HHS Updates on Provider Relief Fund for Dentists – ADA NEWS ALERT

Here is the ADA position on the HHS Provider Relief Fund for Dentists. We along with the ADCPA received many calls from our clients about the “balance billing” issue if you were to participate with this grant (relief funds). You will see below, the ADA worked with HHS to resolve this issue. It ONLY becomes an issue if you are treating patients that have been diagnosed with the virus.

You are welcome to SHARE with your friends and colleagues.

Finally, please consider registering for the webinars as listed below. They will be very informative!


HHS Updates on Provider Relief Fund for Dentists
Hello, Fellow Dentists:

As you may recall, the Department of Health and Human Services (HHS) announced on Friday, July 10 that all dentists with a verifiable dental provider Taxpayer Identification Number (TIN) are allowed to apply for funding through the Enhanced Provider Relief Fund (PRF) Payment Portal.

The deadline to apply has been extended to Monday, August 3.

Balance Billing

Many of you have already applied and the number one concern we’ve heard has been about accepting the Terms and Conditions on balance billing, also known as surprise billing. The ADA worked with HHS to set the record straight and they’ve now clarified that:

  • Dental providers who are not caring for patients with presumptive or actual cases of COVID-19 are not subject to balance billing prohibitions. ‘Presumptive’ is defined as a case where a patient’s medical record documentation supports a diagnosis of COVID-19.
  • HHS thinks few, if any, dentists are performing dental work on active COVID patients. So, there should be very few dental patients covered by this bar.
  • Qualifying for payment from the PRF has to do with past treatment earlier this year when HHS broadly viewed every patient as a possible case of COVID-19. Balance billing prohibitions apply only to treating current active COVID-19 patients with a medical record that supports a diagnosis of COVID-19.

Reporting Requirements

  • For those concerned about reporting requirements, HHS did release a notice stating that detailed instructions regarding future reports will be released by August 17 and will apply to payments exceeding $10,000 in the aggregate from the PRF.
  • The reporting system will become available to recipients for reporting on October 1, 2020. The reports will allow providers to demonstrate compliance with the terms and conditions, including use of funds for allowable purposes.
  • Recipients of PRF payments do not need to submit a separate quarterly report to HHS or the Pandemic Response Accountability Committee.
  • There are plans by HHS to provide recipients with Question and Answer (Q&A) Sessions via webinar in advance of the submission deadline.

Webinars and Other Help Available

  • HHS is hosting a webinar for dentists and Medicaid/CHIP providers to learn more about the application processRegister now. The webinar will be held on Monday, July 27, 2020 at 3pm ET.
  • ADA is also hosting a webinar. Register Now. This webinar will educate dentists on the PRF as well as Small Business Administration (SBA) loans and updates on Congressional activity. This webinar will be held on Tuesday, July 28, 2020 at 8pm ET.
  • HHS instructions are available to act as a guide in applying to the PRF.
  • Read the recent ADA News article where Dr. Phillip Fijal, chair, Council on Government Affairs, has a conversation on his application process and gives helpful tips. The article also reviews eligibly requirements to apply.

Terms and FAQs

The ADA is proud to support dentists as they return to serving their communities. Together, we are driving dentistry forward on its path to recovery. Be sure to visit ADA.org/COVID19Advocacy for regular updates.

Stay Well,

Chad P. Gehani, DDS
President

All Dentists Now Eligible for Provider Relief Fund Payment

As part of the 2.2 Trillion CARES Act signed by the President on March 27, $175 billion was allocated to the CARES Act Provider Relief Fund. This fund was intended to provide funds to healthcare providers to help them fight the COVID-19 virus for their patients. This fund was limited up until recently to physicians, hospitals and other healthcare providers other than dentists. As of last Friday, all Dentists are eligible.

Many of you that are ADA Members received an e-mail from the ADA (see below) this past Friday evening announcing that all Dentists are now eligible for the #175 Billion in HHS Payments. Initially when the program was first introduced, the HHS Program was only for those Dentists providing services to patients that are Medicaid eligible (Please see >> Schiff Client update, June 10, 2020 at 8:00 PM). This is not the case now  as a result of the ADA’s advocacy. This Program is now available for all Dentists. Go ADA!

From my reading of the updates (please see below), it appears a dentist wouldn’t know if they were eligible until they start the application process. You will need your Federal Identification Number (TIN) along with your annual collections.  You are eligible only if your Federal Identification Number matches a list approved by the HHS. There are steps in the FAQs to follow if your TIN is not on the approved list.

The amount of money you receive, if eligible is 2% of Gross Revenue on the most recently file tax return. Note that the funds you receive will be made public so if privacy is a concern to you then you may not want to apply for the Relief Funds. Anyone reading the list will be able to estimate your annual Collections. For example, if you Gross $1 million you are eligible for $20,000. As of now, the funds will be “taxable”. The ADA is lobbying to get these funds to a “non-taxable” state! Stay tuned!

HHS Announces Over $4 Billion in Additional Relief Payments to Healthcare Providers Impacted by the Coronavirus Pandemic

https://www.hhs.gov/about/news/2020/07/10/hhs-announces-over-4-billion-in-additional-relief-payments-to-providers-impacted-by-coronavirus-pandemic.html

The U.S. Department of Health and Human Services (HHS), through the Health Resources and Services Administration (HRSA), is announcing approximately $3 billion in funding to hospitals serving a large percentage of vulnerable populations on thin margins and approximately $1 billion to specialty rural hospitals, urban hospitals with certain rural Medicare designations, and hospitals in small metropolitan areas. HHS is also opening the provider portal to allow dentists to apply for relief.  HHS recognizes the urgent need these vital funds play in supporting safety net providers and those serving large rural populations facing financial devastation catalyzed by the pandemic.

Welcome to the CARES Act Provider Relief Fund Payment Attestation Portal.

 The Department of Health and Human Services (HHS) has announced $175 billion in relief funds, including to hospitals and other healthcare providers on the front lines of the coronavirus response as part of the Coronavirus Aid, Relief, and Economic Security (CARES) Act and the Paycheck Protection Program and Health Care Enhancement Act. This funding, along with additional relief funding outside of the CARES Act, supports healthcare-related expenses or lost revenue attributable to COVID-19 and ensures uninsured Americans can get treatment for COVID-19. This site is open to all providers who want to apply for a Provider Relief Fund payment, regardless of network affiliation or payer contract. HHS is contracting with UnitedHealth Group to facilitate delivery of the funds.

