Financial Advisory Blog

Armanino’s Financial Advisory blog is your source for thought leadership around cloud ERP and accounting solutions and integrations. Supported by the Cloud Accounting Institute and numerous experts in cloud, finance, reporting, integration, compliance, and technology, Armanino’s Financial Advisory blog features must-read content on what’s happening in the finance industry, case studies, white papers, and much more.

July 23, 2020

What is the wage maximum for people who are self-employed?

Posted by Armanino Financial Advisory Team

Self-employed people are also subject to the $100,000 per year maximum, or $15,833 for the 8-week Covered Period forgiveness application. In the event of a 24-week Covered Period, this maximum increases to $20,833. If a self-employed person filed a Schedule C on their 2019 tax return (meaning that they’re a sole proprietor or a single member LLC), the net profit on the Schedule C for that self-employed person is also used to calculate the maximum allowable payroll cost for forgiveness. The rule allows for 8/52 of 2019 net profit for an eight-week Covered Period, or 2.5 months’ worth of 2019 net profit for a 24-week Covered Period. The 2019 Schedule C is required documentation for loan forgiveness in this instance. The self-employed person is required to use the smaller of the two maximums ($15,833 vs. 8/52 of 2019, or $20,833 vs. 2.5 months of 2019 net profit) in their forgiveness application.

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