Payroll Protection Program (PPP) for Schedule C’s

Hi Studio Owners, I'm Donna Bordeaux with pyopaccounting.com are you taxed as a sole proprietor filing a Schedule C? New rules have come about with the PPP program that may allow you to get a higher amount or get an amount if you weren't eligible before. In prior rulings, you had to use the bottom line number on your Schedule C, which constituted your net profit. So that is all the receipts minus all the expenses you've deducted. A lot of things that have made your income go down and may have hurt you in the PPP qualification process. The new rules allow any sole proprietor filing a Schedule C to use Gross Income line seven of your Schedule C. This would be the amount of receipts that you collect initially before expenses. Now, if you have employees, you will deduct the wages that you pay them, as well as any employee benefits or pension contributions made on their behalf. But you'll be able to use that number to calculate your PPP so it does not have to include all of your other expenditures. This does max out at $100,000. So if you max that out at $100,000 and you get two and a half months of PPP, that would be $20,833. For many sole proprietors, this is a huge change over where they were before, especially if you were showing a loss. In the past, you couldn't even get the PPP loan. Now you may be eligible, so make sure that your revenue numbers are still in the decline, which is pretty easy for most studios to show. You'll be able to apply the new applications should be coming out the week of March 8th. I'm Donna Bordeaux with pyopaccounting.com if there's anything we can do to help, please just click on the let's Chat and we'll schedule a time to meet. Thank you.