PPP and COVID Relief Breakdown Pt 2 | Main Street Business Podcast |

Foreign. Welcome everybody to today's episode of the Main Street Business Podcast. I'm here with my amazing co host Matt Sorenson talking about the PPP and Covid relief. Again. This is only going to be part two of I can imagine multiple sections as we continue to unravel this massive legislation. Matt, your initial thoughts?

Well, the good news is Trump signed it after some games, you know, and you know, he managed to piss everybody off, the Democrats and the Republicans, but it's signed. So we now have this bill we talked about on last week's podcast. We're going to break it down even further, give some more updates on ppp we found that are really helpful and hit some other tax areas that, that are really applicable, I think to business owners. So the good news is they did put in some decent relief. There's something in here I'd like with this stimulus, but there's like something in here for everyone. Really. Yeah.

And also I'll say this right now, I'm not even going to think that I am going to say that there is something in here for everybody. I don't care if you're a billionaire, a millionaire or a hundred dollar error, whatever, you got 100 bucks in your pocket, there's something in here for you. And let me and we're going to get to it today. But I'll tell you right now, the dining deduction is I think the hidden gem of this legislation. For the next two years we're going to talk about it. So there's a little teaser of how good this show is going to be. Now we want to welcome you. If you've just found this podcast, we're here every week. We've got in the can close to 500 episodes over the last 10 years and we've got a great five star rating. We love to have you stay and listen to many of our episodes from the past and into the future. We try to make tax legal, business building, wealth building, planning, fun, entertaining. And both of us as tax lawyers, we've tried to become nationwide experts in these topics we cover. We have wonderful guests. But for the next few weeks I think we're going to be knee deep in this. We'll probably do more of a Q and A podcast next week, but for now we're still trying to unravel this. So we've got, we're just going to talk about it today, tell you what we're finding and hopefully yeah, and we

hit some social media. We did some social media posts. I do have some questions that did come in. We'll fill some of those along the way. But let me first hit ppp. We talked about it last week. Paycheck protection program. A lot of small business owners went out and got these loans. There's two important updates for those that already got loans, and then there's a whole new round of funding out there that you can go get, what's called a second draw. So let me just summarize that first, and then we can move into some of these new topics. Is that all right?

Yeah, I'd like to as well. I think for everybody out there that already had a loan, they may be thinking, should I, shouldn't I? Well, we'll come to that. But if you did get a loan, you give your point. I got a couple of thoughts, too. You go first.

Yeah. So one of the hanging areas out there was the IRS said, hey, if you get your PPP loan forgiven, we're going to tax you. You don't get to deduct all the money you spent on wages and everything was basically a way for them to effectively tax your PPP loan. So Congress reversed that. That was in the bill. So all PPP loans, if you've already been forgiven on the first round or you. You're ready to apply for forgiveness, don't stress that has been fixed. You will not be taxed on it. So that's update one for existing PPP borrowers.

Okay. Next, along with that, they try to make it easier to get forgiveness. Now, previously turning the corner into this last month, there was really kind of three applications. There was the Easy. If you have no employees, I've got an article out there on Entrepreneur magazine. Easy to find. Well read. Please check it out. It's got a link to the Easy PPP application. If you were out there and met certain criteria with no employees, then there was this kind of a simplified app for under 150 grand. And then anybody above that kind of had to go through a bigger application. Now they've tried to even simplify it further. Can you explain it, Matt? You've probably. I've heard you do it better than me, as I've tried to.

Yeah, they basically, what they did, it sounds like, is the Easy app, which SBA was only letting you do if you had 50,000 or less, they're going to let you do it for 150 or less. So the. The rule is in the bill. SBA has to come up with a new forgiveness app for loans. 150,000 or less that is limited to one page, does not have calculations Other than the loan amount and to say you qualify and you submit it, you're done.

