Government loan expert and frequent PILMMA contributor, Boris Musheyev, joins PILMMA President Ken Hardison to answer your questions about PPP Loan forgiveness.

Audio Transcript 2 00:00:11.490 –> 00:00:20.640 Ken Hardison: Hello everyone this is Ken Hardison and welcome to today’s webinar we’re going to be talking about that ever changing PPP loan forgiveness program. 3 00:00:22.500 –> 00:00:25.740 Ken Hardison: And today we have, we’re glad to have back bars. 4 00:00:28.230 –> 00:00:33.450 Ken Hardison: My, my, my, my CPA, my tax accountant my tax advisor and 5 00:00:34.530 –> 00:00:35.040 Ken Hardison: Bars. 6 00:00:36.210 –> 00:00:40.710 Ken Hardison: And always screw up your last name, boss. And how do you, how do you pronounce your last name, so I don’t screw that 7 00:00:41.640 –> 00:00:54.480 Ken Hardison: Okay, yeah. So Barstow and talk to us. One time about how to get the loans. So now bar. So I want you to. And I know that this past president trump the sign another bill yesterday. 8 00:00:55.200 –> 00:01:00.930 Ken Hardison: Hey, listen, this is, this is like within 24 hours of the newest law right 9 00:01:01.650 –> 00:01:12.720 Ken Hardison: Great. Okay. So there’s a lot of, uh, you know, I’ve been talking to him a mastermind each day we we have a zoom conference with different groups and it’s you know it’s like 10 00:01:13.770 –> 00:01:28.980 Ken Hardison: It almost feels like SEO or trying to get on the first page of Google with changes every, every, you know, it’s like paint painting and moving train. It’s crazy. So give us what you think it is now. What was the deal and eight weeks is out right 11 00:01:30.090 –> 00:01:38.670 Boris Musheyev: Well, no, they’re not out there still optional. You have an option to choose between eight and 24 weeks. So I’m not sure how do you want me to do this presentation, we can kind of go 12 00:01:39.060 –> 00:01:52.410 Boris Musheyev: I prepared some slides give had to go from the beginning, given overview of what the PDP is and then while I’m giving the overview. I will throw in the updates that were released out with a PvP flexibility so that’s okay do 13 00:01:52.770 –> 00:01:54.300 Ken Hardison: You feel good. 14 00:01:55.440 –> 00:01:57.240 Ken Hardison: I’ll be quiet. Be quiet. 15 00:01:57.600 –> 00:02:03.120 Boris Musheyev: Alright, so, um, shouldn’t take more than 10 minutes to this presentation, and then we’ll open the floor for Q AMP a 16 00:02:04.830 –> 00:02:05.610 Boris Musheyev: Hello everybody. 17 00:02:06.690 –> 00:02:15.270 Boris Musheyev: Great to be here with pill. My again I scan mentioned, I do work together with Ken and I you know we handle all of kind of the tax stuff that he’s got going on. 18 00:02:15.630 –> 00:02:23.700 Boris Musheyev: And we specifically specialize in working with us for attorneys and law firms, helping them save money on taxes, but now the Colby happening. 19 00:02:23.970 –> 00:02:35.160 Boris Musheyev: We’re kind of been advising our attorney client and certainly some of the world what I mean. Excuse me around the country about the call with the PDP forgiveness and you know like can set ever changing routes right so 20 00:02:35.760 –> 00:02:48.900 Boris Musheyev: Let’s get into it. So, you know, we’ll talk about what is it that you need to do to get your PvP forgiven and what has changed. What are the additional guidelines, is it easier or is it not easy it right. So we’ll jump right into that. 21 00:02:52.530 –> 00:03:01.320 Boris Musheyev: So look up the steps to get the P2P forgiven. His first one we’re going to talk about is an overview of the PDF forgiveness and then we’ll talk about that. 22 00:03:01.620 –> 00:03:11.610 Boris Musheyev: That plan to maximize the amount that you can forget get forgiven. The term eligible payroll costs and then of course updates and the recent guidance. Now is it all or nothing. 23 00:03:11.940 –> 00:03:21.930 Boris Musheyev: This is the question that comes up a lot, so if you receive the hundred thousand dollars right and you only have $25,000 of political expenses do you now. 24 00:03:22.410 –> 00:03:33.150 Boris Musheyev: Have to pay back the entire hundred thousand dollars or do you get to pay back only 75,000 and the answer is it’s not all or nothing. Right. It’s whatever you get to use for the eligible expenses. 25 00:03:33.480 –> 00:03:41.850 Boris Musheyev: That portion will be forgiven. That’s why planning to spend this money is super, super crucial and next eight weeks or 24 weeks. 26 00:03:42.060 –> 00:03:48.240 Boris Musheyev: You get to choose which period actually works for you. Okay. And remember, for every hundred thousand dollars that you receive in PvP 27 00:03:48.420 –> 00:03:56.910 Boris Musheyev: For every 25% forgiveness. That’s 25,000 that you get to keep right and so forth. So you want to make sure that every penny that you have received 28 00:03:57.270 –> 00:04:04.440 Boris Musheyev: Every penny is being put to good use. Now you might say, well, Boris, you know, this is just payroll. Of course I’m at 75% payroll. 29 00:04:05.070 –> 00:04:15.840 Boris Musheyev: Or of course I’ll have 60% payroll within your guidance, but there’s a lot of butts in there. Right. What if you have less employees for your employees that quit employees that you first load or if you have employees that 30 00:04:16.140 –> 00:04:20.100 Boris Musheyev: You know left them their own sound police had to stay home because it to 31 00:04:20.430 –> 00:04:29.580 Boris Musheyev: Be with the kids. Are there any exemptions are there any safe harbors, there’s tons of them right as being released a lemon peach forgiveness application that has instructions worksheets and so forth. 32 00:04:30.180 –> 00:04:39.420 Boris Musheyev: So of consequence of this, getting it wrong is pretty bad. So it doesn’t happen automatically. Again, the PPP is alone, and it’s not forgivable until you make it forgivable 33 00:04:39.810 –> 00:04:46.650 Boris Musheyev: Even if you use for other which the business expenses. You know, like, you know, weren’t wrong kind of Pharaoh or other working 34 00:04:47.130 –> 00:04:50.790 Boris Musheyev: Capital in a working capital expenses. It is not going to be forgiven to you. 35 00:04:51.270 –> 00:05:00.750 Boris Musheyev: And of course, if it’s done correctly, it will be a real debt that you have to pay back. Right. And suddenly, many business owners will mess this up and have to repay the loan, even if they no longer have the funds. 