Unknown Speaker 0:03 Good afternoon, everyone or good late morning, depending on where we're talking in from from Arizona to Georgia, we got people here. Patricia, hopefully you can hear us now let's do a little bit of a sound check. Because you had mentioned that you can't hear. But now that we started the broadcast, people should be able to hear us. Unknown Speaker 0:27 I am excited about today's presentation would love to hear where we have people joining us from so we want to check, test out that chat and put in you know who you are. Maybe what your organization does, would love to confirm that we can have the chat working. It's the question and answer section there. A few housekeeping items before I hand it over to Greg. First and foremost, we are recording today's session. That's important, because the it's a extra, like, supersize me on one webinar with Greg boss, and Greg's Greg's The only. Awesome. Thank you, Robert. Thank you, Lynn. So I can confirm that audio is working and people can use the q&a, Greg, Boston's about the only person I'm going to let take over our airwaves for an exercise webinars. So I'm really excited about today. But we know that if you can't make the whole thing, this is going to have so much information, these PPP loans, webinars have been some of the most exciting content, interestingly enough, that we've been able to provide people because they're so confusing. So Greg helps really navigate all that. And so we're going to record the entire thing. If you have to leave early, Unknown Speaker 1:44 we will be monitoring the q&a section. So people who are using this to tell us for instance, they're from Chicago, we are responding to you. And we have both a member of the neon one team to help with basic GoToWebinar issues, and other questions relating to the platform. And then we also have members of the QuickBooks Made Easy team for nonprofits joining us for helping route things to Greg to engage more specifically to the content today. Unknown Speaker 2:16 So really excited about today's presentation, it's going to dive into a lot of different things, just a few other items. There's a lot of polls today, so be ready to interact, because that helps Greg tailor the presentation. And then there is the handout available for download that we'll also be putting on our resources site on the neon one website. But everybody's gonna get an email of this recording as well, no later than tomorrow. Typically, the recordings put up by end of day. Unknown Speaker 2:45 You know, because it's so action packed, I'm actually going to front load things for what's coming up next. For neon one, we have a great may slate of content to we're going to be talking about legacy giving, we're going to talk about monthly giving, we're going to debut some new features, see all that in the neon one newsletter that's coming out very shortly. With that being said, with no further ado, Gregg bossen. I'm excited to welcome you here once again to the neon one ecosystems, webinars. The floor is yours. I'm going to actually even turn off my camera and and go for it, man. Oh, well, no, man, at least at least give me a second here. It is fun to see you again. And it's happening. Since I'm in a much more chill or happier place that is now I do see a few people that are saying they can't hear. So I want to make sure that every single solitary person can hear me. By the way. I do see you Lynn from Mesopotamia, Ohio, which I think is really cool. Anyway, so I want to direct you to the questions because I can see the questions and I can answer the questions real time. I want every single one of you we got 54 people on the call. I want every one of you to say something in the questions actually put a feeling word I want to know how you're feeling. Are you happy? Are you sad? Are you angry? Are you constipated? Are you anxious? You know, whatever. I just need something here in the questions so that I know that you're Oh, wow. Anna's already perplex Tyler, and I would strap in. Unknown Speaker 4:23 That's awesome. Okay. Unknown Speaker 4:26 Thank you for sharing that, Alicia. That's Yeah, totally. We're all a little stressed for sure. For sure. Chris is here, which is a state of being that's Yes. Yes. That's a very, I think we can confirm that our audio is working and Unknown Speaker 4:41 shooting for for people. Right. Okay, so cool. So the other thing I want you to know is that this is not your normal webinar. Okay, we're going to have fun, and we're going to give you great explanations for what's going on with PPP, and you're going to be able to get your questions answered real time. But I know how these things Unknown Speaker 5:00 Are ain't no way you're gonna watch this for 90 minutes and not even stop for a second. But the information is so good that I want you to watch. So after 45 minutes, we've taken a break, okay? So do not go to the bathroom, do not look at Facebook, do not look at your email, do not talk to anyone else, close your doors just pay attention to me and this computer screen because I'm about to blow you away. And I'm telling you in 45 minutes, we can chill out or take a break. Alright, so um, having said that Unknown Speaker 5:34 it's okay if he if you want to go now, Tim, but if you want to stay that would be great, too. I'm hanging around in the background. It's just the show is yours. Nobody wants. The only thing I do want to say though, for people who have been watching the on one webinars I'm going to say one thing today is a special day. If you have watched any of our webinars in the past year, there has been a wonder woman said a dress is sitting on that for over 365 days. That's because my daughter was potty training. Notice they are not there anymore. So Bella batory day here in the San Antonio household. Superhero day is here. We've she is potty trained. She's Potty Train Well, that's one down and I guess with you another one to go. Unknown Speaker 6:17 She was the holdout anyway. I don't want to I don't want I was referring to you, but Okay, that's, that's, that's good. Okay. Unknown Speaker 6:25 I'll be here if you need me. Yeah, I Unknown Speaker 6:29 will tell you that. Here's the line. And Greg likes to go just this side of it. side of it, but it keeps things interesting. Okay, so here we go. So welcome. If you haven't seen me teach before, I am a CPA with an accounting practice here in Atlanta, Georgia. In the back, we have Barbara starley, who is also a CPA with an accounting practice. She's in Arizona, and both her and I work with nonprofits. She specializes in houses of worship, and she's part of a team here. She will be answering questions also. So, um, if you put your questions in the chat, then we will be able to answer them. And there are some people that can't hear still, I think that's very odd, it seems like most of you can hear. But anyway, uh, Bill Sims is our marketing director. And he will also be here helping so there's three of us all together. If you don't know me, I'm a CPA. I specialize in nonprofit organizations. We do audits, we do tax returns for nonprofits. We do bookkeeping, for nonprofits. We're all things nonprofit, okay. And we also have the company QuickBooks Made Easy for nonprofits. And so we have a CPA firm. And then QuickBooks Made Easy for nonprofits. And what we do is we train nonprofits and houses of worship, how to use QuickBooks to track pledges, donations, grants and stuff like that. Okay. So we actually have a three day webinar series, it's coming up, we do it twice a year, it's coming up at the end of May for desktop users, and and June for online users. But watch this webinar, this one's free, see if you enjoy me teaching, and you can learn for me, and then we'll talk about whether or not you want to come to that other one at the end. Okay, so Unknown Speaker 8:20 I'm gonna go through all this so we can get to the content. All right. So here's what we're gonna cover today, folks. First of all, there are there's a new round of PPP that you can get. And we're going to talk the first part of this webinar, we're going to talk about these new rounds of PPP Unknown Speaker 8:39 used to be you had to get the you had to apply for this new round of PPP by the end of March, but it's been extended. So we'll talk about that. Then we'll look at when you can apply or who can apply for more PPP money. If you got PPP money last year, it's a second round. If you haven't gotten PP money before, it's the first round. Unknown Speaker 9:03 But we're going to talk all about those rules, which are really important because you may be able to get more PPP money that you didn't know you could get. You have until the end of May, then we're going to spend the rest of the time talking about how to get forgiveness, which I know some of you are really freaked out about that I have clients that are breathing down my neck about it, it's not hard to get forgiveness, we're going to talk all about it. We're to talk about getting forgiveness on your E ID l advance we'll talk about what that means for those of you that got it and how to get forgiveness on that. And then how to get forgiveness for your regular PPP loan. We're going to go through the forms and then we're going to review the the forgivable costs because they made changes in that as well. So that's kind of how we're the agenda is going to happen. Unknown Speaker 9:49 And let's see, so first thing we're going to cover is this new PPP money but before we do anything else, I do want to tell you that Unknown Speaker 10:00 This webinar that you're watching is really talking about most of it is changes that occurred in the law. And the law that we're referring to during this webinar is the consolidated Appropriations Act of 2021. Okay, so this Act was passed by Congress in December of last year, and signed into law by the President on December the 27th of the year, and this law was 5593 pages. Unknown Speaker 10:33 This is that's what I think when I think of reading that many pages, but anyway, it was a $2.3 trillion spending law. And it gave 900 billion for COVID. All right, which is a great thing, but it made all kinds of changes. And that's what we're going to be covering here changes to in terms of being able to get new PPP, and then also all about forgiveness, which is I know what you're freaked out about. All right. So let's see, what else do we have here? There we go. So I want to do a poll. So let me go ahead and pop open the polls here. And first thing I want to know, which is I think a pretty, pretty basic question, I'm going to go ahead and launch this poll is did you get a PPP loan? Now there's three possibilities. Either you got a PPP loan last year, and then you got another one this year, which is round two, which means you got two rounds, or you just got one last year. All right, but you haven't gotten one