Medical And Dental Practices Can Still Access Cash Relief From Employee Retention Credit

Employee Retention Tax Credit Can Be A Boon To Local Dental Practices 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 used to reimburse the practice any lost revenues due to COVID-19. This program is very similar in concept to the Employee Retention Credit or PPP loans. The revenue in the practice is compared quarter-to-quarter for 2019 and 2020 to determine whether there was a decrease in any quarters. The financial advisors who support dentists are always employee retention credit and ppp looking for tax credits to reduce tax liability. These last few years have seen a lot of good practices, including tax-advantaged savings, deductions for businesses, and government-funded relief programs like the CARES Act.

Smith says, "I think education is the key to navigating all these programmes and their updates." Wages do include wages that are paid under the Qualified Sick Leave & Family Leave rules of Code. Due to the COVID shutdown, many dental offices became eligible for partial ERC in 2020.

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

Rent, utilities, mortgage interest and some operation expenses are examples of non-payroll cost. Based on your pay costs during the relevant period, a minimum 60% 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 covered period is either the first 8 weeks or the first 24 weeks after you receive the loan. Your practice must have had reduced revenue, a covid event, or a supply disruption, and keep employees on the payroll. The first quarter of 2019 receipts was at 48%. employee retention tax credit This qualifies as a qualifying practice. Then in the second quarter, the practice was at 83% which was above the 80% threshold. In this example, although the practice only had one qualifying period, the employer is entitled the credit for quarter one and quarter 2.

Request For Information About The Retention Tax Credit

If the government order does not include a qualified order, the order for shutting down does NOT have to be total. To qualify for the Employee Retention Credit in 2020, a dental practice needed a 50% decline in gross receipts during any quarter in 2020 compared to that same quarter in 2019. A practice could also qualify if they experienced a full or partial government shutdown (the Wisconsin Dental Association's recommendation does not qualify for this observed shutdown). Owners of dental practices may find it difficult keeping up to date with all the information and guidelines that are available through government stimulus programs.