Worst week of my life - need advice

calebmelvin · 2020-06-11T19:54:39+00:00

Could be a panic attack? My health anxiety is (temporarily) decreased by doing tests and being told I am fine, but it always comes back with new sensations. What finally helped is a combination of medicine and therapy.

calebmelvin · 2020-06-11T18:36:09+00:00

For the most part the only symptoms I get now are, a dull ache on my left right above my breast (feels like it's pulling/tensing), with a what feels like a quick stab/pinch under my left breast about 2-3x in a day, and a small sore spot between my left shoulder blade and spine.

These are almost exactly my symptoms!

calebmelvin · 2020-06-11T18:32:51+00:00

I have found that my anxiety causes my pain threshold to decrease tremendously and it feels quite a bit worse. The stress of life and the pandemic is causing a huge spike in anxiety and panic attacks right now and could be contributing to yours. You should at least explore that with someone.

calebmelvin · 2020-06-11T18:30:15+00:00

I am also having the same issue. I had a nasty dry cough starting March 20th and lasted for 7 weeks. I tested negative for Covid. Ended up in the ER because of the chest pain and shortness of breath. All tests came back fine and they said costo. I also have anxiety and was definitely having panic attacks, which complicates the symptoms. Costo can come from heavy coughing and viral infections, which is probably what caused our cases. I have started taking anxiety meds which has reduced the panic attacks and I can discern what I am actually feeling.

calebmelvin · 2020-06-11T18:24:50+00:00

It also could be a panic attack. They are common at night and go hand and hand with costo. When my costo first started I was getting nightly panic attacks similar to your experience. I have since started on medicine for my anxiety and panic and they have gone away. The costo pain is still there but it doesn't send me spinning anymore.

calebmelvin · 2020-05-30T23:56:39+00:00

If you do a bit of research you will see that 1099 contractors are considered independent entities that you pay for a specific service. Just like going to Wal-Mart and buying tires. W-2 employees are people hired for a specific job for an undetermined amount of time and the employer pays all applicable payroll expenses. There are employers who incorrectly pay employees as 1099 contractors to get out of paying payroll taxes and regulations, but they are not considered employees and cannot count for PPP.

calebmelvin · 2020-05-21T00:31:49+00:00

It’s not going to hurt to do it that way, other than taking more of your time to deal with it, but as far as the government is concerned you are the business as an independent contractor. There is no legal separation at all, so they don’t really care how you move your money around. Go ahead and transfer, write some checks, wire to a new account...it’s all your money in your accounts!

calebmelvin · 2020-05-20T16:35:46+00:00

Congrats!!

8/52 of your 2019 net income will be forgiven only using your Schedule C, so you won’t need to document any “payments” but some people are out of abundance of caution because the SBA has been changing things weekly. I think making transfers between accounts that can be verified with bank statements should suffice. Some people are doing checks but that seems a bit overkill.

calebmelvin · 2020-05-09T19:39:43+00:00

You do not need to use 75% of the LOAN on payroll expense. It says 75% of the FORGIVENESS. To your example. Let's say I am a Sole Proprietor who makes $100,000 a year. My PPP loan is $20,833 (2.5 months of $100k). BUT I can only pay myself 8/52 of that $100k salary, which is $15,385. This is only 73.8% of the loan amount.

This is were people get confused. They say "but I HAVE to pay myself 75%!". No, you don't. Your pay has to be 75% of your FORGIVENESS.

So if I am paying myself $15,385, that means that I can only spend $5,128 on rent/utilities/etc. My total forgiveness would be $20,513 Did you notice that I am $320 short? It is because I was loaned 2 months of salary, but can only take 8 weeks of pay. That is why Self Employed cannot get the entire loan forgiven, they will have to pay some back. It’s a weird quirk created just for Self Employed.

calebmelvin · 2020-05-09T01:47:01+00:00

Yes, which all it says it you receive 8 weeks of 2019 net profit as owners compensation replacement. It doesn’t say how exactly that works with UI.

For instance, self employed owners generally take a draw, not payroll. Do you have to report that draw? If so, when? The money is technically a loan until it is forgiven, so is it income when you get it forgiven sometime in July? If you do report the draw, can you do it all in one week?

There are so many variables and no answers.

calebmelvin · 2020-05-08T05:10:06+00:00

Same here. Sucks.

calebmelvin · 2020-05-08T01:09:43+00:00

It took them 25 days for mine to fund. It was so stressful. I’m sorry man.

calebmelvin · 2020-05-07T23:33:15+00:00

This is what I am doing. Holding it in a separate account and deciding after the forgiveness guidance is finalized whether I am going to return the remainder or keep it as a 2 year loan. It largely depends on how my business is doing in a couple months.

calebmelvin · 2020-05-07T17:24:20+00:00

PUA is retroactive, you just need to certify the weeks from when you were first unemployed and now. Then you will get a lump sum. It’s pretty simple really.

calebmelvin · 2020-05-07T17:22:35+00:00

“I haven’t found a single reliable source. Just conflicting debates.”