I love it. It's like the perfect test for a fifth grader math class. You know, it's like, I want one page. I don't want to do any calculations. Just. I just want to get an A. I just want an A. Yeah. You know, so this in high school.

Yeah, it's kind of like the math test of, like, where you don't need to show all your work. You just put the top amount. Here's the loan I got. Here's how much I want forgiven. Sign it and say, I qualify. You're good. Yeah.

Now, people have got to be careful not to take advantage of this and lie, cheat, or steal because you get caught. It is not pretty. But the government is kind of doing this to say, we're sick of this too. No one wants to read all these applications. The sba, those poor people are all on antidepressants, so they're just begging for a simple process as well. But there will be spot checks, There will be spot audits. We have already seen across the country. You'll see it in the news cycle. People that have gotten arrested and already thrown into jail. It is criminal if you screw around with this, but it is simple. Okay, so we're waiting for that new app to come out. Of course, you'll get it here first. At the Main Street Business Podcast, we have a weekly newsletter. We hope all of you have signed up for that previously. Please just click on it. If you don't click on it on a regular basis, our client resource management system will stop sending you an email. You have to open it once in a while. But whenever we get new information on this, you'll see it in the newsletter or you'll get it here at the podcast. So that's the forgiveness part. Okay, now if I want round two, what would you tell people?

Okay, if you went want round two, it's similar to the first round for most people. You get two and a half months of your average monthly payroll from 2019. So if your average monthly payroll is 100 grand, you can get a $250,000 second draw PPP loan. If you're in the food or restaurant business, you can get three and a half months average payroll. This is a little, little bonus that they gave out to the restaurant industry, which has been crushed. So you got 100,000 monthly payroll, you get a $350,000. These are called second draw PPP loans. Now you can use a new lender Most people, I think, will go back to their original lender because they already got all your stuff. So as long as it went okay at the end with your prior lender, you know you likely want to use them. Now, the big catch, though, is in the first round, the way you qualified. As you said, economic uncertainty made the loan necessary. Okay? Pretty much any business could have said that in the first round because nobody knew how this is going to affect their business back in April, when these loans started getting funded. Now, we've had a track record and Congress recognized that, and I think it was smart and fair. But they basically said, you know what, a lot of businesses actually did okay, and weathered the storm. We only wanted to let the second round go to those who really got hammered and are struggling. So now in order to qualify, you have to show that you've been affected and that you've had revenue reduction of 25% or greater in one quarter of 2020 versus the similar quarter in 2019. So if third quarter of 2020 sucked and you had a 25% less revenue than you did 2019, third quarter, you would qualify. You just have to hit one quarter where you can show a loss of 25% or greater of revenue. So there's a revenue test now for the second draw loans.

Okay. I would also also say this. The same forgiveness procedure has already been delineated. So they said, any of you that get this, there's not going to be this wait and see thing. You're going to follow the same forgiveness procedure. If it's under 150 grand, you get the Easy One Page app. And number two, it is not going to be considered taxable, meaning any expense you paid for with those funds is still deductible on your tax return. So this is free money now, like Matt said, you got to follow the rules. You got to use X percent for payroll. You got to keep some decent records. Don't get reckless with this. Don't put it in your personal account. We've talked about this all year long. You want to do your best to treat it like sacred funds, spend it for what you should, and then you're off to the races. But I think what was Matt too is I want to just point out what Matt said clearly. All you have to do is say, take any quarter in 2020 and be able to show from your bank statements or your QuickBooks or whatever accounting software you have, because your 2020 tax return isn't done yet. So they're saying, choose any quarter in 2020, then print the same darn report for 2019. We better be comparing apples to apples. And you may say, well, when Covid first came out, it didn't affect me. First quarter I was fine. Second quarter I was about the same. Third quarter in the summer, it killed me. Okay, choose that quarter. Print that P and L out. That's your profit and loss for third quarter. July, August, September. And then you're going to go back to 2019 and print out July, August, September for the same parameters, same income and expenses. And that you. And that's going to be closer to what you're probably your 2018 tax return look like. And then you compare those. If there's a 25% reduction in sales, don't worry about net income, don't worry about how much payroll, don't worry about how many employees you had. You're looking at one freaking number. You're looking at, what were my sales for third quarter in 2020, if that's the quarter you choose and compare it to sales and in 2019, the same quarter, less than 25%. You're in the money. Go to the same bank you went to before, probably, unless you had a miserable experience and go say, I need to apply. You do not go to the sba. You're going to follow those same application procedures. Go to your bank and say, I'm ready for round two.