How were dental providers determined to be eligible for this Distribution?  (Added 7/10/2020)

Many dental providers have already successfully applied for funding under the Medicaid-focused General Distribution.  To support payments to dental providers who may not bill Medicare or Medicaid, HHS has developed a curated list of dental practice TINs from third party sources and HHS datasets.  Providers with TINs on the curated list must meet other eligibility requirements including operating in good standing and not be excluded from receiving federal payments.  As a next step, HHS will work with states and its vendors to authenticate dental providers not on the curated list.

How can a dental provider find out if they are on the curated list?  (Added 7/10/2020)

When a dental provider applies, the first step of the application process is to validate that their TIN is on a curated list of known dental providers. HHS will work to validate applicants that are not on that list.  If you are concerned you were not on the curated provider list, please ensure you have an active, verifiable dental provider TIN and submit your information to the Provider Relief Fund application portal.  You will be notified if you are permitted to continue your application for PRF payment.  Any eligible dental providers not on the curated list will undergo additional review and if validated will be permitted to apply for funding.

To be eligible, a dental provider must meet all of the following requirements:

  1. Must not have received payment from the initial $50 billion Medicare-focused General Distribution
  2. Must not have received payment from the $15 billion Medicaid and CHIP Distribution
  3. Must have either (i) filed a federal income tax return for fiscal years 2017, 2018 or 2019 or (ii) be an entity exempt from the requirement to file a federal income tax return and have no beneficial owner that is required to file a federal income tax return. (e.g. a state-owned hospital or healthcare clinic)
  4. Must have provided patient dental care after January 31, 2020
  5. Must not have permanently ceased providing patient dental care directly, or indirectly through included subsidiaries
  6. If the applicant is an individual, have gross receipts or sales from providing patient dental care reported on Form 1040, Schedule C, Line 1, excluding income reported on a W-2 as a (statutory) employee.

https://www.hhs.gov/coronavirus/cares-act-provider-relief-fund/faqs/dental-distribution/index.html

The terms and conditions to the program.

PLEASE READ THESE CAREFULLY. There are a few of these terms and conditions which need clarification. Below are three of the terms and conditions to carefully review:

  1. A) The Recipient certifies that it provides or provided after January 31, 2020 diagnoses, testing, or care for individuals with possible or actual cases of COVID-19
  2. B) Recipient is not currently terminated from participation in Medicare or precluded from receiving payment through Medicare Advantage or Part D; is not currently excluded from participation in Medicare, Medicaid, and other Federal health care programs; and does not currently have Medicare billing privileges revoked.
  3. C) The Recipient certifies that it will not use the Payment to reimburse expenses or losses that have been reimbursed from other sources or that other sources are obligated to reimburse.

https://www.hhs.gov/sites/default/files/terms-and-conditions-medicaid-relief-fund.pdf

Portal to apply for HHS Funds >

 https://www.hhs.gov/coronavirus/cares-act-provider-relief-fund/for-providers/index.html

The documents you will need to upload so you can be prepared when you start the process.

  1. Most recent business federal tax return for 2017, 2018 or 2019 (IRS Form #1120S Corporations, IRS Form#1040  Schedule C – LLC’s and Sole Proprietors, IRS Form #1065 for Partnerships / LLC’s). Please e-mail your Schiff Team Member if you need copies of your 2019 Income Tax Return.
  2. First Quarter 2020 Form 941, Form 940 Annual Federal Unemployment Tax Return (2019)
  3. Applicant’s FTE worksheet https://hhs.gov/sites/default/files/prf-fte-worksheet.xlsx
  4. Gross Revenue Worksheet https://hhs.gov/sites/default/files/prf-gross-revenues-worksheet.xlsx

Good luck with the application process! You have until July 24, 2020 to apply. I would start the application process now, in case there are “glitches” during the way!

Schiff Client Update, Friday, July 10, 2020 ; 6:30 AM – (Tax Due Date 07.15.20)

Tax Due Date 07/15/20 – Individual Income Tax Returns

This coming Wednesday, July 15, 2020, is the due date for your 2019 Individual Income Tax Returns for both Federal and State. This due date was changed from April 15, 2020 to July 15, 2020, due to the Pandemic. Please make sure all taxes are paid by this date. Please make sure if you did not file your tax return by July 15, 2020, we have filed a Tax Extension on your behalf. Please confirm with your Schiff Team Member.

Tax Due Date 07/15/20 – Maryland Personal Property Tax Returns

This coming Wednesday, July 15, 2020, is the due date for your 2020 Maryland Personal property Tax Return. This due date was changed from April 15, 2020 to July 15, 2020, due to the Pandemic. Please make sure you have filed your 2020 Maryland Personal Property Tax Return along with the $300 annual filing fee, if applicable. There are NO extensions for this type of tax return beyond July 15, 2020. The $300 filing fee should be made payable to the State Department of Assessments and Taxation (SDAT).

2020 Mid-Year Meetings

Please reach out to us as soon as possible (via e-mail), as our July, August and September calendars are filing up fast with clients desiring a 2020 Mid-Year Meeting. As a result of the Pandemic, will be hosting all 2020 Mid-Year Meetings via ZOOM.

PPE Tax Credit Update

It appears Congress is “liking” the idea of a Tax Credit, for the costs that you have incurred for the acquisition of PPE Equipment and Supplies, from March 2020 through December 31, 2020. As you may recall, a “Tax Credit” is better than a Tax Deduction, for a Tax Credit is a dollar for dollar reduction of your Federal Income Taxes. If you are in need of PPE Equipment / Supplies, please click here>   https://www.crazydentalprices.com/schiff/

Schiff Client Update June 24, 2020 3:30 PM

PPP – Paycheck Protection Program Flexibility Act of 2020

On June 5, 2020, the “Flexibility” Act was signed into law. As a result, the covered period has been extended from 8 weeks to 24 weeks. In addition, the Payroll Costs have been reduced from 75% to 60% in order to gain maximum PPP Loan Forgiveness. As a result of the 24 week period, we are encouraging all clients to use the 24 week period as opposed to the 8 week period. Also, you should be able to obtain maximum PPP Loan Forgiveness just accounting for the payroll costs during this new and extended period.

