Top mistakes on the PPP application

Top mistakes on the PPP application

Top mistakes on the PPP application • Insufficient backup such as 941 forms, Schedule C tax returns and payroll summaries • Answering “no” to question 7 on the application where it asks you if your payroll calculation is for employees who live in the United States. • Not using your legal name throughout the application • Not sending in all the information needed, even if it is simply an ID • Miscalculating your average monthly payroll • Including employees whose total compensation is over $100,000. For example, your total annual compensation is $120,000 a year, you can’t have you’re average monthly wage at $10,000. The max you can do there is $100,000 divided by 12 = $8,333 monthly average for a maximum loan of 2.5 x $8,333 or $20,832 in that example. • Submitting your application with 1099 employees included in the calculations • Including Federal taxes • Not including healthcare and 401K benefits • Simply WRONG Math!