Yeah. Now one thing I'll just remember, it doesn't matter what your expenses are. So just I know a lot of you small business owners out there, your books might be a wreck this year in particular, your expenses aren't all dialed in, but you're going to have your revenue or you can at least pull together your revenue just from your bank statements at least if you haven't been good at tracking that. So just focus on the revenue or sales. As Mark said, that's the what they're going to be using for qualification on the loan. And the bill did say that banks are basically be able to rely on whatever they can. Like they're really relaxing the rules on what the, what the banks are going to look at to say, yep, you qualify for these. So they're kind of putting the, the burden on the business owner to just be truthful. Really the last thing I was going to say on this is there was a. I had a question from Malcolm on social media about. He said I didn't get a first round PPP loan. Can I get this second round effectively? Yes, absolutely. And let me say you get a qualify under the original rule of economic uncertainty. Makes the loan necessary. If, if you never took a PPP loan at all, you do not have to use the revenue test. Okay, that's a nice little perk for people that never got in on the PPP first time around. So that's a nice benefit from Outcome. I don't know if you would have qualified anyways, but nice little perk for you. It's going to be easier to get.

And I'll give a little shout out to Brian Regan. Hopefully he's a regular listener of our podcast the Comedian, where in his standup he talks about purchasing a refrigerator. And I would say that's a nice, that's a nice feature.

That's a nice feature. This refrigerator keeps your food cold. $600.

It's a nice feature. We love you, Brian. Love to have you on the show. Okay, now here's where I want to go next. This is very important for everybody. I want to talk about the sister strategy. That's the employee retention tax credit. Now don't go away, people. Before, in the last round you had to choose between PPP and retention tax credit. And a lot of business owners would do the math between the two and they'd say, well, I don't want to have a target on my back for the media and get in trouble for taking this money when we haven't had a massive reduction like other businesses. So we're just going to take the employee retention tax credit. Which was really, kind of flew under the radar. But here's. But this time around you can do both. Now people, I've got to say this. You don't know how many friends that are professionals, doctors, dentists, small business owners, they run a flooring business, they run a catering business. And I go, how'd you do on the ppp? How much did you get? Did you do this? My accountant did it all. Oh, really? Did, did you try the ertc? Now, I don't even know what you're talking about. I just let my accountant do it. I really think people have got to be a little more engaged in this conversation. Accountants are not created equally. I just looked at a tax return this morning for a client of mine that thought he had the creme de la creme accounting firm and I saved him $15,000 in tax on one issue that I found that was really a base hit softball throw. And I just. So people, as I bring up ertc, don't check out, don't say, well, it's just ppp. Okay, I'll call my accountant, make sure you get my PPP and then you move on. No, listen to this. So I'm just going to define it. Matt, you got to jump in and save me from my rant here. But the ERTC is at a tax credit that you can now get up to $7,000 per employee. I'll give more detail, but if you have employees and you also have economic loss, we'll give the percentage. You can get a tax credit against your 941 deposit that you normally put in quarterly. Any of you employers out there know what I'm talking about? Well, you get this tax credit per employee. Did you have to fire them and rehire them? Nope. Did they have to get sick? Nope. Do you have employees? Yes. Is your doors open? Yes. Are you trying to stay alive? Yes. You get a credit now, that's the general rule. Let's get into the detail. Matt, how would you break it down?