PPE Tax Credits & PPE Equipment & Supplies

The ADA is working hard and encouraging Congress to allow Dental Practices to obtain a “tax credit” up to $25,000 for the cost of PPE. It is my understanding at this time, it will be a dollar for dollar credit. In other words, if you spend $1,000 on PPE, and if this Tax Bill is passed, you will receive a Tax Credit in the amount of $1,000. Speaking of PPE, if you are in need of PPE, please click here>>> https://www.crazydentalprices.com/schiff/    In order to use your Schiff coupon, please place “Schiff10” in the coupon section of your order.

Retention Tax Credit (RTC)

There is a possibility, Congress will revisit this Tax Credit (RTC) in the near future and allow you to take the “Tax Credit, even though you received a PPP Loan. This would be amazing! Why? Because the requirements for the Tax Credit are, your business would have to have suffered a loss, calculated by measuring the 2nd Quarter of 2019 vs. the 2nd Quarter of 2020 Collections. If your collections are down by 50% or more, you would qualify for this tax credit. For example,  Let’s assume you collected $100,000 per month for the months of April 2019, May 2019 and June of 2019 or $300,000 and you compare that to April 2020, May 2020 and June 2020 (Q2 2020) at $150,000 or less, you would qualify for the RTC. If so, the credit will be increased from 50% of the 1st $10,000 in wages per employee to 80%  of such wages, for wages paid during Q2 of 2020. So, as of now, if you received a PPP Loan, you do not qualify for the RTC. However, this could change in the future….please stay tuned!  :>)

Maryland Unemployment Update – You may have this question!

Question – As I understand it, the maximum weekly unemployment benefit for Maryland is $430.00 plus the Federal stimulus of $600.00 a week  Based on the formula, how much can an employee in Maryland earn on a weekly basis without impacting the above?

Answer – The amount a claimant can earn each week depends on a few things. The claimant must be working less than 35 hours per week and earning less than the Regular UI benefit amount.  For instance, if a claimant is eligible for $400 in Regular UI per week, is working 30 hours per week and earned $350 that week, they would still be eligible to receive a partial unemployment check along with the additional $600 in federal stimulus.  However, if the claimant earns more than their Regular UI weekly benefit amount, regardless of the number of hours worked, they are not eligible.  If they are working 35+ hours per week, regardless of their wages earned, they are not eligible.

EIDL Loan Update

As of the date of this writing, please hold onto your EIDL Loan. We will assess the situation this coming Fall. At that time, we will determine if we are going to payoff the EIDL Loan. Borrowers can obtain their EIDL loan payoff information by contacting the SBA Disaster Loan Servicing Center at (800) 736-6048.

Family First Coronavirus Response Act (FFCRA). 

Now that offices are starting to open, I wanted to provide additional guidance on the Family First Coronavirus Response Act (FFCRA).  The ADA lobbied and was successful with the under 50 employee limit. So, if your practice has less than 50 employees, you are exempt from providing the additional 10 weeks of FMLA leave.

However, under FFCRA, employers with under 50 employees are still required to provide their employees with paid sick leave for specified reasons related to COVID-19. This rule will impact most dental practices.

Paid Sick Leave

This leave is available to employees from the time you reopen the office.  The employees did not qualify for leave during the closure of your office due to Covid-19. The Act provides that covered employers must provide the following to all employees:

  • Two weeks (up to 80 hours) of paid sick leave at the employee’s regular rate of pay where the employee is unable to work because the employee is quarantined (pursuant to Federal, State, or local government order or advice of a health care provider), and/or experiencing COVID-19 symptoms and seeking a medical diagnosis; or
  • Two weeks (up to 80 hours) of paid sick leave at two-thirds (2/3) the employee’s regular rate of pay because the employee is unable to work because of a bona fide need to care for an individual subject to quarantine (pursuant to Federal, State, or local government order or advice of a health care provider), or care for a child (under 18 years of age) whose school or child care provider is closed or unavailable for reasons related to COVID-19, and/or the employee is experiencing a substantially similar condition as specified by the Secretary of Health and Human Services, in consultation with the Secretaries of the Treasury and Labor.

While full-time employees may receive up to 80 hours of paid sick leave (if they work 40 hours per week), part-time employees are entitled to a pro-rata number of hours based on hours worked over two workweeks. If, for example, a part-time employee works 15 hours per week, this team member would be eligible for up to 30 hours of paid sick leave.

Qualifying Reasons for Leave for paid sick time:

Here are the qualifying reasons for paid sick leave. Under the FFCRA, an employee qualifies for paid sick time if the employee is unable to work (or unable to telework) due to a need for leave because the employee:

  1. is subject to a Federal, State, or local quarantine or isolation order related to COVID-19;
  2. has been advised by a health care provider to self-quarantine related to COVID-19;
  3. is experiencing COVID-19 symptoms and is seeking a medical diagnosis;
  4. is caring for an individual subject to an order described in (1) or self-quarantine as described in (2);
  5. is caring for a child whose school or place of care is closed (or child care provider is unavailable) for reasons related to COVID-19.

There are dollar limits on how much can be paid for sick leave.  For reasons 1, 2, and 3 (above), the daily rate of pay is capped at $511. The two-week cap is $5,111 (10 days).  For reasons 4 and 5 (above), the daily cap is $200, and the total cap for the two-week period of leave is $2,000 (10 days). If, for example, you have a full-time employee who is unable to work because she is caring for a child due to a COVID-related daycare closure (reason 5), he/she is eligible for paid sick leave of up to $200 per day and $2,000 over the two-week period.

Can an Employee Take Intermittent Leave?

The Act does not permit intermittent leave unless there is a written agreement between the employer and employee. Intermittent leave can only be used for childcare (reason #5 above).  For example, you may have an employee who can return to work, but she can only work reduced hours because childcare is unavailable for reasons related to COVID-19. If the employer and employee have a written agreement that permits intermittent leave for this situation, the employee can receive paid sick leave for the missed hours of work.

