About 35,000 businesses in New Jersey have received Paycheck Protection Program (PPP) loans from the Small Business Administration (SBA), which means some time after June 30 they will either have to start paying the loan back or get it forgiven.

Obviously, loan forgiveness is the preferable option, but as has been widely reported already, that requires businesses to follow certain rules on how they spend the loan money. A number of gray areas in these rules have left independent contractors, business partnerships, and others wondering what’s required of them in certain situations.

Scott Borsack, a partner at the law firm Szaferman Lakind, was able to clear up a couple of them during NJBIA’s loan forgiveness webinar yesterday afternoon.

Is compensation paid to partners or members of LLCs forgivable?

One area that has vexed certain applicants has been how to treat compensation to partners in a partnership or members of a limited liability company (LLC). Borsack said there has been some late clarification on the matter.

Essentially, a partner or LLC participant can be compensated for their income up to $100,000 as long as their past income has been subject to self-employment tax. The maximum per employee is $15,384, since the program caps the amount of an individual’s compensation at the equivalent of $100,000 per year.

“Generally that’s going to be for someone who is actively engaged in the practice or the business or the entity; that this is not a passive investment for them,” Borsack said.

When do I have to rehire laid off employees to qualify for forgiveness?

PPP loans are calculated to cover eight weeks of a business’ operating expenses, and one of the requirements is for businesses to maintain their payroll during that period. If they have already laid off employees, they can still meet the requirements for loan forgiveness by reinstating them.

That does not mean they have to bring everyone back to work on the loan origination date. Employers can bring back employees when it makes sense and pay them back wages for the time they are out, whether though vacation time or leave.

In this sense, it’s not when you actually bring them back (as long as you do so within eight weeks of loan origination) but the periods you pay them for.

“You don’t have to physically have them back in the shop to entitle them to pay,” Borsack said. “All that you have to do is call them back before June 30, and pay them at least 75% of what they would have received (had they not been laid off) to avoid the salary reduction.”

For example, if an employer’s covered period ends June 15 and employees are brought back on June 1, the employer simply needs to pay them what they would have received up to that point on that day and still have the expenses forgiven, assuming the employer meets the other requirements of the program.

How do independent contractors figure out their compensation?

Independent contractors who receive a PPP loan can use up to $15,384 of what they’re awarded as compensation for themselves for the eight-week period and still have at least that part of the loan forgiven. As compensation to themselves, it acts as a payroll cost.

At the same time, employers who hire independent contractors cannot claim the amount they pay the contractors as a forgivable expense. “The contractor has to make their own application,” Borsack said.

“That was an ambiguity in the application process, and some banks included the amount paid to independent contractors in the wage base for determining loan eligibility,” Borsack said. “So there are a number of borrowers who probably borrowed more than they should have been permitted as the rules changed.”

What about loans that originate after May 5?

One of the program’s requirements is that all loan money is supposed to be spent during the eight-week covered period or before the program ends on June 30. With a new round of funding approved last Friday, however, many businesses may not get the full eight weeks.

Borsack said everyone who receives a PPP loan after May 5 will be in this category, but he suspects that this deadline will be extended for those who receive later approvals and suggested businesses in this situation keep an eye on the SBA for new guidance.

“I don’t think anyone expected there to be a second tranche of funding under this program,” he said.

229 responses to “Four Questions Answered on Paycheck Protection Loan Forgiveness”

  1. Agatha says:

    A question regarding the maximum employee compensation. If I process our payroll semi-monthly, I have 24 payrolls in a year. $100,000/24=$4,166.67 per payroll. Four payrolls in the eight week period amounts to $16,666.67
    Can I use my amount (which is higher) rather then $15,384 you have calculated?

    • Ben says:

      No. Payroll is calculated on a monthly basis.

      • michael says:

        Hi.
        i am an independent contractor who has been approved for PPP loan which i received on May 1st. I have not paid myself yet. Can a pay myself monthly ($7692 on May 15th and again $7692 on June 15th)?
        thank you.

      • Ruth says:

        Our preschool is closed till the fall. Can I use the PPP funds (75%payroll) over 15 weeks? I was approved around May 5th or on the 8th week give them a bonus to cover the summer months of salary. Right now, I lost 10% of my funding but starting July 1, 60-75% of funding is lost (no summer camp). What is legal to get the funds forgiven? I have been using 10% of the PPP monies right now, since I have 90% of funding still coming in but that changes on June 30.

    • Gary T says:

      It’s not based on how businesses process payroll, it’s based on the number of weeks in the year, so it’s the same for all. $100,000 / 52 = $1,923.08 per week, multiplied by 8 weeks equals $15,384. That’s the maximum amount that can be claimed for an employee.

      • Mike Butero says:

        If you got a loan through the SBA already, but not the ppp can you also get the ppp.?

        • lisa says:

          You can get the edil loan and the ppp loan. however they must be used for different purposes.

      • Jacquelynn Kelley says:

        QUESTION: I am a single member LLC. What if my Schedule C for 2019 shows a net income for the year of 24k … do I HAVE to only pay myself 24k/52 x 8 = $3,692.32 ?? Or can I pay myself $15,384 ?? My 2018 taxes and the year before that my net income was over 100k …. last year it was low because of equipment purchases/expenses.

        MUST we pay ourselves according the 2019 net income??

        Thanks!!

        • Kim Cottee says:

          I have this same question. Did you get an answer to it?
          Have you concluded for sure that the compensation to owner amount has to be based on Schedule C or are there other options?
          Sorry I’m not actually answering the question.

    • Kristen says:

      Quick question – as an employee receiving a weekly ppp check and I can now go back to work and receive ppp through end of June…can I still collect my agreed upon commission. My employer tells me no?

  2. Gary Price says:

    When filling out the application for the PPP Loan, 2.5 times payroll was used for the amount to ask for. Shouldn’t it be 10 weeks not 8 weeks for the compensation to be paid back?

    • Rashid Khan says:

      If I understand correctly 2.5 times monthly payroll was given to cover two months of payroll plus rent or mortgage interest and utilities. That is why they say that Payroll has to be minimum 75% of PPP and the other forgivable portion would be rent/mortgage interest and utilities. If there is any balance left after applying the above then it will become a loan that will have to be paid back as per loan terms

    • Sandy Weiner says:

      No, because some of the money can be used to pay rent, mortgage, utilities, etc.

    • Chrstine says:

      Gary-
      Glad you asked this question because I was thinking the same thing?

      • Kim says:

        I work on commission and my employer wants to pay me the $1200 a week that he allotted for my payroll but wants me to pay him back if I do not produce enough out of future checks. Is that legal since it is suppose to cover my salary and I can not go back full time because of child care?

        • Tammy says:

          Is this k martin. I’m thinking of you. Can’t sleep and looking up the answer too. Love you beef

          • Erin says:

            Hi,
            I work for a tent building company. My employer received a PPP loan has been adding extra hours (that I haven’t worked) to my check. He told us today that when this is over he will be taking the allotted money back each week from future checks. Is this legal ?

            Erin

          • Tony Bullock says:

            I have this same problem let me know if you find out anything

        • lisa says:

          your employer will be forgiven for the loan amount. Should not be asking you for money back.

    • sunny says:

      Very good question. That’s seriously non-sense saying that multiply by 2.5. Instead they should collect details of 2 months (payroll cost + Expenses) and run the same for forgiveness rather than 2.5 and then 75%. It will be crystal clear.

  3. Karen M says:

    When struggling to fill out loan paperwork I only included employees & not my sole proprietor husband. Can I include him as well?

    • Peter Holmes says:

      Yes. You would take the Net Profit for 2019 (Schedule C amount on the 1040) divided by 12 and multiplied by 2.5 for your husband’s “pay” then add in 2.5 x the W-2 employees’ average monthly pay for 2019.

      • Jennifer says:

        I thought that you cannot include independent contractors in your payroll calculation. Independent contractors can apply for their own loans, but if you pay them, it’s not covered by the ppp loan.

  4. Benny says:

    In the case that was used as an example of covered period ending June 15th and employees are brought back June 1st. Would the employees be able to continue to collect unemployment until June 1st?

    • Laurel A McFatridge says:

      I have the somewhat same question.
      We have no return date set, Could the employee continue to receive Unemployment, then by the June 30 date, I will pay them their
      back pay?

  5. Rene says:

    So, is it my understanding that if I received notification that I will be awarded PPP from my bank, but have not signed any documents and do not seen any money from the SBA drop into my account, that I can confidently bring people back to work and pay them knowing the money will be there?

    • Michael says:

      We received a official notice on April 15. But called employees back a week earlier as Chase bank told us we were in the loop to get funds with a notice April 7
      Can we consider the earlier date as our starting point for the 8 weeks.

  6. Kelly says:

    We pay W2 employees and 1099 contractors which make up our payroll. Will 1099 contractors be part of the loan forgiveness equation since part of our payroll?