Well, first thing on ERTC is you either have to have had your business temporarily shut down or suspended. A lot of states had businesses that all had to shut down. Okay. Or you kept. You can show a change of gross receipts of 20% or greater. That's the new update, by the way.

Even harder to show.

So now it's a 20%. This is a gross receipts again revenue type test. So you can show that one quarter of gross receipts change in 2020. That's less 20% than it was in the prior year. Now if you were shut down though, you don't have to show the gross receipt for it's an or.

Okay, now here's what I want to show that's interesting. Once you show that 20% reduction or the fact that the state mandated you close, you didn't choose to close. The state made you close. That's the difference there. But let's say it was one or the other. I had a 20% reduction in sales. The same method I just described a minute ago, where you compare quarter to quarter. What do you do next? The credit is up to. Rather than say it's 70% of payroll of up to 10,000, blah, blah, blah, let me just say this. It's up to seven grand. Okay, that's the short answer. So it's up to $7,000 per employee. And yeah, you get, get it for the quarter. Now, Matt, is it true you can get it for both quarters?

Yes, that's, that's going to say. So you could get 14,000. So it's because you get this in the first two quarters, you can use it in 2021. 2021.

Okay. All right.

So, yeah, 2020. We do not want any more of 2020. Get.

Okay, so I'm going to repeat that. It's a quarterly credit. You would take it on your 941. As a small business owner, when you make your quarterly deposit for your payroll procedure for first quarter and second quarter in 2021, if you had 10 employees and you paid them at least $10,000 each in first quarter, you would be able to get a $70,000 credit. That's it. That literally is. And now it's not a refundable credit. They're not going to send you a check, but they're going to. It's a refund. It's a. It's a reduction in the tax you would pay. And if you had already made deposits, you'll get that money back. So. And it's based on your FICA deposit. So theoretically, there are some employees that might be part time and you didn't pay, pay them enough in FICA withholding to really get to the 7,000. So are you going to get this credit refunded to you? I don't think it's. You'd get a check, Matt, you just get a refund up to the amount of your FICA deposit, isn't that correct?

I don't know. On their credit, on the refunds, there's nothing in the bill as to that. I think that's just going to be an IRS procedural thing.

I'm going to repeat that because there was a little static there. So Matt says he's not sure. I'm not sure either. But let me just say this. You would get $7,000 per employee. You would take that credit through the payroll reporting procedure for your first quarter and second quarter, and you would. And again, being able to show that you had a 20% reduction or more compared to prior quarters, you've got this $14,000 credit. Now, here's what's cool. You could take it with ppp, people. This is why I wanted you to pay attention to this, because your accountant might miss this. So you can take it, but you can't get the credit for payroll you paid for with your ppp. So let me give you an example. Let's say you get $100,000 PPP and your payroll, you have to pay us use at least 60,000 of that for payroll to get it forgiven. That's the 60% rule. So you get $100,000 PPP, you use it for 60. For 60,000 of it, you use for payroll. The other 40,000 you use for a whole list of other expenses, rent being one of the big ones. And that leaves 40,000 on the table. So what you do is say, okay, I've got 40,000 left over and probably more payroll. You paid out the door in first and second quarter because like Matt said, you're really only getting a percentage of your payroll over one or two months. So there's, there's a, there's a play here, if that makes sense. So if you're a strategic, you know, gamer, you're playing games that on the weekend, playing Risk or some, you know, Monopoly or something here, what you want to do is look at the spread. You want to look at, here's my PPP loan, here's my 60%, here's all the rest of the payroll I incurred the first two quarters. I can go get the ERTC on top of the ppp. Was that, did that make any sense, Matt?

Oh, yeah. And that. Yes. So don't. I think kind of the general guideline last year, I should say in 2020 on the CARES act original bill was it's kind of an either or go down this lane ERTC or go down this lane ppp. And now it's, you can travel in both lanes.

Yeah.