What to Do When an Employee Requests Leave

If you have an employee request leave under FFCRA, we recommend you have them fill out a “leave form” located here >https://mcusercontent.com/0cd89d595f6ac2e6699fc9924/files/7d5b7b14-6002-4c7f-9ead-fc601c3c4f36/FFRCA_Leave_Request_Form.pdf

Payroll Tax Credits Offset the Cost

Covered employers qualify for dollar-for-dollar reimbursement through payroll tax credits for all qualifying wages paid under FFCRA. Qualifying wages are those paid to an employee who takes leave under the Act for a qualifying reason, up to the appropriate per diem and aggregate payment caps mentioned previously. Applicable tax credits also extend to amounts paid or incurred to maintain health insurance coverage. When reporting payroll to your payroll provider (ADP Payroll Services), please make sure to specify hours for FFCRA so they have that information for the tax credit.

Also, if you have not already done so, you should post a notice in your office regarding FFCRA. Here is the notice >https://mcusercontent.com/0cd89d595f6ac2e6699fc9924/files/78143208-5f6b-4084-909e-5f5d7e83ae60/FFCRA_Poster_WH1422_Non_Federal.01.pdf

Finally, this is my understanding of the Family First Coronavirus Response Act (FFCRA). I would suggest you consult with an HR Attorney for further guidance. If you need a referral for an HR Attorney, please e-mail us.

Schiff Client update, as of June 4, 2020 at 6:00 AM

Yesterday, at approximate 7:00 PM EST, the SENATE approved HR7010. We are expecting President Trump to sign the Bill today.

Here are the highlights of HR7010, Changes to the Small Business PPP Loan Programs

Below is a summary of the changes to the Small Business PPP Loan Program. These modifications to the program require a new strategy but provide significant flexibility for a practice to reopen and rehire its employees and still be able to obtain maximum PPP Loan forgiveness. It is very important to realize that this will require a new round of guidance to be issued by the Treasury and SBA but provides time for them to issue updated information we will need, due to the extension of the program from 8 weeks to 24 weeks.

 Changes to the PPP loan program:

1)  8 week covered period extended to 24 weeks

Practice tip: The PPP loan was based on 2.5 months, approximately 11 weeks, of payroll and you now have 24 weeks to spend it. This eliminates most of the challenges of the program and allows employees to be rehired when the practice is ready to open up.

2)  75% rule reduced to 60%

Practice tip: Due to the 24 week covered period, the new 60% rule should not be a problem. We are recommending that you spend 100% of the loan amount on payroll over the 24 weeks as that will make the Loan Forgiveness application process go much easier, because you will only need to attach payroll reports to support your forgiveness. However, if you spend less than 60% of the loan on payroll, you will have $0 (NONE) “no” loan forgiveness which is a drastic change from the previous 75% rule.  So the takeaway here is, please spend at least 60% or more of your PPP Funds on payroll, so you can avoid this trap.

3)  Rehire date moved from 6/30/20 to 12/31/20

Practice tip: Your practice now has until 12/31/20 to rehire employees back to the 2/15/20 level.

4)  Required FTE goal for the rehire exemption is reduced if you are unable to rehire employees or business has declined due to HHS, CDC, or OSHA requirements regarding COVID-19

Practice tip: Continue to plan on rehiring your employees back by December 31, 2020. However, if guidelines (HHS, CDC and / or OSHA) are issued that restrict the number of employees you may have in the office, this should give the practice flexibility in adjusting staffing levels to a new normal. This exception is new and we will need new guidance to clarify it.

5)  New PPP loans will have a minimum maturity of 5 years

Practice tip: The goal of the program has shifted back to trying to get 100% forgiveness. However if you do not obtain this, we believe you will need to contact your bank to modify the terms to the allowable 5 years. We recommend trying to avoid doing this unless absolutely necessary. Current PPP Loans will mature over the original 2 year period.

Indirect changes to the PPP loan program:

1)  We still don’t know about:

  • payments to related parties
  • 2019 retirement plan contributions
  • misc. other payments but they may not matter.

2)  We assume the $15,385 per individual payroll limit will be increased to $46,154 but will need confirmation from the SBA. The $46,154 is the product of $100,000 / 52 weeks x 24 weeks = $46,154. We will need to confirm this.

3)  As we predicted, the Original SBA Loan forgiveness application will be completely changed, as a result of the above changes.

4)  Although utilities, health insurance, SUTA, and other small costs are still eligible, they become less important. Rather than worry about tracking small receipts (invoices / leases / canceled checks) , we are recommending focusing on the big items that are easy to show to the lender that will support the forgiveness application. Examples would be >>> payroll and rent.

5)  Due to the December 31, 2020 rehire date, practices typically won’t be filing forgiveness applications until January 2021 at the earliest.

Example of 24 Weeks

Out of all of our clients, the earliest a client received their PPP Funds was on April 13, 2020.

So, for example, if you received your PPP Loan proceeds on April 13, 2020, your 24 weeks began on April 13th and will end on September 28, 2020. This will be your “covered period” in order to meet the 60% / 40% Test as outlined above.

Maryland Unemployment Issues

If you need any additional help, for…….

Your own unemployment claims, please call 410-949-0022 or email     ui.inquiry@maryland.gov.

Employer related questions (not concerning your own claims) please email   dluisides‑dllr@maryland.gov

Please e-mail us any questions you may have. Hopefully, these are the final changes to the PPP Process, but as we have seen, it could change again!

 

We are here for you!
Please stay well!
My best to all,
Allen

Schiff Client Update as of Wednesday, June 3, 2020 , 9:00 AM

CARES ACT – Paycheck Protection Program Flexibility Act of 2020

Today, the SENATE will be voting on the major changes to the CARES ACT, especially within the PPP Loan process. Here are the major changes as we see them as of today. Please keep in mind, they are proposed and they have NOT passed as of now.

