I asked the question because there are many business who have Hispanic employees with SS numbers, I wonder how they do it. I have 50% employees and 50% 1099 employees.
1 reply
Apr 7, 2020
Independent contractors working on 1099's cannot be included in the Paycheck Protection Program under the CARES Act. The SBA includes the following Q&A on the topic:
Do independent contractors count as employees for purposes of PPP loan calculations? No, independent contractors have the ability to apply for a PPP loan on their own so they do not count for purposes of a borrower’s PPP loan calculation."
Ultimately, that's because an independent contractor should theoretically be able to file for their own loans for their own business/as a sole proprietor. Though, obviously, certain 1099 workers might not have that luxury. This article from Forbes and this article from Inc. discuss that in a little further detail.
Additionally, these resources should be useful:
- What’s in the $2 Trillion Coronavirus Stimulus Bill For Construction Businesses & Their Workers?- Small Business Loans For Construction During Coronavirus | Who qualifies & how to apply