36 00:05:01.290 –> 00:05:06.690 Boris Musheyev: Now loans can be fully forgiven when you use at least 75% of people that was 37 00:05:07.110 –> 00:05:13.710 Boris Musheyev: Good, the old law that came on right now with the new with the new guy. And so the PDP flexibility, they say hey you know what 38 00:05:14.010 –> 00:05:24.210 Boris Musheyev: You can actually use at least 60% on payroll and we’re going to extend the, the period from eight weeks to 24 weeks, and we’ll talk about that in more details. And I’m sure we’ll have a lot of questions of that. 39 00:05:24.720 –> 00:05:30.570 Boris Musheyev: Now, how do you define payroll costs. Now here’s the thing, right, when everybody gets wrong and I’ve seen it, because 40 00:05:31.110 –> 00:05:36.390 Boris Musheyev: We work with attorneys around the country. It’s about the business owners that are not attorneys want to work with us is that 41 00:05:36.750 –> 00:05:47.400 Boris Musheyev: They calculate the payroll costs incorrectly what goes into your payroll costs are religious and compensation not to exceed $100,000 for each employee. Okay. 42 00:05:48.180 –> 00:06:02.970 Boris Musheyev: It does not include your portion of payroll taxes as an employer. Okay. If you’re an employer, you know, you pay you pay payroll taxes for your employees that cannot be included. All right. So it’s basically gross wages PT employees. 43 00:06:03.600 –> 00:06:13.800 Boris Musheyev: And if you’re a sole proprietor, then it’s your net income, what, what’s not what’s excluded from payroll costs are compensations, like I said, the excess of anything over $100,000 44 00:06:14.040 –> 00:06:27.150 Boris Musheyev: Employers portion of the payroll taxes and any compensation of employee was principal place of residence is not in the United States. Okay. Not forgiveness of the PDP will you will earn money back when you’re alone, as you’ve used alone. 45 00:06:28.920 –> 00:06:38.910 Boris Musheyev: For anything else other than payroll. Okay. And also you will lose forgiveness or your forgiveness will be recalculate if you do not maintain your staff are here now. 46 00:06:39.270 –> 00:06:44.250 Boris Musheyev: That was the original. The first goal that said you have to maintain your employees apparel that people said, well, 47 00:06:44.550 –> 00:06:51.240 Boris Musheyev: My employees are leaving or they putting on their own or they don’t want to come back from their own employment. It was so many stations that changed. 48 00:06:51.570 –> 00:07:01.230 Boris Musheyev: And then they said, Okay, fine. We’ll give you some exemptions and safe harbors, and they give this ridiculous calculations. If you take a look at that. I wish I had the I should have brought me here. Um, if you take a look 49 00:07:02.490 –> 00:07:09.510 Boris Musheyev: At the PDP application, which is the forgiveness application delivery page application. I mean, that thing is complicated than the actual taxation. 50 00:07:10.020 –> 00:07:24.630 Boris Musheyev: Goodness gracious. Right. It’s like crazy so so anyways that you’d be safe harbors of exemptions to calculate to, you know, to make sure you get forgiven, then they came up again with a recently with the PvP flexibility and said, oh, you know what 51 00:07:25.650 –> 00:07:35.430 Boris Musheyev: Fine. You don’t have to restore them by God at your employees, you can extend that date and this and that was calculations and more headaches, they try to make it as easy as possible for 52 00:07:36.270 –> 00:07:45.510 Boris Musheyev: Easy right of quote unquote as easy as possible for employers to get forgiven. But there’s so much that goes into this application that is that you have to be 53 00:07:46.140 –> 00:07:49.590 Boris Musheyev: Like some kind of an expert alone applications to do this right so 54 00:07:50.280 –> 00:07:56.160 Boris Musheyev: I personally think, and I know this is like not all my slides, but to banks. I don’t remember their name. 55 00:07:56.430 –> 00:08:10.350 Boris Musheyev: But to banks make proposed the Congress. I don’t know in Congress is going to enact that they said hey, anybody who received the loan of 150,000 or less. Let’s just, you know, grant them an automated forgiveness. Right. Like, come on, already like this is 56 00:08:11.430 –> 00:08:21.450 Boris Musheyev: This too much right the banks don’t even have the infrastructure, so to speak, to start processing these forgiveness applications and the banks are not going to do that other page application for you. 57 00:08:21.810 –> 00:08:27.810 Boris Musheyev: In most cases, you probably received an application from your bank which is just a one page PDF right so 58 00:08:28.890 –> 00:08:36.090 Boris Musheyev: With an old guidance you have an eight week period to use the money for payroll or other eligible expenses. Now that 59 00:08:36.540 –> 00:08:45.210 Boris Musheyev: Is still there. That is still an option. I don’t want you to think that you don’t have eight weeks anymore. You have 24 weeks know you have either eight or 24 weeks. 60 00:08:45.540 –> 00:08:50.910 Boris Musheyev: Period on the beta little lemon makes the first person. So you can use the money to either over equally period. 61 00:08:51.330 –> 00:09:01.560 Boris Musheyev: And or 24 hour period. Now, the question that is coming up a lot since the past this new law is it. Mm hmm. Interesting. Boris, you know that the compensation says that 62 00:09:02.550 –> 00:09:16.560 Boris Musheyev: It’s not going to hundred thousand dollars per year, which is $15,385 over eight weeks. The next breaks up over eight weeks. So does that mean we cannot spend more than $50,000 per employee that’s 24 weeks, the answer is no. 63 00:09:16.950 –> 00:09:26.040 Boris Musheyev: The reason they give you 24 weeks that any employee that’s making $100,000 you can just, you know, keep accumulating their payroll costs, keep putting it into the under the PvP 64 00:09:26.790 –> 00:09:36.930 Boris Musheyev: And to maximize your forgiveness. I’ll give you a good example actually have a client who was a non attorney at this point this this medical practice out in 65 00:09:38.190 –> 00:09:40.530 Boris Musheyev: Them baristas for that mission right 66 00:09:41.640 –> 00:09:47.460 Boris Musheyev: Grid surgical center the, you know, great business. They go, they went through a lot of restructuring. 