this year yet? That would be the second option? Yes. But only round one. And then the third one is No, we haven't gotten anything yet. Okay. So there are 57 people on the call, only about 40 of you have voted. What is going on here? I want every single person to vote if for whatever reason you can't vote put your answer in the question. So I can understand what the heck is going on here? Because feels like everybody should be voting, which makes me think you can't hear me. So that makes me upset. But anyway, alright, so I think we will. Now I'm at 80%. Maybe people sign up for these free things, and they don't pay any attention. Unknown Speaker 12:21 Pay attention. Okay. It's valuable. All right. So here we go. I'm gonna go ahead and finish this poll. How do I finish the poll? Unknown Speaker 12:35 Hit the close button. Greg. Over to the right. You, Bill, your bill. Alright. And then do I post the results? Are they already posted? Unknown Speaker 12:46 put somebody put in the in the questions. Do I see them now? Okay, great. So it looks like half of you have gotten both rounds. So you guys are pretty much exclusively worried about forgiveness. And then half of you have only gotten round one. So I'm excited about that, because we're going to talk about how to get round two for you. A lot of people don't think they can get round two, and they can't. Alright, so Unknown Speaker 13:11 off I go. So the first thing is, if you do want to get a second round of PPP, and understand only speaking to half a year now, but this will just take a second, if you do want to get a second round of PPP. They've extended the deadline. It used to be the end of March. But there was so much money that was untapped, that people hadn't used that the House passed a bill to extend the date to may 31. So now you have until May 31 of 2021. And there is plenty of money to be gotten. Okay. So if you're sitting there thinking, wow, I don't really need that money. Think again. Okay, because I don't know why you wouldn't access money that's sitting there waiting for the taken. All right. All right. So uh, there's a new round of funding available. So that's what we're going to be talking about here how to get this second round of PPP. Okay. So the new funding is still based on the law signed on December the 27th of 2020. Unknown Speaker 14:08 And which we already talked about now, this second round of funding, that's in 2021. that's now been extended to me. It's available as a second round for people that got PPP last year. And if you didn't get PPP at all, you get it as a first round. Now, according to this poll, every single person in this call at least got round one. So we're not going to worry about trying to get round one. We're just going to worry about trying to get round two for half of you. Okay, so if you got PPP last year, there is a second round of funding available to you. All right, the second found round of funding rules, here they are, who can apply for a second round of funding. You had to have gotten a PPP loan last year, which every one of you has, okay. Unknown Speaker 15:00 That first round will be called a draw. All right, that's their name for it first draw. Unknown Speaker 15:06 Now, also, you had to have either already used all the money, or plan on using all the money for authorized uses. Okay? So basically, that means all of your first round either has to have already been forgiven. Or you are going to spend it in such a way that it'll all be forgiven. Okay? Nobody's going to give you a second round. If in the first round, you didn't spend the money, right, and you have to return some of it. That's not going to work. Okay. So and I know most of you hadn't gotten forgiveness that doesn't stop you from getting round two. Okay, I got round two, I haven't gotten forgiveness for round one yet. It's fine. Okay. All right. Now you can have more than 300 employees, hopefully, it doesn't affect anybody. Unknown Speaker 15:55 And now this is the thing that freaks people out, you have to show that at least 20, you've had a 25% reduction in gross receipts. And that's what I want to focus in on. Okay. Unlike the first round, where you didn't have to have any proof of reduction in receipts or anything. The second round, you kind of have to have show them that you really had detriment because of COVID. So you have to have a 25% reduction in gross receipts, which raises all sorts of questions, do not ask those questions, okay, until I teach, because I'm going to go through all the all of them. Alright. So the other thing is there has to be an economic uncertainty. In other words, you have to say that you need it. And we'll talk about that and what that means in a minute. Okay, where do you apply, you apply to the same bank or a different bank, but you got to apply to a bank, okay. And, by the way, you don't have to apply to the same bank. My first loan I got from Wells Fargo, there, they were like, they're not even playing games, they like stopped accepting these applications A long time ago for the second round. So I just went with Unknown Speaker 17:01 out of your out cross river bank is the one I went to for the second time, okay. Doesn't have to be the same bank, when to apply, again, used to be March 31. But now you have until May. Okay. All right. So let's focus on what does it mean by at least 25% reduction in gross receipts, and I'm going to stop for a second and say to you, I told you, this is going to be a really valuable webinar. Okay. So for the 48% of you, I haven't gone for round two. Are you ready? I want you to listen up. Okay. Actually, somebody put in the question, somebody tell me that you're ready to hear about this. And I'll tell you what this 25% reduction means, but I want to see somebody put it in the questions first, because I want to make sure people are listening to me. Okay. Thank you, Robert. All right. So here we go. All right. Unknown Speaker 17:53 Okay, it means you've had at least a 25% reduction in gross receipts, look at this in one of the four quarters in 2020. As compared to that same quarter in 2019. Okay, it doesn't have to be the whole year, just one of the four quarters of the year has to be 25% less or more than in 2019. Okay. So if you look at this chart, I want you to look at this chart here. You see if I gotta open up something that I forgot to open, I'm so sorry about this, hold on a second. But this will help me teach better. Unknown Speaker 18:33 Whoops. Unknown Speaker 18:35 I have a little software thing called click tricks. And it allows me to zoom in and point and I just like it, alright, okay. Unknown Speaker 18:45 Whoops. Unknown Speaker 18:49 Okay, there we go. Alright, so here is a little chart I did of this is the the gross receipts for each of the four quarters in 19 versus 20. Now, if you look at this, there was actually an increase in first quarter, a decrease of 30% in second quarter, an increase of in third quarter and an increase in fourth quarter. So they actually made more money in 2020. They they did in 2019. So your initial thought might be well then I'm not gonna be able to get a PPP second round because I made more money. You tell me in the chat. I wish I had a poll for this. Somebody tell me Can this person apply for PPP? Second round? Can this person get a second round of PPP if this were your numbers, and it got it right? Absolutely. Does it seem fair? Absolutely not. They made more money, not less money, but whatever, you know, because in one of the four quarters, there was a 30% decrease. Okay, in that crazy anyway, and I mean, my only explanation for why they're being so nice. Unknown Speaker 20:00 series because they just have all this money leftover that's been appropriated to give out. So they just want to get it out into the economy to keep our economy from tanking. It's like, outtake it, you know, anyway, so they can totally get a second round of PPP. So that's first thing I want you to understand. Because of that. Unknown Speaker 20:20 Now, remember, the one of the other requirements is, and I'm going to read this to you, because you actually have to sign this, when you sign up for the second round, you have to say that in good faith, you think a current economic uncertainty makes the loan request necessary to support the ongoing app operations of the applicant. So basically, this is a fancy way of saying you have to sign something saying you think you need the money. Now, Unknown Speaker 20:51 you know, if you're making a lot of money, and you have a lot of money in reserves, some people would say, Well, I don't need the money. But honestly, is there an economic uncertainty that exists? Of course there is we don't know what's going to happen. And necessary to support Hold on. I skipped backwards here necessary to support the ongoing operations of the applicant, you're the one who determines whether it's necessary. Now, some people may say, Well, I have a lot of money in reserves. So I guess it's not necessary. So I feel weird about signing this when I get my second round, but getting more money in reserve, a lot of people think that is a necessary part of your ongoing operations is to funding your reserve so that you have money in case there's a rainy day. So does anybody have a question about this? Because I really think it's almost like an ethical thing. But I just want to make sure that you think about it before you go ahead and go for this, too. Does anybody have a comment on it? You can put it in the Unknown Speaker 21:53 questions. Nobody cares. Okay, we're gonna move on. Alright. So this is this person deciding whether or not they're going to sign this thing. But anyway, so a 25% reduction. Now, let's get into the gory details of this, you have to have a so you would leave your reserves in place and use the new money correct, Debbie, you could even put the new money in your reserves and not use that either. Because, in your view, in order to run the operations of the organization, you need to increase your reserves. I mean, it's complete, it's really up to you. Okay, so, now you have to spend the money on payroll. But basically, what you do is you say, well, that's the money I spent on payroll, the money that I got, and then my grant money and my regular donation money and my service money, I put that into my reserves, you know, who's to say which dollar paid for which thing? So, anyway, Unknown Speaker 22:51 uh, alright, Debbie's got it. Alright, so now, again, you have to have at least a 25% reduction in receipts in one of the four quarters in 2020, as compared to 2019. What does gross receipts mean? Well, it means all of your revenue, including your grants and your contributions, and that does include your restricted grants that are restricted for a future year, okay. And it includes your restricted revenues that you have received for