    • Peter Holmes says:

      1099 contractors should not be included in your payroll figure when applying for a PPP loan as they have the ability to apply for a PPP loan for themselves. Only your W-2 employees should be included in the original application and in the forgiveness calculation.

      • Larry says:

        What about 1099 contractors (I have 1 “booth renter” in my hair salon and the rest are employees) that I pay a retail commission to. She makes her own money and keeps her own records and essentially works for herself. Can I include the retail commission pay that she gets in my payroll calculations to get the 75%?

        • Todd says:

          I’m not a lawyer but, if you W-2 her on that commission yes you can. Otherwise, no However, don’t forget to pay yourself!

    • lisa says:

      1099 persons cannot be counted. they are technically self employed and can apply for ppp themselves.

  7. Daniel Hertz says:

    What if the employees who were laid off prior to getting PPP loan were collecting unemployment? Does this mean they are entitled to back pay, their unemployment money, and the extra $600/week?

    • Arun K. Kaistha says:

      This is the million dollar question. What is the answer? Employees will earn significantly more than owners in many cases.

    • Jane says:

      I would like to know the answer to this as well. I was called back to work after 7 weeks of unemployment even tho there is no work. Employer says he will pay me what my wages were going to to be as of April 1, (not my actual wages for the quarter prior to layoff) even though I was laid off March 18. Employer is paying us to stay home us to get us off unemployment. We will all be losing money with this situation!

      • Mandy says:

        My employer has received the PPP loan. Now instead of unemployment money she is going to pay us our regular pay. She also told us that because we are still at home, she will not pay us any vacation, sick or Christmas pay for the rest of this year. She says that she doesn’t have money for that. So I am losing my vacation pay in August and will not be paid for 6 days of closing in December. Is this legal? Can she do that? We will be losing money and not receive any unemployment money? Please help. Thank you.

        • Sabine Core says:

          i believe you have the right to decline the ppp loan paycheck and stay on unemployment.

          • Jennifer says:

            I think that if you decline the ppp money you are declining work and if you decline work you are not eligible for unemployment. Please be careful.

          • Andrea says:

            If you decline ppp you get kicked off unemployment.

          • Nicki says:

            I tried doing just that… I’ll be making significantly less per week accepting my bosses PPP loan than unemployment. I’ve worked 33years and it’s my very first time collecting. I deserve it. Ive tried to deny hey paying me (and she understands) but then I was asked to sign a written document for her to give to the bank saying I declined and yes …unemployment will drop me . It’s just a mess

          • lisa says:

            you cant that is illegal. i asked. lol. unemployment knows who received the ppp loan and when they find out, you will be required to pay back what they paid you if u refuse ppp from your boss plus a fine.

    • Leslie S Caldwell says:

      I was one of those employees. Yes, I made more money on unemployment staying home, yet upon receiving the PPP money we came back to work. The extra money they are giving is not there to be taken advantage of. If you can go back to work and refuse, you will lose all benefits including your job.

    • keke says:

      This is a good question and I would like the answer as well. My employer has paid me for 80 hours even though I work less than 30. I’m curious to know if we’re (employees) allowed back pay because the employer was just aproved for the PPP loan?

      • Rachael says:

        My employer wants to recall us on June 1 on a reduced schedule. He will pay us for actual hours worked (we will not get unemployment to make up for missed hours) and then give us an additional check from PPP loan in that same pay period, which we should consider a paycheck for a week in August that we have yet to work. He will do this until the PPP money is used up. If when August comes and my hours work are less he will dock a future paycheck. Is this how the PPP money is to be used? For future full time work? Or is it supposed to be used to give us full time pay now even if we are working reduced hours??

        • Chris says:

          My boss wants to do something similar. Give us 10 extra hours now and deduct it off the hours we work in August. So for example if I work 40 hours in August he will only pay 30. I don’t think this is legal. Can anyone help me with this?

          • Zuzana says:

            It’s not legal. Your employer needs to pay you exactly what you would receive under normal circumstances. The PPP loan can’t be manipulated where the employer pays you now for hours you haven’t worked and makes you work for it later. No. That’s the point of PPP to cover your check even during the time you were not working and once the PPP money is payed and used he needs to pay you for your work as he would normally do

  8. Penelope Boehle says:

    If I am paying my husband, the sole member of our LLC from the loan based on our 2019 return, as he still is working to bring future jobs in, if we bring our employees back on the June 1st date, and they have been collecting unemployment benefits while we had no work for them, do we just put them back on payroll based on the date they return to work and pay them using the remaining loan funds? Your information above makes it sound like we have to pay them at least 75% of their salary during the time they are not working.

    • Kimberly says:

      75% of the PPP must be used toward payroll which includes employer state, local tax and BWC payment. Employees don’t necessarily have to be at work but can not be on unemployment. You have 8 weeks from the day funds were deposited to use it.

  9. Alison says:

    Do part time workers have to receive 75% of their average pay within the next 8 weeks, or just full time employees to receive forgiveness? My FTE is working even more hours because the part time associates have not been able to work from home. My payroll spending will be virtually the same, and nobody has been laid off.

    • Lia says:

      If an employee is over the 100k limit and is getting the 15k from ppp, can he get paid the difference of his paycheck from the regular operating account in addition to check from ppp loan account?

      • Gary says:

        I have the same question. I was asked to defer a portion of my commissions as my employer said I couldn’t make over $100,000 which I do normally. I have never had my commissions deferred and felt this is fraud. We are an essential business and hit close to 90% YOY. My company is not hurting and never was. We all worked through out the shut down. Is this legal? This will continue for the next 6 weeks. I worked and want my money.

  10. Jim C. says:

    I have an employee who asked to be laid off under the pretense that he was scared to work. (He confided in a co-worker that he wanted to take advantage of the additional $600.00 per week unemployment benefit).
    The problem is he asked to be laid off right before we got PPP funding. He is getting unemployment and the additional $600.00 a week. He is actually making more laid off than he does when he works Therefore, He has no incentive to come back. How can we handle this?

    • Leslie S Caldwell says:

      Once an employee has been offered their job back, if they refuse then they have lost all rights to unemployment. At that point, you contact the employment commission and he will not be receiving any pay, and you are not obligated to re-employ that person either.

  11. Mike F says:

    I was told that medical insurance payments were allowed to be included as part of the salary figure. Would those payments be included in or in addition to to $15,384?

    • Alec says:

      Medical insurance premiums are in addition to the salary. The question in my mind which I can’t find the answer to is whether disability insurance premiums are considered an allowed expense ?

  12. John says:

    I’m being told that as long as I have my FTE numbers back to pre-covid before 6\30 then I’ll be eligible for 100% forgiveness (assuming I’ve used 75% for payroll and not reduced wages by more than 25%). Your article seems to provide different info. Can you help clarify?

  13. Dave says:

    what if you were given 200k PPP loan? Spend 100k on payroll, 100k on mortgage int, utilities, health insurance benefits. do you pay back the 50k shortfall (100K) back at 1% interest? or will it nulify the enitre PPP amount?

  14. Jerri says:

    I had received 4K out of 17.5k requested and also I have a non essential retail store and cannot open. All of my employees are part time and make more money on unemployment than when they work. In any case if I am closed and want to pay them to satisfy the PPP requirement that leaves me 1k left.
    I have to pay rent, utilities, insurance, telephone, internet every month while the store is closed and runs about 6k a month. I also don’t know when I will be able to open or if I will be able to get my employees back.
    The question is I don’t see much of a benefit to the PPP so is there any room in the plan to enable me to use the money in a productive way.

    • Leslie S Caldwell says:

      Why would you apply for PPP, if you have no intention or able to hire your employees back. That is what it is for.

    • K says:

      You can use the money to pay yourself and pay the rent- and hope some amount of the loan is forgiven. The PPP is a loan at 1% if it is not forgiven. If you make a reasonable effort to keep your business afloat it’s not fraud.

  15. Liz says:

    Please clarify if a sole proprietor with a realty active managing LLC that is taxed as an individual on net profits on filed 1040 qualifies for a PPP application. No W-2 employees, only self, 100% owner/member. This type of LLC does not have a schedule-C. And, if this sole proprietor owner already filed a PPP for another, totally separate/ different EIN, LLC that filed a schedule C, does this mean that no other PPP application can be filed for this individual despite existing multiple businesses? I thought the final order on PPPs stated that only one PPP per individual is allowed. No multiple businesses PPP – even though the combined income is taxed on the 1040? The bank with the Realty business checking account refused to process due to no W-2 employee or 940 filed. Looking to try another lender.

  16. Dustin says:

    Anyone understand how the SBA knows that for a PPP loan that goes into your general checking account, how the loan money was used for payroll/rent, and NOT money that was already in that account?

    Are business opening up secondary accounts only for loan money so that all expenditures are traceable?

    Or is just showing that you spent as much as the loan (or more) on payroll/rent enough to prove that the funding was uses appropriately?