67 00:09:47.670 –> 00:09:58.560 Boris Musheyev: So the amount that they received in PvP for 2019 is actually more than this amount of staff of people they have right now, simply because they restructure their business. They became more efficient, more effective. Right. 68 00:09:58.830 –> 00:10:04.590 Boris Musheyev: So they would have to be back in about half an hour back. Now they there was a 24 extended period. 69 00:10:04.980 –> 00:10:13.110 Boris Musheyev: Right. And it allows us more opportunity to plan out how to spend the money over 24 weeks just because you receive 24 weeks, doesn’t mean you 70 00:10:14.040 –> 00:10:18.810 Boris Musheyev: It’s true, your chances of getting it forgiven, a higher, but 71 00:10:19.560 –> 00:10:24.540 Boris Musheyev: The chances of getting the entire thing forgiven are about the same, right. So, because you want to know. 72 00:10:24.750 –> 00:10:30.720 Boris Musheyev: Because one of the things that was passed on to the new law is if you can also be over 60 employees, he could not make the forgiveness. 73 00:10:30.990 –> 00:10:38.220 Boris Musheyev: Let’s see, you have $100,000 to spend and the eight week period of the 24 week period is up already. And, you know, we spent 1000 or 74 00:10:38.880 –> 00:10:45.540 Boris Musheyev: $20,000 well the law came out and said hey you know you can do hazard pay you know for petting employees come and do the corporate 19 75 00:10:45.810 –> 00:10:51.120 Boris Musheyev: You can do you can up their bonuses right but not owner Ripley bonus and that’s looked at a little bit differently. 76 00:10:51.480 –> 00:10:58.110 Boris Musheyev: So we kind of bring all that out in our firm for a lot of clients and we plan out like we’re suggesting to who to make a bonus 77 00:10:58.320 –> 00:11:02.370 Boris Musheyev: Which employees to increase their part time and if you have some employees part time 78 00:11:02.640 –> 00:11:09.090 Boris Musheyev: And you need to achieve the forgiveness forgiveness 100% forgiveness. Why not have the government pay for it. Right, so put them 79 00:11:09.300 –> 00:11:14.370 Boris Musheyev: Into full time meanwhile happened, do some work around the office and then you put them back on a part time necessary. 80 00:11:14.610 –> 00:11:25.170 Boris Musheyev: But, or maybe this will, we will actually help you to create your opponent. Keep it full time. But the point is, it will be somebody else’s money that will be for that salary, so that is like that planning aspect is really important. Now, 81 00:11:26.490 –> 00:11:32.550 Boris Musheyev: Forgiveness right there is, if you look at application or to your accountant or the professional that you work with look that application. 82 00:11:34.860 –> 00:11:40.860 Boris Musheyev: This to peel periods, the coverage period and alternative payroll period. I’m not going to go into details because it’s very technical. 83 00:11:41.130 –> 00:11:49.890 Boris Musheyev: Has to do with an application, but you want to make sure you get your periods correctly on your PvP application or when you’re doing planet. You can if you have received. Let me put it this way. 84 00:11:52.020 –> 00:11:59.580 Boris Musheyev: If you have received, I want to say 30,000. I’m going to go to set go ahead and say $50,000 or more PvP funds, you definitely need to do 85 00:11:59.940 –> 00:12:10.980 Boris Musheyev: Projections you definitely need to do planning at how you’re spending your money just say I’m definitely Spain sets and the 75 or 60% on payroll. It’s not enough, especially if you have employees. 86 00:12:11.880 –> 00:12:22.140 Boris Musheyev: Who have, you know, if you had a change in your employees a change in salaries in changing hours if you’re a PA law firm, which most likely probably RPI law firms watching this 87 00:12:22.770 –> 00:12:31.620 Boris Musheyev: If you didn’t have HHS 2019 payroll. Good. You probably don’t need that crazy or projection right but you still need to make sure you plan on spending it correctly. 88 00:12:32.070 –> 00:12:40.470 Boris Musheyev: Now what’s required for the forgiveness application. At this point, we, we see a lot of things are required. Right. First of all, you want to provide complete people 89 00:12:41.160 –> 00:12:48.780 Boris Musheyev: Statements for the eight weeks. Well now it’s now on the eight weeks it’s 24 weeks because it’s 24 weeks, the amount of people, but you have to provide is now more 90 00:12:49.230 –> 00:12:59.670 Boris Musheyev: The four excuse me 941 which is the quarterly taxes or for for the theory, we thought we’re only going to submit one or one return. That’s it, because it was only eight weeks now. 91 00:13:00.060 –> 00:13:15.690 Boris Musheyev: We got 24 weeks, try. So it’s going to be more than one form and appointed statement state and reports of payments for state and local income taxes. One of the things I didn’t mention before is that part of the forgiveness. What can be forgiven to is also you can include 92 00:13:17.970 –> 00:13:24.060 Boris Musheyev: State unemployment taxes that you pay. You know, like for example, New York with a state unemployment insurance for each employee. 93 00:13:24.600 –> 00:13:34.380 Boris Musheyev: Also, anything that you pay for retirement benefits. I hope insurance date payments in excess of employees hundred thousand dollar salary, all of that would be included. Right, so you will need to provide 94 00:13:35.010 –> 00:13:45.630 Boris Musheyev: Mortgage statement following and lease payments or rent that you make on the property invoices for, like I said, for any rent or any expenses that you put on it have to get to get forgiven. 95 00:13:46.740 –> 00:13:50.130 Boris Musheyev: It was from the landlord lease agreements and so forth, right. 96 00:13:50.580 –> 00:13:59.070 Boris Musheyev: Utility payments. If you pay utilities and you want to get them into forgiveness retirement contributions for employees and the return that you make for employees and health insurance. 