So ertc, a lot more people should be considering it. Those of you that already got PPP in the first round, you may want to look at ertc. Remember, you got to qualify for it. Shut down. The business was shut down either partially or temporarily by a lockdown or stay at home order. Or that you could have just a revenue test of 20% loss of revenue from a quarter in 2020 versus 19. But as you, as Mark said, you know, this is up to 14 grand per employee of wages paid, you know, seven grand each quarter for the first two quarters in 2021. It's pretty significant. And another thing, they changed on this too. Just keep in mind the prior bill didn't allow you to take this credit if the employees were still working. But now you can get it even if your employees are working. So like let's say they're working from home or on modified schedules or things like that. You still have a hard time getting your TC for that time period they were working. Now you can effectively get the credit by keeping them on payroll. So that's a nice little distinction too.

And now one thing Matt said that I want to provide a little distinction to use that word as well. Matt said up to $14,000 payroll for the employee. Let me be a little more clear. It's 70% of qualifying wages. So to get the 14 grand, you're actually paying the employee 20. So you're paying this employee 20 grand, you're doing your FICA match and during the first two quarters, and then you get this $14,000 credit. So just keep that in mind. It's not dollar for dollar, it's 70% of the wages up to 20 grand or $10,000 per quarter. Little tricky there. Now, let me make one last statement, then we'll move to the sick stuff. Yeah, sick leave and family leave and all that. That's the we're not even go down unemployment or stimulus today checks. But one last important point here is on this paid sick leave, you don't apply through the sba, you don't go through the bank. There's no application, there's no forgiveness application. It's all taken care of on your 941 payroll quarterly reporting. So this is where all the big payroll companies are up to speed on this. Your accountant or whoever's doing your payroll reporting should be aware of this. And if you haven't taken advantage of the ERTC before, you're going to want to make sure that you're professionals, know where to make that claim for the credit. So like Matt said, these are two different lanes. Really. There's. And I wouldn't say one's a fast lane or a slow lane or one. One's a city road, one's a highway. They're just two different lanes and you're going to follow two different rules. And they can overlap a little bit and not overlap. They can, they can work together in cohesion. But there's thousands of dollars on the table and it's for these businesses that had a 20% reduction in sales or more. And to get PPP, it's 25% or more. But with ERTC, it's 20%. So it's actually a lower threshold too. It's kind of interesting. Yeah,

yeah. So that's ertc. And we still got, I mean, we talked about stimulus checks, by the way, in round one. So if you're like, why are you guys talking about stimulus checks? We went over those. The phase outs. 600 individual, 1200 married, 600 per kid. Even if you got 10 kids. Okay. We, we hit those in last week's episode.

And Matt, may I ask, I had someone come up to me yesterday and I. This is just rumor on social media. Maybe has someone gotten a deposit? Are they literally going out? I have not seen anybody. I'm asking people in the studio, have you ever heard of anybody getting their stimulus check. You have you got yours started today and they're gonna go for next week, so. It started today. It's ending up in people's bank accounts.

So.

Did you hear, Matt, of anybody?

I. I know the treasury was gonna like, go immediately, so. Yeah, I didn't realize it's that fast. Can you believe the IRS moves that fast?

Wow. Yeah, that's.

Usually they doesn't mess around, you know,

I love that guy. That guy should run for president.

He said, he said, I mean, yeah,

you should write a script of a movie. His life, you know.

Yeah, well, you know, he, I. He was the producer of American Sniper, the Chris Kyle story. Like, I finished the movie a few months ago, and it's like producer Steve Moonshin. I'm like the Treasury Secretary. He's a Renaissance man. He is.

He's awesome.

Okay.