    • Leslie S Caldwell says:

      Anytime you are dealing with federal or state grants/loans it is always best to open a separate checking account, if not make sure and keep very good, clean records of where and how the money was spent.

      • Amy says:

        Our bank, is a small town bank. They are not depositing a “lump sum”. Every Monday I email or fax our payroll costs for the week, and the utilities, interest, etc.
        He then transfers the money into our business checking and it’s there ready to go.
        Most people don’t like this. However, we love it!
        I do NOT want to make a mistake with the 75-25% on the PPP allocation.
        With our banker doing this for us, he can always call and say “hey you’ve used up so much of your loan, you have so many weeks left, just a heads up!”

        I really feel like a lot of businesses are taking these loans with no plans to open their doors and no plans to pay it back.
        I’ve seen several home remodels and vacations being planned.
        That is not what this is for.
        Not to be taken advantage of, in the least.
        So, I would definitely recommend if your situation is different, and you aren’t speaking with your banker weekly, open another checking just for your PPP loan payroll, taxes, and approved expenses.
        It’s much easier to keep track of.
        Remember when all of this comes to a head, we may be under a whole new administration that’s trying to wrap their heads around this.
        Good Luck to everyone!
        Stay well

    • Ken says:

      My accountant told me to write a check to myself for 75% of funds as “salary” and move it that way from business acct to regular checking. Then another check for 25% for rent, moved the same way. Then you gave record at the bank and a paper trail

    • Cm says:

      We opened a second account for the PPP funds and when it was deposited transferred it over

  17. Lynn says:

    I want to know how PPP effects unemployment claims. A sole proprietor who is non employer who can collect UI but gets small PPP can no longer (never ever?) collect UI?

    • Jon Kravetz says:

      Hi Lynn. See my more detailed response below. I have the same question. I don’t know whether to pay myself with the PPP loan or not. I do not see myself recovering much revenue over the next 8 weeks to sustain myself like I could with unemployment over 39 weeks.

  18. Rob says:

    I am a Self Employed Single Member LLC that got a PPP loan. Now my concern is that the clock ticks on this for the next 8 weeks. Yet they calculated 10 weeks for the loan.When I do the math the way they calculated the loan I will not hit 75% payroll unless I pay myself slightly more that the way the loan was averaged. Hence I can see this being a way out and I am told it is not forgiven. Do I just up my pay a little to be sure to hit the 75% or will that be the reason I am told it won’t be forgiven?

    PPP Loan funded May 4………Been out of work since March 19. Filed for unemployment but just received the ok on that oddly enough May 4. Can I collect unemployment for the weeks prior to PPP loan being funded and the just stop unemployment on May 4th the day the PPP loan clock starts ticking?

    Thanks….Very Confusing!

    • Jon says:

      Hi Rob I am in the same boat as you. Almost exactly the same.

      A) I made a mistake in assuming that pay was broken down by month rather than week, and planned on paying 8,333.33 to be in line with the 100k per employee maximum. So that amount x 2 is more than the 15,384 maximum. This makes it impossible for me to reach the 75% threshold since the loan was for around 22.8k.

      B)I want to do the right thing as well but the rules seem a bit confusing and contradictory. I am almost contemplating staying on unemployment…since 39 weeks > 8 weeks, even though the amounts are a lot less. The risk of losing the safety net of PUA unemployment while i attempt to rebuild may not be worth the difference for these two months.

      C) It’s unclear to me whether I can go back on unemployment after the 8 weeks. There’s no way i can recover my revenue stream in 8 weeks, especially while the country remains shut down.

      Can anybody with expertise chime in? What should I do?

      • Eric says:

        In the same boat. Ive been looking all over the web and have yet to find clarity.

    • John says:

      I’m an employee and my boss just received the forgiveness loan and he says he’s going to pay me my full weekly wage even though I’m only working 2 days compared to 5 is this legal? And do I owe him anything after the 8 weeks because he said I would have to make up hours and we would talk later.

      • Kim Kennedy says:

        This is the same situation I am in. I feel like the loan agreement was to not only help businesses pay their rent, but mostly to help the employee keep their salary. I think it is bull that you have to make up hours. If it wasn’t for you he wouldn’t get the loan in the first place.

        • Tammy says:

          He should have to provide paid leave off due to lack of childcare. He definitely can’t just lay you off.

      • S says:

        My employer received the PPP loan and didn’t offer me hours back to work but was giving out bonuses with it to some of her office staff.. she asked me I wanted to quit the day she got the loan and allowed everyone else to get their hours back to work accept me? I was a part time employee and my husband is the main provider, that being said I’ve had no option but to stay home with our kids during this time … I feel like I am being punished in a way for that? When the loan was received I asked if I could work Monday-Friday 3:30-6:30 as opposed to my normal m/f 1:30-6:30 shift.. my employer told me she didn’t have those hours for and would get back to me .. she never got back to me so I filed unemployment as I’ve been out of work going on month 3 with no payment .. she ignored my claim and I was denied but am still considered an employee.. she just wants me to quit on my own accord… is this legal to do to an employee after receiving a PPP loan ?

      • Kim P. says:

        Totally illegal

    • Kimberly says:

      Rob, Yes you can collect the unemployment for the weeks up to and before receiving the PPP. Once that PPP money was deposited yo uthen have 8 weeks in which to utilize it. I would roll back your unemployment to Friday May 1st as the final week. Your PPP can be used for payroll, employer state & local tax including your BWC payment, interest payments, rent for business and utilities which also include phone and internet.
      Must keep proper records, receipts and I would do an excel spreadsheet. IF the PPP is 100% used it should be forgiven as long as 75% went toward payroll, that can also include a disbursement, bonus vacation to ones self.

    • Sunny D says:

      Same boat.

    • Zuzana says:

      You basically don’t pay your self. You pay all the 75 percent to your employees. As a business owner that has received the PPP you take care of your workers, while you collect the UIB. It’s very simple.

  19. kirit patel says:

    I got PPP loan but my employees are collecting unemployment because they get $600 extra from the state. Can i use my ppp loan to pay other employees who are not getting unemployment?

  20. GeorgieB says:

    My son, who works in the restaurant industry, was offered a job at a new restaurant & went to work for them 30 days before they closed for the virus.
    They re opened this week & called him back to work – he didn’t apply for unemployment. The restaurant received a loan & have paid most of the employees ‘back pay’ but told my son he didn’t work there for 90 days, so he doesn’t get anything. Wondering if is correct??

    • Jennifer says:

      He should be able to claim for the time he wasn’t working. He can file for that time he wasn’t working now, even if it’s in the past.

  21. Jon says:

    My fife owns a small retail shop. It is a C Corp and she is a W2 employee. She has only been open 2 days a week due to COVID and no customers. She is collecting unemployment and declares that she works 2 days a week so the unemployment is slightly reduced. She just got the PPP funding. Can she use the PPP to pay herself for the 2 days and still collect unemployment?

  22. John says:

    Is it legal to use the entire PPP for business rent, and then simply not ask for forgiveness? Right now my rent is more important then salary. And 1% is basically free money.

    • Bob Keene says:

      I have this same question.

      • Mike says:

        It’s legal and if you don’t ask for forgiveness, you can use it for whatever you want. However, I don’t think 1% is free money. If you are already losing revenue, it seems that you are compounding that by going further into debt with a loan that you have to pay back. Most people are not ever going to recover that lost revenue and will be in worse debt than before all of this started.

        • Sarah says:

          Do you have a reference for this? Not doubting you, just having trouble finding info. Everywhere I look, I just see how to make sure your loan is forgiven. No mention of using it for other expenses and not requesting forgiveness. Thanks!

    • Deanne Lynn Jarema says:

      You need to find out how and when the loan needs to be repaid. It is a big sum in a shirt payback period. Be careful!!

    • Les says:

      Governor closed our senior center on March 20.Have not received a check since.Have been there for over 30 years so I didnt file unemployment since I still work there.Will I get PPP back pay money even if we dont start back till end of June?

  23. Sarah says:

    My employees were unable to work for three weeks prior to receiving my PPP loan. Can I back pay them for the time they were unable to work due to the shelter in place or should they file for unemployment for those weeks? Can you only use the PPP loan money for payroll and debts incurred after you receive it?

    • Mary Jenkins says:

      I have the same question. One employee did not work at all and the other one only went on emergency calls. We told them not to go on unemployment because we were hoping for the PPP loan. We were approved for the loan and received the money on 05-07-20. Can I back pay my employees for April with the PPP money or is it just for future payroll. If I can’t back pay them for April can they apply for unemployment for April.

      • Jennifer says:

        It’s to be spent from the day you get it through 8 weeks. They should have applied for unemployment the second they were laid off. They can go back and claim unemployment for those weeks now. and start getting a paycheck from you on the day the funds from the ppp loan arrived in your account.

