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USDA answers Payroll Protection Program questions

USDA has released information about the Small Business Administration’s $349 billion Paycheck Protection Program. Agricultural producers, farmers, ranchers, and small agricultural cooperatives with 500 or fewer employees are eligible for the program.

Farmers can also qualify for the program if they meet the SBA’s alternative size standard, with a maximum net worth less than $15 million and the average Federal income taxes for two years is less than $5 million.

Sole proprietor farmers, independent contractors, and other eligible self-employed farmers must provide documentation to its lender that the business was in operation as of February 15. Documents could include payroll processor records, payroll tax filings, or income and expenses from sole proprietorship.

Earlier this week, President Trump announced he is asking Congress to provide an additional $250 billion for PPP to keep Americans employed and facilitate a quick recovery.

  • There is uncertainty concerning how a small business should answer the PPP question – what is your number of employees?
    average monthly during 2019?
    Number employed in Feb 2017?
    How do full time vs part time get counted?

  • Hi,
    I was applying for the PPP loan now (I missed the first wave, but just getting ready to submit my application incase more funds are allocated) and was confused about the amount to request. here are my questions:
    1. Mine’s an LLC established in 2018, with just 1 employee, whom I hired in September 2019. As per the SBA’s guidelines, loan amount is calculated as an average of 2019’s total payroll paid. So for instance, if I paid $6000 from September 2019-December 2019, the loan amount I’d request would be $6000/12 (average of the year) or $6000/3 (average of the months I actually paid her)
    2. Can I add the payroll company (quickbook) charges that I pay each month?
    3. Can I add the amount I pay to the IRS eachmonth?]

  • Are federal withholding taxes part of the “payroll cost”? What about Ohio withholding and other payroll taxes?

    We pay our inspectors on a commission basis. Can I put everyone on salary based on 2019 average weekly pay?

    My wife and I are owners and employees. Can we pay ourselves our 2019 average weekly pay?

    I would also like to pay our annual vacation pay to employees during this 8 weeks. I base this on weekly paycheck average of the previous 12 months. One of our employees gets one weeks pay annually for vacation. Another employee has been receiving one weeks pay but going to two weeks this year due to service time. Are these acceptable guidelines?

    I make IRA contributions for Doris and I. Are these covered by the program? We do not offer a group program.

    Are my health insurance premiums covered? We do not have a group program. Our employees are covered by spouse or other plans.

    We have two office spaces we work from in our house. Roughly 20% of the house. Are 20% of the mortgage interest and utilities cost covered by PPP?

    If my employees are set up as salaried workers for the 8 weeks am I permitted to put them back on commission after the 8 weeks?

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