Can I Get A PPP Loan and Unemployment PUA At The Same Time?
Can you get a PPP loan and unemployment benefits at the same time? That’s the question we’re going to answer in this video. Hello. From Freedom Tax Accounting. We’re an accounting firm where we have been providing quality tax and accounting services now for over 20 years If you are new to this channel, we provide strategies for small business owners so they can achieve their financial goals.
Although for the last couple of months, we had been concentrating on providing information on the PPP and E I D L loan programs. Now we are recording this video on January 14th, and we always emphasize the date of the recording on any video relating to the PPP loan program, because this loan has been constantly changing.
So there may be things we’ll discuss in this video that may change in the future. So that’s the importance of subscribing to our channel. So that way, you’re always up to date with the most current and correct information relating to these SBA loans. Now, one of the most common questions we get in our office is can I get the PPP loan and get unemployment benefits at the same time?
The answer is yes and no. And we’re going to discuss both. So let’s go with the no first: Why you cannot get a PPP and unemployment benefit at the same time. Well, you can take advantage of both programs, but you cannot have both programs at the same time. Let me explain, the unemployment program is that you’re telling your state you’re not receiving any type of payroll or compensation from your work. Since you are not making income from your work, then you can apply for unemployment benefits. But, what is the PPP loan? PPP loan is called the paycheck protection program. So the PPP loan is basically giving you the same amount that you would have received as wages or payroll for eight weeks.
So if you got a PPP loan, basically, the government is giving you funds to pay yourself, to replace the income you’re not making for eight weeks. So you’re not unemployed because you are making income. So technically if you’re in unemployment and you get a PPP loan, you’re supposed to call your unemployment agency in your state and let them know that you got a PPP loan and that you cannot get unemployment for eight weeks.
Now, once those eight weeks are up and you have already used the PPP funds to pay yourself, then you can call the unemployment agency again and get unemployment again. Okay. But for those eight weeks after you get PPP funding, technically you’re not unemployed. So you need to call the unemployment agency and let them know to stop employment for eight weeks.
So you can get both, but not at the same time. Now let’s see the version of yes: When you can have PPP and unemployment at the same time. It’s because even though what I discussed earlier is what the rules say. Some states are allowing both, so you need to contact the unemployment agency of your state and ask them if you can use PPP and unemployment at the same time, because we do know of States that are allowing to use both. I hope that answers the question. A lot of people are calling our office to see if we are providing a service to apply for the PPP one and the PPP two. And yes we are. Now, if you want us to apply for the PPP too, we would need to do your 2019 and 2020 accounting. Why? Because if you got a first PPP and now you want a second PPP, you need to certify the 25% reduction in revenue rule. And the only way we can certify that reduction in revenue is if we do the accounting for both years, but we are still providing consultations.
You can call our office at (407) 344-1012 to set up your consultation and we can also help you do your personal tax preparation. And your business taxes as well. We are authorized by the federal government to do personal taxes and business taxes for businesses and individuals that are in any of the 50 us States.
Thank you for watching this video. Remember to subscribe to this channel. If you received value out of this information. Like this video and share it with other business owners and also watch this suggested video where we discuss why you may need to apply for the PPP through a different bank.
All right. Thank you. And God bless you. Bye-bye.