This employment is different than the PUA unemployment so it could be different.
Financial Relief Options For The Full-Time DJ Operators
- Thread starter Cap Capello
- Start date
sure you can. The Fed said tehyr'e doing as much as that as they can to keep banks solvent.
10% of the US populatin visits food banks on a regular basis...so yes, a big shut down is going to have dire consequences.
They're saying about 15% are hitting food banks now.
that's some 50,000,000 people.
I got the stimulus. It helps some.
The $600/week federal will come - with pa officially shutter from mar 13, but I think they $600 starts mar 30, PA is now officially shutter to may 8...and I know nobody is gonna set their dates for may 10 -15 hoping for things to truly be open and go-go-go...so it's 6 weeks minimum, or $3600 I'm looking to get. That will help.
But PA has a bug in their system..they admit it, are working on it, and say 'check back in a few days'...if you have ANY wages in the past year or 2 and are self employed it kicks you out. I drove a school bus...I get kicked out even though I no longer do that. So I wait...
Banks will have issues - people won't or can't pay ALL their bills...so what gets ignored? Or paid partial? Loans, credit cards.. My camper loan bill was for interest only this month. Nice. Mortgage? nope, they want all their money, as do all the utility companies.
I'm conserving cash..using a credit card when I have to buy much of anything. GF was driving the bus so she's still getting some pay...some. Her bills for the horses are still the same, as are insurance, utilities, etc.
Even if you can live off your savings, when things come back up you'll build that savings up- by spending less,right?
So the recession will be real. A depression? We'll see - oil prices say depression!
They're saying about 15% are hitting food banks now.
that's some 50,000,000 people.
I got the stimulus. It helps some.
The $600/week federal will come - with pa officially shutter from mar 13, but I think they $600 starts mar 30, PA is now officially shutter to may 8...and I know nobody is gonna set their dates for may 10 -15 hoping for things to truly be open and go-go-go...so it's 6 weeks minimum, or $3600 I'm looking to get. That will help.
But PA has a bug in their system..they admit it, are working on it, and say 'check back in a few days'...if you have ANY wages in the past year or 2 and are self employed it kicks you out. I drove a school bus...I get kicked out even though I no longer do that. So I wait...
Banks will have issues - people won't or can't pay ALL their bills...so what gets ignored? Or paid partial? Loans, credit cards.. My camper loan bill was for interest only this month. Nice. Mortgage? nope, they want all their money, as do all the utility companies.
I'm conserving cash..using a credit card when I have to buy much of anything. GF was driving the bus so she's still getting some pay...some. Her bills for the horses are still the same, as are insurance, utilities, etc.
Even if you can live off your savings, when things come back up you'll build that savings up- by spending less,right?
So the recession will be real. A depression? We'll see - oil prices say depression!
The poor and the middle class is going to be rocked in the coming years from all of this. The Wealthy will do well since they were propped up by the government, and strengthened even more than they were.
It's really a crazy sight and early signs of what is coming when you see a mile long line of mostly SUVs waiting for food from a food bank. Time to get prepared for some real hard times coming our way. 3 weeks into a shutdown, and people are completely broke, and need help from a food bank for food. More to come as this whole things progresses longer.
Sign of the times: Mile-long line of cars outside California grocery giveaway
A pop-up food pantry in Southern California on Thursday drew so many people that the line of cars waiting for free groceries stretched about a mile (1.6 km), a haunting sign of how the coronavirus pandemic has hurt the working poor.www.reuters.com
Amazing actually. I read this thread from beginning to end and do you what the common theme is? Absolute and utter confusion...over who qualifies for what, how much do people qualify for, is it a grant or loan, can you be working during this time, if so - how much, do these financial options only have to go to employee payroll etc ? It's a mess. I know that a lot of folks here are full time DJ's and so there is a much deeper impact to you financially due to this shut-down than someone like myself. I can't imagine how unnerving all of this is. The reality is my Dj business is still developing and I have to have a full time day job while working on getting it to the level I want. That doesn't make me a hobbyist though as someone inferred.
This is my point. Those in my shoes have also been impacted by this. Like everyone here, we worked our asses off to line up weddings/gigs for the rest of the year and lost that 2020 income due to Covid and the government's decision to shut things down. We, too have steady business expenses to pay for and don't have the business providing the income stream for those nor do we have the longevity in this business to have set aside a ton of money to offset financial low times like this. But because we happen to have a full time day job, we don't qualify for any funding (as I understand it).
