We know that with every news conference, headline and new development, you are likely overwhelmed about what to do next for your practice. What are the best steps to take while your practice is limited to emergency care only? Based on the most up-to-date news, this is what we recommend for your practice and team:
Consider applying for the SBA Disaster Relief Loan. As of today, March 22, this is the best option, if you have already exhausted your other options, such as your current lender or line of credit. However, the new stimulus package, that will be voted on this week by Congress, may have better and easier options, but we need to wait and see. If you choose to apply for this loan, or another loan that may come out, we encourage you to apply for a loan that is large enough to cover all practice overhead, loans, and necessary distributions for up to 6 months. While you will
likely not need that much money, we encourage you to include the amount in your application.
Here is the link: https://disasterloan.sba.gov/ela/
Contact your banker. Most banks are offering relief to dental clients who have loans. These options vary, bank to bank. This will be an important help during the coming months.
Contact your credit card company. Some credit card companies are offering $0 minimum payment and 0% interest for a month or more. This may be a way to better leverage the cash on hand if the payment can be delayed.
Contact your landlord, supply company and labs, which represent your largest expenditures. Ask these vendors for payment options during the time the practice has limited operations.
Contact your health insurance broker. It is very important that you follow the rules regarding how health insurance is handled during a layoff or significantly reduced hours. Since the rules are ever changing given the current landscape, we strongly recommend that you talk with your insurance broker. We also recommend that you continue to pay for health insurance unless your broker advises otherwise. While this may not be required, it can go a long way to helping your employees.
Stop all owner payroll for corporations. If you need to pull money from the practice, withdraw money as an Officer Loan, Distribution or Draw. Do not run your pay through payroll in order to save both the payroll fees, retirement contributions and payroll taxes at this time. It is easier to get disaster relief if practice owners are not on payroll.
Guide your team to file for unemployment, even if they are working reduced hours. Each state has different rules, so we highly encourage speaking with an employment lawyer, if you are having trouble navigating through the website or information. Employees working reduced hours, since they may be helping with emergencies, may still qualify for unemployment (pay received while working part time will reduce unemployment benefits, but employees working limited hours can still receive unemployment).
Here are some helpful sites
https://www.irs.gov/businesses/small-businesses-selfemployed/state-government-websites
https://www.mass.gov/service-details/working-part-timewhile-receiving-unemployment-benefits
https://www.ctdol.state.ct.us/HP/UIServices.htm
http://www.maine.gov/tools/whatsnew/attach.php? id=2241237&an=1 (This is a downloaded .pdf)
http://www.dlt.ri.gov/ui
https://labor.vermont.gov/unemployment-insurance
https://www.nhes.nh.gov
https://www.labor.ny.gov/unemploymentassistance.shtm
Paid Leave: In our recent newsletter we detailed the latest guidance on H.R. 6201 which was signed Wednesday, March 18 th. At this time we are still waiting on more clarification to see if dental offices and employers with less than 50 employees will be excluded.
July 15 th Federal Tax Deadline. Even though the Federal tax filing deadline and payments have been extended to July 15 th, we still want to file your personal tax returns as soon as possible. If you have a refund coming to you, we want to get you that money as soon as possible. If you owe, you will have until July 15 th to pay, but it will help you budget and know what your liability is. In the past, if you typically had any refund applied in order to cover future estimates, we are currently planning to refund that money to you in order to give you more access to cash, and will tax plan more for 2020 based on how the next several months are.
State Tax Deadline. We will be issuing more guidance on the state filings soon.
Estimated Tax Payments. The first payment for federal estimates is due July 15 th.
Donating Supplies. Donating supplies and inventory to hospitals and emergency responders is extremely helpful in this time of crisis. However, unfortunately, you do not receive an additional deduction for doing so, since you received a deduction when you first purchased these items. We encourage you to use this generous effort to build goodwill in your community.
Stay in contact with your trusted advisors. You chose your accountants, lawyer and other advisors for a reason. Now is the time to lean on them and seek their advice.
Sign the ADA petition to urge Congress to include dentists in COVID-19 relief packages. The ADA is asking Congress to help dentists with loans, student loan debt deferrals, deferring or eliminating payroll taxes, and other business-related relief. Please sign the petition at the following link and urge your colleagues to do the same:
https://actioncenter.ada.org/urgeyour-members-of-congress-to-include-dentistry-in-reliefpackages/
Please feel free to forward this to any of your colleagues and peers. All of our previous newsletters can be accessed easily here
https://www.rosendentalcpa.com/resources/taxscriptions/ and everyone can sign up for future ones on our website. www.rosendentalcpa.com We will continue to update you on the best resources for your practice as information becomes available.
Please let us know how we can continue to support you through these challenging times.
Stay safe and healthy.
Rosen & Associates, LLP
1800 West Park Drive, Suite 300
Westborough, MA 01581
508-926-2400