        • Lillian says:

          Jennifer
          Could you provide me with the Rule #, Code #, or whatever the PPP loan provision is regarding the date employers are allowed to begin paying their employees. Employer recv’d the PPP funds in their account on 5/10. My employer sent me a check for pay period of 4/16 thru 4/30. Recv’d on 5/15. I have been receiving UI benefits since March and now will be liable for repayment to EDD for monies. I need some legal rule/proof to give my employer to show that he cannot begin to pay me until the pay period following him getting the loan money.

          • Anna says:

            Hi!
            My boss received the ppp loan (a bit over $45,000)and once he got the funds he aske dus to cash the checks and give him back the money. We told him he can’t do this and he fired us. He says he prefers to go into debt than to pay us, and wants to use the funds for else. He didn’t even reopen the business (2 restaurants). He also asked the accountant to write checks for 2 other employees that are out of the country in order to cash their checks and use their money too. We can certainly sue him, can’t we? Thank you.

  24. Leslie S Caldwell says:

    NO

    • No what? We can’t use it for back pay?
      I’m an independent contractor and paid myself some but not quite my normal salary over the last couple of months. Can I pay myself the difference or only use the PPP for the next couple of months? Thanks for your expertise.

      • Lynette says:

        My exact question, can it be used for the past couple months for payroll and rent/utilities? Bills That are past due.

  25. Craig says:

    If you receive $60,000, you will need to use $48000 for payroll for full loan forgiveness. If you only spend $40000 on payroll, will the forgiveness be proprated?

    • DJ says:

      Since I was the 1st Independent Contractor to apply for a PPP Loan at my bank and no one really knew the rules, I got approved for $20,800.00 instead of the max $15385.00. So I will only have to pay back The additional $5415.00 at 1% As long as I spent 75% of the $15385.00 on my wages. If I don’t pay it back After 2 years then it will become a Term loan with the bank.

      • Janet T says:

        sort of in same situation – didn’t get much guidance on requesting the amount so I ‘over requested’ – now my loan is $9000 more than I can justify the 75% payroll , as and independent contractor – can I return the $9000 immediately and use the remaining for my payroll to myself… or will they base the 75% on the total loan amount (even if I return the overage immediately) this my mess me up on Unemployment too since it won’t be forgiven with amt as written?

  26. I think I have a complicated situation. I am a consultant and paid on a 1099. I file a schedule C and received $8,073 based on my net profit of $38,753. This is an average of $745 per week I am now Being “”paid” by the Company @ $1,200 per week instead of the previous $800. They agreed to continue paying me (I was not included in their PPP) the $1,200, but I should pay them back from my PPP. Should I pay myself the $745 and they pay me $465 to equal $1,200-or soething else? If I pay myself $745 for 8 weeks I will have spent $5,962 of the $8,073 or 74%. The only other eligible expense is my home office of $850. How do I satisfy all the rules and still get full forgiveness.
    Sorry for the length.

  27. Ron L says:

    1)Can I back pay employees with PPP money to help hit the 75% requirement if they were receiving unemployment money, or do I have to call it vacation pay or something, and 2) can I temporarily raise salaries (mine too) to help hit the 75% we are still closed and by the time we reopen there will only be 2 or 3 weeks to use the PPP money for payroll?

  28. Crista C says:

    Hi, is workers compensation and business liability insurance that is based on payroll numbers included in “payroll costs” or forgivable in general?
    Thanks

    • Cassie says:

      No, my understanding is only Gross Wages and State Tax, Health, & Retirement
      contributions are forgivable.
      However the first loans are going into forgiveness period next week &
      the House (democrats) have amended the bill in favor of business owners so you can use the money over a 24 week period instead of the 8 week timeline to be considered forgivable. I’m not sure if the Senate(republicans) has passed this.
      More amendments may come of this. What is interesting, these loans are solely to help business owners, not employees.
      They don’t have to restore anyone to the full salary yet it is forgivable.
      They can pay themselves plus pay themselves a profit to their shell corps.
      It is a literally free money to a business owner.
      Unfortunately, employees who have one sole income from working are losing out – since this it is their tax payer dollars going directly back to big a business owner’s pocket and most likely be laid off in a month’s time.

  29. Gary p says:

    I was wondering about employer pension portion for ppp loan forgiveness. If my employee in 2019 made $140k pension was 25% contribution so $35K Divided by 8 weeks so $5384 ,Can we use $5384 for ppp calculations as loan forgiveness or
    Is max now $15384 x 25% =$3846
    Thanks

    • Alec says:

      Interesting question and, once again, can be interpreted in many ways. I would think that you need to base 25% rule on the gross income earned so far in 2020, not 8 weeks. But without having any guidelines, who knows…

  30. Deb A says:

    I received my PPP loan on May 5, my accountant says I can still collect unemployment for the month of May and then write out my monthly salary check on May 31st for June and on June 30th write out another monthly salary check for July…will my loan be forgiven if I do that? Obviously I would not be able to collect unemployment in July. Thanks

    • Larry says:

      I’m pretty sure that once you have the funds to pay payroll, unemployment pay is supposed to stop for employees (even if they don’t come back to work). You don’t have to start working again but everyone has to be paid from the loan origination date . However, I’m no accountant but I’d definitely question the advice you’ve been given.

    • Gail says:

      I was told by my bank that once you sign the loan documents you must deny UIA payments, you cannot have both.

  31. Larry Cox says:

    We just received our PPP funds yesterday and I’m hiring back my employees immediately. Myself and the other owner have not laid ourselves our full salary by far since our closure in March. Can we pay ourselves back pay to catch up personally and include that in the amount that is forgiven? Also, our employees have been making more money on unemployment (because of their extra $600). I’m going to start paying them right away but I can’t imagine I have to pay them back pay from March until now since they’ve been getting paid. That’s crazy.

    • Anna says:

      Hi!
      My boss received the ppp loan (a bit over $45,000)and once he got the funds he asked us to cash the checks and give him back the money. We told him he can’t do this and he fired us. He says he prefers to go into debt than to pay us, and wants to use the funds for else. He didn’t even reopen the business (2 restaurants). He also asked the accountant to write checks for 2 other employees that are out of the country in order to cash their checks and use their money too. We can certainly sue him, can’t we? Thank you.

      • Kristen says:

        WOW that’s is entirely unethical and just screwed up??? He will be required to pay those funds back if not used appropriately. What a scum bag.

  32. Doug R says:

    I am a small business owner in New Jersey, formed under sole proprietorship. I have two full time employees. We were approved with an online lender for our PPP, but they only based the loan on my net income from the schedule C and did not take into account my two employees. The loan amount was for the maximum $20,833. Our 2020 average monthly payroll through the end of February was 4590. Therefore our loan amount should have been 32,308. We were unable to modify the amount of the loan before it was approved and we were advised to just accept the loan as is and try to adjust it on the backend. My question is, since this loan is only based on my own salary off of the schedule C net income, do I still need to bring back my full-time employees for 75% of this to be forgiven? Or do I need to bring both my employees back on full-time or at least pay 75% of their wages for this to be forgiven which will be reducing my portion of compensation because the loan was not calculated correctly? I do understand that I would only need to pay 75% of their payroll for the 8 week period, but what are my overall options since we are underfunded? This would also allow us to use 100% of this loan for payroll only. Thank you, any guidance would be appreciated.

    • Stacy says:

      I have the same problem. We were approved for $43k, but we applied for $60k. The bank had to use the pre-4/30 seasonal business calculator since I applied in early April. This means I can only pay 5 1/2 weeks of salary to my 9 employees. If I had waited to sign my promissory note a couple more days I would have been able to change my loan amount to $90k with the post-4/30 seasonal calculator. I would have easily been able to cover payroll for a full 8 weeks and had some to spare for my $10k lease payments and electric bills. Now, I am nervous about loan forgiveness since I can’t pay a full 8 weeks of wages and can’t seem to get an answer from SBA, CPAs or my bank. So very frustrating.

  33. Sally says:

    I have a lot of the same questions a lot of people are having. I am an employee that was laid off as of March 13th. My employer laid off the entire business due to the pandemic. With all the craziness of trying to collect regular unemployment and being denied due to not having enough work history I applied for PUA. The system finally is working and I have been able to file back unemployment to the week of lay-off.
    My question is I was “hired” back on paper April 27th and paid a 2 week salary on May 1. Do I stop filing for unemployment and how to I report those wages? When I filed my biweekly claim for that week I didn’t have my paystub and forgot to report the income. Can I just report it this week and stop filing weekly unemployment?
    This is all sooooo confusing!

  34. Michael says:

    My company received the PPP loan and asked us to come back to work but for two weeks he (the owner) only paid out 20 hours! For 6 weeks we were out and he didn’t pay. My payroll supervisor said he asked the owner and they said no only 20 hours and not to bring it up again. I want answers. Is this right?

  35. Erin says:

    My employer got the PPP loan and has brought us back as part time, equaling possible 17-20 hours per week. We are now being told we are being “given” 10 additional hours of pay each week. This will not bring us up to the 40 hours that we normally worked and will impact our being able to apply for partial unemployment. Therefore we will be losing 10-15 hours of pay per week. Is this how the program is to work?

