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COVID-19 Zoom Conference 4.1.2020 by Lucas Horsfall - Shared screen with speaker view
Christine Lee
57:12
Does PPP also cover the profit sharing distribution to employees freom the year of 2019?
1. tom grace
57:15
We will get started shortly. Waiting for more to log on.
Susan Bill
01:01:08
What is the recommended way to apply for the PPP
Griselda De Mel
01:05:08
An SBA 7a lender. I would start with your current lender.
Mark Chiang
01:05:39
Are the applications already available? How do we apply with them?
Ka Man Chan
01:07:04
For my bank, it is very simple, just filled out one page form to authorize them to apply for us then they start the process for us
Griselda De Mel
01:07:07
Yes
Ka Man Chan
01:07:19
starting 4/3 for applicatoin
Laura Hanson
01:08:45
Do payroll costs include workers compensation insurance premiums or workers compensation paid to the state? Does it include payments for temporary warehouse labor?
Mark Chiang
01:10:26
Do payroll costs include employer taxes and employer contribution to health insurance premiums?
Lucas Horsfall LLP
01:10:44
Do delayed payroll taxes include amounts withheld or just company portion of fica and medicare
Ka Man Chan
01:11:26
good question. PPP said include all federal and state payroll tax now some state like WA include the WA tax with the payroll tax when I filed.. so that ix mixed to it.. and I know PPP include seasonal employees..
Aliza Goland
01:12:26
are the earnings gross or adjusted taxable income
Ka Man Chan
01:12:31
I know health insurance is included in this PPP
Ka Man Chan
01:12:49
adjusted taxable income for this recovery rebate
Mark Chiang
01:13:55
I know that the health insurance is part of the forgivable portion, but is it included for the purpose of calculating maximum loan amount "average monthly payroll cost" x 2.5?
Ka Man Chan
01:14:12
looked at last 2019 adjusted gross income or 2018 if you haven't filed your 2019 for this rebate
gailsolomon
01:18:46
What would cause not getting approved for the ppp loan? And how quickly will these loans be funded or the soonest
Arthur Rosen
01:20:00
Is 500 employees per company or per location? How does employee get employer to cooperate?
2. Gaurav Malhotra
01:21:19
Laura Hanson & Mark Chiang- We are working on a template of what's included in Payroll Costs. It will be available on our website either later today or tomorrow
Martha Murillo
01:21:26
How does supplemental paid leave applies to Non-Profits?
leah serrano
01:22:00
Does PPP coordinate with unemployment? And does it cover 1099 contractors or only W-2?
Celia Fanning
01:22:19
PPP- The Eligible expenses for this program covered the period form 2/15/20 through 6/30/20.This is retroactive to 2/15/20 and one requirement is to make sure we retain employees at the end of the covered period. Before this program came out, we had already closed 4 stores and terminated some our our Cafe employees. Is the employee retention from the date of the application?
2. Gaurav Malhotra
01:22:20
Aliza Goland- Gross Earnings
2. Gaurav Malhotra
01:23:27
Leah Serrano - No 1099 contractors
Celia Fanning
01:23:35
Is the number of jobs required on the PPP application as of the date of the application?
Celia Fanning
01:25:18
PPP- Does it include independent contractors, including commission to outside sales reps?
2. Gaurav Malhotra
01:26:41
Celia Fanning - You have to keep them employed for 8 weeks to get debt forgiveness. Does not seem like you will achieve a full forgiveness. Which might be fine because the balance will be owed over 10 years (I believe) at an interest rate less than 4%
Ka Man Chan
01:27:42
For Guarav and Aliza, I am not sure is she asking the threshold limit for those recovery rebate for individual. I double check for the CARES Act bills, it did say it is based on the adjusted gross income on line 8b of the 2019 1040 federal tax return or 2018 if we haven't filed 2019 yet
Ka Man Chan
01:27:47
so Guarav can you confirm?
2. Gaurav Malhotra
01:28:01
Celia Fanning- Average monthly payroll over the last 12 months.
Ka Man Chan
01:28:18
Because that is what I put the Q&A about this recovery rebate to my employee as the reference to them
TRACY TAYLOR
01:29:06
My understanding of the small employer exemption is that the employer would have to show 1 of the 3 reasons you just described, not all 3. Is that correct?