a capital campaign. All right, for something you're not going to build for five years doesn't matter. It includes that, okay. It includes contract revenue. It includes any of your earned revenues, dues, tuition fees, it includes interest, dividends and rental income fundraising income, it does not include sales tax collected, and it does not include capital gains. Okay. So when you sell things that again, either stocks, bonds, inventory, assets, whatever doesn't include that. It also doesn't include your first PPP loan. All right, none of that's included. Let's say just earlier today, I heard someone else say nonprofit is a tax status, not a business model that seems to really speak to this issue, if folks should apply for PPP funds. That's right, the word nonprofit, Alicia does not mean that you can't make a profit, all right. Unknown Speaker 24:24 The only way that I'm going to give money to you as a nonprofit is if you are responsible. Well, if you're responsible financially, then you save money for a rainy day. In order to save money for a rainy day, you have to make more money than you spend, at least in some years. Okay, so all right. Unknown Speaker 24:44 And if you're really anal, and you love reading about tax law, if you go to the Internal Revenue Code of 1986, and look at section 6033, this is something you can do while you're on the toilet. It'll give you a more complete definition of what growth Unknown Speaker 25:00 receipts means for nonprofits, but we pretty much got it covered here. All right. All right. Now another question people ask is, well, when you say gross receipts, do you mean cash basis or accrual basis? All right. So that's a good question. cash basis means that if I have invoices to customers, I don't include those in gross receipts until I've received the money accrual basis is I include all my outstanding invoices earned during the period as well. Okay. So Unknown Speaker 25:34 what you're supposed to do in computing, this gross receipts is supposed to be based on your organization's accounting method. What does that mean? Okay, so it's the method probably that you used on your tax return, which is a 990. Now, if you're a house of worship, you probably don't fill out a 990. So in that case, it would be the method that you are reporting on your audited financial statements? Well, if you don't get an audited financial statement, and you don't do a 990, then what do you do? Okay, well, then you would just use whatever method is that your books are in? Alright. Now, what if you do both? Some people will keep their books on the accrual basis, but the tax return is in cash basis. In that case, I suppose you can just pick the laws kind of silent on that. So pick whichever one is going to give you a 25% loss and one of the four quarters so you can get this money. All right. Okay, uh, let's say I think that's everything that I covered there. All right. And now what I want to do, because I'm a QuickBooks guy, okay, I know all things black box, and that's what our classes on so I'm going to go to QuickBooks. I'm gonna go to QuickBooks desktop first. And I'm going to show you where you can go to get this report to see whether you have a 25% reduction. Who has QuickBooks desktop right now put it in the chat. I have QuickBooks desk or not in the chat, put it in the questions. QuickBooks desktop, just type QuickBooks desktop in the chat. Or you can put Yes, that's true. Hey, Ronnie, I feel like I've seen you before one of my webinars. Okay, awesome. Okay, so most people have desktop, we're going to do online edition too, but so you're ready. So here I go. And there's a recording of this so that you can write it down if you want to. It's a report that I need to see whether I have a 25% reduction. So I'm going to go to reports. And I'm going to go to company and financial. Unknown Speaker 27:36 And I'm going to go to profit and loss previous year comparison. All right. Unknown Speaker 27:45 Then what I'm going to do is I'm going to Unknown Speaker 27:50 make the date this year 1231 20. Unknown Speaker 27:55 And I'm going to go to the column section here, instead of it being total only. I will tell you right now, if your 2019 receipts were more than 25%, higher than 2020, then you don't really even need to look at it by quarter. But in this case, they really were basically the same. And so let me go ahead and run it by quarter. So I'm going to click quarter. Now it's giving you for each quarter, it's giving you $1 and a percent change, I don't need the dollar change, I only need the percent change. So I'm going to go over here. And I'm going to click this Customize button. I'm going to get rid of the dollar change. And I'm going to click OK. Now I don't really need any of the expenses. It's just the gross receipts I'm interested in. So I'm just going to click this little upside down pyramid and get rid of the expenses. And now all I see is my income. So and I'll zoom in on here, I now say okay, for January to March of 2020, my total income was 20,000. In 19, it was 19,000. That are 23,000 to 19,000. It was a 19% increase, not a decrease. So that's certainly not going to help me. I get to second quarter. I've got an $89,000 in 2020. for April, May and June, same time period in 19. I have 165,000 there's a 40% decrease, decrease. Party Party, I can apply for PPP. I don't care about the rest of the quarters. I got one of the quarters work in my party is over. All right. So let me do the same thing for you, Nicole, or it might be Nicole in the Online Edition Who else has the Online Edition? Go ahead and put it in the questions if you have the Online Edition. And let me see where are we? Are we over here? Where is the Online Edition Unknown Speaker 30:02 Well, just it's got to be here somewhere. Unknown Speaker 30:06 Oh, it's over here. All right. Unknown Speaker 30:11 All right. So let me go into the Online Edition for those of you. Hey, Joyce, how are you? Unknown Speaker 30:19 The yard? Hey, Maria. Alright, so what I'm going to do here is I'm going to go to reports. Unknown Speaker 30:29 Now, do not go to the report that says Profit and Loss comparison, because you won't be able to get it by quarter. Start with just your traditional profit and loss, which is probably up in your favorites for you, it might be called the statement of activity, it's the same thing. Unknown Speaker 30:50 And then I'm going to change the date rings again, don't worry, we're getting to forgiveness, which is I know what the other half of you're worried about 1231 20 and take the display and make it by calendar quarters and click Run. Unknown Speaker 31:13 And then select a period here to compare previous year percent change and click Run. Unknown Speaker 31:23 And now here we have current prior year percent change current prior year. Here's percent change minus 46%. We're good to go. Okay, so uh, let's say Joyce's I actually, I think I have desktop. All right, is there anybody has any questions about this? Before I move on, let me get back to my little Unknown Speaker 31:47 webinar here about our my little deck. Unknown Speaker 31:51 Alright, so the second founder of funding rules, just so you know how much you can get, it's 2.5 times your average monthly payroll, okay. Unknown Speaker 32:04 And about getting forgiveness, which we've not covered about how to get forgiveness, but I'm going to tell you right now, the rules for getting forgiveness for round two are the same as the rules for getting forgiveness for round one, which we'll cover in a little bit. Okay, so I'm not even really gonna worry about all this shit. Okay. Now, when you apply, you'll do it through a bank. If your loan is less than $150,000, Unknown Speaker 32:34 you are not required to show proof Unknown Speaker 32:39 that you had a 25% reduction when applying you don't have to prove that fact. later on. When you ask for forgiveness, that's when you'll have to prove it by giving him a QuickBooks report is probably what you'll need to give them. Okay. Unknown Speaker 32:53 All right. And then I don't need to worry about this one because everybody got first round funding. Okay, so Unknown Speaker 33:01 all right, Jaclyn, what if we only have 1099 employees? Unknown Speaker 33:08 You can't get PP pay if you only have 1099. They aren't employees. In fact, you never even got a first round PPP. And you shouldn't even be in this webinar because PPP is not for you. Okay, if you don't have any employees. Okay. All right. Know that. I hope I didn't scare you by getting too close to the camera. Unknown Speaker 33:28 I look Jacqueline left. Unknown Speaker 33:33 Oh, Jacqueline. All right. We missed her. Okay, I just heard earlier today I heard someone else say nonprofit is attack status. Yes. Attack status. Somebody else's. Making a comment on that. Oh, no, that was that same comment from before. Unknown Speaker 33:49 Okay. Linda reminds us all that self employed people. They can get they can get a PPP loan, but only on their self, not on their 1099 pay each lender. Each 1099 payee has to get their own PPP. Okay. All right. Unknown Speaker 34:10 Don't worry about the first round funding rules because Unknown Speaker 34:20 Oh, one thing I will say I guess none of you are like this. But it used to be that if you were a 501 c six, which is a member of the ship Association, you couldn't get a PPP. Now you can. That's changed. Okay, so I don't know if there's anybody that's in there or not. Let's see Robert, what about a person who has an LLC? Can they apply for the PPP loan? Absolutely. They can tell him to go to a website called womply w o m PL y one play or it might be one blaye w o MBLY. And apply there. Okay. All right, but this is a nonprofit class. Unknown Speaker 35:00 So we're not going to get into that. All right? Unknown Speaker 35:03 Let's say worried about first round funding. All right. So now we're going to start talking about forgiveness. Okay? I'm going to take a little sip of my drink here. Unknown Speaker 35:16 All right. Unknown Speaker 35:19 All right. So forgiveness. Now the first thing that I want to talk about with forgiveness has to do with something called an Ei. I'm sorry, an Ei dl advance. Okay. So I want to explain what an Ei dl advances first, okay. Okay, and Ei dl advance what it was. So just look at me now. Unknown Speaker 35:45 When COVID happened last year, and everybody was freaking out, and they wanted to give money to people as quickly as possible. They passed this PPP loan, but they weren't ready to roll that program out yet. So the SBA had this thing where you could go to sba.gov. And you could say, give me money. And it was called an Ei dl advance, it took like three seconds to fill the form out, you checked a box saying that you needed money, they asked how many employees you had, and they gave you $1,000 per employee. Okay, it