Replies: 19
| visibility 1
|
All-In [40330]
TigerPulse: 100%
Posts: 23454
Joined: 7/13/12
|
PPP Question
Mar 30, 2021, 11:49 AM
|
|
Help me understand
Companies that received PPP money used it to float employees based on a forgivable loan
If they checked all of the boxes then they didn’t have to pay the govt the money back
Is the employee on the hook for anything to their employer?
For example, an hourly working who was given 6 weeks of payroll protection. That employee is not required to work 6 weeks “free” to ale up for their “advance”
Am I missing something?
|
|
|
|
Oculus Spirit [78954]
TigerPulse: 100%
Posts: 24852
Joined: 8/29/12
|
Pave Patthews Pand?***
Mar 30, 2021, 11:52 AM
|
|
|
|
|
|
|
All-In [40330]
TigerPulse: 100%
Posts: 23454
Joined: 7/13/12
|
Are they touring?***
Mar 30, 2021, 11:56 AM
|
|
|
|
|
|
|
Oculus Spirit [78789]
TigerPulse: 100%
Posts: 26413
Joined: 12/6/98
|
if they were
Mar 30, 2021, 1:33 PM
|
|
they would either be online or playing infront of pods
|
|
|
|
|
Orange Blooded [4693]
TigerPulse: 100%
Posts: 2181
Joined: 5/21/05
|
Ummm no?
Mar 30, 2021, 11:55 AM
|
|
Money was used for 8-24 weeks of payroll. In order to be forgiven you had to prove you paid people.
|
|
|
|
|
All-In [40330]
TigerPulse: 100%
Posts: 23454
Joined: 7/13/12
|
So I’m not crazy in thinking that
Mar 30, 2021, 12:03 PM
|
|
Employer owes Uncle Sam and employee goes about life not owing anything?
|
|
|
|
|
All-In [41844]
TigerPulse: 100%
Posts: 10154
Joined: 3/1/18
|
No. Employer should have the loan forgiven. Employee got
Mar 30, 2021, 12:11 PM
|
|
paid to work. Uncle Sugar just handing out stacks.
|
|
|
|
|
All-In [40330]
TigerPulse: 100%
Posts: 23454
Joined: 7/13/12
|
So my friend last received a normal check
Mar 30, 2021, 12:36 PM
|
|
In March
Received PPP money twice
Now my friend is being told that she’s not owed hourly pay until after the amount of hours worked equals the money she was given last year
|
|
|
|
|
Orange Blooded [4693]
TigerPulse: 100%
Posts: 2181
Joined: 5/21/05
|
Yeah that's some crapola
Mar 30, 2021, 12:38 PM
|
|
I guess it depends on the labor laws of the state but geez.
We paid our non salary employees for doin nothing for months.
|
|
|
|
|
All-In [31784]
TigerPulse: 100%
Posts: 37085
Joined: 11/22/03
|
No, that is specifically forbidden under PPP....
Mar 30, 2021, 1:36 PM
|
|
Employers were not allowed to "bank hours" for hourly W-2 employees. We stayed open the entire time, so we didn't have to face that issue, but I did have our lawyer and lender weigh in on that issue as we were taking the PPP loan just in case our situation changed. Now, I think you could pay ahead a bit for salaried employees. I seem to remember that we were going to roll our 2-week payroll ahead for the lower-tiered salary employees to get all of the PPP expenses covered with a bit of room to spare.
As you said, the amount forgiven was based on your payroll costs during a period (which was extended) in addition to some other costs like utilities, health insurance premiums, rent/lease costs, etc...I think 80% of it had to be direct payroll costs.
|
|
|
|
|
Orange Blooded [4693]
TigerPulse: 100%
Posts: 2181
Joined: 5/21/05
|
I have PTSD from that time period, memory is foggy.
Mar 30, 2021, 1:44 PM
|
|
You could use and 8 week or 24 week time period for expenses. Insurance, rent/mortgage, utilities could all be included and the 80 percent threshold sounds right.
That's done and forgiven now so I can't remember the details as I was simultaneously saving the company, teaching 3rd grade and Kindergarten and drinking a bottle of wine a day.
|
|
|
|
|
All-In [31784]
TigerPulse: 100%
Posts: 37085
Joined: 11/22/03
|
Sounds fun :)...yeah, we took a...
Mar 30, 2021, 1:49 PM
|
|
$1.89MM PP loan and I'm really glad we didn't take over $2MM. The >$2MM loans auto-triggered an audit. I know we were on the up and up, but a federal audit is always intimidating. We actually could have gotten a bit over $2MM but our bank advised not to try to revise our application as our loan got funded on the very last day before funds ran out in round 1.
We still don't have the formal forgiveness letter, but bank says not to worry and our auditors allowed us to count it as revenue and not record a liability for it in 2020 books.
|
|
|
|
|
Oculus Spirit [84418]
TigerPulse: 100%
Posts: 24655
Joined: 5/21/14
|
McLovin gets to provide a proposal walk through
Mar 30, 2021, 1:55 PM
|
|
to Defense Contract Audit Agency tomorrow.
Dis how excited I am.
|
|
|
|
|
Heisman Winner [135095]
TigerPulse: 100%
Posts: 91456
Joined: 12/6/98
|
This is exactly why I chose to be a warlord.
Mar 30, 2021, 12:40 PM
[ in reply to So my friend last received a normal check ] |
|
So I would not have to adhere to the rules of a government. Or civilized society in general.
|
|
|
|
|
Lot o points [162124]
TigerPulse: 100%
Posts: 31724
Joined: 1/17/07
|
|
|
|
|
Orange Blooded [4693]
TigerPulse: 100%
Posts: 2181
Joined: 5/21/05
|
|
|
|
|
Heisman Winner [134822]
TigerPulse: 100%
Posts: 41368
Joined: 8/26/07
|
Depends
Mar 30, 2021, 12:04 PM
|
|
If you really needed the money to stay in business then if you got any at all it has to be paid back in full with 150% interest.
If you got millions and promptly fired everyone except your mistress and golf buddy you get to keep it free and clear.
|
|
|
|
|
CU Medallion [54011]
TigerPulse: 100%
Posts: 21055
Joined: 11/6/14
|
No need to worry about the employees.
Mar 30, 2021, 12:47 PM
|
|
Those fake loans only made it to the company and their owners or board. The employees were screwed months before this miracle scam showed up. They’d long been enjoying the extra $600 of unemployment insurance. They will be shocked to find that they owe taxes on the extra PPP payments. Hope the government doesn’t find out all the real common thieves. Though you don’t have to look real hard these days.
|
|
|
|
|
All-In [43070]
TigerPulse: 100%
Posts: 17797
Joined: 4/24/15
|
Eh, something ain't right here.
Mar 30, 2021, 1:04 PM
|
|
Unless there is some kind of different arrangement other than a typical w-2 relationship.
Employer pays employee. End of that story. The source of the funds is irrelevant. Pay them out of profit, take out a loan, pay them from the owner's pocket, pay using gumment money....don't matter. There is zero reason an employee would "owe" the employer anything, let alone free labor.
Now, if payment was couched as an advance on future work to a 1099 type, that's the only way I could think that would fly.
|
|
|
|
|
All-In [43070]
TigerPulse: 100%
Posts: 17797
Joined: 4/24/15
|
To add, I'd think any "advance pay" type arrangement
Mar 30, 2021, 1:11 PM
|
|
would have had to be done in writing as well.
|
|
|
|
Replies: 19
| visibility 1
|
|
|