  • 75% / 25% current PPP Loan requirements to change to 60% to 40%
  • 8 week covered period could change to as many as 24 weeks, to 24 weeks or December 31, 2020, whichever is earlier
  • The June 30, 2020 rehire date could be changed to December 31, 2020
  • Expanding the two (2) year repayment of the PPP Loan to five (5) years
  • Allowing borrowers who receive the PPP Loan Forgiveness to also defer payroll taxes

Charging for PPE Equipment and Supplies

I have been actively involved with the MSDA, especially since their Friday e-mail of last week to its members over the issue, “Can you charge a Patient a PPE Fee”? It is my understanding you can only have “one fee schedule”. What this means is, you must charge all patients the same whether they are an insurance based patient or a fee for service patient. Some of you are charging a separate “PPE Fee”. It is my understanding, the PPE Fee varies between $15 to $25 a patient visit. This is your choice. I would recommend you just do a fee increase at this time, and not show the “PPE Fee”. By doing so, you can start to capture the new PPE costs that you are incurring as a result of the Covid-19 precautions.

As far as Dental Insurance is concerned, you can bill the Insurance Company for the PPE Fee. It is their choice as to whether they choose to reimburse you. If you practice like this, it is also my understanding you should charge the same PPE Fee to a FFS patient as well, thus only having one fee schedule.

Further and from my understanding, recently a Maryland Patient went to the Maryland Attorney General (Consumer Protection Division) and filed a complaint about a Maryland Dentist charging this PPE Fee, even though the Patient was an Insurance Based Patient. This is potentially a violation of your Dental Insurance Contract along with a violation of Maryland Consumer Protection laws, so my suggestion is, you should cease this practice immediately to further limit any liability you may have. This is true for any Medicaid Patients you are seeing along with any HMO Patients.

My advice, please consult with your Attorney for further guidance on this issue. Also , please reach out to Greg Buckler greg@msda.com , Executive Director of the MSDA for further guidance.

Maryland Unemployment Issues

I hope most of you have resolved your Maryland Unemployment issues. If you need any additional help, please reach out to

Your own unemployment claims, please call 410-949-0022 or email     ui.inquiry@maryland.gov.

Employer related questions (not concerning your own claims) please email      dluisides@maryland.gov.

2020 Schiff Client Mid-Year Meetings

As many of you are opening your offices and getting back to the “new normal”, we wanted to reach out to you about your 2020 mid-year consulting meetings.

This year we would like to schedule meetings upon your request. With the many challenges you have been faced with, we thought this would be most appropriate.

We can meet via ZOOM or in person, if the situation is safe for everyone. We are estimating 1.0 to 1.5 Hours per meeting. This year will be more challenging for Tax Planning due to the fact, we are still uncertain if the Internal Revenue Service (IRS) will change its position with respect to the expenses we are paying with our PPP Funds. Currently they are non-deductible. We are hoping Congress will put the necessary pressure on the IRS and reverse its decision.

Please contact your Schiff Team member if you would like to schedule a meeting and we will make it happen.

2020 Quarterly Tax Vouchers – 2020 Q1 and Q2

As a reminder, the 1st Quarter and 2nd Quarter Tax Vouchers are now due as of July 15, 2020. Please contact your Schiff Team Member if you need any guidance on these payments.

2019 Individual Tax Preparation

Also, for those of you that are still compiling your 2019 Tax Data, please send to us as soon as possible, so we can get started on its preparation. As a reminder, the 2019 Individual Tax Returns are now due July 15, 2020.

PNC Bank – SCAM UPDATE: Tax-related scams and government stimulus checks

As initially predicted, unfortunately, there are current scams over the Government issued “Stimulus Checks”. Please be careful with text messages, e-mails and phone calls. The IRS only communicates via US Mail and not through and of these other mediums. Please read PNC Bank’s detailed e-mail here. It is very informative.

Schiff Client Update as of Tuesday, May 26, 2020 at 7:30 AM

Employee’s hazard pay and Bonuses – Good News here!

Employee’s hazard pay and bonuses are eligible for PPP loan forgiveness. There is no guidance as to the amounts at this time. Please keep in mind, if the employee salary is already at $100,000+ annualized, the bonus paid to this employee will not help with Loan Forgiveness.

Retirement or health insurance contributions

No additional PPP Loan Forgiveness for retirement or health insurance contributions for self-employed individuals, including Schedule C filers and general partners. Your PPP Loan Forgiveness is limited to the $100,000 annual computation.

Payroll Costs Eligible for PPP Loan Forgiveness

When must payroll costs be incurred and/or paid to be eligible for forgiveness?

Payroll costs paid or incurred during the eight consecutive week (56 days) covered period are eligible for PPP Loan Forgiveness.  You can choose one of two periods:

  1. the date you received your PPP loan proceeds from your Bank (i.e., the start of the covered period);or
  2. the first day of your first payroll cycle in the covered period (the “alternative payroll covered period”).

Example:  You compensate your employees on a  bi-weekly payroll basis (every other week).  Let’s assume your eight-week covered period begins on June 1 and ends on July 26.  The 1st day of your first payroll cycle that starts in the covered period is June 7. You may elect an alternative payroll covered period for payroll cost purposes that starts on June 7 and ends 55 days later (for a total of 56 days) on August 1.  Payroll costs paid during this alternative payroll covered period are eligible for forgiveness.  Also, payroll costs incurred during this alternative payroll covered period are eligible for forgiveness as long as they are paid on or before the first regular payroll date occurring after August 1.

Nonpayroll Costs Eligible for PPP Loan Forgiveness

When must nonpayroll costs (Rent, Utilities & Mortgage Interest) be incurred and /or paid to be eligible for forgiveness?

A nonpayroll cost is eligible for forgiveness if it was:

  1. paid during the covered period; or
  2. incurred during the covered period and paid on or before the next regular billing date, even if the billing date is after the covered period.

Example:  Let’s assume your covered period begins on June 1 and ends on July 26.  You pay your May and June electricity bill during the covered period and you pay your July electricity bill on August 10, which is the next regular billing date.  You may seek loan forgiveness for your May and June electricity bills, because they were paid during the covered period.  In addition, you may seek loan forgiveness for the portion of your July electricity bill through July 26 (the end of the covered period), because it was incurred during the covered period and paid on the next regular billing date. Please maintain copies of invoices and canceled checks so we will have them when we file for PPP Loan Forgiveness.

