Sage 50 Paycheck Protection Program

Sage 50 provides you a lot of benefits that not only help you to manage the business and even in this pandemic situation as well sage is helping you through the Paycheck protection program. Paycheck protection program helps as he authorizes the $349 billion dollars as forgivable loans for the small business for paying the employees during the COVID – 19 crisis. terms and other loan processes will be the same for everyone.

The loan forgivable can be continued till below conditions met:

• Compensation level with Employee are properly maintained
• The loan taken used for covering payroll costs, mortgage interest, rent, and utility costs till 8 weeks from the loan has been passed

Payroll costs are limited to $100,000 annually for every employee. Due to a very high demand subscription, it is predicted that not more than 25% of the forgiven amount may be for the nonpayroll costs. The loan payment delay time is 6 months.

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

When can you Apply for the PPP?

Since 3 April 2020 sole properties IP and small business owners can apply to get the loans to cover the payroll and some other expenditure through existing SBA lenders. From April 10, 2020, all the independent contractors and self-employed individuals can apply for and receive loans to cover the payroll and some other certain expenses through the existing SBA lenders. Some other lenders will be soon available to help once they are enrolled in this program.

Where can you Apply?

Applying for the PPP in Sage 50 is not very tough, simply get in touch with any SBA lender through any federally insured depository institution, federally insured credit union, and Farm credit system institution which is participating. Some other regulatory can also be available to approve these loans once these are approved and enrolled in the program. You need to contact your local lender and to get the lender details you can visit the official website of SBA.

Who is Eligible to Apply?

Businesses such as nonprofits units, organizations, sole proprietorship, tribal business concerns, self-employed individuals, and independent contractors these with the 500 or less than that employees are eligible to apply. Some business industries having more than 500 employees if meet the size standard can apply.

For the PP Program, SBA standard gives up for the small business such as

• Hotel and food industries service
• Franchise in SBA franchise directory
• That receives financial assistance from small business investment companies that should be licensed by SBA.

What to do to Apply for the Same?

To apply for the PPP you need to complete the Paycheck protection program loan application ad submit the same at the approved lender with the required documents to process your application form. You need to provide the payroll documentation to your lender.

For what you can Use this Loan?

You can use this loan for many things as mentioned below :

• Interest on mortgage obligations, incurred before 15 Feb 2020
• Payroll, including benefits
• Rent, under the lease agreement on the force before 15 Feb 2020
• Utility bill for which service began before 15 Feb 2020

Payroll Costs Include

Payroll cost includes the below things:

• Salary, wages, commissions tips, etc
• Employee benefits such as cost of a vacation, parental, family, medical, sick leave, etc
• State and local tax assessed on compensation
• For a sole proprietorship or independent contractor, wages commission income or net earnings from self-employment

PPP loan covers the payroll costs, includes employee benefits for example costs of parental, medical, family, medical, or sick leave.

A loan can be up to two months of your average monthly payroll costs from last year plus an additional 25% of that amount. It is with a capping of $10 million.

Loan Forgiveness

You can submit a loan forgiveness request to the lender which is providing the loan. Loan forgiveness request concludes documents verify the number of full-time equivalent employees, pay rate, and payment on the eligible mortgage, utility obligations, and lease. You need to make sure that all the documents are true and you have used the forgiveness amount to keep employees and make eligible mortgage interest, rent, and utility payments. The lender should decide between forgiveness in 60 days.

Is it with a 1% fixed interest rate? You will owe money when your loan is due if you use the loan amount for anything except payroll cost, mortgage interest, rent, and utility payment over 8 weeks after getting the loan. You will also owe money if you do not maintain the staff and payroll.

All the payments are stopped for 6 months however interest will continue for this period. Loan due is for 2 years and you can also pay the loan before that.

What do you need to Certify

You need to make sure to verify that :

• The current economic situation makes the loan necessary to support your ongoing operations
• Funds will be used to retain workers maintain payroll or to make the mortgage, lease and utility payrolls
• You should not have another loan under this program
• You need to provide the documents to the lender which verifies the number of full-time employees on payroll and dollar amount of payroll costs covered mortgage interest payments, covered under rent payments, and covered utilities for the 8 weeks after getting this loan
• All the information should be accurate and true which you have provided in the application. It is punishable if you provide wrong or false information.

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

Final Words

So, as from 3 April 2020 the sole properties IP and other small businesses owners can also apply to acquire the loans in order to cover the payroll. This also covers the other expenditures as well through the existing SBA lenders. Likewise, starting from April 10 2020, it is possible for all the independent contractors and self-employed individuals to apply for and also receive loans in order to cover the payroll. For more details on the same, be sure to logon to www.accountingadvice.co and you are sure to find all the relevant information on the topic.

Frequently Asked Questions (FAQs)