I hope that changes (or maybe I'm just not understanding something regarding these funding options). I'm certainly not in a "mission critical" situation since I'm not relying on my developing Dj business as a full time gig to pay for the roof overhead. However, it seems to make sense that if the government were the ones to take away your income stream due to a pandemic, there should be some sort of interim subsidy for those even at my level. We have impacted businesses as well.
This is my point. Those in my shoes have also been impacted by this. Like everyone here, we worked our asses off to line up weddings/gigs for the rest of the year and lost that 2020 income due to Covid and the government's decision to shut things down. We, too have steady business expenses to pay for and don't have the business providing the income stream for those nor do we have the longevity in this business to have set aside a ton of money to offset financial low times like this. But because we happen to have a full time day job, we don't qualify for any funding (as I understand it).
I hope that changes (or maybe I'm just not understanding something regarding these funding options). I'm certainly not in a "mission critical" situation since I'm not relying on my developing Dj business as a full time gig to pay for the roof overhead. However, it seems to make sense that if the government were the ones to take away your income stream due to a pandemic, there should be some sort of interim subsidy for those even at my level. We have impacted businesses as well.
You still do qualify for the PUA, PPP, and EIDL. Your business is a separate entity and what your doing is applying for relief from the money your business brings in. So if the BUSINESS made 24k a year and you were the only employee, you could apply for $5k through the PPP (of which 3750 can go towards payroll, which is you... and the 1250 can go towards business rent and utilities). That $5k if used properly is forgiven, otherwise it becomes a 1% loan that has to be paid back within 2 years.
You can also do the EIDL where the business can get a grant equal to $1000 per employee... up to $10k total. You count as 1 employee.
Lastly, even if you’re partially employed, but part of your income was affected by COVID, you can get the PUA of $600/week provided by federal government, and in some states it can be more depending on if they’re offering state assistance for self employed/gig workers/etc.
obviously, having the proper documents to prove that you run a business is critical.
Am i the only one who giggles everytime Taso says PP...P
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I'll definitely have to research the options more. Thanks for the info, Taso. I thought that I would qualify for the $600/wk self employment insurance benefits so I applied. I learned in talking to the state of Iowa that in applying for that, I have to apply for regular unemployment benefits that, of course, require weekly reporting. In that reporting, I have to confirm I make <$472/wk. If I make more, I don't qualify for any regular unemployment benefits of ($472/wk) NOR do I qualify to get the additional $600/wk self employment benefit either. So, according to them, all of those funds I spoke of is only for those who were full time self employed gig workers and now have basically no or next to no income coming in. So that's what spurred my post. IF that's true, then it's effectively leaving out folks that have been impacted and lost income streams. Gonna check into the others you mentioned, for sure!
Haaa....YEP!...The PUA (POO-AH)....and the PP-P (PEE-PEE)... i see a pattern here.
Not to be a fly in the ointment. My understanding is that these programs aren't necessarily income replacements. They're meant to keep people afloat with the basics. For instance If you're making > $472/wk you can most likely put food on the table for your family and maybe buy a roll of toilet paper or two (
). You may not be able to make your mortgage but that problem is helped by yet another ever changing set of rules. States not processing evictions, bank voluntarily extending deadlines, etc.Like normal times for people on the lower end of the spectrum unemployment equals more money than usual. The rich aren't worried. People in the middle get squeezed.
This is why it's important to have an accountant that can explain your specific situation, for your specific state. COuple of things to keep in mind... the state unemployment is much different than the PUA which is federal. I got denied for my state unemployment bc NJ has nothing for people that get self employment pay... zero. You have to do a state unemployment application so that they can submit it to the federal system. As I showed in an earlier document... the PUA covers "PARTIALLY emoloyed" workers. Obviosuly... Iowa would not cover that.
This is why there's a combination of programs. The PUA covers 13 weeks... BUT, if you are self employed, you can also apply for the EIDL which will give an extra $1000, plus the Payroll Protection Program (fixed it for you chrisNot to be a fly in the ointment. My understanding is that these programs aren't necessarily income replacements. They're meant to keep people afloat with the basics. For instance If you're making > $472/wk you can most likely put food on the table for your family and maybe buy a roll of toilet paper or two (
Like normal times for people on the lower end of the spectrum unemployment equals more money than usual. The rich aren't worried. People in the middle get squeezed.