Will a borrower’s loan forgiveness amount be reduced if the borrower laid-off or reduced the hours of an employee, then offered to rehire the same employee for the same salary and same number of hours, or restore the reduction in hours, but the employee declined the offer? 

No.  If you offered to rehire your employees, you are generally exempt from the PPP Loan Forgiveness reduction calculation. Here are the requirements:

  1. you made a good faith, written offer to rehire such employee (or, if applicable, restore the reduced hours of such employee) during the covered period or the alternative payroll covered period;
  2. the offer was for the same salary or wages and same number of hours as earned by such employee in the last pay period prior to the separation or reduction in hours;

iii. the offer was rejected by such employee;

  1. the borrower has maintained records documenting the offer and its rejection; and
  2. the borrower informed the applicable state unemployment insurance office of such employee’s rejected offer of reemployment within 30 days of the employee’s rejection of the offer. Further information regarding how you will report information concerning rejected rehire offers to state unemployment insurance offices will be provided on SBA’s website.

Will a borrower’s loan forgiveness amount be reduced if an employee is fired for cause, voluntarily resigns, or voluntarily requests a schedule reduction?

No.  When an employee of the borrower is fired for cause, voluntarily resigns, or voluntarily requests a reduced schedule during the covered period or the alternative payroll covered period , the client may count such employee at the same full-time equivalency level before the FTE reduction event.

Loan Forgiveness – Documentation Requirements What must borrowers submit for forgiveness of their PPP loans?

The loan forgiveness application form details the documentation requirements; specifically, documentation each borrower must submit with its Loan Forgiveness Application (SBA Form #3508), documentation each borrower is required to maintain and make available upon request, and documentation each borrower may voluntarily submit with its loan forgiveness application. Please be sure to maintain all payroll reports, along with invoices and canceled checks during your covered period.

When is your SBA Loan Forgiveness Form Due?

You have until October 31, 2020 to file your SBA Loan Forgiveness Form. The lender has 60 days from receipt of a complete application to issue a decision to SBA.

PPE Equipment ?

If you are in need of PPE Equipment and supplies, please click here >>  www.crazydentalprices.com

You will receive a 10% Discount if you use the Code Word Schiff10

If you need personal service, please contact Jay Glazer at jay@crazydental.com, or 410-205-8033

Schiff Client Update as of Tuesday, May 26, 2020 at 7:30 AM

Employee’s hazard pay and Bonuses – Good News here!

Employee’s hazard pay and bonuses are eligible for PPP loan forgiveness. There is no guidance at to the amounts at this time. Please keep in mind, if the employee salary is already at $100,000+ annualized, the bonus paid to this employee will not help with Loan Forgiveness.

Retirement or health insurance contributions

No additional PPP Loan Forgiveness for retirement or health insurance contributions for self-employed individuals, including Schedule C filers and general partners. Your PPP Loan Forgiveness is limited to the $100,000 annual computation.

Payroll Costs Eligible for PPP Loan Forgiveness

When must payroll costs be incurred and/or paid to be eligible for forgiveness?

Payroll costs paid or incurred during the eight consecutive week (56 days) covered period are eligible for PPP Loan Forgiveness.  You can chose one of two periods:

  1. the date you received your PPP loan proceeds from your Bank (i.e., the start of the covered period);or
  2. the first day of your first payroll cycle in the covered period (the “alternative payroll covered period”).

Example:  You compensate your employees on a  bi-weekly payroll basis (every other week).  Let’s assume your eight-week covered period begins on June 1 and ends on July 26.  The 1st day of your first payroll cycle that starts in the covered period is June 7. You may elect an alternative payroll covered period for payroll cost purposes that starts on June 7 and ends 55 days later (for a total of 56 days) on August 1.  Payroll costs paid during this alternative payroll covered period are eligible for forgiveness.  Also, payroll costs incurred during this alternative payroll covered period are eligible for forgiveness as long as they are paid on or before the first regular payroll date occurring after August 1.

Nonpayroll Costs Eligible for PPP Loan Forgiveness

When must nonpayroll costs (Rent , Utilities & Mortgage Interest) be incurred and /or paid to be eligible for forgiveness?

A nonpayroll cost is eligible for forgiveness if it was:

  1. paid during the covered period; or
  2. incurred during the covered period and paid on or before the next regular billing date, even if the billing date is after the covered period.

Example:  Let’s assume your covered period begins on June 1 and ends on July 26.  You pay your May and June electricity bill during the covered period and you pay your July electricity bill on August 10, which is the next regular billing date.  You may seek loan forgiveness for your May and June electricity bills, because they were paid during the covered period.  In addition, you may seek loan forgiveness for the portion of your July electricity bill through July 26 (the end of the covered period), because it was incurred during the covered period and paid on the next regular billing date. Please maintain copies of invoices and canceled checks so we will have them when we file for PPP Loan Forgiveness.

Will a borrower’s loan forgiveness amount be reduced if the borrower laid-off or reduced the hours of an employee, then offered to rehire the same employee for the same salary and same number of hours, or restore the reduction in hours, but the employee declined the offer? 

No.  If you offered to rehire your employees, you are generally exempt from the PPP Loan Forgiveness reduction calculation. Here are the requirements:

  1. you made a good faith, written offer to rehire such employee (or, if applicable, restore the reduced hours of such employee) during the covered period or the alternative payroll covered period;
  2. the offer was for the same salary or wages and same number of hours as earned by such employee in the last pay period prior to the separation or reduction in hours;

iii. the offer was rejected by such employee;

  1. the borrower has maintained records documenting the offer and its rejection; and
  2. the borrower informed the applicable state unemployment insurance office of such employee’s rejected offerof reemployment within 30 days of the employee’s rejection of the offer. Further information regarding how you will report information concerning rejected rehire offers to state unemployment insurance offices will be provided on SBA’s website.

Will a borrower’s loan forgiveness amount be reduced if an employee is fired for cause, voluntarily resigns, or voluntarily requests a schedule reduction?

No.  When an employee of the borrower is fired for cause, voluntarily resigns, or voluntarily requests a reduced schedule during the covered period or the alternative payroll covered period , the client may count such employee at the same full-time equivalency level before the FTE reduction event.

