Bigger Better Biz's video: Understanding the Cares Act PPP Loan for Small Business Payroll - Coronavirus Stimulus Check

Because of COVID 19, the SBA has released a stimulus package for small business owners as part of the CARES Act. The PPP (Payroll Protection Program) allows business owners to take out a (potentially forgivable) loan to help keep their staff employed during the coronavirus pandemic. ----- Subscribe to this channel at http://bit.ly/subscribeBBB Learn more about Chris and National at http://www.nationalfcg.com Learn more about the SBA Business Loans at https://www.sba.gov/ ----- The math on this stimulus loan can be tricky for some, so here are some pointers: 1) If an employee makes more than $100,000 a year, you must "pretend" that they are only making $100,000 when you submit their payroll expense. 2) You first calculate monthly compensation for your employees 3) Then you calculate the benefits per employee per month 4) Multiply both by 2.5 5) Add both numbers together to get your total amount to apply for For example, Susan makes $150,000 per year before benefits. When we apply for her PPP coverage, we need to "reduce" her pay to $100,000 and divide by 12 (100,000/12 - 8,333.33). Therefore, Susan's monthly pay under the PPP requirements is $8,333.33. For any employee, you will take their monthly salary and multiply it by 2.5 times. So for Susan, you would get ($8,333.33 * 2.5 = 20,833.33). Now, if you had 4 other employees, each making $48,000 a year before benefits, you would do the following: $48,000/12 = $4,000 a month per employee $4,000 * 4 employees = $16,000 per month in payroll $16,000 * 2.5 = $40,000 total applicable payroll Now take Susan's monthly pay and add these 4 employees' pay: $40,000 + $20,833.33 = $68,833.33 total applicable payroll for 5 employees Now, add BENEFITS! Each employee receives a benefits package of $2,000/month. $2,000 * 5 employees = $10,000 total benefits / month $10,000 * 2.5 = $25,000 total benefits for PPP So, now add your total applicable payroll ($68,833.33) plus your total benefits ($25,000): $68,833.33 + $25,000 = $93,833.33 total amount to be requested for PPP stimulus check. Have questions? Comment below or email Chris LoPilato at sbaloans@nationalfcg.com. Subscribe to the channel: http://bit.ly/subscribeBBB