) which can virtually replenish your entire income for 8 weeks. There are ways to get much more. Problem is... gettinng accepted amongst the millions applying.
Not to be a fly in the ointment. My understanding is that these programs aren't necessarily income replacements. They're meant to keep people afloat with the basics. For instance If you're making > $472/wk you can most likely put food on the table for your family and maybe buy a roll of toilet paper or two (
Like normal times for people on the lower end of the spectrum unemployment equals more money than usual. The rich aren't worried. People in the middle get squeezed.
Haaa...Absolutely true!
It definitely makes sense that the first folks "in the bread line" need to be those who literally need these funds to, like you said, put food on the table etc. That would not be my situation at present. I think these funds are also there to avoid the big picture problem. If people can't pay their mortgages and monthly bills...the whole economy slides south very quickly. Personally? I feel that if the government really wanted to help, why didn't they pause all mortgage, car, loan and credit card payments for 3+ months and put those months on the tail end of the loans? What do $1200 stimulus checks do for folks that have no income coming in and still have to pay those bills? That doesn't even really keep folks afloat! Banks and auto manufacturers have been bailed out before and they make billions.
For my situation, what I was bringing up though was that there are folks in my situation that are running businesses whose income streams got cut off by this...not to where they can't pay their mortgages or put food on the table but to where it certainly can and may affect loan payments, credit card payments etc because the business expenses are still there. The full time day job is paying the mortgage,putting food on the table and paying for household expenses. The business expenses are paid by income made by the business....and it's that income that went bye-bye
And that's EXACTLY what th EIDL and PPP are for! Although the PPP is more specific to just business rent and utilities, along with payroll.For my situation, what I was bringing up though was that there are folks in my situation that are running businesses whose income streams got cut off by this...not to where they can't pay their mortgages or put food on the table but to where it certainly can and may affect loan payments, credit card payments etc because the business expenses are still there. The full time day job is paying the mortgage,putting food on the table and paying for household expenses. The business expenses are paid by income made by the business....and it's that income that went bye-bye
There are minimum expectations of payroll preservation before rent and utilities become eligible. You'll have to account for this eventually, and I wouldn't want to be on the wrong side of compliance in the next tax year.
I'm really not trying to be rude... but have you actually looked at the requirements or put in an application. It's EXTREMELY simple. Your loan amount is your yearly payroll (form 941 for employees and line 31 of your schedule c combined), divided by 12, times 2.5. So if your yearly payroll between what you pay yourself or is passed-through to your individual tax return, and what you pay your w-2 employees is 60,000 combined, then the loan amount is $12,500. 75% MUST be used for payroll (split accordingly between you and any w-2 employees), and up to 25% can be used for rent or utilities... and thats it! Can't use it for business credit card debt, buying music, buying equipment, etc. If you do it correct, and document that you wrote checks for those needs only... you're safe, and all is forgiven. There are no rules for what must be spent when... just that by the end of the 8 weeks, that is how it has to be used. Now what if you have no rent or utilities... great... DON'T spend the 25% dedicated to it. At the end of the period, just return it! If you use it for unauthorized purposes, it turns into a 1% loan and must be paid back with accrued interest in 1.5yrs (first payment is deferred for 6 months).
This is much tougher for companies that have 10's or 100's of employees, where they are required to maintain those same levels of employment... especially when unemployment might be more appealing. However, if you're self employed... no w-2 employees... piece of cake. Take the loan total... give yourself 75% as payroll and return the rest if you have no rent or utilities. DOCUMENT EVERYTHING!
This will also have little to do with taxes. If you don't do it right, it becomes a loan. That is all.
A loan that's forgiven is called: income.
Income is taxable.
Loan forgiveness and tax forgiveness are not co-requisite.
There's some measure of liability no matter which way it turns out, so whatever you project for future income should have that lien accounted for. If forgiven, that's going to be the sum of of 25% plus any personal payroll amount you keep multiplied by your effective tax rate. Despite the hype - there's no free lunch.
The other point I want to stress is that the recipient business does in fact, have to turn the stated payroll portions over to the employees. (Not everyone reading this thread is going to be of high moral character.) Otherwise, it's criminal fraud and taxes or loans would seem like small problems in comparison.
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Maybe, maybe not.
Teh $600/week PUA federal unemployment has a small print line in it - You must make THE MAJORITY of your living from you business, NOT a W2 job...so NO side hustles need apply.