  36. Joan McGinley says:

    Can the PPP be used to pay the company’s general liability insurance?

  37. Trupti says:

    Thanks for assisting us during this difficult time. I am a small business owner and misunderstood the rules. I only requested a small amount- 2.5x my one employees wages thus received $4500 PPP on 5/5. I am now realizing I could have included myself since I am an employee of my company. I had no idea I could be included when I completed the application. Is it possible for me to apply again and this time request funds for me? I tried calling my bank and no one is there. My accountant doesn’t know the answer either. Any help would be appreciated!

    • Doug R says:

      It’s my understanding that once you “accept the loan”, that is the PPP loan amount and you can only receive one. I don’t think you can modify it now. I’m a small business owner that recently received a PPP loan which was also underfunded. I was aware of this prior to signing the loan docs, but trying to modify it jeopardized our place in line and our lender was horrendous to communicate with. We decided to accept the loan as is and am hoping to possibly get an adjustment on the back end. Hope this helps..btw way I’m not an accountant.

  38. Sue says:

    I need clarification, there has been a lot of questions about bringing staff back who were furloughed due to COVID. Is the 8 weeks based on cash basis, or accrual basis. If we received funding on 4/8 and had a payroll on 4/15, that payroll covered period from 3/16 – 3/31. so it was paid out during the 8 weeks, but not for time worked during the 8 weeks.
    Which way do we calculate the 8 weeks?

    Same with Utilities – do I consider my April/May Utilities, which we pay in advance, or May/June utilities.

  39. B says:

    I have two different income sources – one as 1099 contractor(filed 2019 Schedule C) and one as full time W2 employee (new job started in 2020). I lost all my 1099 income since February but still have W2 on full salary. Am I eligible to apply for PPP loan as sole proprietor?

  40. Scott says:

    If my employer is bringing me back part time under their PPP loan can I still collect unemployment since I’m being brought back at just under 50% of my normal income???

  41. Angela menarguez says:

    If employer gets loan and pays us for 8 weeks and we are still not open does she still pay us or do we go back on unemployment?

  42. Cory says:

    My employer (church) received a PPP loan but is offering to pay only 50% of my salary(teacher). I was denied unemployment (church did not pay into unemployment)and waiting for PUA to go live in Ohio. Should I take the 50% pay or wait to see if I am accepted through PUA? I am worried if I accept the paycheck I will not be eligible for PUA and my contract with my employer is over at the end of May.

  43. Glen says:

    I had to pull money from surplus reserves to make payroll prior to receiving the loan funds. Can I replace my reserves using the PPP funds? Or is the date I received the funds firm and now my reserves take a hit?

    • Lynette says:

      Did you find an answer for this, I am also wondering if the funds can be used for the past couple months for payroll and rent?

    • Ed says:

      The instructions that accompany the SBA loan forgiveness application list two expense periods eligible for forgiveness:
      COVERED PERIOD: … if the Borrower received its PPP loan proceeds on Monday, April 20, the first day of the Covered Period is April 20 and the last day of the Covered Period is Sunday, June 14.
      ALTERNATIVE COVERED PERIOD: … if the Borrower received its PPP loan proceeds on Monday, April 20, and the first day of its first pay period following its PPP loan disbursement is Sunday, April 26, the first day of the Alternative Payroll Covered Period is April 26 and the last day of the Alternative Payroll Covered Period is Saturday, June 20

  44. Tessa says:

    My company reduced my salary on March 30th by 30% and switched my status from exempt to non-exempt employee, reflecting the decrease in pay. I’m not eligible for benefits through assistance programs like unemployment, because I make over the $600 cap her week (barley). My company received the PPP loan, but has said nothing yet to us about reinstating our full salaries. Will they have restore my salary by June 30th? Are they obligated to backpay me for the decrease in my salary since March 30th?

    • jpv says:

      They will have to re-instate up to 75% of your full salary.

    • K says:

      Your company doesn’t have to do anything specific with your salary or pay you back pay because they received a PPP loan. The loan doesn’t mandate how employees are paid, it just suggests that in order for the loan to be forgiven the employer use the loan in a certain way. Many employers will not be able to do that for financial reasons.

    • YKA says:

      Great question. My company did the same. It reduced salaries then received PPP funds.

      My company did reinstate full salaries but are they required to reimburse for the decreased payroll prior to receiving PPP funds?

  45. Lori says:

    As a sole proprietor I did receive the PPP loan. My question is..by the time I received it (first week in May) I had already been shut down for 7 weeks. This is to cover 8 weeks.The governor is keeping my business shut down for another month minimal.I FEEL i should be able to receive unemployment. I filed back in March and just finally received the i fo for the pandemic unemployment and ability to claim my weeks three days after excepting the PPP. Is it possible to skip the first 8 weeks when going in to claim my weekly benefits and start them from where the 8 weeks covered by PPP END.

  46. Deepak says:

    Hi. I just got the PPP loan on May 3rd. I am a single owner LLC with a staff of 18 employees. In mid march, I had to lay off 15 employee. Presently me and two other employees are working and I only pay my employees and not myself.

    As we support essential workers by taking care of kids, business is very slow.
    a) Can I use my PPP loan to pay my two loyal employees their regular salary and a weekly bonus for working under COVID circumstances?
    b) Also, can I pay myself a maximum of $15384 for working as the Director?

    I know i will not be able to reach the 75% of the loan amount to make this loan completely forgivable. I am okay with it being partially forgivable, as whatever amount I use for our three payroll is completely forgivable. Am I understanding this correctly?

    So if i used up only 30% in payroll of the 75% loan amount, does that mean only 30% of the 25% loan amount will be forgivable?

    All I want to know is if I spend less than 75% of loan amount on payroll, will the money I spent on payroll only be completely forgivable. I cannot seem to get a straight answer for this.

    • Rosa says:

      If I am not mistaking you will be forgiven only the amount you used for example if you used 70% you will only be liable to pay back the 30% at the 1% rate.

  47. Nicole says:

    As a sole proprietor do I have to actually write myself a check to “pay myself“ (I.e. write a check from my biz account to my personal account) in order to “document” and qualify for loan forgiveness? Or will sole proprietor/ independent contractors automatically get 75% forgiven and consideration as net profit loss. I haven’t see any guidance anywhere if we have to show proof that we “paid” ourselves.

    • Claudeen says:

      That’s what I did today – but my question is can I use all of the ppp loan for payroll to myself as I’m an llc with a schedule c over 8 weeks?

    • Kim Cottee says:

      Did you get an answer to this? I have the same question.

  48. George says:

    Is there a way I can see if my employer has received a loan from this program? If they have and are not paying based on the prior years earnings what can I do?

  49. Rosa says:

    Hello,

    I have a question. My Workers Comp is up for renewals next month I received PPP funds and I am to use that money toward that payment?

    • K says:

      I don’t think it will be part of the forgivable part of the loan- here is a list of what is acceptable to applied for forgiveness: Payroll costs (Note that at least 75% of loan proceeds must be used for payroll costs)
      Group health care during periods of paid sick, medical, or family leave, and insurance premiums
      Mortgage interest payments (but not mortgage prepayments or principal payments)
      Rent payments
      Utility payments
      Interest payments on any other debt obligations that were incurred before February 15, 2020
      Refinancing an SBA EIDL loan made between January 31, 2020 and April 3, 2020

      I think you can use it for operating expenses but it may not be forgiven and will most likely become a 1% loan for things not listed above.

  50. Virginia M Conners says:

    I am currently on Unemployment. My employer (a dentist) just got a PPP loan and is going to begin paying us effective this week. My question is my last pay week will end on June 27, 2020. I live in New York and it is questionable if we will be open by then. Will I again be eligible for Unemployment if our office is not open by the end of June?

    • DCL says:

      I and all my employees would love to know the answer to this.

    • Maria says:

      Same question here ? Can we go back on unemployment after the 8 weeks ?

    • Lauren says:

      Would love to know the answer to this. And what we are supposed to do in terms of filing the last claim. My employer said they just did nothing (didn’t login and file a claim). Is that right? Do I just do nothing, or am I supposed to log on and say that I’ve “received money” and/or “returned to work” (even though we are not open)?? Please help!!!

  51. Paul A Manning says:

    My wife works in a daycare. They go back on 15 June. Does this mean that when she goes back, in order to have her loan forgiven, does her employer has to pay them the monies they would have earned in the time they were laid off? Thats what I am unclear about and so is she. Thanks in advance.

  52. Cyn says:

    Boss applied for PPP loan but cut our hours by 30%. If he gets the loan is he required to pay us our full 40 hours of back pay? Or at least bring us back to 40 hours?

  53. Carlotta says:

    Hello, one quick question about PPP and vacations. Can I rehire my employees pay them same rate as before Covid and full time and also at the same time pay them the vacation time they had per their pre COVID-19 contract? even if they are working and not taking vacation?