97 00:13:59.910 –> 00:14:08.880 Boris Musheyev: Documentation, and of course bank statements highlighting and tying it back into it. Okay, now for self employed individuals who will have to provide a 2019 schedule. See now. 98 00:14:09.270 –> 00:14:22.140 Boris Musheyev: The biggest problem getting the forgiveness of the loan, like I mentioned earlier is budgeting to the eight to 24 weeks exactly how much forgiveness is eligible to remember. Like I said earlier, it is not all or nothing, right, you receive 200,000 99 00:14:23.160 –> 00:14:27.330 Boris Musheyev: And yoga 750 250 will be forgiven. The other 50,000 will have to pay 100 00:14:27.870 –> 00:14:36.360 Boris Musheyev: Pay back right tracking all incoming outgoing expenses and, of course, certainly determining the correct calculation based of the Treasury certain rules now. 101 00:14:36.840 –> 00:14:41.430 Boris Musheyev: The pillars of forgiveness is complete and accurate financial records on how 102 00:14:42.330 –> 00:14:49.260 Boris Musheyev: Money is being dispersed employee tracking of salaries and full time equivalent employees, they also want to know, do you have full time equivalent employees. 103 00:14:49.560 –> 00:14:59.490 Boris Musheyev: What does that mean well full time, generally, but it is the HR it’s 30 hours but they said when they came up with a small a separate majority of Americans consider 40 hours full time. 104 00:14:59.790 –> 00:15:08.160 Boris Musheyev: So we’re going to use 40 hours not worried about our equivalent means either one employee at 40 hours or a few part time employees that people to 40 so you’ve got 105 00:15:08.460 –> 00:15:19.170 Boris Musheyev: Two employees work with $20 each that’s one full time equivalent employees determining how much you need anything more consistent communication with leather and changes regarding the forgiveness. Okay. 106 00:15:19.470 –> 00:15:34.230 Boris Musheyev: So that kind of concludes it so look q&a session now and there’s any questions or if it was not clear on anything. This is what I’m for a year and will take QA and, I guess, can’t you, you probably have first one sets of questions and then you can give us questions from the room. 107 00:15:38.430 –> 00:15:40.680 Erik Smelser: Sure. Hey, Boris. This is Eric. I’m 108 00:15:41.910 –> 00:15:46.230 Erik Smelser: One of the viewers asked if you can show the forgiveness slide again please. 109 00:15:49.440 –> 00:15:49.800 Boris Musheyev: This one. 110 00:15:53.340 –> 00:15:53.970 Boris Musheyev: Maybe this one. 111 00:15:54.600 –> 00:15:54.870 Yeah. 112 00:15:55.980 –> 00:15:56.610 Boris Musheyev: Yeah. 113 00:16:04.740 –> 00:16:06.330 Ken Hardison: So what you’re saying is 114 00:16:07.740 –> 00:16:12.990 Ken Hardison: Well, why would anybody want to do like weeks if they can do 24 weeks, unless they split it all day long. It 115 00:16:14.070 –> 00:16:17.070 Boris Musheyev: Will look to 24 weeks later to this way. 116 00:16:18.060 –> 00:16:28.710 Boris Musheyev: Why would anybody want to do eight weeks or 24 weeks because they spent over eight weeks and visual payroll expenses. Now, who’s a 24 weeks for the 24 weeks is perfect. And, you know, this is our first outside of our 117 00:16:29.700 –> 00:16:36.480 Boris Musheyev: Law Firm industry alliance street for restaurant owners right in some parts of the country restaurant or is that an open 118 00:16:37.590 –> 00:16:46.050 Boris Musheyev: And for example, in New York, I’m in New York City. In particular, our restaurants so close, and a lot of restaurant owners already received their PvP funds. 119 00:16:46.440 –> 00:16:52.080 Boris Musheyev: Show days start paying salaries to their employees, while they’re sitting home so their employees don’t receive unemployment benefits. 120 00:16:52.350 –> 00:16:59.610 Boris Musheyev: But not all employees came back to work, or some positions are not needed. Right. So when they’re going to open up in two weeks they have that additional time 121 00:16:59.850 –> 00:17:16.110 Boris Musheyev: To hire new employees into continue spending money so they can achieve forgiveness. So, that is why you also need to figure out your own situation NCAA door. Am I going to need eight weeks or 24 weeks and how you’re going to work going forward with that information. 122 00:17:20.160 –> 00:17:20.850 Boris Musheyev: That makes sense. 123 00:17:25.980 –> 00:17:29.550 Erik Smelser: Can ask the question whether PPP loans or even still available. 124 00:17:30.450 –> 00:17:45.390 Boris Musheyev: Yes, they are until June 30 there is an excess of them. And if you have not applied for a PPP on yet. I strongly recommend you do if you bake is not working on it, of your mega sleeping assistance can, if you don’t mind me sharing access to my calendar. 125 00:17:47.490 –> 00:17:49.290 Boris Musheyev: You guys can go ahead and schedule a time 126 00:17:50.700 –> 00:17:58.980 Boris Musheyev: With me borders from shift calm will actually have a London that we use generally they’ve approved our clients of its 24 hours to meet the funds available within 72 hours. 127 00:18:06.660 –> 00:18:15.090 Erik Smelser: What one more question here from Greg about the requirements to demonstrate economic difficulty or risks that required alone. 128 00:18:19.980 –> 00:18:21.060 Boris Musheyev: Can you say that one. 129 00:18:22.830 –> 00:18:31.020 Ken Hardison: Well, I think the deal. We talked about this a lot mastermind and the deal is just got too many good faith. Deal with it. The deal is, you could say, well, you know, 130 00:18:31.590 –> 00:18:45.930 Ken Hardison: I’ve got all these case, if you’re a PR or you’re still making a lot of money because hey you know we got more time to work on the case. And we’re selling cases, but we’re actually doing this as well. But the problem is everybody intakes are down. 131 00:18:46.260 –> 00:18:48.180 Ken Hardison: So it has adversely affected. 