Realistic Advice In Employee Retention Tax Credit for Dental Practices Simplified

Two new programs are available to aid dental practices in need of additional relief. They are part the HHS Provider Relief Funds. Healthcare providers can apply for $25.5 billion in relief funding through the Phase 4 general distribution and the American Rescue Plan Rural starting September 29, 2021. To maximize the PPP/ERC, you must make sure that you are qualified or might qualify in any quarters of 2020 or 2021 as compared to the quarter in 2019. You might be eligible if the practice is closed entirely or partially due to a government order.

employee retention tax credit for dental practices

This is done by closing your physical spaces. ERC wages cannot be claimed for wages that were used to apply to the PPP forgiveness, but other wages may be eligible. Cherry Bekaert is an independent brand. They are not responsible for any services provided by any other entity under the Cherry Bekaert label.

This blog will not be about this test since most dentists are not qualified. If the state dental association required it, the full shutdown of dental practice usually lasted between 8 and 15 weeks. It began in March 2020. The shutdown allowed most dental offices to qualify for 2020. If the business's net revenues in the first, third, and fourth quarters of 2021 are greater than 20% of the organization's net receipts in the same calendar quarter of 2019, the company will be an eligible employer. The gross revenue reduction criteria for 2020 are more difficult to satisfy because a higher than 50% fall is required. It is very important you know that if the returns are already filed and you file your personal tax on time, this credit will not be taken as a deduction.

• Due to the requirement to show a decline of greater than 50% in gross receipts for 2020, it is more difficult to meet the 2020 gross receipts decline requirements.
• Financial advisors supporting dental practices are always looking for tax credits that minimize tax liability.
• Don't go out and pay a third of the tax savings.
• If your practice had a 50% decrease in gross revenues in any calendar quarter of 2020 when compared to the 2019 same quarter.

Use employee retention credit for dental practices such as for instance a 'occupation'

Doctors who have already filed for SBA forgiveness round one and doctors who hopefully have not yet. And this is why we've been telling physicians for months, there's not a rush to file. We've even had doctors file for things they want to do. The next one is probably these are called covered property damage caused as if someone came into your dental office and vandalized or looted it. Not likely during public disturbances as many of you recall during the tensions that took place in many cities throughout the country.

Use employee retention tax credit for construction companies just like a 'profession'

To be eligible for a second round PPP loan you must have experienced a minimum of a twenty-five percent drop in revenue in any calendar quarter. 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 be considered if they were subject to a partial or total government shutdown. The recommendation of the Wisconsin Dental Association is not sufficient to qualify for an observed shutdown. Owners of dental offices may find it difficult to keep up-to-date with all the guidelines and information provided by government stimulus programmes.

Well, you know, we should be able to pick March, April and May. They won't let that happen and other stuff like that. The bonus round for the second quarter and third quarters is 50 percent reduced. Read more about employee retention credit dental offices here. The second way you could qualify, although it is less likely, is that you must have been in a government shutdown.