Now, but we're not going to talk about unemployment or stimulus checks, but we get into this sick leave issue, which is a tricky one. Okay, so under this, generally what the emergency paid sick leave is about is it's two weeks of pay that you would give an employee reimbursed to you by the federal government because they're saying to the employers, hey, if this employee gets sick for two weeks, you still pay them and we'll reimburse you up to a certain amount and you're not required to participate. That was part of the old rule, but I'll let Matt give a little more distinction. But basically, sorry, I didn't mean to dive deep too much, Matt, but in this lane of emergency paid sick leave, what you're doing is we're giving employers some perks to keep people on payroll by while they're out sick for two weeks. Now, there's six rules, and how you're compensated as an employer for doing this depends on what the reason was the employee gave for being out sick. The other lane is called previously under the Family Medical Leave act, is now called the emergency paid family leave. And that EPFL says, hey, we're going to give you 10 more weeks if someone is out sick and you cover them. As an employer, we want to help pay the bill. So those would be the two. And again, they work in synchronicity. Here they're synchronized. The first two weeks would be emergency paid sick leave. And then you jump into this emergency paid family leave lane for a total of 12 weeks. Okay, so those are the two. Matt, why don't you break down the first one? Emergency paid sick leave. How do. How does this work in detail?

Okay. So you get 80 hours. All right, that's the, that's the two weeks that is paid. Now this is at their regular rate of pay. When we get to the next one, it's a 2 3rd rate of what their regular pay is. But it's a regular rate of pay. It maxes out around like five grand or so in total aggregate pay. So they can't be a high income employee that would get this 100%, but still pretty good.

Well, it's up to five grand if you, if the employee qualified under the first three reasons, it's up to two grand.

You have Covid or you're subject to a state shelter in place order.

Yeah. Okay.

Or you've been advised by a healthcare provider to quarantine.

Yeah, the, the next other ones are

more about caring for a dependent, your child, their kids. School is closed. Those are the other ones. So think of the emergency paid sick as I have Covid. Or I've been, I have to quarantine because I've been exposed to someone or a doctor's told me to quarantine.

Yeah, that's right. And so I'll repeat that because I know we're kind of, I'm fumbling over myself and talking over Matt so people forgive me. It's not Matt's fault. Is under the emergency paid sick leave, under the first three reasons, essentially being sick or quarantining your employer, your employer gets up to five grand. It's about $5,110 of reimbursement for covering your payroll. Dollar for dollar, up to $5,111 or $10 if it's for one of the other three reasons, that's two thirds pay for maximum of two grand. So they're going to say, hey, if you're just caring for someone, we'll, we'll keep you on pay. I'm going to get reimbursed by the government two thirds and then cool up to two grand. And that's the emergency paid sick leave for two weeks. Yeah, but not everybody has to do it. That was the old rule, Matt. Right,

Correct. Well, well, the. Yeah, correct. The old rule was if you're a small business with like less than 500 employees, you had to offer this to all your employees. Like there was cons you could show if you were your business, your small business had less than 50 employees and you were going to be significantly damaged, basically go out of business. If you adopted this policy. But otherwise you had to offer this now for 20, 21. The rule is it's optional. But if you do offer it, you get all the tax credits. So they're trying, rather than mandating it, they're trying to incentivize businesses by leaving the tax credits out there to still offer this. Because let's be honest, you kind of got to do this stuff anyways. If someone gets Covid in your workplace, you don't want them coming in for two weeks.

Yeah.

You get. And you get a tax credit for it, you know. Now this is a separate set of sick leave, by the way, from their regular sick bank. Yeah.

Now don't be offended, Matt. I am going to put you on the spot because I don't know the answer and you may not either. Let's say I get the PPP and I have an employee that gets sick and I keep them on payroll and I use my PPP money to put them on payroll. Do I get that forgiven and get the tax credit?

No, you do not. That is actually in the code that they've really done a good job to make sure you can't double dip on these things. But with, with PPP and the fact that it's 24 weeks, you get to use your PPP money. Now off of really like 12 weeks of payroll, you know, or 10 weeks of payroll that you qualified for, you get to use it over 24 weeks. Even if you had someone out under this, you're gonna have enough payroll after the fact that you're going to be paying them, that you're still going to get all that.