  54. Aubree says:

    So I had a 40+hour a week job. When this all hit I decided to help my employer, and financially anything helped! So I came into the office part time 25 hours a week. Then 15 hours a week all by myself. How does this work with the PPP? Do I still get the 8 weeks paid for the other hours I didn’t work? Are the hours I worked deducted?

    Or because I came in, and helped will I get paid nothing unlike my other co workers who walked out on my boss during procedures?

  55. Paula says:

    I work as a secretary in an accounting office where my hours vary. I normally work 25 hours per week but when my employer’s are gone I work 40 hours per week or an 8 hour day. They are gone approximately 75 days per year. There are also some weeks that I am somewhere in between full and part-time. I worked 8 hours per day for 11 days at the end of January (11 days at full-time). Then beginning in February (tax season) I was full-time plus overtime. After April 15 I went back to 25 hours per week (it should have been full-time for 14 days as they were scheduled to go on vacation but had to cancel due to crisis). My gross salary last year was $34,700. How would they have calculated how much they would have gotten based on me for the PPP loan they received? Sadly, I’m the only one who’s actually losing money due to this crisis. We finished tax season as scheduled with very few people opting to wait so they had no loss of revenue and in fact had their usual increase in revenue. And now they get a free loan and provided me with zero protection during that time.

    • ft says:

      You not the only one loosing money. Many employers are paying people to stay at home. Yet they are still paying Workers Comp insurance cost, Employer taxes on the wages paid to you and futa and other taxes. So there is a cost. And more so, there is no guarantee what portion of the loan will be forgiven- go read up how complicated they making it….

  56. Alec says:

    Does anyone have any info regarding disability insurance premiums in the context of allowed uses of PPP funds? Thank you

  57. Bob says:

    As an employer, I have employees that know that I have gotten the ppp loan. We don’t have work to do, so we generally work half days around the shop. One of my employees feels that he can take a week vacation and then quarantine for 2 weeks after that and I will be forced to continually pay him. What are my options?

  58. Meghan says:

    Is it true when employees are hired back they don’t have to work the 40 hours (that calculates around $700-$800) to get the check that is promised to them? Supposedly everyone is saying it’s allowed you only have to work 1 or 2 days a week to get it the check so the owner can get the forgiveness.

  59. Karl says:

    I have a unusual scenario, My employer received his ppp funds and was very excited that he told me he can pay me my salary. Five days after, he changed his tone and tells me that there might be a slim chance that later down the road the government might or will come back and ask him to return back the funds which doesn’t make sense at all. So, the deal he is offering me now is this, for him to pay my portion of the ppp, we have to come to an agreement that I will have to repay him back the funds which is about ($16,000) in an 18 mos installment with 1% interest rate approximately six months from now. It is just a “verbal agreement” between him and I alone. I do have a feeling down the road, he will tell me that the government wants the money back for reason only he knows! I strongly believe that he is trying to pocket this $16,000. This is why I have to refuse his offer. I cant afford to repay him back that amount. I am already in so much debt right now! What advise can you give me please and I appreciate it a lot! Thank you!

  60. Toni Elizabeth says:

    If a company reduced salaries by 20% for the last 8 weeks, and then receives the PPP loan, are they required to back pay the money that the employees lost during that time?

  61. Haley M Caballero says:

    My employer just received her PPP loan and has herself on payroll. She owns a daycare but she hasn’t been in the building for about 2 months due to her being scared of the virus. We haven’t received any hazard pay or any bonuses. She plans on using most of the PPP loan to give herself a “bonus” instead of paying her essential employees. She has 18 employees and 13 are at home on unemployment while 5 are working making minimum wage. Can she legally use that money on just herself and the business and not the employees? She claims if she does give us a bonus which will be less than a weeks worth of pay that we wont get our vacation time.

    • Joe says:

      The past 8 weeks my employer who successfully secured PPP loan is paying me 75% of my $800 base salary or $600 per week, less taxes, medical, dental etc ($350 net). With overtime and commission my average weekly salary is $2,500 per week, a 76% reduction in pay.
      I want to know if I can expect the $15,384 or difference in the PPP formula plus medical reimbursement ?

  62. Dan payne says:

    I have 4 employees 2 plumbing technicians, a diver, and a Secretary. But one of my techs doesn’t come to work even though we call him and text him. I don’t want to fire him so that he can’t draw unemployment out on me. But i also don’t want to pay someone for 32 hours when they only work 10. I have PPP so what can i do about my employee that refuses to work?

  63. DCL says:

    If employers bring back laid off workers who were collecting unemployment and then have to lay those employees off again after their PPP monies run out, can the employees go back on unemployment and if so, for how long? i.e. Will they still be able to collect the full 39 weeks of additional federal $600 per week?

  64. Nancy says:

    We filed and approved the PPP loan on 04.17.2020. Only yesterday did our bank tell us that the federal payroll taxes -941 can’t be counted as payroll costs but we already included into the loan amount request . At that time, we included every payroll taxes as we don’t know the definition of payroll taxes and the bank didn’t tell us. The bank says to wait for SBA to decide if we need to pay them back- that is, $3050 . The bank also says maybe will disqualify the whole loan amount.

  65. Maria says:

    I have a question. I was furloughed for 5 weeks. My start day back was May 11th. My employer received the ppp money. Without my knowledge or agreement she back paid me for the last 2 weeks that I was collecting unemployment. She said that she was allowed to do that and that I will have to pay back unemployment for those 2 weeks. I told her that the payment that she gave me doesn’t cover for the 2 weeks of unemployment that I was getting and is not fair as I would be giving back about $900 extra out of my pocket. I told her to reverse the payment and she said she would at first then a day later she said that she won’t because she can back pay me. I don’t think that is fair. My start day back was May 11th not before that. I don’t feel like I should have to pay back unemployment for her wrong doing. I am going to appeal my unemployment if I get a letter saying I owe them. What are my options.

  66. Jasmine Smith says:

    My boss received the pop loan. We receive commission pay, and he has only paid us less the 200 dollars 2 weeks ago. Is that legal for him not to use the money to cover our payroll

  67. Dennis says:

    I am an independent contractor whose hours of work were significantly reduced due to Covid-19 and am now receiving New Jersey unemployment insurance benefits . Now, all of a sudden, the principal company that I work for is sending me weekly ppp payments. Can I recieve both, or do I have to chose one or the other?

  68. Sue Jones says:

    I am aware of a small business that fired everyone except two employees. They have received a loan based on their payroll previous to the firings. They intend to use the funds (75% of them) to pay these two people only, by significantly raising their salaries. They do not intend to re hire everyone that they fired, since they are still unable to re-openUntil later this summer. Is this legal?

  69. Lynn says:

    I am a W2/W4 employee of my own company. I applied for the PPP, finally got deposited on 5/11/2020. I did apply for unemployment as well and started to receive UI benefits in April. Now that I have the PPP can I start paying an employee that I hired before the COVID19? I was not able to pay this employee, now I can, this employees wages were not in the PPP package because I had not started to pay this employee. So the PPP was only for my wages. I’d prefer to use the PPP for to get the employee started while I continue to collect UI benefits until I can be paid my wages with the revenues the employee produces for my company. Or do I have to use the PPP to pay myself, stop the UI and not pay the employee? Confusing it seems.

  70. Adlin says:

    Hello, My company is ready to distribute their PPP loan but after our 8 weeks is up we will still not be opened. How should my team file their UI claim for the week. Can they see they are receiving funds but 0 days working? Will this hurt us later with being forgiven?

  71. will says:

    We work in textile industry making dresses sewing etc. We received a portion of the PPP loan and the money came into the bank 2 wks ago. How can we open when there is no work to be done. None of our vendors, companies we do business with are open. Also NYC doesn’t officially open for business until June 15 so we can’t open.

    What are these micromanaging rules with use of the loan it’s not possible to use this. They should let us use this as we see fit. At this point we will have to give back the loan because we cannot use it as per their requirements. Hiring the old workers is fine although a challenge since why would they go back to work when they probably make 3x their original pay on unemployment.
    The 8 week rule is not making sense.

  72. Allie says:

    Hi I’m an owner of S Corp company with two W2 employees including myself. I got a ppp loan. if we pay ourselves the average monthly wages from last year, it’s not enough to cover 75% of the payroll forgiveness requirement. Can I pay more $$$ to myself and employees just to use up the fund? for example, $4000/month instead of $2000?

  73. Amy says:

    If I get called back to work parttime because my employer got a ppp loan. Can I still collect partial unemployment until I’m back full time?

  74. Carlos Cortes says:

    I work part-time and my employer got a PPP funds and now my boss is cutting my hours even though I have job to do while she is paying 40 hours to the other employees that are working less than 40 hours including a 1099 employee.
    Is this legal?