132 00:18:48.210 –> 00:18:56.250 Ken Hardison: It is going to adversely affect you and if you’re not excited that there’s many cases that is another effect of it. So I feel like you’re okay. 133 00:18:58.350 –> 00:19:04.620 Ken Hardison: You know, to say that. I mean, but you got you got to be true to yourself. I mean, you know, that’s that the I’m not telling you that 134 00:19:05.160 –> 00:19:21.840 Ken Hardison: I wouldn’t tell me about it a lot, but I take the other say I’ll take the position. If I had a law firm and we were still making the site, we would like it as much, if not more, but my case my case to take us down that adversely affects make another situation. 135 00:19:22.620 –> 00:19:31.530 Boris Musheyev: Right. And then if that would also cause you to lose your employees, right. So, for example, right now. Maybe they’re hiring more employees you have 10 employees and staff, but because your intake is down. 136 00:19:31.980 –> 00:19:43.830 Boris Musheyev: And you know 12 to 18 months down the road, you have to lose employees, right, because you don’t have as many cases. Maybe that’s the argument you can take as well, but always consult your attorney and making a fake certification. 137 00:19:46.470 –> 00:19:47.910 Ken Hardison: You gotta be true to yourself. 138 00:19:49.350 –> 00:19:49.800 Ken Hardison: Either 139 00:19:53.370 –> 00:19:58.470 Erik Smelser: Alright, so a couple questions regarding the the week’s requirements. Helen asks if 140 00:19:59.580 –> 00:20:07.890 Erik Smelser: She can use any length from eight weeks to 24 weeks and she gives the example, if we have enough payroll costs in 12 weeks. Do we need to wait the whole 24 141 00:20:08.520 –> 00:20:16.440 Boris Musheyev: I believe nap. No. As long as you use it up, you probably have to be unique to excuse me, you will have to probably wait until to submit their application. 142 00:20:16.800 –> 00:20:25.530 Boris Musheyev: Just because the banks don’t even have the system to receive those applications and or how they’re going to receive it and it’s a matter of fact that 11 page application that as the originally received 143 00:20:26.340 –> 00:20:40.080 Boris Musheyev: It’s probably going to be amended as well. So as long as you have spent it within like you said 12 weeks and you have everything documented everything that we spoke about, just wait to fill that out to fill out that application to be able to submit it. 144 00:20:41.820 –> 00:20:42.150 Erik Smelser: All right. 145 00:20:43.980 –> 00:20:59.910 Erik Smelser: Another question from another listener is initially there was a rule that said all employees receiving PPP funds must have been on payroll on February 15 does that rule still apply or can they hire a new staff member 146 00:21:00.570 –> 00:21:04.890 Boris Musheyev: Yes. No, that’s a that’s probably a little bit of a misinformation out there. 147 00:21:07.980 –> 00:21:09.450 Boris Musheyev: On that sentence. Excuse me. 148 00:21:12.120 –> 00:21:20.580 Boris Musheyev: So when they are determining the employees that were up there’s on payroll there’s to reference periods that this is what I was talking about earlier is that 149 00:21:20.910 –> 00:21:26.970 Boris Musheyev: We get to figure out if we have enough full time equivalency of exemptions, they’re looking at how many employees that you have 150 00:21:27.780 –> 00:21:35.760 Boris Musheyev: In January and February of 2020 and then also between February 15 and June 30 of 2019 we are they 151 00:21:36.210 –> 00:21:43.200 Boris Musheyev: And they say, whatever the lower amount you have you can compare that with when you applied for the application to make sure not to reduce your 152 00:21:43.770 –> 00:22:00.540 Boris Musheyev: Your PvP forgiveness. Okay, and you are allowed to hire we hire or hire new employees. Right. But again, you need to see if you need to do that. And if you do need to do that when when they hired when they hire you in the cupboard period outside of the complicated all these things. 153 00:22:02.490 –> 00:22:09.480 Boris Musheyev: Come into play. And that’s why I was mentioning earlier that you need to make sure you sit down and whoever you’re working with, or if you need someone to work with. 154 00:22:09.690 –> 00:22:15.810 Boris Musheyev: You can go ahead and schedule time with me is that we are going to project that out and see what needs to be. Now it doesn’t need to do 155 00:22:18.390 –> 00:22:24.120 Erik Smelser: All right, boy, she may have said this, but grace is asking, is there a deadline for filling the application up for forgiveness. 156 00:22:26.040 –> 00:22:26.820 Boris Musheyev: We don’t know yet. 157 00:22:29.010 –> 00:22:34.350 Boris Musheyev: I believe that they didn’t mention some deadlines and I think it changed also after the 24 week was extended 158 00:22:35.010 –> 00:22:38.940 Boris Musheyev: But as of right now, I can tell you that the vendors are not accepting this application yet. 159 00:22:39.330 –> 00:22:47.040 Boris Musheyev: And even if they are. There’s nobody in America, no business in America that is ready to submit their application yet just because they started receiving PvP funds. 160 00:22:47.220 –> 00:22:56.520 Boris Musheyev: sometime in late April and the eight week start kicking in there. I think the earliest time that we have. That’s DDP is coming out based equally exploration is next week. 161 00:22:57.000 –> 00:23:06.150 Boris Musheyev: So I don’t. It’s not something you should be worried about as the small moment, I would recommend quality your bank or your land there and find out what’s the status of them accepting this application. 162 00:23:08.100 –> 00:23:08.340 Alright. 163 00:23:12.660 –> 00:23:16.410 Erik Smelser: We’ve got a lot of different questions come in. Hold on, as I as I take a look through them. 164 00:23:16.950 –> 00:23:29.640 Erik Smelser: While I’m looking through them. I would just remember, I just remind folks that those of you who are pillar members a replay of this webinar will be available within 24 hours on the member resources section of the pillow website. 165 00:23:31.350 –> 00:23:35.070 Erik Smelser: Gary asks if payroll taxes qualify as part of the payroll. 166 00:23:37.860 –> 00:23:38.970 Boris Musheyev: So Gary, look over 167 00:23:40.260 –> 00:23:50.520 Boris Musheyev: I’m appeal taxes money worse portion. Now, not the employers federal portion, as you say, by the way, your state portion. Yes. Okay. 168 00:23:50.820 –> 00:23:53.160 Ken Hardison: And all the employees state tax that you pay your 169 00:23:57.930 –> 00:24:02.880 Boris Musheyev: Employer state that’s not a woman should mostly them to the unemployment insurance. 