Today’s article will inform the necessary details on how to prepare for the Sage 50 Paycheck Protection Program. Sage just came up with a new loan program which is known as the PPP Paycheck protection program. It originated from the Coronavirus Aid, relief, and economic security (CARES ) Act. It is about a $350 billion program to provide all eligible American small business owners with 8 weeks of cash flow help through 100 federally guaranteed loans.
Some Sage 50 Paycheck Protection Program Highlights are Given Below
- No fees
- No collateral or personal guarantees required
- No need to make loan payments in the initial six months
- It has a maturity rate of 2 years and an interest rate of 1%
- All small businesses are eligible
Who can apply for the program?
- To apply for this PPP loan small business owners, sole proprietors, independent contractors, and self-employed individuals can apply.
- A sole proprietorship will need to submit a schedule C from the tax return file mentioning the net profit from the sole proprietorship.
- Submit Form 1099-MISC in addition to their schedule C.
- Self-employed individuals need to submit payroll tax filings reported to the internal revenue services.
- Mortgage interest payments
- Rent and lease payments
- Utility bills
Things needed to apply for PPP Loans
Now after knowing what is PPP and who can apply next comes what documents you need to apply.
Basic information about the business and your contact details
Average monthly payroll costs – it includes employee salary, wages, and commissions, payment of cash tips, payment of vacation, parental, family, sick leave, payment needed for group health, etc.
Details of full-time employees and the payroll costs – It includes names, and monthly eligible compensation, salaries. If annual cash compensation exceeds $100,000 monthly proration should be based on $100,000.
2019 Tax forms – provide copies of forms 940, 941, 944, 1099s, form 1040 Schedule C ( for independent contractors), and payroll processor records.
Proof of mortgage or rent, mortgage interest, and utility expenses.
Articles of Incorporation/Organization( should have established date).
Verification of all the owners of over 20% as documented by
- 2019 Schedule K-1s or
- 2018 Schedule K-1s with a statement showing how /if 2019 ownership is different
- For those who are single-member LLCs, a personal 1040 tax return schedule will verify the ownership
Copies of government-issued id for all individuals owning 20% or more of the business
Email id for all individuals owning 20% or more of the business
Proof of activity and status of the business ( with good status proof )
The completed form (SBA PPP application form
Electronic funds transfer information.
Each Sage Drive user may install the software on up to one additional device. s makes it possible to share Sage Accounts data. You must install Sage software on another computer, either in the same or a different location, and then use backup and restore to transfer data between the two computers. You will get all the solutions related to Sage in one place with complete satisfaction on time. Just contact and be a part of the family who is giving services for many years with the consultant of Sage 50 24*7 Help desk.
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