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hellner_associat
Level 1

Can you use families first credit for mandatory shut down for non essential workers and can you use families first along with PPP loan?

 
5 Comments 5
ShiellaGraceA
QuickBooks Team

Can you use families first credit for mandatory shut down for non essential workers and can you use families first along with PPP loan?

Hello @hellner_associat,

 

You can set up a paid leave type in your QuickBooks and add the paycheck protection program loan in the paycheck. Let me guide you how.

  1. Go to Workers and then Employee.
  2. Select the employee you’d like to add paid leave too.
  3. In the How much do I pay an employee section, select the +Add additional pay types.
  4. Select the correct paid leave type as described in Step 1 under the Families First Coronavirus Response Act section, and select Done.

Once done, run a payroll with the new pay type. I'd still recommend consulting with your accountant to properly record the loan.

 

Please refer to these awesome articles for details:

 

Additionally, per Families First Corona Virus Response Act, if an employee was impacted and took time off for COVID-19 related issues prior to April 1, 2020, the time would be tracked as regular sick hours and is not eligible for any tax credits at this time.

 

Should you have other questions or concerns, please let us know. The Community is here to help. Thanks for visiting us today and be safe.

john-pero
Community Champion

Can you use families first credit for mandatory shut down for non essential workers and can you use families first along with PPP loan?

What @ShiellaGraceA said. In addition the two pay types covered are different between the programs. 

 

You get a tax credit for paying sick or taking care of kids out of school for employees that are not working from 4/1 on.

 

You get a ppp loan to pay for retained and working employees plus mortgage interest and utilities.  No tax credit for the loan.

 

There is a third component - z 50% tax credit up to $5000 per max $10000 paid per retained employee but it is going to be calculated on your Q2 941. You can apply for an advance 

john-pero
Community Champion

Can you use families first credit for mandatory shut down for non essential workers and can you use families first along with PPP loan?

And then there are the disaster loans from SBA at low but not 0 interest however some state and municipal industrial development associations have money to loan for working capital aside from all the rest and these like the payroll loans are 0% and potentially forgivable 

hellner_associat
Level 1

Can you use families first credit for mandatory shut down for non essential workers and can you use families first along with PPP loan?

Thanks - that helps!

hellner_associat
Level 1

Can you use families first credit for mandatory shut down for non essential workers and can you use families first along with PPP loan?

Thank you!

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