PPP Forgiveness APP - ADP Resources | Incite Tax

The purpose of this video is to show you how you can do your own PPP or PPP loan forgiveness application. I want to first start with if you're an ADP client, I'm going to show you a couple really helpful tools that they have that make this super simple for you. If you're not an ADP client, go ahead and skip ahead until I show you the form itself. So if you're In ADP Client, you can go under Reports here. What I have here is the home screen once you log into the ADP Run system. Come up to Reports and look over here. They have an option called CARES SBA PPP Loan Forgiveness Application. Go ahead and click that. And now you're going to kind of fill in some bubbles. Based on your information, so what we have here is you can choose whether you want to use the eight-week period or the twenty-four-week period. If you're like most, I would recommend just defaulting to the twenty-four-week period because at this point, twenty-four weeks have passed since you got your triple P loan. Then under dates covered, all you need to do is enter in the first date that it was covered. So in my case, I picked May 1st. 24 weeks later, it autofilled October 15th for me. Then you type in how much your PPP loan was for. In this example, I'm using $116,370. You can type in whatever you want, and you would just type in the number there just like that. Now here you're going to check— it's important that you Read which option that applies to you. So if you filed your PPP loan based on like Schedule C information, and you're a self-employed individual independent contractor, effectively, if you're a solo guy and you don't really have employees, but you're a business owner, you're gonna check this first box. This second box is for business owners who have employees, who didn't change the way they paid the employees, They didn't reduce their staff, and they didn't reduce their staff hours. So, basically, if you were able to keep things as normal, thanks to the PPP loan, or whatever, obviously, we're assuming that, go ahead and click this box. That's the box I'm selecting for this one. Then, if that doesn't fit your scenario, this last one is basically saying that you didn't reduce Anything, but you weren't able to operate during the covered period of time, meaning you took the PPP loan, you paid your employees, but you actually weren't open during that time period. If none of those work, click the bottom option. Now, for sake of this video, I am not going to click every button and option and go to next and show you how that works. I'm showing you this option because I think for most people this fits, and this is probably— well, they're all kind of equal, so I shouldn't say one is more prevalent than the other. So you just click the Next button. In this blurred-out spot is gonna be your business information based on what's in ADP's system. Then as you scroll down, you'll input— these boxes indicate inputs. So you're going to input loan numbers. So in this case, I actually got a loan from Chase, and literally nowhere in my paperwork do I see the SBA PPP loan number. So I left it blank. I haven't heard back from Chase yet on if I need to fill that out or not. They are still getting me the link to use to submit my application. But I did find my lender number, my lender being Chase. So I have a loan number with Chase. And I put that number here, which is blurred out for you to see, but that's where you'd put your information. In this situation, the loans were disbursed. They hit the bank account on the 6th. That's what that date means, the date it hits your bank account. If you were prepared, hopefully you did this. How many employees did you have at the time of application? I personally went back and looked at my PPP loan application. Because it was easier instead of going back and trying to count in my head. Now, if you don't have a lot of team members, then it might be easier for you to do. Regardless, when you applied for the loan is what this box represents. Now, when you're applying for forgiveness, they want to know how many employees you have as of right now. If you received an EIDL advance amount, you would put that amount here, and then if you do put your amount there, then you want to put your application number again, which is going to be on your EIDL information and loan documents. None of the clients that work with us have more than $2 million in PPP loans, so you don't need to click that button. But if you're randomly watching this video and you in fact borrowed more than $2 million for PPP, you're going to want to click that button. You're going to have way more documentation that you're going to have to provide, which Isn't something I'm covering here in this video. All right, this other information, as you can see, I only have spots to input a couple things. Because this is an ADP system, it automatically accounted all the payroll information. In my opinion, if the payroll cost amount is more than your PPP loans, I personally wouldn't waste any time putting information into these other 3 boxes. If you're not, if you need to use the money not just for payroll, meaning with just payroll numbers you don't have enough to get it forgiven, then go ahead and add your information here. But as you can see, mortgage, business mortgage interest payments, so you put that number there. And that's just the interest payments, it's not the principal portion. Every time you pay a mortgage company, part of it's going towards paying down the debt, that's called principal, and part of it is the cost to borrow the money, that's interest. So you would just put interest there. Business rent or lease payments, so if you're renting your space or leasing your space, that's where you put that information. And then of course utility payments. One of the main reasons I don't want to put any information there is because if I do, I have to provide the documentation that supports that I use those funds for that. And since my payroll already covers my PPP loan, I'm going to show you where ADP makes it super convenient to print off all that information. I'm just trying to minimize my work here. Yes, I had business utility payments. Yes, we pay rent. We have business mortgages. I could put information in all here, but it's unnecessary to get forgiveness. All right, and then at that point you're gonna click Create Final PDF. In addition to the loan application, which I will go through in the second part of this video, you have to provide information that you use the funds for payroll. They're just not going to take your word. They gave out all this money to a lot of people who probably didn't need it. In fact, we already know Within a couple months, the government did find quite a bit of abuse from people and some really elaborate schemes to just get this free money. Luckily, those people were penalized for being greedy, especially in a time of need for the entire country. Shame on them. But you'll have to prove it, that you need it or that you needed it. ADP has all these reports that you can use. So right here, starting here where it says CARES, SBA, PPP, and all these different monthly payroll, employee detail, loan forgiveness, these are like one-off reports. Or you just click to CARES loan reports and click that, and now it automatically checks these 2 things and it automatically checks your payroll filing documentation. Your 941 and your 940. What I did, because I used a 24-week period, and you'll see here if I click this, it gives me this warning like, whoa, whoa. So I unclicked these and then I clicked everything that said 24 weeks, and that's the package I printed off. I click, click next, and it's going to say it's going to be available for you. Then you go back. If you go back to your home screen You'll see a message, it's ready. You click that, it— and then you download it similar to what you saw for the other application form. It's just going to show up in the bottom corner saying that you have a download.