Uber Drivers Forum banner

1 - 20 of 43 Posts

·
Premium Member
Joined
·
4,516 Posts
Discussion Starter · #1 ·
I'm thinking of investing in a really super duper fast (PC)computer, but I have no idea how to do it. Any advice?

What would you do with $11k if it fell into your lap? Vacay? Pay off car?
 

·
Premium Member
Joined
·
3,199 Posts
You can apply for forgiveness, after a certain period, provide the docs which are in accordance with their guidelines. It's on the SBA site.
Would you start spending that money if you're not sure about the pay back?
When I got into a forbearance plan with my lender, I kept every penny till the forbearance period was signed and done with.
Since so many people are banking on the forgiveness, would be a red flag to hold on the the money till you get the official word.
 

·
Premium Member
Joined
·
7,806 Posts
Would you start spending that money if you're not sure about the pay back?
When I got into a forbearance plan with my lender, I kept every penny till the forbearance period was signed and done with.
Since so many people are banking on the forgiveness, would be a red flag to hold on the the money till you get the official word.
As long as it's spent on paying your employee, there's no risk of it not being forgiven. And you can borrow up to 2.5 months of your 2019 self employment income and have it be forgiven no questions asked.

One of the biggest issues most uber/lyft drivers will run into is that the PPP loans are based on your 2019 taxable profit, which for most of the drivers is zero-near zero.

The only documentation i had to provide was my 2019 tax return. Then i got 2.5 months of my taxable profit. I just stated on the form that I used the money to pay myself. They have a form specifically to do this.

The intention of setting up the PPP loan for 1099 workers was to make the PPP loan eligible for 1099 workers who had their incomes gutted, while not putting them 100% out of business.
 
  • Like
Reactions: Daisey77

·
Premium Member
Joined
·
3,199 Posts
As long as it's spent on paying your employee, there's no risk of it not being forgiven. And you can borrow up to 2.5 months of your 2019 self employment income and have it be forgiven no questions asked.

One of the biggest issues most uber/lyft drivers will run into is that the PPP loans are based on your 2019 taxable profit, which for most of the drivers is zero-near zero.

The only documentation i had to provide was my 2019 tax return. Then i got 2.5 months of my taxable profit. I just stated on the form that I used the money to pay myself. They have a form specifically to do this.

The intention of setting up the PPP loan for 1099 workers was to make the PPP loan eligible for 1099 workers who had their incomes gutted, while not putting them 100% out of business.
Good luck.
I thought of it when it was first available, but I didn't have the guts to go through with it.
If It works for you..... Good!
 

·
Premium Member
Joined
·
4,516 Posts
Discussion Starter · #8 · (Edited)
Would you start spending that money if you're not sure about the pay back?
When I got into a forbearance plan with my lender, I kept every penny till the forbearance period was signed and done with.
Since so many people are banking on the forgiveness, would be a red flag to hold on the the money till you get the official word.
60% has to be spent on 'payroll' ( ourselves, in our case, as IC, I would think ) and 40% on biz expenses, in order to apply for loan forgiveness.

As long as it's spent on paying your employee, there's no risk of it not being forgiven. And you can borrow up to 2.5 months of your 2019 self employment income and have it be forgiven no questions asked.

One of the biggest issues most uber/lyft drivers will run into is that the PPP loans are based on your 2019 taxable profit, which for most of the drivers is zero-near zero.

The only documentation i had to provide was my 2019 tax return. Then i got 2.5 months of my taxable profit. I just stated on the form that I used the money to pay myself. They have a form specifically to do this.

The intention of setting up the PPP loan for 1099 workers was to make the PPP loan eligible for 1099 workers who had their incomes gutted, while not putting them 100% out of business.
We ICs can opt to use line 7 on IRS schedule C on your application, this I know for a fact, and that number is much much much larger than my 'net profit' which was close to zero. So, divide line 7 by 12, then multiply that by 2.5, and that is your loan. Mine was $11k, which came for me today. Hooray!
 

·
Premium Member
Joined
·
12,044 Posts
Would you start spending that money if you're not sure about the pay back?
When I got into a forbearance plan with my lender, I kept every penny till the forbearance period was signed and done with.
Since so many people are banking on the forgiveness, would be a red flag to hold on the the money till you get the official word.
There's really no risk of it not being forgiven if you use the reason owner replacement compensation
One of the biggest issues most uber/lyft drivers will run into is that the PPP loans are based on your 2019 taxable profit, which for most of the drivers is zero-near zero.
Now they're using gross income. Not net
60% has to be spent on 'payroll' ( ourselves, in our case, as IC, I would think ) and 40% on biz expenses, in order to apply for loan forgiveness.
60% minimum. In our case, it will be 100%. You'll use on a replacement compensation as the reason


Good luck.
I thought of it when it was first available, but I didn't have the guts to go through with it.
If It works for you..... Good!
Hurry up there's still time not much but there is.
 

·
Premium Member
Joined
·
6,405 Posts
I do my employers PPP applications and have just finished the PPP foregiveness process so I am extremely familiar with this.

How much trouble RS drivers have getting foregiveness will depend on how much they receive. There are 2 main issues for RS drivers:
  1. There are “payroll” and “non-payroll” costs that qualify. In the case of RS there are virtually no non payroll costs allowable that are “essential” to RS. Either way it’s capped at 40% of the total.
  2. The biggest issue by far will be the qualifying payroll costs. These are split up into three categories but the main point is you are the “owner” of the business and are not commingled with “employees” who receive a paycheck. As the “owner” you are therefore “capped” at $20,000 of income payment during the covered period. The covered period is pretty flexible.
So the bottom line is if you received $20,000 or less you probably will not have any problem getting up to 20k of foregiveness. Those who fudged up numbers and got significantly more than that will have a much bigger issue.

