I've read through the terms and a million posts here but I just want to ask in case, as I want to guarantee that I get the full amount forgiveable through the PPP loan. My situation:
Self-employed sole prop, it's just my wife and I in the business (photography) and this is what we do full-time.
Line 31 of our 2019 Schedule C: $76,394
We were just approved for and have already received $14,000 in PPP loans. This is First Draw, we received no PPP loans last year. We did receive $10,000 in EIDL last year (plus $2,000 EIDL Grant) but we're paying it back in full this month, we didn't use any of it.
To calculate the forgiveable amount of payroll (based on my understanding/research), I took our 2019 net profit ($76,394), divided it by 52 and then multiplied that by 8 and got $11,752.92.
My questions:
Can I just transfer that $11,752.92 as a lump sum to our personal bank account or do I need to pay myself like 8 separate checks of that amount divided?
Is the remaining balance I have after the payroll amount ($14,000 - $11,752.92 = $2,247.08) able to be forgiven if used for non-payroll expenses? I don't know if we have a whole lot that could fit into this category anyways but anything we could potentially have forgiven (if used properly) would be helpful.
Because my wife is a second employee, does that qualify that remaining amount ($2,247.08) to be used toward her payroll? Just wondering based on the phrase 'at least 75% must be used for payroll,' so I didn't know if that meant it could 100% be used toward payroll. I don't want to double dip or anything like that, so I'm not planning on doing that at the moment.
Am I completely misunderstanding anything? I'm aware people here aren't accountants, lawyers, etc. so I'll take everything with a grain of salt but I'd love to benefit from the understanding of those in this sub if they're willing to help me out. Thank you.
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