170 00:24:07.560 –> 00:24:16.950 Erik Smelser: Alright, William asks that if these are still coming into his operating account. How does he prove that the PPP funds were used versus other funds from the account. 171 00:24:18.780 –> 00:24:20.880 Boris Musheyev: Good question, then, is where you committed in 172 00:24:21.630 –> 00:24:33.570 Boris Musheyev: So I mentioned that to take a step back for a second. I probably said that that webinar here and film or some other webinars, where I present that is that I was saying before, create a separate account for the B2B and spend money. 173 00:24:33.810 –> 00:24:39.240 Boris Musheyev: He wants for that separate account after they came up with all this guidance and it was very clear to us that 174 00:24:39.570 –> 00:24:49.140 Boris Musheyev: You don’t necessarily need a separate account as long as you can provide proof of these expenses during the quarter period right which is your payroll journals will probably have to 175 00:24:49.500 –> 00:25:03.330 Boris Musheyev: Fix your issue play chess had with filming some file your payroll tax write your lease agreement and the copies of canceled checks your landlord will prove the fact that you have those expenses and then you can just tie back into your 176 00:25:04.530 –> 00:25:08.940 Boris Musheyev: Your bank statement, the shorter. So to answer your question, you don’t necessarily need a separate bank account. 177 00:25:09.450 –> 00:25:20.130 Boris Musheyev: If it’s in your operating account. You don’t need to, you know, nitpick of this was that this was that as long as you have those other backups and then you can easily traced back to upgrade now. 178 00:25:22.650 –> 00:25:23.010 Gotcha. 179 00:25:25.350 –> 00:25:28.620 Erik Smelser: See more asks if 1099 consultants. 180 00:25:30.150 –> 00:25:34.110 Erik Smelser: Are included in this because they were included in the original application. 181 00:25:36.690 –> 00:25:43.140 Boris Musheyev: Know they should have not been included in the original application Seymour and probably included in your original application. 182 00:25:43.830 –> 00:25:46.920 Boris Musheyev: When the whole PvP just first came out, and there was a lot of 183 00:25:47.520 –> 00:25:59.280 Boris Musheyev: Uncertainty okay and some banks were already process. So something and contract this one throw in you receive money for them. So, it will not be included in the PDP forgiveness. 184 00:25:59.880 –> 00:26:10.710 Boris Musheyev: Now with that being said, that is my answer is also not 100% true. But why, why do I say that is because now that you receive this money and I don’t know if you have any employees or another also dependent 185 00:26:11.190 –> 00:26:26.340 Boris Musheyev: Poisonous 119 or not. We now have to see what employees what level of payroll number of staff do you have right now. And now you have 24 weeks to spend it, can you spend that money properly in in order to actually get it forgiving yourself. 186 00:26:28.260 –> 00:26:28.590 Okay. 187 00:26:29.700 –> 00:26:31.980 Erik Smelser: Helen is asking if you can review. 188 00:26:33.300 –> 00:26:37.020 Erik Smelser: The calculation for compensation cap 12 weeks of payroll. 189 00:26:37.680 –> 00:26:44.550 Boris Musheyev: Yeah, I’m looking at your question right now 11 and that is $600,000 divided by 190 00:26:48.630 –> 00:27:00.150 Boris Musheyev: 52 weeks not 56 you haven’t 56 on your QA. OK, so the compensation cap is basically just pigment this week $15,385 per employee. 191 00:27:04.890 –> 00:27:08.280 Erik Smelser: Okay, I’m glad you’re looking through all these questions, not just me. 192 00:27:08.550 –> 00:27:08.760 Yeah. 193 00:27:09.930 –> 00:27:10.590 Boris Musheyev: No problem. 194 00:27:11.730 –> 00:27:14.220 Erik Smelser: Pick any one there, you want to answer that and go for it. 195 00:27:15.570 –> 00:27:17.670 Boris Musheyev: I guess we’ll go one by one. 196 00:27:19.350 –> 00:27:22.650 Boris Musheyev: I’m not sure how they’re coming from the top of the bottom 197 00:27:23.100 –> 00:27:24.810 Erik Smelser: They are flowing into the bottle. 198 00:27:29.460 –> 00:27:30.090 Boris Musheyev: Okay. 199 00:27:31.170 –> 00:27:33.900 Boris Musheyev: So we answered, I think, can you hear 200 00:27:35.190 –> 00:27:36.600 Erik Smelser: Her alright 201 00:27:36.660 –> 00:27:46.830 Erik Smelser: So we’ve got a bit of a we’ve got a bit of a story problem here from from Peter, who says that he has parking spaces assigned based on the square feet of his office. 202 00:27:47.460 –> 00:28:00.480 Erik Smelser: And the number of spaces is incorporated into his leaks. He says, we pay for our parking separately from our lease payment, but the same building owner can we include the cost of parking as part of our forgiveness application. 203 00:28:03.570 –> 00:28:10.830 Boris Musheyev: If it’s if it’s a business parking space. I don’t see why not. And whatever your painful for your business right when I say lease payments. 204 00:28:11.220 –> 00:28:24.540 Boris Musheyev: I also want to be very clear. It also includes equipment leases that you have, you know, with attorneys copy machines or whatever it is. Right. I’m like, no, the medical profession. But I told you earlier about, he said, a lot of medical equipment. So that would be 205 00:28:25.620 –> 00:28:26.820 Boris Musheyev: All right. 206 00:28:27.510 –> 00:28:30.150 Erik Smelser: Good is asking whether the SBA loans are forgivable 207 00:28:33.060 –> 00:28:44.220 Boris Musheyev: So the SBA loans are we talking about the economic injury disaster loans and the ones that know there are those are not forgivable those do have to be paid back 208 00:28:46.860 –> 00:28:53.430 Erik Smelser: Carol says that she had an employee quit during the eight week period does she have to be re be replaced. 