Quick Answer: What Do Independent Contractors Need For PPP?

What documents do I need for PPP?

List of required PPP application documentsCompleted PPP Application Form.

Average monthly payroll costs (only applies to businesses with employees) …

2019 Proof of Payroll Costs (or Self Income) …

Proof of Ownership.

Unexpired, Government-issued Driver’s License or Passport for All Owners Over 20%More items…•.

Can I apply for PPP and Eidl?

Yes. Borrowers can apply for both the PPP and EIDL, although funds from both cannot be used for the same purpose. The Paycheck Protection Program loan proceeds must be used for eligible purposes according to guidance and some or all of the loan may be forgiven if used properly.

When should I apply for PPP forgiveness?

You must apply for forgiveness within 10 months after the end of the ‘Covered Period. ‘ which is the 24-week period that starts when you received your PPP loan. The lender (i.e. your bank) has 2 months to process your loan forgiveness application then SBA has three additional months to approve your forgiveness.

When can independent contractors apply for PPP?

Independent contractors and self-employed individuals could begin applying for Small Business Administration loans under the Payroll Protection Program as of Friday, April 10.

Can self employed get PPP and unemployment?

While self-employed workers and anyone who gets paid using IRS form 1099 are eligible for both PPP loans and unemployment benefits, you can’t receive both. If you apply for unemployment and the PPP program and receive a PPP loan, you must then withdraw from unemployment.

Can an LLC get a PPP loan?

Only sole proprietors, sole members of LLCs, and independent contractors may at this time apply as self-employed individuals for PPP Loans. … Note: SBA stated that it will issue additional guidance for those self-employed individuals in operation on February 15, 2020, but not in operation in 2019, to apply for PPP Loans.

Can a self employed person apply for PPP?

To apply for PPP loan forgiveness, self-employed individuals can use the simplified Form 3508EZ. As long as you don’t have employees on payroll, this form applies to you. … When you apply, you’ll need to submit a Schedule C from your 2019 tax return showing the income and expenses from your sole proprietorship.

Is PPP for independent contractors?

If you are an independent contractor or self-employed, you may be eligible for Paycheck Protection Program (PPP) loans/grants, SBA’s Economic Injury Disaster Loans (EIDL), and/or Unemployment Compensation for losses of income related to the coronavirus pandemic.

Who qualifies for a PPP loan?

PPP Eligibility Any business categorized under “Accommodation or Food Services,” such as restaurants and hotels that have 500 or fewer employees per location. Tribal businesses. Independently owned franchises. Self-employed workers, independent contractors, gig workers, and sole proprietors.

Are 1099 employees covered under PPP?

No, 1099 employees should not be included in a small business’s payroll calculations for their PPP loans. 1099 employees are considered their own businesses under the PPP. As of April 10, 2020, 1099 employees are eligible to apply for their own PPP loan.

How do independent contractors apply for PPP loans?

In order to apply for a PPP loan as a self-employed individual or independent contractor, you have to meet the following criteria:Must be in operation before February 15, 2020.Must have income from self-employment, sole proprietorship, or as an independent contractor.Must live in the United States.More items…•

What documents are needed for PPP forgiveness?

Payroll tax filings (Form 941) Income, payroll, and unemployment insurance filings from your state. Documents verifying any retirement and health insurance contributions. Documents verifying that your eligible interest, rent, and utility payments were active in February 2020.

Can you use PPP to pay yourself?

You can pay yourself back under certain conditions. Sole proprietors, pass-through corporations, and the self-employed may also use the PPP loan/grants to pay themselves their back, current, and future wages during the 8 week period.

How do I prove payroll for PPP?

Payroll processor reports (several leading payroll processing providers have formed a coalition to work with the SBA on developing custom PPP reports) Payment verification (canceled checks, bank statements) Rent invoices, utility bills, loan statements, and copies of lease and loan agreements.