I am wondering if anyone can advise me on what may be the best way to setup and handle loan proceeds from the Paycheck Protection Program within PC+ 12.2.
Considering that some, or all, maybe 'forgiven' after the 8 week period, does anyone have some advice on how best to set it up? The entire loan proceeds will hit our checking account (we only have one), and all the expenses that would use these proceeds from our general accounting fund (so not split between different accounting funds).
I have not dealt with any loans / debts within our church (yet), so this is a bit new to me.
Thanks for any advice.
CARES Paycheck Protection Program loan, optimal setup in PC+
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Re: CARES Paycheck Protection Program loan, optimal setup in
Any loan is a liability ... so setting it up and showing the received funds is very easy. Here's some info I copied from another topic about loans, the setup is the same:sgbani wrote:I am wondering if anyone can advise me on what may be the best way to setup and handle loan proceeds from the Paycheck Protection Program within PC+ 12.2.
Considering that some, or all, maybe 'forgiven' after the 8 week period, does anyone have some advice on how best to set it up? The entire loan proceeds will hit our checking account (we only have one), and all the expenses that would use these proceeds from our general accounting fund (so not split between different accounting funds).
I have not dealt with any loans / debts within our church (yet), so this is a bit new to me.
Thanks for any advice.
create 01-2620 Construction Loan
If you receive $25,000 in the construction loan:
01-1110-000 DB $25,000
01-2620-000 CR $25,000
In your case, the liability should be called 'CARES Loan'. Lets worry about the forgiveness part later.
Neil Zampella
Using PC+ since 1999.
Using PC+ since 1999.
Re: CARES Paycheck Protection Program loan, optimal setup in PC+
I understand the need to set up our CARES PPP loan as a liability. My question is simply this: When I get ready to process payroll at the end of the month, what do I need to do differently to show our payroll is being paid from that liability line item and to make sure payroll processes properly to pull taxes, SSI, Medicare, etc. for my 941 reporting? I may be overthinking this one.
Re: CARES Paycheck Protection Program loan, optimal setup in PC+
If you setup the loan properly, you're not paying 'from' an liability item. The liability item is the amount YOU have to pay back to the loan maker. The funds have been put in the operating fund, so there's no changes that need to be made in Payroll.first134 wrote: ↑Mon Apr 20, 2020 12:09 pmI understand the need to set up our CARES PPP loan as a liability. My question is simply this: When I get ready to process payroll at the end of the month, what do I need to do differently to show our payroll is being paid from that liability line item and to make sure payroll processes properly to pull taxes, SSI, Medicare, etc. for my 941 reporting? I may be overthinking this one.
However, if you need to reflect the amount being dispensed from the loan proceeds, you can create a new INCOME Pay Item using the normal expense account and title it CARES Act Payroll. This would basically be a copy of the existing INCOME item for each employee, but will show a separate total in the Item Summary report.
Do you see where I'm pointing?
Neil Zampella
Using PC+ since 1999.
Using PC+ since 1999.
Re: CARES Paycheck Protection Program loan, optimal setup in PC+
Yes! Thank you! Our bank is requiring we show a monthly report of how much and where the CARES money went. This should do it!