TRUTH BOMB: Employees on 1099? and Scorp Owners pay – PPP Forgiveness FAQs Answered!
There's been some pretty consistent questions from comments:
Can I pay my 1099 employees with the PPP?
Can I pay my independent contractors with PPP?
What about my employees that get a 1099?
Can I include my income from Scorp line Schedule C businesses?
Well folks, we get down to the facts here. Employees should not be getting a 1099. Contractors get 1099s. Contractor expense is not allowable under the PPP forgiveness rules!
Also, Scorp owners - you need to be paying yourself a reasonable compensation in payroll. Let's discuss!
Video about banks not reviewing applications: https://youtu.be/y7S_V9Z7Gpg
Follow ClearValueTax: https://www.youtube.com/channel/UCigUBIf-zt_DA6xyOQtq2WA
Disclaimer: This video is intended for educational purposes and should not be taken as legal or tax advice. You should consult with your financial professionals about your unique financial situation before acting on anything discussed in these videos. Clara CFO Group, LLC is providing educational content to help small business owners become more aware of certain issues and topics, but we cannot give blanket advice to a broad audience.