was the very first way to get funds last year, even before you applied at the bank. This came directly from the SBA, okay. And it was $1,000 per employee. And it was considered an advanced, that's why they call it an Ei dl advance, but it ended up not being an advance it ended up just being a grant. And that's what I wanted to talk to you about. Okay, so the first thing, oh, and the other thing is this Ei dl advance is not the same thing as an Ei DL, straight up loan that you get from the seat from the SBA. Okay, so we're really, there's three ways to get money, you could get a PPP loan, which is what most of you are here talking about, that's forgivable, you could get this $1,000 employee ideal advance. That's the thing I'm talking about now. But there was also a way to get just a straight up loan, it maxed out at $150,000. I have a few nonprofit clients that got it. It was not from a bank, it was directly from the SBA. Did anybody get that loan? Put it in the chat? If you got that loan? Unknown Speaker 37:31 Anybody get that loan? to real loan? Okay. answers. Nope, didn't get it. Yeah, I didn't get it either. I mean, I didn't need it. But anyway, I know some clients that got it. But what I want to know now is I want to talk about that $1,000, advance the Ei dl advance, I want to know, let me go ahead and ask this question. And I can do this in a poll. Did you get the E II d l advance? Again, this was $1,000, an employee, it was straight from the SBA got deposited in your bank account. If you didn't get it, you could have gotten it, it was money you left on the table, because you don't have a good accountant that told you to get it. Like I told everybody to get it. And every time I do this poll, it's a sad, sad answer. Because it's usually two thirds to and in this case, it looks like 80% of you didn't get the money. It was free money that whoever your accountant is didn't tell you about. So you got screwed. Okay, it's really, really sad. But anyway, we got most people have answered, I'll give it another second. Got another 10 seconds ago? or so? And then I'll give you the answer. Unknown Speaker 38:48 I'll give you the results of the poll here. Come on, guys. Um, yeah. mccole is reminding us to those of you that did get the ideal advanced, they're actually sending out invitations to certain people who didn't get the full 10,000 it maxed out at 10,000. So 10 employees, if you could, if you if you had more employees, you could get the rest of the money. It's just a they're just trying to get rid of this money. I don't know why only three quarters of you have voted. That's weird to me, but I'm going to go ahead and close the poll. Unknown Speaker 39:21 And as you can see, just like I thought 80% of you didn't get the money but so we'll just spend a second on this. The 20% of you that did get that Ei DL. Unknown Speaker 39:34 Let me just explain to you the way that initially worked the old way. You could keep it kind of, but if you got a PPP loan and you did, you had to reduce your PPP forgiveness by the advance. That's the way it used to be. So this is how it used to be. Say you got a $5,000 ei dl advanced you have 5000 you have five employees. Unknown Speaker 40:00 Then later on, you got a PPP loan of 50,000 bucks. Unknown Speaker 40:04 And then immediately, you could get the 5000 forgiven. So you don't owe anything. But Unknown Speaker 40:13 when you prove later on when you apply for forgiveness, which we'll talk about forgiveness in a minute, when you get your 50k, and you spend it all on, let's say you spent it all on payroll. So you show the bank, you spent all 50k on payroll, they would only give you forgiveness of 45. Thereby, you basically had to pay the five back, so people were pissed about it. And so they're like, Okay, forget that. So now, the new law, the PPP no longer reduces forgiveness, if you got an advance of five, a PPP to 50, you don't even have to prove how you spent the five, as long as you spent 50. On payroll, you get to keep the five and you keep the fifth get keep to get the, you get to keep the 50 you get to keep all the money. Okay, so anybody who has an ideal advance, it was a grant, you get to keep it Oh, that's another thing people want to understand Unknown Speaker 41:10 this money, when you either the EDL advance, which is always a grant, or the PPP loan once it gets forgiven. That's a grant to it's a federal grant, and it should appear on your profit and loss as a federal grant from the Small Business Administration. All right. Okay. So, uh, that's it for that. So it's just about time for a little break here. And then we're going to get into the gory details of forgiveness. Let's say, is there any body who I have not Unknown Speaker 41:46 addressed yet? Does anybody have any questions before we take our little break? Unknown Speaker 41:52 I don't think so. Oh, here's a question. We did get a small amount of funding for a 501 c three, this is Robert, to cover operating costs, even though we have no paid staff. That's a regular loan. Yeah, that's not an ideal advance. That's an ideal loan. And that has to be paid back for sure. All right. So what I'm going to do now is I'm going to take a break here, let me see if I can do this. Unknown Speaker 42:27 This is, folks, this is actually how they're going to be doing the loan forgiveness. Unknown Speaker 42:33 It's based on your dancing ability, dancing, or get dancing ability. Unknown Speaker 42:47 here and by the way, Karen says I don't have a chat box so that the chat box we're not using, we're using the q&a. And the chat box. Let me go ahead and just mute this for myself, the chat box. So we're using the q&a. And we'll be speaking about eligible expenses for the second round of funding. Karen, we're going to spend all the next section talking about forgiveness. And that's really what your question relates to what can I spend it on in order to get forgiven? Lisa says once it's forgiven, where does it get put as a federal grant on the chart of accounts? elisamarie its income. It's an income account. All right. All right. So we'll let these two people dance for another minute or so. And then we'll start as soon as it hits three o'clock, then we'll start again. Unknown Speaker 43:41 But Unknown Speaker 43:44 let's say and Tim, isn't this, I believe this is you video. Tim from a few years ago from now. Yeah. Unknown Speaker 43:57 Totally, totally. This is before I had my children's Yes, yes. Yes. Well, yeah. Yeah. It changes the body when you when you have children. I Unknown Speaker 44:07 would I would just, you know, I started my throw downs. Unknown Speaker 44:14 Oh, my gosh, does anybody have anything snarky to put as a question before we move on, about how we're being completely inappropriate here during this webinar? Anybody have anything we're being I don't think we're being inappropriate like it? This could have went differently depending on what video? I do. I do have to bet to say my heart skipped a beat when you went to YouTube and started randomly googling things. So Unknown Speaker 44:41 everyone needs a dance break. That's right, Karen. Everybody does need a dance break. Yeah. Oh, there's the child. why don't why don't? We can will. As soon as she's done, we'll finish. All right. There you go. We'll we'll get back to the webinar. Do you happen to know if any newly announced the ideal Unknown Speaker 45:00 Advanced round is forgivable or alone. Now, as I already said, Lyndon, it scares me that you're asking this now because I just spent a whole section on it. The ideal advance is always forgivable. Oh, the new this newly announced the idea of advance all it is, is you getting the rest of money and it's completely forgivable. Okay. Unknown Speaker 45:21 Our organization teaches dance in schools. So this is perfectly well, Joyce, I did this exactly for you. Unknown Speaker 45:29 I did. Unknown Speaker 45:31 Alright. Alright. I think we're done now. Unknown Speaker 45:34 We made it without any new today. Unknown Speaker 45:38 So that's good. All right. Always a good goal for a professional PPP loan webinar. Unknown Speaker 45:44 All right. So Unknown Speaker 45:47 I don't want to make sure that everybody is here. And I think what I'm going to do is I'm going to do a poll. Unknown Speaker 45:53 So I want to know how much was your PPP loan? Now, if you got two loans, just pick one of them? They're probably both the same answer don't want the total, I want each one individually. Was your loan up to $50,000? Was your loan 50 to $150,000? Was your loan 150,000 to 1.999999? Or is your loan $2 million or more? Because if it is, I would like to talk to you after class because I need to borrow some money from you. But Unknown Speaker 46:30 anyway, okay. Oh, good. Everybody's back and ready to go. Most people look like they have answered, I'll give you a couple of more seconds here. We got 80 people that have answered. Unknown Speaker 46:40 And so let me go ahead and close the poll, so you can see this. Unknown Speaker 46:47 Alright, and there's reasons why I've answered it this way. So 29% of you or $50,000 or less. Unknown Speaker 46:57 You guys, it's so easy to get forgiveness, you won't even believe it. Okay, um, 50,000 to 150,000. Unknown Speaker 47:07 It's also really easy to get forgiveness, over 150 up to 1.999, which is 29% of you. Yeah, you got to fill out the whole form, and you have to give them proof. Okay, it's kind of a pain. If you're over 2 million, you're not here because no one's over 2 million. So don't worry about that. The only reason I put that there is because anybody over 2 million, their forms will be getting audited by the Unknown Speaker 47:33 SBA. So anyway, so there are new relaxed for forgiveness rules. So this is where we're going to get into what you have to spend the money on what the rules are in order to get forgiveness. Okay. All right. Unknown Speaker 47:47 Okay, four rules. Now, in order to understand the changes, you need to understand what the rules were to begin with. So there are four overall rules in terms of how you spend the money in order to get forgiveness, okay, yeah, to spend at least 60% on payroll, I think I'll say that, again, at least 60% on payroll, some people go, what if I spend more on payroll, they'll be happy about it, okay, you just have to spend at least 60%. And I'm going to tell you, they only gave you the loan is for 10 weeks of payroll, and they give you up to 24 weeks of much of time to spend it. So you can probably spend all of it on payroll and not worry about having to spend it on other things. Because there's certain other things you can spend it on the rest, you can spend it on rent, utilities, mortgage interest, and there's some other things that they added just recently, we'll go over those. You can't reduce your pay rates more than 25%. And you have