ILLMAS Posted May 14, 2020 Report Share Posted May 14, 2020 Just found out, one of my client received $1,000 per shareholder (1120S no employees) from the SBA, I guess it's good news. Quote Link to comment Share on other sites More sharing options...
Lion EA Posted May 14, 2020 Report Share Posted May 14, 2020 Tell your client that shareholders who provide services to the S-corporation ARE employees and need to be on payroll. Quote Link to comment Share on other sites More sharing options...
ILLMAS Posted May 15, 2020 Author Report Share Posted May 15, 2020 Funny you mention that, for the last years they been loaning money to their business just to cover the expenses, would be impossible to receive a pay, but they were on the payroll when the business had a profit many years ago. Quote Link to comment Share on other sites More sharing options...
JohnH Posted May 15, 2020 Report Share Posted May 15, 2020 Do you think maybe they filled out the Advance EIDL application incorrectly, stating they have 2 shareholders when in fact they have none? Quote Link to comment Share on other sites More sharing options...
ILLMAS Posted May 15, 2020 Author Report Share Posted May 15, 2020 1 hour ago, JohnH said: Do you think maybe they filled out the Advance EIDL application incorrectly, stating they have 2 shareholders when in fact they have none? It’s possible, they filled out their application in early April when there was no guidance, we were all thinking it was a $10,000 loan, then around mid April it was announced it was $1,000 per employee, so you might be right. Quote Link to comment Share on other sites More sharing options...
JohnH Posted May 15, 2020 Report Share Posted May 15, 2020 Sorry, I had a typo in my reply, but you got the point nevertheless. I meant to say "stating they have two employees when in fact they have none" Quote Link to comment Share on other sites More sharing options...
ILLMAS Posted May 15, 2020 Author Report Share Posted May 15, 2020 7 minutes ago, JohnH said: Sorry, I had a typo in my reply, but you got the point nevertheless. I meant to say "stating they have two employees when in fact they have none" I was remotely log-in to another client computer (Sch C client) and when the question about the employees came up, they have zero employees and that is what was entered, but owners information was entered and the application was completed. So for the 2 shareholder business, I could see them entering the two shareholder=owners (with zero employees) information and completing the application. The Sch C client has not reached to me yet, so I don’t know if they received $1,000. I believe my client filled out the application truthfully and I appreciate the concerns, most of us have been supporting our client in whatever we can. Quote Link to comment Share on other sites More sharing options...
Recommended Posts
Join the conversation
You can post now and register later. If you have an account, sign in now to post with your account.