doing in person anything and it looks like I would be eligible Q4. Is this something my bank will help me with? Do I need to get an accountant to do something official or can I just add up revenue for each quarter and put it on a form somewhere?
My business is far from a large business(It’s basically just me) so we aren’t talking a large amount of money but something to continue to help keep myself and what is left of my clients safe until we hit widespread vaccine availability would be enormously helpful.
Only community financial entities or whatever they are called can do it today. If my experience with the first round is any indication nothing will be getting done by the day they officially can do it. Paypal will get you your money in an easy efficient way once it’s moving though. Really can’t stress enough that I was looking frantically for a bank that would get me a PPP loan before the money ran out last time (lol me) and checked 20+ (not hyperbole) places before paypal and the gap between them and everyone else on this was… extremely wide.
You’ll have your money within a day or two of paypal taking the application though which is pretty awesome.
I’m not sure how similar the second one is going to be to the first on documents, but nothing too onerous if you, like me, are using an S corp.
I remember needing form 941’s for the previous year to prove my average payroll, and maybe something else. I can’t be too sure how similar the paperwork is going to be this time.
If you’re a sole proprietor I’d get ready with all the financials. Bank statements, taxes, etc.
Baffled that I still haven’t received anything so I checked the IRS site. They sent a PAPER CHECK to the address on my 2019 tax return. Fuck. I got the first one via direct deposit so they absolutely have my bank account info. Wtf?
Have most people gotten payments already? I’m in limbo with the “Payment #2 Status - Not Available”. First stimulus went straight into my account without issue.
Thank you for this. It gave me the idea to try the address the IRS had on file for my last stimulus payment. You know, the place I lived three tax seasons ago. I have now multiple times updated my address with the IRS but nope, they still have this old one on file.
Now it says my check was mailed on Jan 6 to an ancient address on the other side of the country. Thanks Trump. One last fuck you as you go out the door
I checked reddit and this is happening to a very large # of people, i.e., the Jan 6 paper check to those who received direct deposit on first stimulus. Reading these threads it doesn’t appear that a single person has received anything yet. Starting to look like an intentional fuck you.
For payroll verification you want reports showing what you paid. If you use ADP it’s really easy, they have automatically generated reports that will give you exactly what you need. Make sure to look up / read the SBA’s definition of “payroll expenses” so you can include all costs that are eligible, it’s not just the money paid directly to employees. For my first application I included the ADP report and invoices from our health and dental insurance providers.
To show the 25% revenue decline the instructions are less clear. If your business pays quarterly taxes, that should be easy. Mine does not, so I’m using internally-generated income reports from our accounting software. Will probably also include bank statements showing deposits. I haven’t seen a clear description anywhere about what will be required.
This is from IRS website but not sure how much I trust it:
If GMP reflects a date your payment was mailed, it may take up to 3 – 4 weeks for you to receive the payment. Watch your mail carefully for a check or debit card. (See the FAQ for EIP Card)
If GMP shows “Payment Status #2 – Not Available,” then you will not receive a second Economic Impact Payment and instead you need to claim the Recovery Rebate Credit on your 2020 Tax Return.
Several things to pass on here. First, if you didn’t get a PPP loan in round 1, you don’t have to meet the 25% revenue reduction. For those reading this that did get a loan in round 1: if your loan is less than 150k, to get the round 2 loan all you need to do is state that you had a 25% reduction and list the revenue figures from the quarters you are comparing. No proof needed until the forgiveness application. If your loan is more than 150k, you will have to provide up-front proof of the revenue reduction in the form of income statements, etc. Oh also, if you apply at the same loan provider in round 2, you don’t need any documentation other than your round 1 loan number.
