The Payroll Protection Program is part of the Coronavirus Aid, Relief, and Economic Security (CARES) Act, which consists of up to $349 billion in government-backed loans to help small businesses and other eligible applicants continue covering payroll costs and certain operating expenses.
Based on your average monthly payroll costs, you may be eligible for up to $10 million as part of the program, and you must use 75% to cover payroll and other employee benefits. These benefits include, but aren’t limited to, PTO, insurance premiums, retirement, etc.. The loan may also be used to cover mortgage interest, rent, and utilities, among other uses.
How it Work:
If you’re a QuickBooks Payroll customer or a QuickBooks Self-Employed customer who filed 2019 taxes with Turbo Tax Self-Employed, the following steps will make it easy to get started. If one of these does not apply to you, you can still submit your application for a PPP loan to another approved SBA lender.
Step 1: Apply-
Apply for Paycheck Protection Program applications with QuickBooks or another approved SBA lender.
Step 2: Receive funds-
Get up to $10 million to cover payroll and other employee benefits (PTO, insurance premiums, retirement, etc.). Funds may also be used for mortgage interest, rent, or utilities.
Step 3: Apply for loan forgiveness-
Your loan may be forgiven if you keep all your employees on the payroll for 8 weeks and spend your loan on qualifying expenses.
Who qualifies for a Payroll Protection Program loan?
- 500 employees or fewer – Small businesses, 501 (c)(3) nonprofits, and 501(c)(19) veterans’ organizations with 500 employees or fewer. So do Tribal businesses (sec. 31(b)(2)(C) of Small Business Act).
- Affected by the corona virus- Businesses that were open on or before February 15, 2020, and have been negatively affected by the corona virus.
- Meet SBA size standards – Small businesses in certain industries that have over 500 employees but meet the Small Business Administration’s size standards.
- Multiple locations- If you’re in food service or hospitality and have fewer than 500 employees at each location, each location may be eligible for a Paycheck Protection Program loan.
- Self-employed individuals- This includes sole proprietors, independent contractors, and gig workers who were (1) operational on or before Feb. 15, 2020, (2) were an individual with self-employment income, (3) have a principal residence in the U.S., and (4) filed or will file a Form 1040 Schedule C for 2019.
Follow these steps to apply for a Paycheck Protection Program loan within QuickBooks Capital:
Step 1: Make sure you have the correct info-
- Bank routing and account number
- Social Security Number of the person applying
Information we import into QuickBooks Capital-
Average monthly payroll expenses:
If you are an eligible business or organisation and you have employees, your qualified payroll costs (on average) every month could be calculated for you based totally on the facts you have got previously entered into QuickBooks. This total facilitates you decide your mortgage request amount.
Average monthly earnings:
If you are an eligible self-employed character who would not have employees and you’re making use of for a PPP loan inside QuickBooks Capital, we will use the records you filed on Form 1040 Schedule C for 2019.
Step 2: Apply for the loan within QuickBooks Capital:
Once you’ve gathered all the right information, you can start your application for a Payroll Protection Program loan within QuickBooks Capital.
Step 3: Wait for a response on your application:
If your PPP loan application is obtained and approved, you’ll get a notification in your QuickBooks Capital dashboard and a confirmation electronic mail. You ought to see an e-mail with the title “[your amount] from the Paycheck Protection Program for you.” If you can’t find it, search for the title on your inbox. Make positive you test your spam folder and you have access to the e mail this is tied in your account.
If you have any other query regarding QuickBooks payroll protection program or how to apply for it, then connect with our QuickBooks Support team at toll free number +1-800-910-4754.They will guide step by step and solve query in minimum amount of time. You can also connect with our QuickBooks live chat support team at any hour of the day 24×7.