@Stevie The magic Unicorn, I wouldn’t say their are “no questions asked”. There are actually several questions asked but if you received a low enough amount to use the “simple” form you don’t have to submit the documentation with the foregiveness application. However, they can request the documentation any time they want so just be prepared.
 

·
Premium Member
Joined
·
12,044 Posts
I do my employers PPP applications and have just finished the PPP foregiveness process so I am extremely familiar with this.

How much trouble RS drivers have getting foregiveness will depend on how much they receive. There are 2 main issues for RS drivers:
  1. There are “payroll” and “non-payroll” costs that qualify. In the case of RS there are virtually no non payroll costs allowable that are “essential” to RS. Either way it’s capped at 40% of the total.
  2. The biggest issue by far will be the qualifying payroll costs. These are split up into three categories but the main point is you are the “owner” of the business and are not commingled with “employees” who receive a paycheck. As the “owner” you are therefore “capped” at $20,000 of income payment during the covered period. The covered period is pretty flexible.
So the bottom line is if you received $20,000 or less you probably will not have any problem getting up to 20k of foregiveness. Those who fudged up numbers and got significantly more than that will have a much bigger issue.

@Stevie The magic Unicorn, I wouldn’t say their are “no questions asked”. There are actually several questions asked but if you received a low enough amount to use the “simple” form you don’t have to submit the documentation with the foregiveness application. However, they can request the documentation any time they want so just be prepared.
So basically as long as you didn't gross more than $98,000 you're fine.

I'm confused when you say the biggest problem we're going to have is the payroll costs. That's the only way we're going to get it forgiven and it's pretty simple. 100% of our loan is going to go to owner replacement compensation. We only have one thing to document, since there's no non payroll costs really. Since they max out our loan at 2 and 1/2 months of income, which is clearly less than the covered period, there's really no issue. Am I missing something?
 

·
Premium Member
Joined
·
6,405 Posts
So basically as long as you didn't gross more than $98,000 you're fine.

I'm confused when you say the biggest problem we're going to have is the payroll costs. That's the only way we're going to get it forgiven and it's pretty simple. 100% of our loan is going to go to owner replacement compensation. We only have one thing to document, since there's no non payroll costs really. Since they max out our loan at 2 and 1/2 months of income, which is clearly less than the covered period, there's really no issue. Am I missing something?
You essentially are correct. The payroll detail is as follows which could affect some people.:

For simplicity sake I'll just use a simple RS driver example, not the entire program. Payroll costs are broken up into 4 different categories for PPP foregiveness:
  1. Payroll Compensation (W2 employees, not you)
  2. "Owner" compensation
  3. Benefits such as Medical insurance.
  4. Payroll taxes
As the "owner" you are subject to separate rules than for W2 employees. Essentially, the owner is capped at 2.5 months of qualified compensation or $20,000 whichever is lower during the qualified period. For 99% of RS drivers the qualified period they should use the minimum period or 2.5 months. In other circumstances outside of a single prop RS driver that period could be 24 weeks and this is where the owners cap comes into play. For most this should be as simple as the amount you were approved for.

So if you were an "owner" using owner compensation only then 98k would be $20,416 so yes your caclulation is correct. Just remember that each case is different but the scenario as you described it would be true for most RS drivers I'm guessing. However, some other scenarios exist.
 

·
Premium Member
Joined
·
2,080 Posts
You essentially are correct. The payroll detail is as follows which could affect some people.:

For simplicity sake I'll just use a simple RS driver example, not the entire program. Payroll costs are broken up into 4 different categories for PPP foregiveness:
  1. Payroll Compensation (W2 employees, not you)
  2. "Owner" compensation
  3. Benefits such as Medical insurance.
  4. Payroll taxes
As the "owner" you are subject to separate rules than for W2 employees. Essentially, the owner is capped at 2.5 months of qualified compensation or $20,000 whichever is lower during the qualified period. For 99% of RS drivers the qualified period they should use the minimum period or 2.5 months. In other circumstances outside of a single prop RS driver that period could be 24 weeks and this is where the owners cap comes into play. For most this should be as simple as the amount you were approved for.

So if you were an "owner" using owner compensation only then 98k would be $20,416 so yes your caclulation is correct. Just remember that each case is different but the scenario as you described it would be true for most RS drivers I'm guessing. However, some other scenarios exist.
You just couldn't help yourself!!! :LOL::ROFLMAO::LOL:
 

·
Premium Member
Joined
·
6,405 Posts
You just couldn't help yourself!!! :LOL::ROFLMAO::LOL:
:ROFLMAO: You caught me! I did say I'd never talk about the PPP, EIDL, or the Employee Retention Credit ever again because I didn't have the energy for the silly arguments anymore from people who had no idea what they were talking about!

This is different though, these are nice people having an intelligent conversation!! (y)
 

·
Premium Member
Joined
·
861 Posts
I would use it to pay off the car, that's your largest business expense. Then if for whatever reason it isn't forgiven, you simply pay it back with the money that would have gone toward vehicle expenses.
 
1 - 20 of 43 Posts
Top