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Replies: 19
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All-In [40344]
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PPP Question
May 5, 2020, 2:22 PM
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Found out today that our company did receive some money.
There seems to be some confusion amongst us underlings.
What I know, the company received a sum of money and it must be dispersed in 8 weeks. Pay periods 5/15, 5/31, 6/15 and 6/30.
They haven’t determined exactly how to make it happen.
The talk is averaging 2019 W2 money to find a 2 week pay number. This number would be used to pay us out of the next 8 weeks.
Some of us are on 100% commission based sales. The question is would that money from ppp be on top of incoming collections or in place of incoming collections? Is there a stipulation on PPP that the company only uses PPP money for that 8 week period? Can they withhold my collections that I am usually paid upon receipt?
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Oculus Spirit [81061]
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Would you make more money with collections alone?
May 5, 2020, 2:23 PM
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If so, I'd complain. If not, I wouldn't and just take the paycheck.
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All-In [40344]
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this pay period, I would take a huge hit if given PPP***
May 5, 2020, 3:19 PM
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Heisman Winner [119698]
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PPP is meant to pay salaries, not commisions
May 5, 2020, 2:25 PM
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to ensure an employer does not lay off workers.
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All-In [31891]
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That is not correct...
May 5, 2020, 3:19 PM
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The amount of the PPP a company can go for is based on 2.5 times avg monthly payroll for 2019 with all compensation capped at $100k/year rate. Payroll would be all compensation, incl salary and commission.
To qualify for forgiveness, the amount you spend on payroll (incl health insurance premiums, and retirement plan expenses) over the 8 week period following your loan funding must be at least 75% of the PPP loan amount.
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Heisman Winner [105551]
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Not naming names, but my brother works for a small co
May 5, 2020, 2:34 PM
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that got PPP money. They are using it to pay him 30 hours a week. If they have a job and he works 20, the company banks that money and still uses the PPP money to pay him. Not sure if this is ethical or not, I keep trying to wrap my head around that one. He asked if he can work 20, then use 20 of PPP to make it up to get him to 40 hours pay and they accused him of wanting to stay at home on unemployment instead of working and then went on some rant about Lindsey Graham was right that people will want to stay on unemployment and not working because of the stupid liberals.
HE WAS SO EXCITED YESTERDAY TO GET THAT CONVERSATION GOING.
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All-In [40344]
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that's kind of what the underlings are thinking
May 5, 2020, 3:21 PM
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They will pay us the PPP and bank our collections.
More than likely, that will be in their favor and probably find it's way back to the partners before it finds us.
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All-In [40929]
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All-TigerNet [11630]
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Some answers....
May 5, 2020, 3:12 PM
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If you want forgiveness, then 75% of your PPP loan must got to payroll costs.
If you don't want forgiveness, spend it on hookers and blow. Or hell, lots of pallets.
The W2 averaging to get your max PPP amount is only on salaries up to $100k/year. If anyone was making over 100k, then their numbers were dropped to $1,923/week and the new max calculated.
Since you're commission, i'd ask your boss/HR what the deal is. They need to disburse at least 75% to payroll in order to get forgiveness.
Also, your company head count needs to be the same as it was on February 15 to meet forgiveness, otherwise you start owing money back. This includes people who quit.
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Oculus Spirit [75717]
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What is the date to be back at the 02/15
May 5, 2020, 3:22 PM
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headcount?
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All-TigerNet [11630]
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IIRC, it's 6/30/20***
May 5, 2020, 3:28 PM
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Oculus Spirit [75717]
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I am wondering about the mess that is going to
May 5, 2020, 3:34 PM
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happen if somebody doesn't come back/ leaves with just days left to deadline and the company can't get the spot filled.
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Oculus Spirit [81061]
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Or on 7/1 when the company fires everyone***
May 5, 2020, 3:35 PM
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Legend [16251]
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With the documentation I've seen on PPP, it is saying only
May 5, 2020, 3:43 PM
[ in reply to IIRC, it's 6/30/20*** ] |
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that an employee remain during the 8-week period that they're being paid from the PPP funds to qualify for forgiveness. I had seen the June 30th date on earlier material but not sure that stuck with the final parameters.
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All-In [40344]
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interesting,
May 5, 2020, 3:27 PM
[ in reply to Some answers.... ] |
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we have a guy that just announced his retirement effective 5/15 today.
so we need to hire a warm body to be forgiven?
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All-TigerNet [11630]
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According to our accountant, yes.
May 5, 2020, 3:29 PM
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We had one guy quit, and two co-ops who had their semesters end. All 3 need to be replaced by 6/30/20 is what I'm being told.
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All-In [31891]
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The forgiveness is pro-rated***
May 5, 2020, 3:34 PM
[ in reply to interesting, ] |
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All-In [31891]
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Money is fungible, so some terms can get confused...
May 5, 2020, 3:30 PM
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in order to have the PPP loan forgiven,the payroll costs over the 8 weeks following the funding of the loan must be at least 75% of the loan amount...and and an amount equal to the balance of the loan must be spent on approved PPP expenses, like rent, mortgage interest, and utility bills.
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All-In [40344]
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Thanks, that helps
May 5, 2020, 6:11 PM
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75% to payroll
25% to expenses
Our incoming commission/collections= partner profit
Must be nice to be at the top
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All-In [40929]
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PPP pays salary and rent and utilities for 8 weeks
May 5, 2020, 6:44 PM
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for companies that have no other way to pay those bills but ppp. Since they would have to lay you off otherwise, they will pay you your salary. The way it was calculated to begin with was last years 12 month total divided by 12 and multiplied by 2.5.
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Replies: 19
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