Loan Forgiveness – Documentation Requirements What must borrowers submit for forgiveness of their PPP loans?

The loan forgiveness application form details the documentation requirements; specifically, documentation each borrower must submit with its Loan Forgiveness Application (SBA Form #3508), documentation each borrower is required to maintain and make available upon request, and documentation each borrower may voluntarily submit with its loan forgiveness application. Please be sure to maintain all payroll reports , along with invoices and canceled checks during your covered period.

When is your SBA Loan Forgiveness Form Due?

You have until October 31, 2020 to file your SBA Loan Forgiveness Form. The lender has 60 days from receipt of a complete application to issue a decision to SBA.

PPE Equipment ?

If you are in need of PPE Equipment and supplies, please click here >>  www.crazydentalprices.com

You will receive a 10% Discount if you use the Code Word Schiff10

If you need personal service, please contact Jay Glazer at jay@crazydental.com, or 410-205-8033

Schiff Dental Client’s Update – Sunday, May 17, 2020 at 11:30 AM

SBA PPP Loan Forgiveness Application 05.15.20

I have reviewed the PPP Loan Forgiveness Application 05.15.20 (released on Friday evening at 7:15 PM) and have highlighted on the 11 Pages, the instructions pertaining to each line along with the cross reference for each of the Line #’s to make it easier for you to track where the #’s are coming from and what documentation will be needed in order to gain PPP Loan Forgiveness

Here are some highlights for you

  1. Alternative Payroll Period – the payroll period can be extended beyond the covered period if you are paying on a frequency, such as bi-weekly payroll and the payroll period extends beyond the “8-week” covered period
  2. Bi weekly Payroll – your can stay on bi weekly payroll even if it is beyond the covered period. We initially thought you would have to switch to weekly…this not the case
  3. 56 days are the covered period, not 8 weeks so if your start date is April 26th, the end date is June 20th and not the 8 week period of June 21st
  4. Health insurance – page 5 – it appears the owners health insurance can be included as a payroll costs – we will need further clarification
  5. Retirement Plan Contributions – page 5 – it appears the owners retirement plan contribution can be included as a payroll costs – we will need further clarification.  We will also need to confirm the payment of the 2019 Liability that remains unpaid at this time.
  6. Employee Rehire Letter & employee rejection confirmation(s) – we need to keep these on file for a 6 year period (pg. 8)
  7. FTE – is defined as 40 hours a week – anything less than 40 hours = .5 FTE (pg. 7 and pg. 9) we will need to discuss this for most of our clients work a 32 hour week as opposed to a 40 hour week.  We will need further clarification
  8. Payroll substantiation – need copies of payroll reports from ADP, Paychex, etc. (pg. 10) in order to support the Payroll Costs as part of the PPP Loan Forgiveness.
  9. Business Mortgage Interest Payments – Information needed to gain PPP Loan Forgiveness – Lender Amortization schedule and canceled checks or lender account statements (pg. 10)
  10. Business Rent – Information needed to gain PPP Loan Forgiveness – copies of Lease Agreement  or canceled checks or Lessor Account Statements  (pg. 10)
  11. Utility Payments – Information needed to gain PPP Loan Forgiveness – copies of invoices from February 2020 and invoices during the covered period cancelled checks or account statements verifying the payments (pg. 10)
  12. Statute of Limitations – 6 years (pg. 10)

Please take the time to review the attached as well. You may need to obtain your CPA Certification in order to complete the PPP Loan Forgiveness Application!!  :>) ….. I am sure these forms will change again before we see the final PPP Loan Forgiveness forms from the SBA. I will let you know, if this is the case.

As a reminder, please keep a file for all of your supporting documentation, so we can help you gain maximum PPP loan forgiveness.

Rehire Letter (employee rejection Letter)

The employee “rehire letter” is a must during these times. Why? Because based on current guidance, you will be “forgiven” if you have 6 employees as of June 30, 2020 as opposed to the 8 employees you had as of February 15, 2020, as long as you have 2 employee rejection letters to substantiate the decline in employees from 8 to 6. These letters must be retained for 6-years.

I have attached a suggested “employee rehire letter”.

Can you and / or your employees stay on Unemployment?

Once you announce the reopening of your office, you and your employees must come off of unemployment. It is your responsibility to notify your State’s Unemployment division, that you have reopened your dental practice.

Video introduction on your new PPE Procedures within your office

I feel this is a great idea announcing to your patients what your new PPE procedures will be as we move forward, “Post Covid”

The following two (2) Videos are from the ADCPA as well as a local orthodontist. I do not represent either of these clients. I wanted to share, in case you wanted to produce a Video for your practice as well. I have received permission to share these videos.

https://youtu.be/_KvCf450TR0

https://nam10.safelinks.protection.outlook.com/?url=https%3A%2F%2Fwww.facebook.com%2F113449855409561%2Fposts%2F2980177322070119%2F%3Fvh%3De%26d%3Dn&data=02%7C01%7Cart.wiederman%40hmwccpa.com%7Cfe1784d576c14fab0a8f08d7f8ec7e2c%7C0ae8eb149b024869b4843b7b85f009b0%7C1%7C0%7C637251566935192657&sdata=gZE38boCfNCJaX3o2f7ZIU35tfwruR%2F1df11cX1wAto%3D&reserved=0

If you would like to share your practices Video, I would be happy to share with our Schiff Dental Clients. We are just an e-mail away!

 

Please enjoy your Sunday!

Schiff Dental Clients Update , Monday, May 11, 2020 at 6 PM EST

SBA / US Treasury Guidance – update – PPP Loans
We are still waiting for the guidance on, what are the rules on how to properly spend your PPP funds? As soon as they are released, we will summarize them for you.

Accounting for your PPP Loan Proceeds – in QuickBooks / Peachtree / MYOB

We at Schiff have come up with a procedure to account for the PPP funds used for qualified expenses.

How to account for your PPP loan funds in your accounting software?