If you have your main job, and are not unemployed, then you do not get PUA. If your main job has cut your pay/hours/job then file for regular state unemployment and PUA viat that.
If you have a W2 job in your past it may affect your ability to collect...I know this because I was driving a school bus last year and have collected unemployment from that job (summer layoffs, etc) and that bit crept up into my Pennsylvania application.
And it takes 3 weeks (the application says) for a determination...so mid may at the earliest...and been getting nothing since mid-march....well, teh stimulus arrived for me. My son got his refund via hard check, so may not see his stimulus till august they say...and I'm STILL waiting on my PA tax refund...since MID FEB!
not sure what the small print in the other stuff is...i'm sure there is some.
Teh $600/week PUA federal unemployment has a small print line in it - You must make THE MAJORITY of your living from you business, NOT a W2 job...so NO side hustles need apply.
If you have your main job, and are not unemployed, then you do not get PUA. If your main job has cut your pay/hours/job then file for regular state unemployment and PUA viat that.
If you have a W2 job in your past it may affect your ability to collect...I know this because I was driving a school bus last year and have collected unemployment from that job (summer layoffs, etc) and that bit crept up into my Pennsylvania application.
And it takes 3 weeks (the application says) for a determination...so mid may at the earliest...and been getting nothing since mid-march....well, teh stimulus arrived for me. My son got his refund via hard check, so may not see his stimulus till august they say...and I'm STILL waiting on my PA tax refund...since MID FEB!
not sure what the small print in the other stuff is...i'm sure there is some.
Yes those points are correct, it is income and yes any employees have to be proportionally paid. Those are requirements to be forgiven.
If you don’t mind me asking, where is the small print in the PUA documentation. I’m not doubting u, but I want to make sure my info is accurate.
from the PA unemployment website... https://www.uc.pa.gov/COVID-19/CARES-Act/Pages/PUA-FAQs.aspx
emphasis added by me
So...if 51% or more of your income is NOT self employment...then you don't qualify.
IF you're regular job has cut income, laid you off, etc then yes, you qualify.
So...essential workers, still working? Sorry, you don't get it.
PA school employees are still getting paid...so sorry, you don't get it. Even though most are experiencing a paycut since they only get paid their regular route pay, nothing for sports/field trips and such that can up their pay 50-75%.
Side hustles, no. Not primary income.
What are they basing this on? Latest tax return? History? This past week/month? No answer is perfect. right now my 'gig' income is zero...so ANY job would provide most of my income LOL.
I didn't take the summer off from the bus job, took as many trips as I could..and my DJ/Photo biz is home-based, so I get all sorts of deductions for that, so for 2019 the bus gross is slightly above my own income from the biz. Hmm...don't know how that will impact me.
With a strongly booked 2020 and seeing the bus job suck up my life, I quit it in January 2020. In 2018 and before my biz paid me more than the bus job. So it all depends on how some bureaucrat 'thinks', or not, I suppose.
If spring sports do pictures and the booked DJ work continues I'll be poorer, but OK. If spring sports cancel I'll be looking for work in the 'real' world.
My car insurance company is gonna rebate me $85 in May, so I'm sure I'll be fine LOL
emphasis added by me
So...if 51% or more of your income is NOT self employment...then you don't qualify.
IF you're regular job has cut income, laid you off, etc then yes, you qualify.
So...essential workers, still working? Sorry, you don't get it.
PA school employees are still getting paid...so sorry, you don't get it. Even though most are experiencing a paycut since they only get paid their regular route pay, nothing for sports/field trips and such that can up their pay 50-75%.
Side hustles, no. Not primary income.
What are they basing this on? Latest tax return? History? This past week/month? No answer is perfect. right now my 'gig' income is zero...so ANY job would provide most of my income LOL.
I didn't take the summer off from the bus job, took as many trips as I could..and my DJ/Photo biz is home-based, so I get all sorts of deductions for that, so for 2019 the bus gross is slightly above my own income from the biz. Hmm...don't know how that will impact me.
With a strongly booked 2020 and seeing the bus job suck up my life, I quit it in January 2020. In 2018 and before my biz paid me more than the bus job. So it all depends on how some bureaucrat 'thinks', or not, I suppose.
If spring sports do pictures and the booked DJ work continues I'll be poorer, but OK. If spring sports cancel I'll be looking for work in the 'real' world.
My car insurance company is gonna rebate me $85 in May, so I'm sure I'll be fine LOL