What Counts As Utilities For PPP?

What utilities are covered under PPP?

The following are all considered forgivable utilities expenses for the PPP:Electricity.Water bill.Gas.Sewage.Telephone (cell phone and landline)Internet bill.Transportation costs..

What counts as payroll costs for PPP?

PPP loans covers payroll costs, including costs for employee vacation, parental, family, medical, and sick leave. However, the CARES Act excludes qualified sick and family leave wages for which a credit is allowed under sections 7001 and 7003 of the Families First Coronavirus Response Act (Public Law 116–127).

What is included in PPP forgiveness?

Payroll costs incurred but not paid during the last pay period of the selected period are eligible for forgiveness if paid on or before the next regular payroll date. Payroll costs include all forms of cash compensation including tips, commissions, bonuses, and hazard pay.

How long do you have to apply for PPP forgiveness?

Thus, under the PPPFA, taxpayers will generally have 10 months from the last day of the covered period (24 weeks from the date of loan disbursement) to file their loan forgiveness application before suffering repercussions.

What is average monthly payroll for PPP?

If your net profit for 2019 is above $100,000, the maximum amount you can include for yourself is $100,000. This would give you an Average Monthly Payroll of $8,333.33, assuming you have no W2 employees.

When should I apply for PPP forgiveness?

Borrowers may submit a loan forgiveness application any time before the maturity date of the loan, which is either two or five years from loan origination.

Are cell phones considered utilities?

There are a few different utilities that constitute as a utility bill these are, electricity, gas, water, home phone, mobile phone and broadband. All these services are classed as utility bills as they are products that make up the running of your household.

How do I prove PPP for payroll?

The records you bring showing this information include:Payroll reports showing cash paid to employees.Payroll tax filings (e.g., Form 941)Receipts.Copies of lender amortization schedule (mortgage interest), current lease agreement (business rent), and utility invoices (utilities)Bank account statements.More items…•

What is counted as utilities?

Generally, utility expenses include electricity, gas, water/sewage and garbage disposal. Sometimes, other services such as internet, cable TV and phone services are considered to be additional utilities since they are now considered standard in most American households.

Who determines PPP forgiveness?

For purposes of determining forgiveness of the borrower’s PPP loan, the March 2020 renewed lease is deemed to be an extension of the original lease, which was in force before February 15, 2020. As a result, the lease payments made under the renewed lease during the Covered Period are eligible for loan forgiveness. 6.

Has anyone received PPP forgiveness?

Agency has yet to forgive any Paycheck Protection Program loans and has been slow to prevent theft, watchdogs tell Congress. … SBA announced last week that it had received only 96,000 loan applications — less than 2 percent of the total number of loans — and has not processed any applications so far.

What happens if I don’t use all of my PPP loan?

First, you can always return the amount of your loan you’re not using. You may be liable for a modest amount of interest on that portion, but you’ll also stop accruing interest on it once it’s given back. If you go this route, you may still be eligible to have your loan partially forgiven.

Is utilities payable an asset?

Prepaid Utilities are an Asset. Utilities Payable are a Liability. Utilities Expenses are an Expense and appear on the Income Statement.

What are considered business utilities?

Include costs for the expenses you consider utilities which generally are electricity, gas, water, heating oil, phone and Internet service. Some businesses may include other services such as trash removal.

What qualifies for PPP forgiveness?

Forgiveness for self-employed individuals You are eligible to claim 2.5 months’ worth of your 2019 net profit to replace pay. If you didn’t have any other payroll expenses factoring into your PPP loan amount, this means that your entire PPP loan could be forgiven for the 24-week period.

What are included in utilities expense?

Utilities expense is the cost incurred by using utilities such as electricity, water, waste disposal, heating, and sewage. The expenses are incurred over the course of the reporting period, calculated, and payment is rendered.

How do I prove payroll for PPP?

Documentation verifying the number of full-time equivalent employees on the payroll, including their pay rates, for the periods used to verify you met the staffing and pay requirements. This includes: Payroll reports (from your payroll provider) Payroll tax filings (Form 941)