How to Apply Paycheck Protection Program in Sage 50

Apply PPP in Sage 50

The Paycheck Protection Program (PPP) is an SBA loan program that helps people to keep their business going and the workforce employed in the crisis of COVID-19. The employers need to submit their loan applications to their lenders with all the documents needed and wait for the approval. The lenders are the SBA lenders who help you in applying for a PPP loan by submitting your application and documents. You can also apply through a federally insured credit union, depository institution, and Farm credit system institution who do participate in it.

Who can Apply and what is an Eligibility Criterion?

To apply you have to be eligible for this loan so for that you must fulfill all the criteria that make you eligible for it. You can also say that this is the list to know who can apply for it. The eligibility criteria are as follow-

  • The businesses like tribal business concerns (sec. 31(b)(2)(c) of the Small Business Act), 501(c)(3) non-profit organization, or 501(c)(19) veterans organizations with the maximum of 500 employees. If there are more than 500 then it meets the SBA industry size standard
  • Self-employed, Independent Contractors , and Sole Proprietors
  • Any of the small business that meets the size standards of SBA (alternative size standard or industry size standard)
  • Any business with the NAICS Code and begins with the 72 (Accommodations and Food Services) with different physical locations and have less than 500 employees per location.

Read More : Sage 50 US Payroll Reporting for the CARES Act HR 748 Paycheck Protection Program

For applying the Paycheck Protection Plan in Sage 50

To apply for the loan you have to fill the application form of the borrower and do submit it with the required documents to the lender. So, that lender processes your application forward before 30 June 2020.

The Process for how to apply Paycheck Protection Program in Sage 50

Firstly, you have to add a new cash account for the PPP loan in your Sage 50 account and it must be independent. This account helps you in adding the money directly to your bank and also tracks all your expenses and do maximize the loan forgiveness.

For creating the New Account and the steps are Mentioned below:-

  • In your Sage account, click on the Maintain
  • Then select chart of Accounts
  • In the Account ID field fill your ID number
  • Your account should be liable and for existing liability account you have to click on the new number that matching the type
  • The loan is long term liable if it is for more than 12 months; if it is less then it is a current liability
  • Now mention all the details like description and account id
  • Also, select the type of account
  • After creating the account set the account balance
  • You have to post the transaction for tracking the loan and check the status of the loan for forgiveness.

For Setting up the Ledger Account :

  • In settings of the software
  • Click on the Financial settings option
  • Then choose the new account for ledger and fill all the information in it. The fields of information are like:-
    • Nominal Code
    • Click on the Save button
    • Now click on the New Ledger Account
    • Fill all the required information that is an account, category, display name, overheads range, and code, etc.
  • Ledger Name
  • Visibility
  • Display Name
  • VAT rate
  • Category and Category group

For Adding the Vendor account :

With this, you can create the lending account of the PPP Loan and it is the default expense account

  • Add or create the new vendor account in your Sage 50 account
  • Now mention the payment and then embed the whole account to the interest expense
  • For creating the electronic payment, mention the reference number
  • For the liability account and interest expense account, you have to integrate some payment
  • To display each transaction’s breakdown, the bank gives permission to the amortization table. This makes the transaction very simple
  • Now memorized the General Ledger accounts that filled the amounts in it.

For Recording the Loan Proceeds’ receipt :

After receiving the funds of loan, you need to submit it to your bank account and record this transaction in the Sage account

  • Go to the banking then choose your bank account
  • Click on the new entry option
  • In the drop-down menu, click on the Sales/Receipt
  • Click on the option other receipts
  • Now fill all the information like details, amount reference, date received, and the amount received
  • Type the information of loan which has a loan and more
  • To save all this information, click on the Save button.

For Recording the Receipt of your Loan :

Be sure that you created the individual account and the liability account. Verify and check that you must have the correct information. Enter all the details in the Sage 50 using the Journal window.

  • First of all, come across the window of General journal
  • Then select the account name Liability and click on the Post button
  • Search for the payment journal
  • After locating it, make the payment in it
  • Now choose the vendor for this payment
  • Under the Account column, click on the bank loan liability
  • Then choose the interest expense account
  • In this, enter the amount of interest and then click the OK button.

Also Read : Long Term Liability (PPP Loan) Showing on Aged Payables Report in Sage

Final Words

So, there you have it friends, these are some of the main aspects, facts and features when it comes to the SAGE 50 PAYCHECK PROTECTION PROGRAM. However, for more details you can log on to and you are sure to find all the required information about the topic.

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Frequently Asked Questions (FAQs)

What is meant by the Paycheck Protection Program?

The Paycheck Protection Program has been established by the CARES Act. It is implemented by the Small Business Administration along with support from the Department of the Treasury. This program offers small businesses with funds in order to pay up to 8 weeks of payroll costs including the advantages as well.

Does Payroll 50 Comprise Payroll as well?

The Sage payroll plans also include timely and comprehensive in-house payroll processing within your Sage 50 solution. This is to help the user to save time and to reduce the risk of payroll tax penalties at year-end

Is Sage 50 Payroll cloud-based?

Sage 50 Payroll has the capability to handle large volumes of data, without any time lag. However, because the Sage 50 Payroll is also cloud connected, the user and their employees are also able to access payslips and P60 data online from a browser or the dedicated mobile app, thus offering you the best of both desktop and cloud technology aswell.

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