The Paycheck Protection Program is a part of the CARES Act recently passed into law by the Federal government. This program provides loans to small businesses and self-employed people that can be forgiven, which means that you don’t have to pay it back. It will be available to small businesses of less than 500 employees, sole proprietors, and self-employed individuals. The Harding Group has received many requests for help in applying to the Paycheck Protection Program since it was announced last week. Below we have compiled the information we know right now about the Paycheck Protection Program and how you can apply.
Monitor the SBA Site
The website for the Small Business Administration (SBA) has the most detailed and up-to-date information on who is eligible to apply, how much you can borrow, and how much can be forgiven. More specifics are coming every day, so we encourage you to use the SBA as your ultimate resource for new Paycheck Protection Program facts.
The Paycheck protection program Borrower Application Form
The Paycheck Protection Program application form is downloadable as a pdf on the SBA website. The application itself is relatively easy, and the only information you need on hand is your average monthly payroll and the number of employees. Your bank will have a list of supporting documents that you need to accompany the application.
If you have already received or applied for an SBA Disaster Loan, that is fine as long as it was not for payroll. Before you sign for SBA Disaster Loan funds, work with your bank to make sure you are taking full advantage of the program that is best for you.
How to Apply in 3 Steps
The process for applying for the Paycheck Protection Program is as follows:
- Complete the Application Form
- Contact your bank to find out what additional information they need
- Gather the required documentation
- For payroll reports, including a report that gives you the average payroll, log into your ADP employer website.
- You may contact the Harding Group here if you would like more help.
How to Get Your ADP Payroll Reports
First, log onto your employer ADP portal. Then, take the following steps to find your appropriate forms.
Average Monthly Payroll
On the top menu, click “Reports.” Under Payroll, click “CARES SBA-PPT: Monthly Payroll Cost.”
2019 Form 940 and Forms 941
On the top menu, click “Reports.” Then, under Taxes, click “Tax Records/Filings.”
Last 12 Months of Payroll Reports
On the top menu, click “Reports.” Under Payroll, click “Payroll Details.” You will have to do two reports: one for the months in 2019, and one for the months in 2020.
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