to keep the number of employees the same. those last two things, freak people out. So we're going to talk about that because there's ways to get around those last two things. Okay. All right. There are two things that you need to know. All right. thing one, if your loan is $150,000 or less, it's much easier to forget get forgiveness than it used to be. There is a one page forgiveness form one page. Unknown Speaker 49:23 All you do is put the amount that you want forgiveness on. You say that you were in compliance with the law. You don't show any calculations. You don't give him any documents. Okay? You just sign it Unknown Speaker 49:40 and you're done. Okay. Now, what does it mean that you say that you're a test you were in compliance? Well, it means you spent 60% or more on payroll you spent the rest on the stuff you can spend it on. We'll talk about what it is in a minute. You don't reduce the pay rates, you keep the number of employees the same Unknown Speaker 50:00 That's what they mean by compliance. Which brings me to rule number two. Unknown Speaker 50:06 Thing two, on October 8 of last year, they changed the forgiveness rules just for those of you with loans of 50,000 or under. So if your loan is 50,000 or under Unknown Speaker 50:20 who has a listen, if you have a question about the employee rate, Debbie or the employee number, please hold your questions, because we'll get to that in a minute. Okay, who has loans of less than 50,000? But that's okay. Debbie, put it in there who has loans for less than 50,000? Put it in the chat? Unknown Speaker 50:39 Okay, well, Lisa Marie, this doesn't apply to you, hers was 50,500. That sucks. Okay, and is under 50. So this would be like for Anna, if your loans up to 50,000, those four rules that I was telling you about spend 60% on payroll, the rest on other stuff, don't reduce the pay, don't reduce the number of employees, those last two rules don't apply to you. If your loan is up to 50,000, you hear that again? They don't apply to you, oh, hey, Deb, how are you? Unknown Speaker 51:12 They don't apply to you. So if your loan is up to 50,000, all you got to do is spend at least 60%. On payroll, we'll talk about what payroll means and spend the rest on certain other things. We'll talk about what that means. And then you sign a one page document, and you're good. Okay. So this is a summary. If your loan is up to 50k, you got to spend 6%, on payroll 40%. On other stuff, you don't have to do that, you don't have to do that. And what you're going to do is you're basically filling out a form 3508 s, this is something you can get from the SBA, usually the bank has their own online form that you fill out that then the bank turns it into a 3508 s and sends it to the SBA for you. Okay, Unknown Speaker 52:00 if you're between 50 and 150, got to do 60% on payroll or more 40% of other stuff got to keep the staff levels up got to keep the pay rates up, I promise you, I'll get to how to get out of that later. Unknown Speaker 52:15 And what that means. But you have to fill out this same darn form 3508 s, which again, is a one page form, you don't have to do any calculations, you just sign it and send it in, it's easy. Again, they probably have their own form, that turns it into a 35 hour a day meeting the bank. Now for those of you that have more than 150k, you got to do all four of those things. And you have to fill out the regular form 3508 or 3508. Easy if you don't have any reductions in pay or staff levels, and that you do have to kind of give them some details. Okay. But if you're 150k or less, it's real, real easy. fact, let me show you the form. Here's the 3508 s, again, it's 450 or less, you just complete basic information you initial and bunch and a bunch of statements and sign. And the banks have their own form. But anyway, this is the form 3508. And in the deck, I gave you a link to it. And the reason why is because it's kind of nice to look at this thing and know what you're going to need to do before you fill out the equivalent of your form with the bank. So then you have all the information. All right. Unknown Speaker 53:35 Let's see. All right. So Robert had a question that I refuse to answer, because I'm not there yet. Unknown Speaker 53:43 Eric, will forgiveness be the same for round two? Yes, it will. Unknown Speaker 53:48 Let's say I'm going to give you the deductibles, Robert okay. There was an easy online form for forgiveness, it was forgiven in about two and a half weeks, I'm not sure what you're talking about, probably the 3508. But anyway, Alright, so here's the one page form, I'm going to zoom in on it so you can see it. So again, you probably won't fill out this form directly, you'll probably fill out the online form from your bank, and then they'll turn it into this form. Put the name of your organization, the address, your phone number, your phone number, email, address, email address your name. They need your nice code. In a I see s code. This is basically Unknown Speaker 54:35 a code that describes what type of business you're in. Unknown Speaker 54:41 It's a code that you can find for yourself by going to this particular website right here. And the only reason why they care about what code you put here is because there are some businesses that cannot get forgiven here. Unknown Speaker 55:00 Like hedge funds can't get forgiven. All right. And so but nonprofits always can, the nonprofit in AI ACS codes are, they always start with an 813. All right, so you got to get that code. And shoot, let me see if I can, I might be able to, you know what, I'll leave it alone. But you put your code there. Let me go back in here. So then if it's your first draw, you check that if it's a second draw, you check that you put your SBA PPP loan number here, and you put your lenders loan number here. So I'm just going to stop for a second and explain to you, when you signed not the application for your PPP loan, when you sign the actual loan document that came from your bank, Wells Fargo, Bank of America, cross river bank, wherever you got your money from, there were two loan numbers, one for the SBA and one for your bank, you need both of those numbers, you put them there, okay, you put the total amount of the loan, let me zoom in again. Unknown Speaker 56:13 Hold on, there we go. You put the total amount of the loan here, you put the date that you got the loan here. Unknown Speaker 56:22 Now, you put the number of employees you had at the time you applied for the loan, and you put the number of employees that you had at the time you applied for forgiveness here. Now people freak out here, because they're like, Oh, my God, if this number is less than this number, in other words, if I had to get rid of some employees, then I'm not going to get forgiveness, they'll see it right on this first page of the form and I'm in trouble. Wrong, wrong. And again, wrong. Okay, they do not use this first page to determine whether or not you got forgiveness. If your loan is less than 50,000, you don't have to have the same number of employees. Even if your loan is more than 50,000. There's lots of ways of getting out of having to get a reduction because you got rid of employees, okay, we'll explain to you how to get out of that role. So just be honest here, number of employees, the time of application, here, number of employees at the time of forgiveness over here, okay? Now, they want you to put your period that you use the money in now the period can be anywhere from eight weeks to 24 weeks. So whenever you decide you've spent all the money and you're going for forgiveness, you put that here, I would tell you, and I think it behooves you to always put the maximum 24 weeks even if you spend it less than 24 weeks, it gives you the most flexibility to make sure you get forgiveness. Okay. So here under the covered period, you put the date you got the money Count 24 weeks from that day, and that's the date you're going to put here. Okay, for your first round of PPP, your first round, this date can not be after December 31, and 2020. So for your first round of PPP, which is probably what you're trying to get forgiveness for now. You put the day you received it here, you cannot put anything after December 31 2020. See Count 24 weeks. And if it's after December, then you just put December 2020. There, okay? You put the amount that you spent on payroll costs here, because they want to make sure that this is at least 60% of your loan amount. Here, you put the amount that you're requesting forgiveness for for in this case, I just say I spent exactly, exactly 60% on payroll, and then the rest. This is the total loan amount here. That's it. I signed something saying I did what I was supposed to do. I signed something saying I'm not lying to you. I sign again at the bottom and I'm done. That's the whole form. It's that easy. Okay, it's not that big of a deal is the number of employees FTS are actual number. I don't think it matters. So I'm going to put actual number here. The FTP happens later on. But it's not for this first page. If we add no payroll, can we still keep 40% of the loan to cover the other acceptable uses? Robert? Absolutely not. You The only amount you can get forgiveness for Robert, is you take the amount you want to get forget what you take the amount you use for payroll, you divide it by 60%. Unknown Speaker 59:46 And that's the number you can get forgiveness for if you didn't spend a penny on payroll, you can't get forgiveness on any of it. Okay, can we hire an intern with these funds? So Jeff, now we're getting into the details of what Unknown Speaker 1:00:00 You can do with the money. And I'm going to end what payroll means. And I'm going to get to that in a minute. Okay. Alright, so just hang on for that, again, the bank has their own form online. Unknown Speaker 1:00:12 And how long do you have to file for forgiveness? This is another thing. People freak out there. Like, I want to get forgiveness quick lay. Well, if you had applied for forgiveness last year, and you were less than 50,000, or you were less than 150,000, you would have had to have given him proof of how you spent the money. Now they change the law in 2021. It was advantageous to wait to get forgiveness because the longer we waited, the easier it got. So I'm glad you haven't applied for forgiveness yet. I hope you haven't. Anyway, you have 10 months Unknown Speaker 1:00:51 after the last day of your covered period, your forgiveness period 24 weeks, okay. You have 10 months after the last day of your forgiveness period. Unknown Speaker 1:01:03 So let me ask you a question here. Let's say the last day of your covered period was December 31 2020. What's the last day of your forgiveness period? Put it in the chat or I'm sorry, in the questions. Put it in the questions. What's the last day of your