  75. Angie says:

    Hi, My employer got PPP loan but he didn’t ask me to back to work . Instead he put his family on payrol to cover his loan.
    What should I do? Because If I don’t back to work I can’t pay my expenses,
    Thanks

  76. Noda says:

    i work for a small but construction company, We never missed a day of work. No layoff or furloughs also no loss of work or income. the owner/Boss applied for and received the PPP loan which he did not need and did not use for payroll. As far as i can tell it just went in the bank. Is this legal and if not is there anything i can do? He is talking about applying for more relief and it seems wrong

  77. Katrina Wenger says:

    I work for a local family owned restaurant as a server. I have deeply researched the Payroll Protection Program, which my employer has qualified for. I have received my first paycheck and to my surprise REPORTED tips were not included in my pay. They paid me 80hoursX11.25an hour. I was shocked because the IRS considers tips as wages. From my understanding the PPP is to include tips. Is this legal for my employer to do this? Do they have the option to only pay me hourly wage?

  78. Gary Marshall says:

    I received a PPP loan as a sole proprietor with no employees. I also just got approved for unemployment and received some money. Can I pay back the PPP loan and continue to receive unemployment or must I discontinue unemployment and pay back what unemployment money I’ve received?

  79. Taylor Baird says:

    I am an Independent Contractor. My salon owner received a PPP loan, and has paid us from it. He then called me today and said “if I do not return to work by June 30th, I will be responsible for repaying the portion of ppp that was paid to me. Is this legal? How can I be responsible for repayment when I didn’t apply or agree to the loan? Another interesting fact, the lender that originated his loan, is a regular client of our salon. AND, if you were unaware the SBA is reimbursing lenders for “processing” ppp loans, up to a certain percentage, depending on loan amount. There seems to be some shady business happening. Any and all advice would be greatly appreciated!! Thank you in advance!

  80. Eli says:

    Received my PP loan recently. Can I deposit receivables during the same time I am using the funds from the PPP loan?

  81. Mickey says:

    I have two weeks remaining on my ppp loan. I don’t see a way forward for my company when this loan ends. Can my employees file for unemployment again without jeopardizing my forgiveness?

  82. James Morgan says:

    I received the funds from the loan on April 30. Can I get another payment for June?

  83. Monte Smith says:

    My employer received the loan but hasn’t paid any of his employees the hazardous pay difference or given and increase in pay to any employee. Who can I report him to to let them know he is not honoring the loan qualification?

  84. Joanie says:

    May 18 th I’ve been told that my company got the PPP loan. I’ve been collecting unemployment. I have not received a paycheck yet this week. We are on a biweekly schedule so it could be next week. Do I still file my unemployment claim this week? Does the department of labor no each Employer that got PPP? I don’t wanna do anything illegal but what if that money never really comes through for me? Do I just stop filing in anticipation? Or will unemployment just deny me?

  85. Jessica says:

    I’m a full-time hourly employee who was brought back to work because of PPP. My original letter of employment guaranteed me 40/week, but now my employer is cutting my hours to 37/week and increasing salaried employees’ hours to 45/week, without paying them more. We are all on property.

    I’m curious what consequences they face, if any. I’m being paid at least 75% of my original wages, so will they be penalized? Is their only consequence 1% interest? I’m just frustrated, because it seems like they’re screwing us over for their own profit.

  86. Micheal Z says:

    Officer pay. Let’s say I own a restaurant. I called back my employees to work and some don’t come back. I need to pick up their shifts or I need to hire an owner to work that was never actually on payroll before. Due to the rules regarding self employed pay, I’m limited to paying said owner only their average compensation for 2019. Is there any way around that? I need to pick up the shifts, I would have been paid a wage to due so, but PPP says I’m limited to the lower of my 2019 average pay or $15,384.00. If I didn’t have to work in 2019 because my employees were working how can I pay myself for the work done now?

  87. Allen says:

    I work for a restaurant who received the SBA PPP loan and they paid us for 3 weeks in April and made us go back to work now they said we will not receive or End of June 1 week vacation pay they said the 3 weeks we were off due to Covid was our vacation can they legally do that

  88. Penny Lane says:

    My employer got the PPP loan but I was only paid 2 weeks in it and now she is telling me I will only get paid for the hours worked from here on out, that was Monday this week. There are no hours so I have refused to return until my position as full time office manager returns. Am I going to get in trouble for this and be denied unemployment? I gather from the above article that she is in the wrong and should have paid me for 8 weeks?

  89. Jayson R says:

    My employer is paying me my average salary I grossed last year, after receiving the Payment Protection Loan. Unfortunately , all those hours were not available to me to match, and now they are deducting from my accrued vacation time to make up the difference. Is this legal?

  90. Matt says:

    I am an S Corp, with myself and my wife as employees. I received the PPP funding on 5/13, if i pay my employees the 75% on 7/6, can the employees still collect unemployment until then?

  91. Suzan says:

    Is it against the law for your employer to receive the PPP and pay you only 4 weeks of pay and make you get off unemployment and then they say you may be fired if you don’t? Aren’t they suppose to pay you 8 weeks of pay?

    • Riss says:

      I am trying to find this out as well. Our boss is only paying us a 40 hour paycheck and has threatened us about claiming partial unemployment when the hours are not available at work.

  92. Heather says:

    What if a business applied for PPP loan and received it, now is charging additional delivery fee charges to customers, even though that place of business does not deliver, this charge is made to customers picking up orders and are unaware of additional charge. But the boss is taking that additional fee he is charging each customer as a delivery fee and then distributing the money into the employees weekly pay checks and telling them it’s considered tips during this pandemic. Isn’t that stealing from the customers, and then he is distributing it weekly in checks which when added up looks like he is increasing weekly pay but technically it’s just money he’s taking from the customers (as a hidden deliver fee even though that place of business does not deliever& these customers are picking up their own food but being charged extra without knowing) so is this just too look like he is paying the employees more to go towards the 75% of the PPP loan that should go to payroll to avoid having to pay back the full loan amount if any?

  93. George says:

    I work for a company that applied and received the PPP. I make over 100,000 per year. I have noted that we are an essential company and stayed open and made a profit during this time. I am in sales and all of a sudden I was asked not to note my checks that are coming in from my current customers. After 5 years. I was told that a newer employee was doing something special for the company and that I would no longer be processing the invoices on checks. Fast forward my commission and base pay well exceeded the amount allowed in the PPP so I was asked to allow my employer to defer my commission until my next paycheck so they could qualify for the PPP. I said no and that I would not participate in fraud. They still did it. In other words we are showing alot less revenue and my paycheck is short. Another paycheck later I was again shorted my pay. I have the policy and procedure manual which states when I get paid my commissions. I also have all emails where I was denied or delayed my commissions due to the PPP. What if anything can I do. I am afraid of being fired buy I don’t think this is right. I feel it is fraud to show a loss of revenue to justify the PPP when it was not needed.

  94. May says:

    I’m glad you asked this Question…i am a bartender who been getting by-weekly PPP check to clean and get ready to open. Now we’re opened i have earned some credit card tips and… my employer told me those credit card tips will go to me my PPP check. In short i only can get the greater of the two not my tips + the ppp check.

    • Jessica says:

      This is my situation except I am a hairstylist, it feels like they are getting to pocket our tips because their loan is forgivable and when we weren’t working we were getting the same amount

  95. beth d says:

    My office opened back up but I am not able to work my normal full time hours due to lack of childcare. Can my employer use PPP loans to pay me my full salary even though I am only able to work 20 hours or less a week instead of 40? He is telling me I have to work the hours in order for him to use the loan to pay me.

  96. MAY says:

    Hello,i am a bartender who been getting by-weekly PPP check to clean and get ready to open. Now we’re opened i have earned some credit card tips and… my employer told me those credit card tips will go to me my PPP check. In short i only can get the greater of the two not my tips + the ppp check.

  97. Catrina Carter says:

    what do you do if your employer told you not to file unemployment because they were applying for ppp loan. After 8 weeks of no pay they decided to pay going forward with the loan and not compensate the 8 weeks prior?

  98. KRS says:

    My employer was approved for PPP Loan and when I was called back to work I was informed that in the pays I received while off (Daycare worker) all my vacation time was taken/used during this time of being closed – it that legal? I now have no vacation time and have a pre-approved vacation in July for which I am losing a week of pay for!

  99. Byron Burton says:

    I’m an employee that returned to work last week after being laid off on March 28th. My employer paid myself and the other employees our fourth PPP check instead of a check for actual hours worked last week (we’re all hourly). All PPP checks have been based on average hours worked before the Covid-19 shutdown. Should we have received two checks this week? One PPP check and one check for actual hours worked last week?

  100. Riss says:

    My boss got the PPP but says she is only paying us one paycheck from it for 40 hours since we start back to work next week. None of us will be able to work 40 hours due to daycare enrollment, but she’s threatened us that we cannot claim partial unemployment. Are we absolutely entitled to 8 weeks of pay? And are the checks supposed to be for 40 hours or 75%?

