I hope this is helpful and you review your current applications to fix these common mistakes:
- Insufficient backup such as 941 forms, Schedule C tax returns and payroll summaries
- Answering “no” to question 7 on the application where it asks you if your payroll calculation is for employees who live in the United States.
- Not using your legal name throughout the application
- Sending in a black and white copy front AND back of your photo ID when we need a color copy or not including a copy of your ID at all.
- Miscalculating your average monthly payroll where you include an employees total compensation over $100,000. For example, if you’re a sole proprietor and your total annual compensation is $120,000 a year, you can’t have you’re average monthly wage at $10,000. The max you can do there is $100,000 divided by 12 = $8,333 monthly average for a maximum loan of 2.5 x $8,333 or $20,832 in that example.
- Submitting your application with 1099 employees included in the calculations for average monthly payroll. The Treasury guidance has been consistent on this that the independent contractors can apply for the PPP on their own.
God bless all of you and please be patient with us! Unfortunately, because I have no time to spare, I won’t be able to answer questions immediately, if at all for a long time.