John Echeveste
01:29:40
In determining monthly payroll, are employees making more than $100,000 exempt from the calculation?
Julie Mojica
01:30:39
Will this recording and slide presentation be sent out to participants?
1. tom grace
01:31:25
Julie-Yes...slides will be sent via email. Recording will be on lhmp.com
2. Gaurav Malhotra
01:31:29
Arthur Rosen- Can you please clarify your question. Are you asking about PPP Loan or employee leave, etc?
John Echeveste
01:32:02
PPP loan
Office Manager
01:32:38
If an employee is put on leave for an eligible reason under ffcra on 3/30, are they entitled to ffcra for days after 4/01?
john ohanian
01:33:12
Do companies become ineligible for the PPP loan if they have furloughed employees?
Christie Franklin
01:33:21
In California, are we restricted from requiring the employee to clarify whether they are were directly or indirectly impacted?
2. Gaurav Malhotra
01:33:27
John Echeveste- You can have employees making more than $100k, but you only count $100k for them for the purposes of calculating PPP
Christie Franklin
01:33:35
Otherwise, how would be know what to pay them for the 80 sick leave
2. Gaurav Malhotra
01:35:12
John Ohanian- I don't think so, but I have asked the SBA team to answer your question. You are required to certify what you will use the money for. Uses are - Payroll, rent, interest expense, etc
Mark Chiang
01:35:14
For the $100,000 limit per employee, is that only based on wages? Or does that limit include health insurance premium, ER taxes, ER 401K contribution?
2. Gaurav Malhotra
01:35:45
Mark Chiang- $100k is all inclusive
Mark Chiang
01:37:16
Oh, that is going to make calculating 2019 payroll cost kind of difficult if the all inclusive amount is close to 100,000, isn't it?
2. Gaurav Malhotra
01:39:00
Raman Venkat- It is average payroll incurred. If by application time you have laid off employees, it will bring down your average payroll by a bit
Mark Chiang
01:40:13
What happens in the case that several employees resigned in September of 2019? Are we not supposed to count them in the average monthly payroll?
2. Gaurav Malhotra
01:42:03
Ka Man Chan- There are folks who have not filed returns in years because they did not earn enough. Currently it appears that the IRS is asking them to file 2019 simple form
2. Gaurav Malhotra
01:43:03
Mark Chiang- It will certainly be a challenge, but not impossible
Jon Konheim
01:44:13
There is a sample application available. Is that what ABB will be using?
David Small
01:46:24
S 3548 indicates the covered period is 3-1-20 to 6-30-20 for qualified expenses, Documents from the bank indicate 8 weeks was S 3548 amended?.
Carrie McPhee
01:46:34
The SBA EIDL states that all other sources of credit must be exhausted before applying. Does the same apply to the PPP?
Riaz Motala
01:47:30
Only 25% of the amount can be used for non payroll expenses? So only 25% can be used for rent?
paul hauffen
01:48:05
what does the "payroll costs capped at $100k... on an annualized basis" mean? ...how does that effect the loan qualification process?
David Small
01:48:55
Is there any forgiveness for self employed that was forced to shut down and therefore could not pay employee?
2. Gaurav Malhotra
01:48:58
David Small- Good question. Seems that it changed by the time the final bill came out and it states 8 weeks. However we have not been able to find exactly when that 8 week period starts. I am sure it will be clear soon
2. Gaurav Malhotra
01:49:55
Paul Hauffen- If someone makes more than $100k you will assume that they make $100K for the purposes of calculating the loan.
Mark Chiang
01:49:56
I read it is the 8 weeks following the receipt of funds
2. Gaurav Malhotra
01:50:42
Mark Chiang- That is certainly one of the ways we have looked at it. However we don't know when these loans will be disbursed.
paul hauffen
01:51:03
thx Gaurav.
Mohammad Wardak
01:51:15
If a business applies for PPP loan, can the business also apply for Economic Injury Disaster Loan at the same time?
Aliza Goland
01:51:18
ADP I think will provide he info
Andrew Tomat
01:51:53
Looks like $100,000 cap only applies to salary, wages, commissions or tips.