Yeah.

Forgiven. You know what I mean?

Yeah. Now I'm waiting for Matt's answer because this is exciting. Now.

This is a chess mat. You just put me into a corner.

No, no. Yeah, check me. You're. You're off the show. Get out of here.

Check me.

No, no, this goes from. Okay, let's use a baseball analogy. I'm going to do my best base hit. I get the PPP. I use 60% of it for payroll. I get the whole thing forgiven. Oh, I got other payroll on top of that PPP money and the 60%. I hit a double. I go out and I get the employee retention tax credit of up to 14,000 for the first two quarters. Oh, but I've been working out. I've been doing batting practice. I'm taking control of my situation. I hit a triple on the money. After the PPP and the employee retention tax credit, I can. And I get one of these employees sick. Now I can throw it in for this credit as long as I can show that that payroll that I paid them during this sick period of theirs was not used by. With PPP money, nor the employee retention tax credit. I could foresee a person getting a triple out of this. Fair.

Definitely. Yeah. Yeah.

I always wanted to get the third base. I might be able to do it with this.

Congratulations. It took an act of Congress, but, you know, you're going to get there.

You sound like my friends in high school.

Yeah.

It's going to take an act of Congress. And I was like, you're right.

Yeah.

I was kind of the Michael Anthony hall of Fame. You know, my high school. I was 16 candles. He was my. He was my mentor. You know, that was who I was looking up. So, yeah, it would.

Act of Congress. Finally mine. I'd be more Ferris Bueller.

You know, I would agree. You were more of a Ferris Wheeler. You're really worth the system. I was a victim of the system. You were. You were in control of the system. That's really what happened there. Okay. All right, now we've got. We've got five more minutes. We've got to wrap this up. Now we get to possibly the home run.

Dessert. Dessert.

Yeah, dessert, Home run. Whatever. Use whatever analogy you want.

But now can we defense dessert? I mean, I don't. Oh, no, no, no.

Oh, oh, oh. Ooh. Okay. That's the grand finale. But I want to talk about the home run here, because after two weeks of sick, now they're out for longer. Now we get to the emergency family medical leave, and so they have Covid.

Then their kid gets Covid after that because they got exposed to. Now they're on emergency paid family leave for 10 weeks.

Yeah.

Okay. And now this is at two thirds of their pay, though. They don't get 100% pay. So you'll, you know, you pay them two thirds of their pay, and you're going to get a credit for that, too.

Yeah. And so here's the important point. Matt said something very interesting there. Let's say someone walks into your office and they say, I just got sick. Now, you've been paying for their payroll with ppp, and then you exhausted that you took the employee retention tax credit, and they come in and go, I'm sick. All right, I'm going to keep you on payroll. I got a credit for two weeks. Cool. Then they come in and they go, oh, no, I got my kids sick. I got to stay home and take care of them. You're not going to pay your employee their full wage. You would reduce their wage to two thirds and say, okay. Under the Family Medical Leave Act, I'm going to keep you on payroll, but I'm going to reduce your pay by a third and the government is going to subsidize, essentially your paycheck for up to 10 weeks. Now go take care of your family. Now, if you're really smart, after your first kid is sick, you're going to go cough on your third kid or your fourth kid or maybe invite mom and dad, say, hey, come on over for dinner and if you get sick, I'll take care of you. That's how people take advantage of the system. I'm not. I'm not advocating that. I would not do that. But I'm just saying some other will.

But that's how.

That's how the emergency family medical leave works. It's 10 more weeks of two thirds pay. Taking care of America. We're making America great again.

I don't.

Yeah, let's make America well again. Oh, no, I need. I gotta hurry. Whitney, go reserve that on GoDaddy. Make America well again. See, I shouldn't have even put that on the podcast because.

Let's edit that out. Let's make sure we edit that out.