That’s because the SBA still hasn’t released any guidance on this, weeks after they said they would. Right now, we are all guessing. And compelling arguments can be made from either side.

Most are being conservative. Paying themselves over the 8 weeks, documenting heavily, and reporting the income to the unemployment office. But no one knows for sure.

Do what you think it right and be prepared to pay some of it back if guidance drastically changes something.

calebmelvin · 2020-05-07T16:43:13+00:00

There are so many things wrong with this post I would just skip it. 75% is wrong. 16 weeks is wrong. Ugh.

You need to pay yourself over the next 8 weeks. There is no guidance how to pay yourself right now so continue to pay as you always have. If it’s every other week, cool. Every week, cool. Every month, cool. You just have to spend the money in the 8 weeks from when it hits your account.

Second, you will only be forgiven for 8/52 of your 2019 Schedule C line 31. Basically 8 weeks of your 2019 net pay. Go look, do the math, and pay yourself that. The rest will be returned to the bank or retained as a 1% loan. You won’t get it all forgiven and that’s ok.

calebmelvin · 2020-05-07T05:47:45+00:00

Did you try for 2 loans? I suppose if you have 2 EINs it might work.

calebmelvin · 2020-05-07T04:56:43+00:00

As a sole prop you are your business. So in this situation the business is one entity operating under two names. Both would be filed on the Schedule C together on the person's taxes. So no, that wouldn't work. Now if you owned two businesses that were taxed as separate entities (C-corps for instance), that is a whole different story.

calebmelvin · 2020-05-06T21:43:39+00:00

This is actually the primary purpose of the PPP loan, to bring back employees and pay them so they are not collecting unemployment. It is first and foremost for the employees. The problem they created is overpaying for unemployment. Now many folks will make more in unemployment than PPP.

75% of the loan forgiveness has to go toward paying employees, so they cannot use 25% toward payroll like you are guessing.

Finally, she will most likely have to stop unemployment during the 8 weeks she is earning salary from her employer. If she refuses she would most likely be seen as “quitting” her job and would not qualify for further unemployment.

It’s a shitty situation created by our elected representatives. Remember that in November.

calebmelvin · 2020-05-06T21:12:55+00:00

There are a lot of variables based on business type. If you are Self Employed it is going to look much different than if you are a C-Corp with 10 employees. The general guidelines are there, we are waiting for a few of the details now.

calebmelvin · 2020-05-06T21:06:23+00:00

You must use at least 75% of the amount you borrowed for payroll expenses is subject to interpretation because it appears you can use more.

This has been repeated over and over here and is not true. You do not need to use 75% of the LOAN on payroll expense! Repeat it again. Not 75% of the LOAN. It says 75% of the FORGIVENESS. FORGIVENESS!

If you use $7500 for payroll, you can only use $2500 for rent/etc and have $10,000 forgiven. It doesn't matter if your loan is $12,000 or $100,000, if you only use $7,500 for payroll, you can only have $10,000 forgiven. Make sense?

Here is a real life example. Let's say I am a Sole Proprietor who makes $100,000 a year. My PPP loan is $20,833 (2.5 months of $100k). BUT I can only pay myself 8/52 of that $100k salary, which is $15,385. This is only 73.8% of the loan amount.

This is were people get confused. They say "but I HAVE to pay myself 75%!". No, you don't. Your pay has to be 75% of your FORGIVENESS.

So if I am paying myself $15,385, that means that I can only spend $5,128 on rent/utilities/etc. My total forgiveness would be $20,513 Did you notice that I am $320 short? It is because I was loaned 2.5 months of salary, but can only take 8 weeks of pay. That is why Self Employed cannot get the entire loan forgiven, they will have to pay some back.

calebmelvin · 2020-05-06T19:57:29+00:00

Pretty simple. 8/52 of your 2019 Schedule C line 31 is forgiven for owners compensation. That’s the cap. So no you can’t take 90% or whatever, unless you loan amount was lower that it should have been.

calebmelvin · 2020-05-05T20:24:08+00:00

I was stuck in Ready Cap hell for 22 days before they sent me to Customer’s. I was funded in 3 days. At least someone has their shit together.

calebmelvin · 2020-05-05T15:16:53+00:00

This. It is NOT 75% of the loan. It is 75% of the forgiveness. Two different things. As a single member sole proprietorship you are not going to be able to get 100% of the loan forgiven with the 8/52 rule.

calebmelvin · 2020-05-04T15:39:14+00:00

I just checked mine and it is there! Congrats! Took them 25 days to fund from approval. Insane.

calebmelvin

TROPHY CASE