forgiveness? Have you have to file for forgiveness is what I'm saying? If the last day of your forgiveness, period is December 31? was the last day you have to try and yes, you got it right October the 31st. So I'm teaching Well, at least three of you understand what I'm saying? That's right. All right. Okay. Now, those of you and I understand it, you had to get rid of some people because you didn't have money. Right? So or you didn't have a need, because you're a theater and you couldn't neuron because you couldn't have shows, you know? So how do you avoid having the amount of forgiveness reduced, because you got rid of people? There are three ways. Either you hired the people back on the day you applied for forgiveness. Now, I know this seems like a crazy stupid loophole. But the way the law works, it's true. You could seriously hire everybody back, right? before you apply for forgiveness, then apply for forgiveness, and then fire them all again. I mean, it's stupid, but that would work. Okay. You can also exclude people from the calculation. If there's certain people can be excluded, like somebody that you had to let go because they stole from you or something, you can exclude people that were fired with cause or people that quit stuff like that, we'll talk about this. And another reason why you don't have to pay attention to this rule is if the government told you that you really couldn't operate at your regular level, because it COVID like you're a theater, and you couldn't do shows, they're not going to make you keep employees to just stand around all day doing nothing. Okay. All right. So Unknown Speaker 1:03:13 now I'm getting into the specifics of these three things. One way to avoid the FTP reduction, if you reduce the number of employees is to hire people back by the end. So let's say that you reduce your staff after February 15 of 2020, when COVID started, okay. As long as you bring your staff back up by the end of the period, then you can get forgiveness. All right, okay, then you can ignore the reduction. So that's the first thing. Unknown Speaker 1:03:46 All right. And the second thing, this is where you're basically calculating how many employees you had before the COVID period, and on the date that you file the application, there is a little bit of a weirdness that I want to talk about, it would seem to me that you would need to get your employees up by the end of the forgiveness period in order to avoid but really, you have to get your employees back up by the day that you apply for forgiveness. So that may be a reason to apply for forgiveness a little bit earlier, because right now I have all my staff levels backups, let me Hurry up and apply for forgiveness before I have to get rid of people. But anyway, Unknown Speaker 1:04:29 when you're calculating this thing, again, you can exclude employees from calculation. Unknown Speaker 1:04:39 If Unknown Speaker 1:04:41 they went to you and asked for a reduction in the number of hours that they work, or they were fired, because they suck or they stole money, they're bad, or they quit, or you let them go, but then when you ask them to come back Unknown Speaker 1:05:00 They refused, okay, then you can exclude them from calculating whether or not you have an employee a number of employee problem. Okay? In all of these cases, though, you had to have at least tried to find somebody to replace them. And you want to keep some sort of record to prove it, if anybody ever asks. So maybe some sort of an ad that you put in indeed, or, Unknown Speaker 1:05:28 you know, the letter when you fired somebody showing what the cause was, and, you know, showing that you tried to find somebody else, and then you couldn't, something like that. What if someone retires? Well, they quit Joyce, so you don't have to include them as long as you made a good faith effort to try to find somebody else. Okay. And you couldn't find somebody? Now, even if you can, even if you just decide you don't want to hire somebody else, it may be because you can't operate. Again, if you're a theater, why would I fois force a theater to go and hire a bunch of actors when they can't do shows. So the third way to get out of this rule Unknown Speaker 1:06:16 is basically that you couldn't operate. So what that means is, you made a good faith effort to operate, but you couldn't return to the same level of activity pre COVID, because the federal government stated, Unknown Speaker 1:06:32 either by requiring it, like you can't have shows or guidance, like you really shouldn't have a lot of people here, CDC guidance, okay. Unknown Speaker 1:06:44 And this requirement or guidance, it doesn't have to be from the federal government, it can be from the federal government, but it can also be an indirect governmental agency as well, which means a state or local. So I'm here in Atlanta, so the city of Atlanta, I don't know if you've been paying attention to the news, but the mayor and the governor don't like each other, the mayor's Democrat, the governor of Georgia is Republican. So the mayor did a shutdown. And the governor of the state said, We ain't doing a shutdown, and there was a fight between the governor and the mayor, but the mayor did is to shut down. And even if it was just guidance, not even you have to close, but we think it's best that you close based on CDC, then that counts and you couldn't operate. Okay. So I think this is something that a lot of people are going to use. Okay. Let's see what timeframes do we compare to determine if there's a reduction in FTS? Okay, I'll go back up to that slide. Let me go back up to that slide. And I'll show you two. Good question. Unknown Speaker 1:07:55 Okay, so in order to see whether you got the FTS, if they went down, and then they went back up, so basically, you compare your full time employee number on February the 15th, to 2020. Unknown Speaker 1:08:11 You compare that hold on, Unknown Speaker 1:08:15 you compare that to the F t, at the end of your, Unknown Speaker 1:08:22 at the end of your period, actually, what they want you to do is I want you to compare it to the application date is what they want you to do. So they want you to take the FTS on February 15 of 2020 and compare it to the date that you're trying to apply for forgiveness. Okay. So hopefully that answers your question. Okay. Unknown Speaker 1:08:41 That was for marine. All right. So let me go back to what I was doing. Unknown Speaker 1:08:49 Because we got the most important thing to cover next, which is what cost can you include? Okay, so this gets to I think, somebody else's question. Um, Unknown Speaker 1:09:06 yeah. Chris had a good question, though. If we go from one full time employee to two part time employees, can the loan be totally forgiven? Yes. One full time employee equals two part time employees. That's right. All right. So what costs can you include, specifically? So it has to be at least 60% for payroll, the other 40% can be on other things, as I've already stated, they're giving you 10 weeks of payroll each time and you have 24 weeks to spend it, you can probably just use all of it for payroll. Okay, so let's talk about payroll first, what does it mean? It means two things, cash compensation. And by that, I don't mean handing dollar bills to the employer. I don't mean cash. I just mean their compensation, their wages, whatever on that w two Unknown Speaker 1:09:55 and other costs, okay. And we'll talk about what the other payroll costs are. Whatever. Unknown Speaker 1:10:00 would be health insurance. Okay. But anyway, let's just do cash compensation. It includes gross salaries and wages, gross tips, gross commissions paid leave. Separation pay, okay? If you're a house of worship, it does include housing allowances. Okay? What about extra pay bonus hazard pay the answer. All that matters is when you pay it, what you call it is irrelevant. So in other words, any money you give the person during that covered period, that 24 week period, you can include for forgiveness, okay? Unknown Speaker 1:10:38 Even if there's one other one exception to that the very last pay period of your forgiveness period is usually not paid till after the period is over. You can include that also. So basically, the day you get that money from that day forward, every single payroll can be included for 24 weeks, and then the very next payroll after that, that can be included as well. Alright, so, um, and let's see. Now one thing I need to say to you, Unknown Speaker 1:11:15 not if it's over $100,000, okay, it's limited, the amount per employee is limited to anything up to $100,000 annualized per employee. Okay? Basically just look at the camera here. Unknown Speaker 1:11:33 The SBA said, Look, we want to help you pay your employees, but anybody who's making more than 100k, we're not helping you more than 100k, we're only helping you up to 100k annualized, okay? It's not like they're saying, we'll pay up to 100,000k. Now, they're saying, whatever the annualized, if you took what you want forgiven, and you multiplied it out to make it an annualized amount, if it's more than 100k, we're not doing that we're only forgiving it up to 100k of annualized. So it might be easier to explain it this way. So let's say you decide your covered period is going to be 24 weeks of pay. If you have somebody who's making more than $100,000 a year, okay? The amount that you can ask forgiveness for for that one employee is capped at, Unknown Speaker 1:12:23 you take $100,000 divided by 52 weeks, you get 19 $123. You multiply that by 24 weeks, you get $46,154. So what I'm basically telling you is you will not be able to get forgiveness more than $46,154 for every single one of your employees. So if you have two employees, and they both make $100,000, then you multiply that by two, that's your forgiveness. If you have three employees that all make over 100,000. That's your forgiveness for those three employees anyway. Okay. So that's kind of the dealio. With that. Does everybody understand that $100,000 thing? Unknown Speaker 1:13:06 Let's see if there's any questions here. No, looks like everybody understands. Okay. Unknown Speaker 1:13:13 Just a few more things. The other thing it includes is employer paid, insurance, retirement and state tax employer paid, I'm gonna get up and look at the screen again, because there's some of you that are confused about this. This happens every time I teach a webinar, so let me just get it real close to the screen. Employer paid, okay, employer paid. So Unknown Speaker 1:13:39 what insurance are they talking about? health, life, disability, vision and dental. That's what they're talking about. Not talking about workers comp. Okay. All right. So I'm going to give you a quiz here. pay stub, say you have a person's pay stub, the gross pay is 20 $500. The federal tax withheld is 300. This fica is 200. The state is 150. Health insurance is 150. Retirement is 200. Their net pay is 1500. Unknown Speaker 1:14:11 What is eligible for forgiveness in this example? All right, and I'm going to do it as a poll. Unknown Speaker 1:14:20 I want to see if I'm teaching well. Unknown Speaker 1:14:23 What is eligible for forgiveness? Unknown Speaker 1:14:27 either 1500 2500 or 2850. Okay. And only a quarter of you have voted and as I'm waiting for you to answer I'll explain to you it's whatever the gross wages are the employee you can include that for forgiveness, and employ our Hello employee earn paid health insurance, retirement and state tax. Okay. So cool. So it looks like a quarter Unknown Speaker 1:15:00 Have you so far are three quarters of you have this right? But a quarter of you do not understand it. So I'm going to say it again. Unknown Speaker 1:15:11 It's whatever the gross pay is, and employ are paid. Unknown Speaker 1:15:20 retirement and state tax, anybody want to change their answer? I don't know if you can change your answer or not see if anybody changes their answer. Unknown Speaker 1:15:30 All right, so we still got half of you that haven't even voted yet. So I want you to vote just pick something. Unknown Speaker 1:15:38 You can't win if you don't play. Okay. So just pick something. All right. All right. So I'm going to go ahead and close the poll. I knew I was gonna have to teach all this. Okay, so I'm going to close the poll here. And the right answer is 20 $500. This is the right answer. 