Ka Man Chan
01:52:37
By reading the bill, it said we can make 8 weeks selection for loan forgiveness between the covered period 02-15-2020 to 06-30-2020. But he can confiirm
TRACY TAYLOR
01:52:52
I read that the EIDL loan can be refinanced into a PPP loan. Is that correct?
Mark Chiang
01:52:55
so, not health ins, 401k contributions, and ER taxes?
Jackie Aragon
01:53:03
With a medical office, can I include my provider's draw as part as my average monthly payroll?
paul hauffen
01:53:38
can this doc be sent following the presentation?
Jon Konheim
01:53:59
It is on the SBA website
Kevin Shih
01:54:00
Is the avg monthly payroll of 2019 or 4/1/2019 - 3/31/2020 period?
paul hauffen
01:54:29
...or the direct link for that doc?
Monty Khouri
01:54:30
what about new hires? are they covered?
2. Gaurav Malhotra
01:54:30
Andrew Tomat - Here is the verbiage "Includes: compensation to employees, such as salary, wage, commissions, cash, etc.; paid leave; severance payments; payment for group health benefits, including insurance premiums; retirement benefits; state and local payroll taxes; and compensation to sole proprietors or independent contractors (including commission-based compensation) up to $100,000 in 1 year, prorated for the covered period;"
jane johnson
01:54:49
any idea what the percentage of staff must be maintained to ensure loan forgiveness
Jon Konheim
01:54:50
Workers comp costs?
Susan Bill
01:54:58
what documentation are they accepting as proof of comploance re headcount and payroll
Michele Lynch
01:55:06
When will ABB begin accepting applications for the PPP loan?
2. Gaurav Malhotra
01:55:13
Paul Hauffen- It will be posted on our website this evening
paul hauffen
01:55:24
thx.
John Huitsing
01:55:50
Are payments made to outside consultants considered "payroll expenses"
Aliza Goland
01:56:04
what about 501 (c) 3 organizations and personal liability?
William Coombs
01:56:18
what if you are using a temp agency for labor
Edward Zolian
01:56:49
We applied for a disaster loan online thinking that the forgiveness criteria would be included as part of that loan. Can we now apply for the PPP and either not go forward with the disaster loan or reduce the amount requested for the disaster loan (to cover other operating costs)?
Ruth Zakowski
01:56:57
Do you list number of employees from 2019 of currently?
Kenny Chung
01:56:59
For PPP loan, do you have to rehire the same employees or just employees in general as long as the headcount and salary amount requirement is met? Some employees may prefer unemployment if there's an extra $600 payment. Are pay raises allowed for employees?
Jon Konheim
01:57:12
Why isn’t there a box for a for-profit company?
2. Gaurav Malhotra
01:57:24
Kevin Shih- Our reading is that the average payroll is 12 months preceding the application date
Andrew Tomat
01:57:25
First check box
Jon Konheim
01:57:44
First check box is non-profit
Mark Chiang
01:58:33
What do you answer if you applied by did not receive the SBA EIDL?
Mark Chiang
01:59:05
But did not receive EIDL yet?
Terry Tuttle
02:00:33
Your thoughts about creating a new separate bank account for the PPP Loan funds and then pay the eligible expenses out of this account. Helps avoid co-mingling loan with other non-eligible expenses. Thoughts?
Robert Miller
02:01:52
On the application, what does number of jobs mean exactly?
Craig Martin
02:02:14
Can temp workers from temp agency count in payroll?
Teresa DeMayo
02:02:21
Thank you how do you calculate the $100k for EE’s over for the PPP loan for verification for the loan docs
Natalie Moreno-Cason
02:02:32
Who would be named as personal guarantee for nonprofits?
Christopher Hillseth
02:03:46
Can he adjust his audio its a bit garbled
TRACY TAYLOR
02:04:10
What was the timeframe on the loans he just mentioned. I did not understand what he said.
Christopher Hillseth
02:04:50
Better!!
2. Gaurav Malhotra
02:07:26
Craig Martin- The answer is maybe.
TRACY TAYLOR
02:13:27
Are forgiven amounts taxable income?
Mark Chiang
02:14:03
What about ER taxes?
Mohammad Wardak
02:14:22
I think only state and local taxes are included.