Apr 3, 2020 09:34:43 PM by Nicole H
I've been reading about the payroll protection program offered by the US government as part of the Covid-19 bill. It can apply to us that are self-employed and I understand the part about how it can apply to business expenses. But does it cover our income at all? It's not clear from everything I have read. Anyone see any good articles on this topic that explain it well?
Apr 4, 2020 07:12:44 PM by Brian D
https://bench.co/blog/operations/paycheck-protection-program-self-employed/
Independent contractors and the PPP
If you work as an independent contractor, you are by default considered to be a sole proprietor in the eyes of the IRS. This means your freelance income gets reported annually on a Schedule C within your personal tax return. You will have a Schedule C even if you pick up odd jobs or do freelance work, and this Schedule is based on the 1099-MISC forms you collect from the companies or individuals who have hired you as a contractor.
Sole proprietorships will need to submit schedules from their 2019 tax return filed (or to be filed) showing income and expenses from the sole proprietorship.
Sole proprietorships can apply starting April 3.
Independent contractors and self-employed individuals can apply starting April 10.
How do I apply?
You can apply for the Paycheck Protection Program through an SBA-backed lender.
Here is a the PPP application form from the U.S. treasury, indicating which information youโll be expected to provide to your bank.
Apr 4, 2020 07:56:11 PM by Douglas Michael M
Thank you, Brian!
The application form includes the following required certification (first in a list):
The authorized representative of the Applicant must certify in good faith to all of the below by initialing next to each one:
_____The Applicant was in operation on February 15, 2020 and had employees for whom it paid salaries and payroll taxes or paid independent contractors, as reported on Form(s) 1099-MISC.
On its face, this requirement would seem to exclude me and likely a number of other sole proprietors who collect our earnings via "owner's draw" rather than salary.
While there are other provisions for covering rent or mortgage, the application does say "must certify in good faith to all of the below." (emphasis added)
Apr 6, 2020 05:14:34 AM by Max J. M
Excuse my inexperience. Freelancing less than a year and first time poster.
I see 2 situations here.
Situation 1: As an Upwork freelancer with multiple clients suspending work due to virus, I can apply for the SBA loan as described in the CARES Act. This includes PPP as well as other types of loans. Some of which may be forgivable. I believe most of this thread pertains to this situation.
Situation 2: I have a long-term client that has requested assistance in applying for the PPP. He wonders if amounts paid to me as an Upwork freelancer can be counted toward the 2.5 months of "average payroll" as well as qualifies for forgiveness in the 8 week period after the loan is approved. It looks like contractors "paid on a 1099 basis" do indeed qualify. Since Upwork Freelancers do NOT recieve a 1099 from their client nor from Upwork, the eligibility for PPP loan is unclear.
Can anyone speak directly to Situation 2 above?
Apr 6, 2020 11:26:18 AM by Tiffany S
Douglas Michael M wrote:Thank you, Brian!
The application form includes the following required certification (first in a list):
The authorized representative of the Applicant must certify in good faith to all of the below by initialing next to each one:_____The Applicant was in operation on February 15, 2020 and had employees for whom it paid salaries and payroll taxes or paid independent contractors, as reported on Form(s) 1099-MISC.
On its face, this requirement would seem to exclude me and likely a number of other sole proprietors who collect our earnings via "owner's draw" rather than salary.
While there are other provisions for covering rent or mortgage, the application does say "must certify in good faith to all of the below." (emphasis added)
I believe that applications for ICs have not opened yet. Presumably (one would hope, anyway) when that happens there will either be a separate application or branching logic that addresses this issue. I did see an analysis posted by an attorney in another group that categorically stated ICs would be eligible and that it would be based on net self employment income.
Apr 6, 2020 05:25:43 AM by Jennifer M
So much info flying around. If it's free money, I'll take free money! Money printer go brrrrrr. ๐๐๐
I don't want a loan or something I have to pay back with payments. I got 2 school loans left and I ain't got no more debt after that and I wanna keep it that way. For people with school loans, Navient just sent out notifications to everyone with federal loans that they are suspending interest so we got 0% interest until September. Oh yeah gonna pay that loan off this year fo sho.
Apr 6, 2020 08:28:05 AM by Christine A
Jennifer M wrote:So much info flying around. If it's free money, I'll take free money! Money printer go brrrrrr. ๐๐๐
Unfortunately there's no such thing as free money. Whatever money we're given now will be have to be paid back again in the form of higher taxes and/or deep cuts to government services. The UK government has already said that they think the self-employed haven't been making enough contributions to national insurance and that they'll be making changes to our [already high] taxes. I'm fortunate to have enough work coming in at the moment, but I think that my disposable income will take a hit in the long run.
Apr 6, 2020 09:54:44 AM by Alexander B
So we can only get "free" money if our clients suspend work?
I don't understand this fully. However, I'm thinking most freelancers won't be getting any of the free money.
We are self sufficient people by nature so it doesn't surprise me.
Apr 6, 2020 11:27:35 AM by Tiffany S
Alexander B wrote:So we can only get "free" money if our clients suspend work?
Yes, it's intended to compensate for lost revenues.
Apr 6, 2020 12:19:41 PM by Christine A
Tiffany S wrote:
Alexander B wrote:So we can only get "free" money if our clients suspend work?
Yes, it's intended to compensate for lost revenues.
Will people need to prove that they've lost revenue due to the virus before they qualify, though? I'm working just as much as ever, but I don't know how long that will continue. And for certain, any government benefits will need to be declared on my taxes and if it's in excess of my usual income, it'll have to be paid back next year in the form of additional income tax. It could even push me into a higher tax bracket. Sorry to be a drag, everyone, but again, I'm just adding a note of caution for anyone who thinks that this is "free money".
Apr 7, 2020 04:15:16 PM by Jason T
Has upwork posted anything about this? Seems like they're silent despite being a massive contracting organization. I'd love to see a clear-language walkthrough for upwork about how to make PPP and disaster protection work, and the other plans.
https://www.sba.gov/funding-programs/loans/coronavirus-relief-options
Apr 13, 2020 03:27:00 PM Edited Apr 13, 2020 03:36:48 PM by Etsy I
Here's what I got from the Small Business Development Center in California.
Well, noticing it's entirely the same as the link Brian posted...
Apr 22, 2020 10:29:52 PM by Vincent B
Hello everyone,
I work as a freelancer in the music industry and genreally get 10-99 forms.
During this time of COVID19 work has stopped so i applied for unemplyment because of the new law.
I have been approved and i am waiting for my edd card (I live in SoCal) and thats great but it not enough to cover my familys cost of living.
I work as an Audio Engineer so I am looking to pick up extra work I can do at home with UpWork regarding editing things like PodCasts, Film, and Music.
I am worried that if i do this will it disqualify me from my unemployment.
Does anyone have any information about this?
Apr 23, 2020 08:46:49 AM by Lisa H
You will have to check with your state, which I realize it likely impossible given the backlog. ๐
For my state it is a bit confusing--it says you are not required to report whether you have looked for work. But on the other hand, it also says this: If you find work, stop filing weekly claims. Your payments will stop.
I know that doesn't really help, but it probably depends upon how much you will be working.
I am kind of in the same boat, I applied for UI with Upwork being my sole employer and work was cancelled due to COVID-19 but I have appeared to be declined but need to wait it out to see if that is truly the case or still in process.
There are also state resources that you can google. My state has a checklist form you fill out to see if you qualify and shows you available resources.
Upwork also had a fund but it looks like it has already been exhausted for the first round.
Good luck!
User | Count |
---|---|
431 | |
287 | |
240 | |
159 | |
153 |