20 $500. Okay. Now, some of you said that it was 2850. Because you took this 2500. And you took the health insurance and you took the retirement and you added it up and you got 2850. It's employ our health insurance that can be added to PPP, this 150 is deducted from the gross. Same with the retirement, this is already included in the 2500. You can't include it again. It's 2500. Now, if you have you put 1500 That's crazy. That's just the net pay, it's the gross pay, you can include just because some of the money was given to the federal government, because the employee owes taxes, it's still their wages, and you still have to pay it and it can still be included. So it's gross wages. Okay. Does that make sense? Okay. All right. So let me go on, and I'm going to do the same thing. Now. Unknown Speaker 1:17:02 That's weird. Can y'all still see the screen? Unknown Speaker 1:17:06 Something popped up here. I want to make sure y'all can still the sheet see the screen? Can y'all still see the screen? Somebody put it in the questions? Can y'all still see the screen? Yes. Okay, good. All right. So Unknown Speaker 1:17:17 in this example, the employer is matching the health insurance by adding their own $200. And the employer is also matching their retirement with another $200. Now, how much is available for forgiveness? And I will do this as a poll to. Unknown Speaker 1:17:40 Okay, and I'll launch this now, what's available for forgiveness? 2500 2900 or 3250? Okay, so, let's see, we have, I'm real glad to see that most people are getting the right answer here. Okay, but I'm still scared. Some people are still wanting to add the health insurance that has been deducted. That's wrong, the only amount that's eligible for forgiveness. Let me go ahead and close this poll Unknown Speaker 1:18:15 is Unknown Speaker 1:18:17 the gross pay actually, I think I have it in here, hold on. Unknown Speaker 1:18:22 gross pay, plus the employee ers matching share of health insurance, and retirement. So the total is 2900. All right. So um, the only other thing that I want to cover now is the non payroll costs. And again, you might be able to get forgiveness without using any of these other costs. But I will tell you that because you're a nonprofit, you may have gotten grants that are used to pay for some of your payroll, if you are going to go to a grand tour and say, I'm using your money to make payroll, you can't ask forgiveness for that. Because then you're double dipping, because remember, this is a grant ultimately, like any other grant, you can't use the same paycheck to get reimbursement from two grants. Okay. So for that reason, you may say, you know what, well, some of this stuff, I'm going to use that 40% of it or less or whatever, but some of it I'm going to use to pay other things. What are those other things? They are Unknown Speaker 1:19:25 mortgage interest, and rent or lease payments? All right. Also utilities on by the way, when I say mortgage and rent, it's not just on your space. We have a Well actually we don't but I have clients that that lease their copiers, you can include that. You can include the lease on your postage meter. All right. All right. utilities. That means electricity, gas and water. It also means your telephone. Okay, your cell phone bill, I would think it also includes Unknown Speaker 1:20:00 Your internet bill. It also includes transportation, which would be gasoline for the company car, per diems for mileage reimbursing to employees, and rideshares, like Uber or Lyft, or cab rides or transit cards that you give to employees, okay. And there is some new stuff that's been added any software or cloud computing service that facilitates business operations. That means QuickBooks, your payroll service fees from your payroll company, your QuickBooks fees, your donor database fees like neon CRM, they can be included inventory management software and Adobe subscription zooms, subscription, your web hosting fees, all that can be included for forgiveness, okay. And any property damage from looting or vandalism that wasn't covered by insurance, they added this because it was a lot of looting last year, I don't know if you noticed, we were having unrest in this country. And so they allow that to be included. And also, if you had to purchase PP, pp, which is personal protection, equipment, like masks and sanitizer, all the way to where you have to like retrofit your hva See, to get clean air or something like that all that can be included as well. Okay. This is a list of documentation that you may need. Again, if your loan is less than 150,000, you don't have to give any good documentation. If it's over 150, here's a list it will be in the deck for you. And I think that's it. So, um, what I want to do is, let me scroll down here to the bottom. Okay, so I have some questions here that I want to answer. So what I'm going to do is I'm going to because I'm tired of just listening to myself, I'm going to have you come on the line Barb, and we'll do these questions. And we'll stay a few minutes late if we need to. But before I do that, there is one thing that I would like to say, Unknown Speaker 1:22:11 every year, at the end of May, the beginning of June, we have a three day webinar series, it's two hours a day for three days, and it teaches you soup to nuts, everything you need to know about using QuickBooks Online. That one is on June 1, the second, the third, and everything you need to know about learning QuickBooks desktop, that's on May the 25th 26th and 27. It's from two to four. It's fun. I'm the one teaching barbs in the background. I'm hoping Barb that you can speak Have they given you the ability to talk Barb? I can I can talk Yes, I can. Unknown Speaker 1:22:52 It's good to hear your voice. And normally this is $249, we're going to give you a $30 off coupon code because you came to this webinar. So it's actually only 219. For you. It's a wonderful way to learn. Because you've got two hours, we take a break after an hour, so you can chill. I have music on that one, by the way. So we play music. And then you have 24 hours to kind of think about what we've talked about trying to apply it and then day two, you come back, it's the same people, we learn more. All right, so to sign up for it, you go to QuickBooks Made easy.com. So I'm just going to go to my website, QuickBooks Made Easy calm here. And let me just pull up QuickBooks Made Easy. Unknown Speaker 1:23:44 Whoops. Unknown Speaker 1:23:47 QuickBooks Made Easy, calm. Unknown Speaker 1:23:53 And when you get here, this is my shameless self promotion. You go to courses and training, you go to webinars. Unknown Speaker 1:24:02 And this is what I'm talking about. It's the fundamental three day webinar series. This is the one for desktop users. This is the one for online users, you simply click it and it'll give you here's all the stuff that we cover on day one. All the stuff on day two, and all that stuff on day three. It's really, really fun, and you'll love it. So anyway, um, so Barb, did you want to take a few of these questions here at the end? Or? Unknown Speaker 1:24:29 Well, yeah, actually, there was one question on the $100,000. My understanding was that you took 100,000 divided by 52 weeks, times two and a half months divided by 12 times 2.5. That was the maximum that you could get, no might take you eight weeks or 24 weeks. If you take you take 100,000 and you divide it by 52 weeks. Unknown Speaker 1:25:00 And then you multiply it Unknown Speaker 1:25:03 by 24 weeks, if that's your period, and you get $46,154. That's the maximum. You're talking about the original loan, I'm talking about giveness. The original loan that you can only be 20. Yeah, is 10 weeks of pay. But the fight giveness, the maximum amount they're gonna forget, because see, you could raise somebody's salary up right after you got the money. And so I just telling you that when you go for forgiveness, your maximum per person is $46,154 is directly on the form. I see what you're saying, because theoretically, they're only giving you 10 weeks to pay so corral. That's what Okay, all right. Yeah. So the one question about where you would show this, I'm telling my clients to show the forgiveness as when you when you get your letter of forgiveness, I'm saying do a journal entry that says I'm going to zero out my loan on the balance sheet, that would be a debit to that liability. And a credit to an other income account is where I'm putting it way down, I Unknown Speaker 1:26:14 see this PPP loan wells is $10,000. So what you're saying is we're going to do a journal entry. Unknown Speaker 1:26:23 So I'm going to, I think I have it memorized here. Unknown Speaker 1:26:27 Here it is. Unknown Speaker 1:26:29 So we're going to do a journal entry to debit the loan $10,000. And I put it to government grants, what you're suggesting is to put it to an account all the way down at the bottom, because it's such a unique thing. So I'm going to call it PPP loan forgiveness. Unknown Speaker 1:26:51 So that I can match what you're saying right now, by really, it's a federal grant. But the only, the only reason I prefer to put it way down at the bottom is because I want to know that I can't really count on that when I'm looking at my government grants year over year over year, it's just