209 00:28:54.450 –> 00:29:00.270 Erik Smelser: Because Carol saying she can still reach the 60% of loan amount for payroll costs without her. 210 00:29:01.320 –> 00:29:04.140 Boris Musheyev: Yeah, so there’s right so you 211 00:29:05.160 –> 00:29:16.770 Boris Musheyev: Know, we’ll see what happens later on the new rules, he would have to if you can still reach the payroll amount of the 60%. But remember, there’s also the fact that you have to be tenure for us. 212 00:29:17.130 –> 00:29:33.090 Boris Musheyev: For them to get an exemption. Now, I don’t know, use occasional good for you for their own and you can have a place to be pleased with a whole then that piece away, be able to receive exemption. So the answer we defense. But generally you should be okay, based on what I see. Okay. 213 00:29:34.980 –> 00:29:47.550 Erik Smelser: Ronald says, I think you gave this answer, but he didn’t. Here is the maximum to any one employee still 15,000 calculator over 15 weeks or is it increased for the 24 weeks. 214 00:29:48.000 –> 00:29:53.520 Boris Musheyev: No it’s, it’s the same ad cannot receive it cannot exceed $100,000 salary. 215 00:29:54.570 –> 00:30:02.160 Boris Musheyev: Which is, you know, you find that over, like let’s just do the math right now. Good question for everybody. This is my calculator. 216 00:30:03.480 –> 00:30:04.200 Boris Musheyev: On the screen. 217 00:30:06.480 –> 00:30:06.720 Erik Smelser: Yep. 218 00:30:07.170 –> 00:30:10.020 Boris Musheyev: Alright, so let’s do $100,000 divided by 219 00:30:11.880 –> 00:30:14.310 Boris Musheyev: 52 weeks. That’s 1920 days. 220 00:30:15.480 –> 00:30:15.810 Boris Musheyev: Right. 221 00:30:16.920 –> 00:30:21.690 Boris Musheyev: So times eight weeks. That’s 15,034. So that being said, 222 00:30:22.800 –> 00:30:27.870 Boris Musheyev: Basically, we cannot exceed $100,000 salary per year. So 223 00:30:32.070 –> 00:30:41.340 Boris Musheyev: Which is $8,333 basically per month. So basically whatever salary that up employee base on a weekly basis, whatever it is you analyze 224 00:30:43.830 –> 00:30:44.520 Boris Musheyev: You can’t 225 00:30:47.160 –> 00:30:48.300 Boris Musheyev: Go over 100,000 226 00:30:52.320 –> 00:30:56.610 Erik Smelser: Carol is asking whether it’s okay to bonus employees with the PPP dollars. 227 00:30:57.000 –> 00:31:00.510 Boris Musheyev: Yeah, they. This was a part of the new guidance that was just released 228 00:31:07.980 –> 00:31:08.520 Erik Smelser: See 229 00:31:12.750 –> 00:31:22.290 Erik Smelser: And I’m sorry for repeating ourselves because there’s just a lot of questions. Tom is asking, can I use the total PPP free payroll or must I use 40% for other permitted expenses. 230 00:31:24.930 –> 00:31:26.520 Boris Musheyev: You can’t use the whole thing for cable. 231 00:31:33.870 –> 00:31:40.470 Erik Smelser: Sean is asking is it better to use the PPP funds right away or to stretch it out over the 24 weeks. 232 00:31:45.510 –> 00:31:48.720 Boris Musheyev: I mean, if you can’t use it right away. I would recommend using it right away. 233 00:31:50.610 –> 00:31:58.920 Boris Musheyev: You’ll notice when I haven’t even seen business right whatever can happen with employees session. It’s certainly I would risk it. Remember, it’s free money. 234 00:32:03.510 –> 00:32:09.300 Erik Smelser: Greg asks, what is the interest rate for the portion that you have to pay back 235 00:32:09.780 –> 00:32:10.290 On percent 236 00:32:12.720 –> 00:32:13.740 Erik Smelser: You said 1% 237 00:32:14.010 –> 00:32:14.340 Correct. 238 00:32:16.110 –> 00:32:17.250 Ken Hardison: There were two years. 239 00:32:17.910 –> 00:32:23.670 Boris Musheyev: Well they extended it, I think I said certain so don’t quote me on this. I believe they extended it with a new law. 240 00:32:24.930 –> 00:32:25.710 Boris Musheyev: To five years. 241 00:32:33.090 –> 00:32:37.170 Erik Smelser: Stewart is asking if a payroll companies such as ADP qualified for the forgiveness. 242 00:32:39.690 –> 00:32:48.540 Boris Musheyev: Do you mean I saw it when you just clarify that. You mean the payroll company up qualify for forgiveness or anybody that’s using 243 00:32:48.900 –> 00:32:58.890 Boris Musheyev: HTTP qualified forgiveness. If your question is anybody who’s using payroll companies such as a DP to process paychecks. But our company can they qualify for forgiveness. The answer is yes. 244 00:33:06.300 –> 00:33:07.680 Erik Smelser: Alright, let’s take a couple more. 245 00:33:10.710 –> 00:33:12.210 Erik Smelser: Any new questions. 246 00:33:16.440 –> 00:33:27.930 Erik Smelser: Alright, Ronald asks, How long do you keep the same level of staff, following the covered period in order to qualify for forgiveness and what are considered utilities for purpose of forgiveness. 247 00:33:29.160 –> 00:33:32.040 Boris Musheyev: So how long do you keep the same level of staff. 248 00:33:34.290 –> 00:33:44.280 Boris Musheyev: Well hopefully permanently. That’s the whole idea of the of the forgiveness. But after the forgiveness. I don’t think there is a requirement beats continue keeping employees and 249 00:33:45.570 –> 00:33:51.840 Boris Musheyev: As far as I know. I haven’t seen anything saying that you cannot once you keep them at the quarter period get 17 keeping them. 250 00:33:57.180 –> 00:33:57.690 Alright. 251 00:34:02.460 –> 00:34:03.840 Erik Smelser: See more says that 252 00:34:04.980 –> 00:34:11.220 Erik Smelser: His employees work 35 hours. Is that enough to meet the threshold to be considered full time. 253 00:34:12.930 –> 00:34:18.750 Boris Musheyev: Now, so they would be considered. So that’s where you would have to calculate out there you know down 254 00:34:19.320 –> 00:34:30.990 Boris Musheyev: The application is going to have to calculate the percentage. But again, if you haven’t changed the number of employees and the number of hours, you’d be fine. But the not considered full time at 35 hours. 255 00:34:32.790 –> 00:34:33.120 Boris Musheyev: Okay. 256 00:34:36.150 –> 00:34:41.220 Erik Smelser: Greg asks, Are there any penalties. Let’s say my staff leaves and I want to use the money for marketing. 