PPP payroll forms

[Namastereiki]

I'm a sole proprietor it's just me no employees and I applied for PPP loan and they say they need more information and they have a list of payroll forms they want like 940 or 941 or 944 and I don't have any of those so does that mean I can't apply or what could I send in its place? When I did the application yesterday I just sent a copy of my earnings for last year. Has anyone else run into this?

[BAG72]

I applied through square and I am a sole proprietor, no employees. I was quoted an amount that was over  $800 Less than what I should’ve been able to receive through PPP. I contacted my bank and they applied for me and I was approved for the full amount I was entitled to and on the following business day. My bank did not charge any fees for this. Beware of the hidden fees. I hope this helps.

[BAG72]

@Hawk pleas apply through your local bank if at all possible, I applied and the following day I had the full funding deposited into my account 

[BAG72]

@Hawk Hawk pleas apply through your local bank if at all possible, I applied and the following day I had the full funding deposited into my account 

[Starshine0751]

@Regina_B , 

I got the same message and had already included my state id AND my full 2019 tax return. What else do I need? It said  I now need to apply again

[Joe]

Hi there, @Starshine0751 - to make sure this gets solved for you as quickly as possible, we would recommend flagging this over to our Capital Team directly for further troubleshooting.

We will keep a look out for your contact!

[Starshine0751]

@Joe thank you. I have tried to flag but apparently I dont know how to do that since it isn’t working.perhaps you could flag this thread since others are having the same issue?

[Joe]

Hi there, @Starshine0751 - what specifically isn't working? The number to call is 1 (855) 700-6000 - but you'll also need your customer code. The steps to look up your code are here.

Let me know if that helps!

[75]

Nonsense. Their app requires the payroll records too or it wont process you. Your answer is what is "Supposed" to happen but its not whats actually happening. 

[BrokenGizmo]

I noticed in another thread that apparently Celtic Bank isn't processing PPP loans for SP businesses? Kinda at a loss as to why Square would offer to prepare a loan request for me that would include SP status yet hit a brick wall 100% of the time once it hits the bank?

More info would be great. I thought going through Square would be prudent but it might have cost me days and thousands of spots in line. 

[ashc]

Hey @BrokenGizmo and welcome to the Community.

I moved your post to an existing thread around sole proprietors and what they can do in terms of the PPP program.

If you have any further questions, please contact our Capital team directly and they'll be able to answer further since we can't here from the Community.  

[Hraji]

I am sole proprietor of a business which is started from Jan 1 2020 and would like to if i am eligible to apply PPP cares program.

if so what are tax related documents do i need ? 

Thanks,

[mattd]

Eligible businesses for the PPP program are required to have been operational on February 15, 2020, and to demonstrate that the economic fallout. You need the same documentation as to any other sole proprietor per the SBA PPP guidelines.

[stnicks]

Instructions say you can use 1st qtr 941.  We did not have employees in 2019.  But decided to start with January 2020.  How do you file for the application, it keeps asking for 2019 information?  Also, it takes a 12 month average and we only have 3 months of paid payroll...?

[ashc]

Hey @stnicks,

I moved your post to an existing thread where one of our Capital team members answered what documents you can provide.

If you have further questions, please call or email our Capital team directly to help you complete your form.

[stnicks]

Sorry. but nothing on here has answered my question.  WE are a partnership with employees that started in Jan 2020.  We were in business in 2019 but did not have any employees.....so do i submit 2nd qtr 2019 941 with zero payroll, 3rd qtr 2019  941 with zero payroll, 4th qtr the same and then 1qtr 2020 with payroll???

[ashc]

Hey @stnicks,

It'd be best to reach out to our Capital team directly to assist you on what forms to provide and to help you complete your application.

[75]

I am getting the same problem. If your a sole proprietor they want records sole proprietors dont need to maintain so they dont have them and low and behold cant apply. 

[Namastereiki]

So when you applied did you put zero employees if it's just you? Because if you even put one employee that's what raises their attention to want to send you the things that us normal sole proprietor self-employed do not have to file for it like payroll tax. I actually talked to someone at the capital group yesterday and she got it straightened out for me so you may want to give them a call if this is the same situation

[Superhero_Peds]

Hello, 

If a self-employed individual (a "non-employer") selects the "lower" loan amount, does the individual need to document the expenses from those funds? 

I think I understand the rationale behind this but need some clarification:  

Subsection from the PPP FAQ (Can my PPP loan be forgiven in whole or in part?). 

Quote (emphasis mine):

-----

Non-employers: If you selected the smaller loan amount, your business doesn’t need to meet the spending requirement to be eligible for forgiveness.

-----

What does this mean in real-life??

1) Do I pay myself the entire amount via payroll (to my personal account) and use the money for personal use?
2) Start spending the money straight from my business account for whatever purpose (like an owner's draw) or expenses?

Please clarify. 

[Superhero_Peds]

I think it means that by definition, 75% of a PPP loan automatically qualifies for forgiveness if used for payroll (self-payment), but the rest of the funds need to be spent appropriately and documented. Otherwise, I need to pay it back - not 75% of the funds, but the other 25%.  

So if we were able to request a slightly lower amount (specifically, "Owner Compensation Replacement" to an amount equal to eight weeks (8/52) of 2019 net profit) and nothing else, the math would be easier. 

Correct? Thoughts?

[Superhero_Peds]

Bump.