Prepare for Sage 50 Paycheck Protection Program

Prepare for Sage 50 Paycheck Protection Program

If you think that you also need this loan then you need to be aware of some information. Today’s article will inform the necessary details on how to prepare for the Sage 50 Paycheck Protection Program.

Sage is providing unexpected services to its users since it launched. 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. These loans are backed by SBA.

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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
  • The loan covers expenses of 8 weeks starting from the loan originating date( if obligations date before 15 February 2020)
  • It can be forgiven and essentially turn into a nontaxable grant

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.
  • Independent contractors will need to 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.

Where you can use the funds?

From the funds, you will receive that minimum of 75% should be used to fund payroll and employee benefits costs. The Remaining can be used in

  • 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. This is a very important step because one missing or wrong document can reject your application. Hence you should know such important documents.

  • 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
    =>  if incorporated as a partnership then need 2019 Form 1065
    =>  For those who are single-member LLCs, a personal 1040 tax return schedule will verify the ownership
    =>  Bylaws or operating agreements that explicitly state current ownership percentages
  • 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.

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