Employee Retention Credit Can Still Be Used To Provide Cash Relief For Medical And Dental Practices

Local Dental Practices Will Benefit From The Retention Tax Credit September 2021 Compendium

https://f004.backblazeb2.com/file/bcokni/employeeretentioncredit/Employee-Retention-Credit-Qualifications/Employee-Retention-Credit-For-Dental-Offices.html

The funds can also help to reimburse the practice for any revenue lost due to COVID-19. This program is very similar the Employee Retention Credit, and PPP loans. Revenue in the practice are compared by quarter for 2019 & 2020 to determine if there has been a decrease in any quarters. The financial advisors who support dentists are always employee retention credit 50 looking for tax credits to reduce tax liability. These are all good practices that have been in place for years. They include tax-advantaged savings environment, business deductions, and even government-funded relief programmes, such as the CARES Act.

We have offices along the East Coast, in Maryland, Virginia, Washington, D.C., Pennsylvania, Florida, New York, serving clients around the world. Frost Law is composed of highly skilled tax and business lawyers, litigation attorneys. estates attorneys. Certified Public Accountants. Certified Financial Planners. And other tax professionals. Orders may be placed on doctors to prevent them performing elective procedures. Employers are often eligible because they have been restricted by government orders.

Employer Retention Credit Can Still Be Used For Cash Relief For Dental And Medical Practices

Examples of non-payroll costs are rent, utilities, mortgage interest, some operation expenses, property damage costs, supplier costs, and worker protection expenditures. Based on your salary costs during the period covered, at least 60% of the loan must be forgiven. The ERC increased to 70% for up to $10,000 in wages per quarter for Q1,Q2, and Q3. For most dentists, if you qualify under the 50% reduction rule this will be wages paid during the second and third quarter of 2020.

The first 8 weeks or 24 weeks following the loan's receipt are covered. To be eligible, your practice must have experienced decreased revenue or a COVID event and kept employees on payroll. Comparing 2020 receipts to 2019, the first quarter employee retention tax credit dentists was at 48%, which qualifies this practice. The practice was at 83% during the second quarter. This was higher than the threshold of 80%. In this example, although the practice only had one qualifying period, the employer is entitled the credit for quarter one and quarter 2.

Inquiry About Employee Retention Tax Credit

If the government or other authority has granted a qualified order, then the order to shutdown does not have the to be a complete order. A dental practice must have a 50% decrease in gross receipts in any quarter of 2020 to be eligible for the Employee Retention Credit. A practice can also be considered if the government shut down completely or partially (the Wisconsin Dental Association doesn't recommend this). Dental practice owners may find it difficult to stay current with all the information and guidelines provided by government stimulus programs.