Special Notice to Independent Contractors and Sole Proprietors - April 15 update
Dear Independent Contractor or Sole Proprietor,
First of all, thank you for your patience as Baker Boyer has awaited finalized guidance on how to process Paycheck Protection Plan (PPP) applications for independent contractors and sole proprietorships. This updated guidance was just received and Baker Boyer now has a process in place to apply for these businesses. This guidance is different from the instructions for regular businesses. Please read carefully the documents we will be required to have on file to apply for your PPP plan. The documents Baker Boyer will need are:
- 2019 Schedule C for your business. Schedule C cannot show a loss. Independent contractors and sole proprietorships must have filed or are going to file a 2019 IRS Form Schedule C, in order to be eligible for the PPP.
- You must produce a bank statement showing that your business was in business as of February 15, 2020.
- If the business has employees, Baker Boyer will need to receive your 2019 IRS form W3 and the accompanying W2s. In addition, we will require the 2019 Quarterly 941s and 2019 State Unemployment Tax Forms.
- If you have employees, we will also need reports showing your payments for employer-provided health care insurance, employer-provided retirement contributions, and other state and local payroll taxes. Please note, if you do not have employees, these payments are not allowed in your PPP calculation.
Please be aware, the requirement of filing a Schedule C on your 2019 personal IRS Form 1040 is mandatory for PPP eligibility. Please contact your Business Advisor for additional instructions and the most current calculators.
Again, thank you for your patience.
Mark H. Kajita, CPA
President and CEO
Baker Boyer Bank
For more information about actions taken by Baker Boyer, please review our COVID-19 Response page. You may also want to review the list of links and information we've compiled on our Coronavirus Resources page.