Should I apply for forgiveness now that there is a simplified version ready?
Answer 1)
It depends.
If you are eligible for ERC then please WAIT!
If you are not eligible, go for it and get that chore out of the way.
Question 2)
Do I qualify for ERC?
Answer 2)
The short answer: if your collections in any quarter of 2020 were 50% lower than the same quarter in 2019, you might be eligible.
If you would like us to calculate your ERC eligibility, please contact our office. There is a small charge ($, not $$).
If you have already asked us to calculate the first step, you should have received a response from us. Please let us know if you have not.
If we told you YES, wait to apply for PPP forgiveness. We will be extending your 2020 returns (business is done, individual will follow) to allow us time to calculate the ERC and get the maximum benefit. The expenses must be allocated between the ERC and PPP. No double dipping allowed.
Question 3)
Do I need a separate bank account for the PPP2 round?
Answer 3)
No. The SBA has given us updated PPP rules with extended time to use the funds so a separate bank account is not needed. Your payroll costs over the 24-week period should cover the loan funds. You will have to provide payroll reports for the forgiveness which should be easy to provide for the second PPP round.
Question 4)
Do I need to reduce my salary to the same amount used during PPP1?
Answer 4)
No, updated PPP rules allow you to take whatever salary you are taking. At forgiveness the allowable amount will be used for your salary.
[We are so proud the government is figuring out a way to make the process easier for all of us.]
Question 5)
Do you have everything you need for my tax returns?
Answer 5)
We are working as fast and as hard as we can. We admit we are backed up this year so please have patience. We will contact you with any questions once we start working on your return.
Question 6)
Have you provided me with personal return extension information yet?
Answer 6)
We are not processing individual return extensions yet.
Again, please be patient with us.
We love you and appreciate you. Happy Spring! We have heard it is beautiful this year.