different. Now in order to put it way down at the bottom, what she wants you to do is point it to the mate when you create the account. So she's saying create a unique income account for it, make it an other income account down here, don't make it an income account, make it an other income account. And those of you with the Online Edition, you have that ability as well. So I'm going to go ahead and save that. Oh, darn it Unknown Speaker 1:27:38 flown Unknown Speaker 1:27:40 for given. Unknown Speaker 1:27:45 Alright. Unknown Speaker 1:27:47 There we go. So now I'm going to go ahead and just save and close that, Oh, well, I might want to put the right number in it. Unknown Speaker 1:27:56 Alright, let's take a look at the p&l so we can see what she's talking about here. Unknown Speaker 1:28:01 Reports. So let's just do a profit and loss standard for Unknown Speaker 1:28:08 last fiscal year. Well, I guess this fiscal year. Unknown Speaker 1:28:16 Alright, so your government grants, I put it up here she's saying, I don't like to hear cuz that's such a weird thing. So she puts it all the way down here like this. Unknown Speaker 1:28:28 That makes sense. Okay, go for it, what else you got? Unknown Speaker 1:28:33 And the other question was, that there was a question about, if you've got this PvP loan, and it throws you over the limit for your 990 threshold? How does that affect which form you use or not use or whatever? In terms of ozy are though? Yeah, I mean, then you have to fill out a I gotta see what the rules are. I can't remember what the rules are for when you like, if you're over 50,000. If you're under 50,000, you can fill out a 990 n, which is just a 10 question form. It's not even really a form. You do it online. It's not even a real form. But the 990 ez. Unknown Speaker 1:29:18 Let's see what the income threshold is for that. Unknown Speaker 1:29:26 Let's say Unknown Speaker 1:29:31 groceries receipts of less than 200,000 and total assets of less than 500,000. So if you're over 200,000, then you would have to do a regular 990 rather than a 990 ez. Now let's see if they have some sort of special law. I don't know. I'm saying that you can ignore it. Let's say if my PPP is the only reason Unknown Speaker 1:30:00 Isn't Unknown Speaker 1:30:01 I'm Unknown Speaker 1:30:03 over 200,000 Unknown Speaker 1:30:07 in income? Unknown Speaker 1:30:12 Can I still file a 990? EZ? Alright, let's see if anybody has dealt with this. Um, Unknown Speaker 1:30:24 it doesn't look like there's been anything um, Unknown Speaker 1:30:32 it looks like you still have to do it 990, EZ and PPP Unknown Speaker 1:30:42 loan? I don't think so I think there's no, it doesn't look like there's any special thing to get out of it. But in nine, so the same thing with regard to the audit limit then to correct? No. Now let me talk about that the audit limit, if you what they're talking about is if you have more than $750,000 in federal grants, either direct from the federal government or pastor from the state, then you have to do a federal audit. That's called a single audit. It's a real pain in the butt audit, those of you that have to have gone through it because they don't just look at numbers. They look at whether or not you're in compliance with your programmatic requirements and stuff. Unknown Speaker 1:31:24 But anyway, I had a client that was like we're always under 750,000. So we never have to do a single audit. But now because of our PPP loan that puts us over 750,000, the federal government said you can ignore it. So just because PPP threw you over the limit, you don't have to worry about that. Unknown Speaker 1:31:43 That was that was a good question. Yeah. Yeah. Let's say I'll look at the bottom on non payroll costs, can you get forgiven for rent that has been deferred until the current time? It's when you pay it? Unknown Speaker 1:31:57 That matters? So I believe you still can Yes, we applied for round one through PNC and received the money may 11th. But they are still not letting us apply for forgiveness yet. Any suggestions? You know what my suggestion is Debbie? Take a Xanax and have a drink. It doesn't matter. eventually they'll let you apply. Unknown Speaker 1:32:20 Alright, um, a question about record keeping. We did make copies and file all the payroll utility expenses, we charged to PPP. I know. You said we don't have to turn those in. Yes, you would keep those and you keep them for Unknown Speaker 1:32:37 I have it in the deck here. Unknown Speaker 1:32:41 I want to say you have to keep them for six years. Six years, you keep them for six years. Okay. PPP to less than 150, we have one employee whose pay was reduced by more than 25%. Which form should we use for forgiveness, you use 3508 s Marine, and then you do something to either get the pay back up, or you'll get a little bit of a reduction in the amount that you can get forgiveness for, for the software costs, is it have to be paid during the 24 weeks to cover the period? It needs to be paid during that 24 week period. And just to cut you off in advance? Some people pay the entire year at once that counts. I don't think there's a problem. Did the 25% reduction requirement change? No, it did not. Um, let's see. Unknown Speaker 1:33:38 Well, there's a lot in here. Unknown Speaker 1:33:45 What payroll dates do we use for our 2.5 months applying for the second round? Unknown Speaker 1:33:53 From the date you get the money? Two and a half all when you're applying? I'm sorry, when you're applying for the second round, you use? Unknown Speaker 1:34:05 I can't remember what it is is the same. It's the same time period that you use for the first round. Unknown Speaker 1:34:12 It's in 2019, isn't that right? Unknown Speaker 1:34:16 Do you do you have an answer on that, Barbara? Well, I've had banks tell me that they can use the same as 2019. Or they can use a period in 2020. Okay, I think it's the same period in 2019. Because it's supposed to be before the COVID period started. Unknown Speaker 1:34:36 where's the best place to refer to further insight into the added new of allowable costs to include in the forgiveness for example, what if you cannot retrofit an existing hv AC system? So complete upgrade is necessary? Bonnie, there is nowhere to look for that kind of stuff. It's up to interpretation by the bank. So when in doubt, push it to the limit girl. All right. That's my answer. Unknown Speaker 1:35:00 If you have deferred rent and pay it during the time of your PPP, can you count at all? I would, yes. No. Okay. Now, Lisa, if we sign a lease for two new copiers after the date of our second PPP loan, can we count that? No, I didn't mention this before lease payments, they need to be leases that were in place on February the 15th of 2020. The goal was to be able to allow you to continue at the level that you're in not signing new leases. Okay. All right. What about employer taxes and social security on top of gross payroll? Patricia sheds yet? You already answered that. No. Unknown Speaker 1:35:45 Can you show data again? Unknown Speaker 1:35:49 I don't know what that means. Joyce. Oh, I think they I think they were asking during your poll to see the numbers again, so they can come up with the right number. So all right. mark that off? Yep. All right. Okay, so I think we're done. What do you think, Tim? Are you around still? Unknown Speaker 1:36:10 Timothy? There he is. And you're on mute. Unknown Speaker 1:36:21 There you are. Now you're not on mute. Now I can hear you. Now you can hear me. I mean, my final push is just to go to the webinars here and click on here. And then I can't remember what the code was. And then while I'm finding you feel free to babble, it's in the deck, Unknown Speaker 1:36:37 as well. So neon 30 for 30% off. You know the the other thing actually, I don't know if this was asked or courses like this something that can be Unknown Speaker 1:36:47 forgiven? No. Unknown Speaker 1:36:51 No software, not learning software, but the subscription itself. So the money they pay you Tim can be used not the money they pay me. Unknown Speaker 1:37:02 Okay, well, then what you do is responsible drive those savings back into Greg's fantastic donor management system mapping to QuickBooks. Oh, yeah. Well, one of the services we offer, I suppose we should mention that since we're in a class full of neon users. If you go to nonprofits services, and you go to mapping to QuickBooks, and you view the service, this will, this is where I and my team will help you map we only do it for neon and one other CRM, I will help you will actually map it for you and get you set up so that your neon transactions automatically download into QuickBooks, so you don't have to re enter them. Basically, the reason that I reached out to Greg years ago was for this. And so it's blossomed into much broader partnership that has helped so many people, Greg, so I wanted to thank you for your time again today. Unknown Speaker 1:38:06 I know we're gonna continue to do awesome stuff together throughout the rest of 2021 and beyond. Unknown Speaker 1:38:13 So do you have any final thoughts? Actually, um, Unknown Speaker 1:38:20 scrape your tongue. If you don't scrape your tongue, you should scrape your tongue with one of those tongue scrapers. it'll prevent you from having bad breath. I think that's really all I have to say. Great. We'll end on that. So Unknown Speaker 1:38:36 thank you, folks, for staying a little bit over we again, this was a massive one that we want to do for you today. We don't do these often. Heck, Greg, I'm trying to actually cut our stuff down to a half an hour. But I think that this was one that needs all of this detail. And you make it fun and exciting. So I'm very grateful for you. and me, you and and as a matter of fact, I just signed somebody to help push somebody to you this morning, somebody that's looking, they tried another CRM, but it was a big nightmare, particularly the mapping. And so then they heard about neon. And I was like, yeah, Neon is great. You need to you need to use them. So you'll build connect with Greg and make sure it's the same person that I have tracked so we can measure somebody a couple hours ago. So I think I think it's the same sentiment. So yeah. Unknown Speaker 1:39:27 Then we're good. I remade a note. So where are we calling? Alright, folks, thank you so much for joining us today. Greg. I know we'll see. This is great. Thank you, Chris, Jeff, and all the Joyce everybody who who stayed through the whole thing. But you know, this is recorded, you can always refer back to it, and we'll get this up as soon as possible. Oh, and Thank you, Barbara. I love you. Unknown Speaker 1:39:51 Alright, we go. That's a great, great way to um, see you too. Unknown Speaker 1:39:56 Bye, everybody. Bye. Thank you, everyone. Transcribed by https://otter.ai