Cares Act & Payroll Protection Program Update with Hunt Demarest, CPA[THA 196]
Hunt Demarest, CPA Paar-Melis. Hunt is Accredited in Business Valuation and a licensed Certified Public Accountant that has been with the firm since 2006. He specializes in business taxes, valuations, and does consult work with our clients all across the country. When he’s not in the office, Hunt enjoys spending time with his family, golfing, working on and racing his cars. Look for Hunt’s other episodes HERE.
Key Talking Points:
- We are not providing any legal advice. Please check with your banker or accountant.
- For the forgiveness, the SBA says that OCT 31 is the expiration date for applying for forgiveness. That is wrong. You have 10 months after the end of the 24 week PPP period to do this.If you got your PPP back in May 2020 you have until June of 2021.
- Clients are starting to process this and within hours banks are accepting. However, the SBA has to accept it.
- Hunt believes the SBA may just rubber-stamp the forgiveness. Not sure but he believes if the bank is OK with forgiveness so will the SBA but not certain.
- Submit honestly to your bank
- Almost every shop has used their PPP load in just payroll alone.You’ll need to submit your payroll report for the 24 week period, that will account for 100% of your loan
- There are two different forms to useShort-form 3508S, should take you a few minutes to complete
- EZ Form may take you 10 – 15 minutes
- Don’t overthink this
- Tax implicationsThis money is going to be taxable in one-way shape or form
- Rules keep changing with the government
- It is not classified as income until it is forgiven
- He does not recommend moving your forgiveness application until next year as he feels taxes will go up no matter who wins the election.
- Many things to consider. You must consult your accountant
- Be careful on deciding what you will do with an EIDL loan you may have. It needs to be paid back.
- You must consult your accountant to be compliant on these loans and the tax implications
- There is no interest associated with the EIDL grant
- Be sure you have been in contact with your bank and find out their suggestion to get your forgiveness. Your accountant and tax advisor are also key to getting the CARES ACT and PPP put behind you.
Resources:
- A special thanks to Hunt Demarest for his contribution to the aftermarket.
- Books Page HERE
- Listen to all Remarkable Results Radio, For The Record and Town Hall Academy episodes.
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About the author, Carm Capriotto, AAP
Carm is the founder and host of the Remarkable Results Radio Podcast and the pioneer of automotive aftermarket podcasts. Carm calls on his years of experience in the aftermarket to bring engaging stories from his guests.
Listen to raw, unfiltered, honest, and sincere stories that include insights, trends, best practices, and expertise. Each interview brings an opportunity to learn one new thing through the stories of personal achievement. Many podcast guests tell their story of transformation from working in their business to working on it.
As host of over 1,000 episodes, Carm uses his enthusiasm and passion for the aftermarket especially the service sector to take his listeners on a journey showcasing successful service professionals’ paths to Remarkable Results. He also enjoys interviews with aftermarket industry thought leaders who bring their industry perspectives to his listener.
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