Yeah, I'm gonna start selling those shirts. They're probably ready for sale. Okay.

All right, let's see. Dining. We got like, we gotta wrap it. So you gotta get the dining.

That's. Yeah. You know what, Matt, you've been such a great co host today, and I love you. I'm gonna let you share the good. The good word.

The good. The good news is Congress feels bad for the restaurant industry, so they gave him a gift. This gift also is for the small business owner that likes to go to the restaurants, maybe entertain some clients. All right, all right. So your meals and your dining now is 100% deductible in 2021 and 2022. Right. It's both years. Okay. Used to have some major limitations on this. That and dining is. Was in the garbage can last year. So hopefully this will. Congress thinks this will stimulate the restaurant industry, get businesses out there doing some entertainment and, you know, meals with their customers. So there you go.

Okay.

We're gonna see a lot more dining expenses on clients for meals on their tax returns.

Yes. Now this gives us a lot to chew on.

Oh, I see what you did there.

You see that coming. That was good. Because here's the issue. Let me give you. I've got an article that'll be out in the morning on this. Let me throw a little twist at you. Okay. Pretty easy I go to a restaurant, I talk business. 100% write off. Oh, I'm traveling for business by myself. I go into a restaurant, stop at Carl's junior 100% write off. Easy schmeasy. I have an employee staff meeting. I do takeout, and they bring in pizzas for everybody. 100% write off. I ordered from a restaurant. I go to the bakery, get a dozen donuts for the office. 100%. I don't know what's a restaurant. What is the definition of a restaurant? On the face of it, in my article, I say, maybe your food is being prepared for you. So I'm not going to the grocery store buying a can. I'm actually getting it prepared for me. So I go to the bakery and I buy donuts. Is that a meal? Is that a restaurant? What do I do now? This is food trucks, vet street vendors, caterers. Where's the line here, man? So I think there's some unanswered questions there. I'm gonna. I'm gonna say that we've got to see how this plays out. Here's the good one. I want 100% write off for my Rockstar that I'm holding notice. CEO of Rockstar. I'm doing this for you. I'm sponsored by Rockstar because I get two for $3 at every convenience store wherever I go. It's a amazing. What if I walk into a convenience store and I get a hot dog and a rock star? Is that dining? I'm with you. We're talking business. We run down to the. To the local. Whatever store in this Rocky Mountain West. One would call it Maverick. Maybe I go to BUC EE's down in Texas. I get a little barbecue, and I pick up a rock star as part of my dining. I get a plate of barbecue at the convenience store. Is a convenience store restaurant. They prepared food for me and I grabbed a drink at the same time. 100% right off. Time will tell.

These are the questions that we want answers for.

Yeah, the people who cares about the purpose of life. I mean, that's a big. I'm just leaving you hanging. This is what they do on tv. You're watching your favorite show, and at the end of the episode, they leave you hanging. So you're going to want to come back. You'll come back for the next podcast. There you go.

Yeah. Well, thanks, everyone, for tuning into the Main Street Business podcast. We're going to come back with. There's going to be a part three. SBA and Treasure are going to be releasing some rules, some forms and stuff, some guidelines. We'll be digesting them and then sending it out to you. Um, that's not going to be a piece of crap. That's not the digesting part. Digesting it and then serving it up to you. You know what I mean?

Yeah, we'll put it in a box and send it out. Oh, my gosh. But, yeah, I foresee more than part three and part four. If Fast and the Furious could do a part seven, we should be able to, you know, we should be able to do a part three or four at least. I mean, how many Rockies were there? How many. How many Jaws?

Five or six. Yeah, well, if you count the Creeds, you know, those are kind of Rockies, you know, with Apollo Creed, so. But yeah. Thank you, though, for staying here with us. If you like the show, please give us a five star review or like it on whatever channel you're on. Share it. Get over to Main Street Business Podcast where you can learn more about Mark and I and our companies. And we'll be back sa.