257 00:34:45.750 –> 00:34:56.310 Boris Musheyev: So there are penalties, as far as I know, because you it’s a loan to you. So this is the longest, you would have to pay them so you will not be forgivable so you will have to pay that back. So, as far as I know. 258 00:34:56.610 –> 00:35:09.000 Boris Musheyev: There’s no loans and you’re not, you don’t really didn’t take the money to use for marketing. It just happens to be that your employees quit and now using response for other for other expensive, but you would have to pay back that portion 259 00:35:14.040 –> 00:35:15.870 Erik Smelser: Can you have any other questions as I read through these 260 00:35:17.130 –> 00:35:18.300 Boris Musheyev: I think we’ve covered all of it. 261 00:35:19.620 –> 00:35:20.490 Erik Smelser: Yeah, I think we’re getting 262 00:35:20.550 –> 00:35:24.510 Erik Smelser: I think we’re beginning to repeat questions. So let’s just say 263 00:35:25.680 –> 00:35:36.180 Erik Smelser: One more time, Boris if folks still have questions, they can contact you, or you would suggest that they contact their own their own accountant. 264 00:35:36.930 –> 00:35:42.780 Ken Hardison: Yeah, I got a couple questions before we leave. What time is we still got left five minutes. 265 00:35:42.900 –> 00:35:43.680 Ken Hardison: Yeah, I’ll 266 00:35:44.880 –> 00:35:55.020 Ken Hardison: Either answer, but somebody asked was the, is it still not you know this money you can deduct it from your taxes if you get the forgiveness. I mean that’s double dip. Right. 267 00:35:55.800 –> 00:36:12.420 Boris Musheyev: So not necessarily. So what happened is that I rescue Marlon said no. And then they were child challenge. And I don’t think that has been updated that so you could be very well that it could be the doctor on your taxes are. We’re still waiting on the final, final guidance on that. 268 00:36:13.770 –> 00:36:20.130 Ken Hardison: So is like expenses for hiring somebody like you to do this is that is that forgivable 269 00:36:21.420 –> 00:36:23.160 Boris Musheyev: Nothing but tax deductible. 270 00:36:26.340 –> 00:36:26.670 Ken Hardison: Yeah. 271 00:36:26.850 –> 00:36:28.320 Boris Musheyev: If that was the case. I 272 00:36:31.620 –> 00:36:32.940 Boris Musheyev: Have a lot of clients here. 273 00:36:35.250 –> 00:36:38.640 Boris Musheyev: But yeah, so what’s important. I want to stress this right is that 274 00:36:39.750 –> 00:36:46.590 Boris Musheyev: If you’re accountable is helping you with this breakup list, go make sure you do your projections. What do you want to do is you want to make sure you are 275 00:36:47.280 –> 00:36:54.540 Boris Musheyev: You’re planning over the age of 24 week properly, especially of sampling error will, especially if you received more than $50,000 but remember 276 00:36:54.960 –> 00:37:01.110 Boris Musheyev: The more you’re able to maximize your forgiveness. The more money you don’t have to be back. And if the 277 00:37:01.620 –> 00:37:10.410 Boris Musheyev: Guidance comes out and they made it clear that you know the $50,000 to spend on payroll and you receive the fee for it. It’s not his 278 00:37:11.130 –> 00:37:23.160 Boris Musheyev: Boat, you have a win win on both ends right what’s more able to maximize your forgiveness, instead of feedback out of the 50 40,000 out of the hundred 70 which is the whole thing so super, super important. 279 00:37:23.520 –> 00:37:31.920 Boris Musheyev: Is to plan it had especially of the extended period of time and we can help people that we actually built out and very, very serious calculator. 280 00:37:32.310 –> 00:37:46.830 Boris Musheyev: That still gets updated thanks to SBA every time. But it helps us plan on what exactly client needs to do in terms of rehired bonuses increase salary or anything of that sort, to make sure that you maximize your forgiveness. 281 00:37:47.760 –> 00:37:50.130 Boris Musheyev: And yeah, so 282 00:37:50.190 –> 00:37:52.890 Ken Hardison: So let me ask you to say, let’s say, like, I’m a 283 00:37:54.240 –> 00:37:58.170 Ken Hardison: I don’t actually pay myself a salary take out taxes. I just take draws 284 00:38:00.420 –> 00:38:11.760 Ken Hardison: And I’ve got employees. So is the money that I take out draws I keep that’s not considered one of the salaries or is that considered party. 285 00:38:12.330 –> 00:38:20.490 Boris Musheyev: When I come back to you made the same comment you Nikki. Last time we already strategize we and we said, you need to be available so you aren’t getting paid me a payroll. 286 00:38:21.330 –> 00:38:27.810 Ken Hardison: No, no, no. I am but somebody asked this. Somebody asked what are, what sort of things can we get a bonus 287 00:38:28.740 –> 00:38:38.070 Boris Musheyev: So the owner can get a bonus, right, because it has to be limited to whatever his salary or net income if he’s in. So owner with no salary was for 2019 288 00:38:38.370 –> 00:38:43.260 Boris Musheyev: So let’s say forget the fact there is a bonus, but you’re an owner so proper employees. 289 00:38:43.530 –> 00:38:56.670 Boris Musheyev: You can get forgiveness for your employees portion of their salary, but he can also receive forgiveness for yourself based on your 2018 net profit, not to exceed 100,000 for to be included in the forgiveness calculation. 290 00:38:57.420 –> 00:39:04.290 Ken Hardison: So, so if you do that, but then you still need to kind of give yourself a bonus to get it up there, but it’s still good 100,000 291 00:39:04.590 –> 00:39:13.260 Boris Musheyev: Bonus because when you apply for the PvP what open most banks that that person’s bench and also they should ask them to give them 292 00:39:13.650 –> 00:39:30.900 Boris Musheyev: So a draft 2019 tax return, which has his net profit for the business and based on that net profit. He can seek forgiveness for 20 for the money that you receive in 2020 boys employees and his net profit, whatever that net profit was not to exceed 100,000 293 00:39:33.930 –> 00:39:49.470 Boris Musheyev: Alright, I hope this was helpful. You guys can check it out right now that voice in shape, but calm, can I know this recording will be available. And there’s any other questions, like I said you can schedule a time with me and I can. I’ll speak to you soon. 294 00:39:50.220 –> 00:39:51.060 Ken Hardison: Thank you. 295 00:39:51.420 –> 00:39:52.410 Boris Musheyev: Thank you guys. They got 296 00:39:52.920 –> 00:39:54.180 Boris Musheyev: Thanks, folks. Bye bye. 297 00:39:55.710 –> 00:40:03.150 Ken Hardison: Okay, look, this was helpful. Until next time, this is Kim Hardison dedicated to your success, y’all. Take care.

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