  101. Sheila E says:

    Our restaurant received a PPP loan starting May 1st and we have been paying everyone a weekly salary based on their personal “average wages” which were calculated during the first quarter of 2020.

    We are opening on 5/29 for business in IL… so now instead of the “average” weekly pay, do we put our tipped employees back on their regular wages once we open? While we were closed, we were told we have to pay them minimum wage (instead of tipped employee rate) while we were closed so I took their average weekly pay from 1st quarter and divided it by the minimum wage to come up with their weekly hours.

    So, now that we are re-opening, how do we pay those TIPPED employees??? Back to their regular rate??

  102. Angel says:

    My employer just received the PPP funds. My coworkers and I have been on unemployment for two months. Now that the PPP funds are available we were asked to stop collecting unemployment. My employers is going to pay us 40hrs a week even if we only worked 24 but the 16hrs difference will be taken out of my accumulated PTO. Is that legal? Can my employer forced me to use my accrued PTO while covering my payroll with PPP funds? Can they force me declined unemployment in this situation?

  103. Angel says:

    My employer just received the PPP funds. My coworkers and I have been on unemployment for two months. Now that the PPP funds are available we were asked to stop collecting unemployment. My employers is going to pay us 40hrs a week even if we only worked 24 but the 16hrs difference will be taken out of my accumulated PTO. Is that legal? Can my employer forced me to use my accrued PTO while covering my payroll with PPP funds? Can they force me declined unemployment and use my PTO? What happens if I decide no stay on unemployment.

  104. Joe says:

    My boss wants to advance hours now and take those hours away from when I work more. For example, if I work 20 hours now he would advance me 20 hours but take it away from the hours I work starting in July. So when I work for 40 hours in July I will only get paid for 20. I don’t know if this is legal or not. I have told him I don’t want advanced hours but it seems he is pushing it and wants to pay it before the end of his PPP loan date. Thanks in advance for any advice.

  105. Parsons says:

    I have a question not a reply. When we filled out the loan application, our owner, which is an employee. was counted in as an employee. He receives a W2 at the end of the year just like the other employees. He does not receive any other money except what he makes on payroll. Do we still count him as an employee to show what we put on the loan application or do we add a second table to put him as owner-employee with his wages and still count him in. He is full time but does not work a full 40 hours a week. He works what he wants, usually between 30 to 40 a week.

  106. Chip says:

    Hello
    Thank you for all of the above answered questions and replies. My question is as follows:
    My employer got the PPP funding and informed us we would resume our normal salaries for three pay-periods (bi-monthly). We had previously been reduced 20% of our salaries for the two pay periods. We have now just been informed again of another 20% reduction in salary after only two pay-periods on PPP. If the PPP is supposed to last 8 weeks (~4 pay-periods) what happened to the PPP? Is there a way to find out if they are paying people over $100K? Is this legal to receive 8 weeks worth of PPP and only pay employees for 4 because they’re overpaying the higher earners?

  107. Jessica says:

    My employer received the PPP loan and we have been back to work 3 weeks now. I am a hairstylist and we reopened at the end of week 2. At our shop everyone is back to full hours. Most of us are unhappy that we are getting paid our average before we were laid off, because now that we are actually working again we are still getting the same amount of money. Wages, commission, tips. They agreed to pay us the higher amount if we make more in tips or commissions than our average. However, knowing that their loan is forgivable do they also have to pay us our tips that we have actually received since we’ve been back to work on top of what our pay was on the ppp loan? Or even our wages for that matter? To give an example. My average salary before taxes is $2600/2 weeks that is hourly tips and commission. This is what I was being paid before we returned to work on the ppp. Now that we are back to work it is still the same and we all think we deserve our tips that are being given to us at this time because the average tips they were paying us with ppp is forgivable, therefore they would be pocketing our tips. Does anyone have answers on this? Dealing with tipped and commissioned employees is very confusing when it comes to this loan.

  108. Ms Banks says:

    Hi,
    1.) In my work state, we are allowed to apply for UI benefits for part-time or reduced hours and supposedly eligible for the additional $600/week.
    2.) My employer has reduced my salary the week of the lockdown
    and paying me from their PPP loan. Now I am making 25% less than my full-time salary.
    3.)They did not file for a workshare program.
    4.)With deep reduction in my wages and only part-time, aren’t I still
    eligible to collect unemployment? I still have expenses based on my full-time salary,
    which is a struggle on my current part-time status which I did not choose.
    5.) I am not a business owner, just a W-2 employee.
    6.) How can I get help on this? I’ve called EDD several times, and no answers.
    Who can answer these intricate questions? Please help.

  109. Roxane Cullen says:

    When this started I was working 40 hours plus per week. My hours were reduced. My employer received PPP but has not paid employees but I believe the loan rules specified. I could have received partial unemployment benefits but chose not to because of PPP. The following is an email received from employer Stating how he is going to disperse PPP to employees. Is this how it’s supposed to work because it’s not at all but I thought it would be.
    “1. I forgot the holiday on the payroll
    2. I have decided how to pay out hours during this 8 week PPP program. *I will not pay a flat 80 hours. That is just not fair unless everyone worked the same number of hours. I am taking the person with the highest number of hours then marking that person up to 80 hours. If that person worked 75 hours then they would have a five hour bump up to 80. Then I will take that five hour bump and apply it to The rest of the people that worked less. This is the fair way so that everyone is on an even field.”
    So I went from working 40+ hours a week plus down to 20 hours but My employer is saying that he’s only going to bump up my payroll by 5 hours. Is this compliant with loan forgiveness and PPP rules for employers because I was not expecting this to be so little or I would have applied for partial unemployment benefits.

  110. Vanessa says:

    Anyone know if we should still be certifying for unemployment in a way we would not get paid while in the 8 weeks of the PPP loan? I’m a sole proprietor with no employees but would need to go back in Unemployment after the 8 weeks. How long will claim keep open?

  111. Savannah says:

    Hello. I am a waitress, going on 17 years. My co-workers are servers, cooks, host, Managers, bakers, food prep, and dishwashers. We all became unemployed on march 15th. Our employer received the ppp loan and asked us all to come back on the 21st. They actually advised us in an email on the 19th, and told us to put our back to work date as the 11th. I did not put that of course bc I didn’t even know anything about it and didn’t want it to come back on me.. but some other employees did. Now they are expected to pay overpayments. They also called and was very spacfic that we would all be getting the same pay of $10/hr plus $2 hazard pay for a full 40 hours. We get paid bi-weekly. We was all expecting an 80 hour check and around 800-1000 dollars. None of us received that. Everyone got different. Some got $300 plus their little bit of tips, due to capacity, was deducted from that so her stubb says she got 400 dollars. some got 400, some got 5, 6…. so on and so forth. The highest anyone received was $663 and that was me for 63 hours for 2 weeks. It says I made 799 and they deducted 136 in tips, witch I didn’t even make. I do not think this is fair or okay for all of their employees to back them up in such trying times without question and go in every day with little to NO tables, and turn around and give us not even near what they promised. We was told we would get $10/hr for 80 hrs, then $10 an hour for the following week and back to normal after that. Now I read it should be for 8 weeks. We have barely any business. The business we do have, we have to tell them we are basically out of Everything except water, and waitresses.lol I don’t see the point in even being open with what we have to offer and 100% think them telling us we was going to paid 1 thing and not the other is NOT right. Now they are putting in drive through and owners are outta sight outta mind. Haven’t seen them since the first day. Wasn’t meaning to write a book here. lol As an employee with seniority….. and a heart I have to find someone with advice on how I can help my co-workers struggling with families, and my slef with a family of 6. Thank you for your time.

  112. Savannah Lane says:

    My employer, who received the PPP loan, promised us all 40 hour pay at $10/hr if we came back. We get paid bi-weekly, so 80 hours. Everyone was told the same thing. Not one of us received this. The highest anyone was paid was 663 for 63 hours. Is this legal. Some was as low as 327.00. Something is not right here.

  113. Jen says:

    My company is receiving the PPP, but yet they still have me using my vacation time to cover my hours for the week. Should I be using my time or should my employer pay me to work my 40hrs? I’m losing my vacation time and only have a week left. Should I take the lay off and collect UI as my boss wants to reduce my hours even more.

  114. Tammy Szarszewski says:

    I work for an independent construction contractor in NYS. We are unionized and are required by contract with the unions not only to pay the hourly rate that an employee receives per hour, but we are also required to pay a specific amount of benefits per hour worked and sometimes hours paid. These benefits are charged specifically to the employer by the unions at an hourly rate and are paid above and beyond the benefits paid to the union on the employee’s behalf. IE: an employee earns 30.00 per hour in wages, required employer paid benefits (retirement, health, welfare, education etc) 30.00 per hour, making the true cost per hour for each employee 70.00. My question is are we able to use the required union benefits towards the ppp loan forgiveness? I have read nothing that gives clarity for unionized employers.