There are many businesses that are going through one of the greatest challenges this country has ever faced. Due to the COVID-19 pandemic, a number of businesses are closed down and the few essential businesses that are remaining open are finding business is slowing down. They are finding it harder to keep their workforce employed. Mark Dicus & Company would like to break down the paycheck protection program and how it can help keep businesses afloat during this pandemic.
How Does the Payroll Protection Program Work?
There are many businesses that are wondering how to keep the business going while paying their workforce so as keep the world wide economy moving. During this time of uncertainty, business owners are looking for help. The Paycheck Protection Program (PPP) is one option that can help keep businesses afloat during this pandemic. The PPP is designed to help support small businesses and keep their employees on the payroll. Most business owners know about the SBA, their loan forgiveness programs and converting loans into grants. If all of the employees are kept on the payroll for eight weeks, including additional expenses such as rent and utilities, the SBA will cover these expenses. However, as the business owner, are you ready to track and supply the needed information when the time comes to forgive your loan.
How Accountants Can Help Manage PPP Records
When needing help from the PPP, you as a business must submit accurate records to justify the forgiveness loan. When your business needs assistance from the PPP, you will want a strong accounting department. A good accountant will play a vital role as they will help oversee the loan program and make sure you follow all of the PPP regulations. Your accountant will help monitor and record all needed information to ensure the loans are properly accounted for.
Keep Track of PPP Loan Forgiveness Amount
As the business owner, your first step will be to come up with the amount of money needed to keep your business going. When you decide how much money will be needed, consider the amount of money to cover payroll, interest on mortgage, rent, utilities, and items or products you need to run your business. When looking at the at the cost of payroll, it must cover at least 75% of the forgiven amount. The forgiveness is based on the employer and how they manage the salary level of all their employees. Forgiveness will be reduced if full time employees decline or salaries or wages decrease. If the forgiveness level changes it is essential that the changes are recorded. Reducing the forgiveness amount can become a financial problem. This is why it is important that you keep track of your forgiveness amount.
Tax Preparation, Filing & More in Salt Lake City, St. George, West Valley City, Provo, Orem, West Jordan & Greater Cedar City, Utah
For those are seeking help during the crisis of this COVID-19 pandemic, and you are not sure if the PPP is right for your business, make sure to employ a strong accounting service. Mark Dicus & Company can help you find the right financial aid. For those business owners that need help learning these new or old financial aid programs, contact Mark Dicus Company LLC. We can help you. Contact us today.