  1. Setup new General Ledger liability account – PPP loan payable – code your deposit of funds to this account—- Entry for initial deposit  is  Debit Cash, Credit PPP loan payable
  2. Code all disbursements to this PPP Loan Payable account —-(Entry for each PPP payment is Debit PPP loan payable, Credit Cash)
    • Payroll – Gross wages for each employee and SUTA tax (FICA and FUTA should be coded to Payroll tax expense account) , please recall that if an Associate is on Payroll, their Payroll is limited to $1,923 a week.
    • For Sole member LLC (Schedule C) – Draws – Code $1,923 per week for owner , Debit the PPP Loan Payable, Credit Cash
    • Health insurance – employees only – charged against the PPP Loan Payable as a Debit, Credit Cash
    • 401k match for employees only if you have been funding the match per payroll – charge to the PPP Loan Payable as a Debit , Credit Cash
    • Rent or Interest on Mortgage – Please charge these disbursements against the PPP Loan Payable Account as a Debit, Credit Cash . Please make sure you have a copy of your current lease
    • Utilities – Please charge these disbursements against the PPP Loan Payable Account as a Debit, Credit Cash – Utilities include >> Gas & electric, water, internet access and telephoneWhen the PPP loan account zeros out, you have spent all PPP funds. The gross wages, staff health, 401k match & SUTA paid from this PPP loan account should total to 75% or greater than the original PPP loan amount. When the account is zero you should return to your regular accounting entries.
  3. Keep copies of invoices and/or cancelled check in a separate folder so we can render an “accounting” to the bank at the end of the 8-week period.

Please reach out to your Schiff Team member if you need help setting this up within your Accounting Software

COVID-19 & Dentistry: Teledentistry, Billing for PPE, & In-practice Virus Testing

Below, is an excellent webinar (tomorrow at 5 PM EST) on the above subject matters, to include, “How to bill for PPE”? We are getting a lot of calls and e-mail inquiries on this very subject. As many of you know, Dr Charles Blair and I have been great friends for over 20 plus years. Dr Blair always shares beyond the attendees expectations. I would highly encourage you to register for this webinar.


Beyond the challenges associated with ramping up a practice during the COVID-19 recovery phase, dental offices are also faced with navigating new coding practices. Join Dr. Charles Blair, dentistry’s leading authority on insurance coding strategies, fee positioning and strategic planning, for a critical update on what practices can put into place for a stronger comeback. Dr. Blair will discuss:

  • Increased PPE costs and what can be done to offset this
  • In-practice virus testing including the required waiver certificate and the two new codes that will be effective as of June 1
  • Coding for teledentistry

RESERVE MY SPOT
If you cannot make the live webinar, be sure to register anyway and we’ll send you the recording afterward.

Schiff Dental Clients Update , Thursday , May 7, 2020 7:30 AM

Dear Schiff Dental Clients
Good morning to all!
I hope each of you, your families and clients are well!
We are here for you!

Schiff Dental Clients Update , Thursday , May 7, 2020 7:30 AM

 

COVID-19 Update: Dental Practice Reopening and PPE Survey

Yesterday, Governor Hogan (Maryland) announced effective at 7 AM today (Thursday, May 7th), elective and non-emergency health care procedures, including dental procedures, can begin provided that the office has in place the measures outlined in the Maryland Department of Health’s (MDH) regulations dated Wednesday, May 6, 2020. Please see below the full e-mail from the MSDA , Greg Buckler, IOM, MBA, MSM, Executive Director and Dr Marlene Shevenell, President.

PPP Loans – now what?

Now that the States of Maryland, West Virginia, North Carolina and Virginia are open or will be opened shortly, we are suggesting to each of you to start spending your PPP Loan Proceeds now. Please keep in mind under the current guidelines, you must spend at least 75% or more of your PPP Loan Proceeds (within the 8-weeks of beginning on the date of receipt) on the following as Payroll Costs (defined as Employee Wages, Your annual Wages limited to $100,000, Health Insurance for your team, 401k match / SIMPLE Match for your team and your State Unemployment Costs). The remaining 25% of your PPP Loan can be spent on Rent, Utilities (Telephone, Gas & Electric, Internet Access and Water) and interest on a Mortgage that was in place prior to February 15, 2020.

Some of the questions you may have are as follows:

  1. Can I pay my team a bonus? If so how much?
  2. Can I pay family members?
  3. Can I give my employees a raise?
  4. What happens if some of the employees refuse to come back to work due to what they are receiving as Unemployment Benefits?
  5. Can I wait until week #7 to pay 8 weeks of salary?
  6. Now that you received your PPP Funds, do you as the employer need to contact your States Unemployment Division?
  7. Can employees who work reduced hours, can they still collect “partial” unemployment?
  8. Can we pay employees who remain at home and are collecting unemployment , a bonus?
  9. Do you need to have a separate Checking Account for your PPP Loan?

PPP Loan Accountability

Please keep in mind, at the end of the 8-week period, we will have to render an “accounting” to your PPP Lender. We are suggesting you maintain a file that consist of your Payroll Reports (Weekly, biweekly or bi-monthly), copies of invoices & canceled checks to support your Rent, Telephone, Gas & Electric, Internet Access and Water) and interest on a Mortgage that was in place prior to February 15, 2020. We have attached an excel worksheet to this e mail to help you account for your spending of your PPP Loan Proceeds during your 8-week period. If you need our help, please reach out to your Schiff Team Member.

PPE Equipment and Supplies

If you are in need of PPE Equipment and / or supplies, please click here https://mailchi.mp/fa3642b208a0/cdpschiff   For further information , please e mail >> Jay Glazer at  >>  jay@crazydental.com

ADA – Return to work Interim Guidance Toolkit

You may want to consider visiting the ADA Web Site “Return to work Interim Guidance Toolkit”. The web site has an abundance of interim guidance information along with Sample Letters. Please click here>>

https://success.ada.org/~/media/CPS/Files/Open%20Files/ADA_Return_to_Work_Toolkit.pdf

SBA issues PPP guidance on laid-off employees who refuse to be rehired

Dental Practices that have received PPP loans can exclude laid-off employees from loan forgiveness reduction calculations if the employees turn down a written offer to be rehired This is according to new guidance from the SBA. Furthermore, the SBA has warned the employees who reject offers of reemployment may find themselves ineligible to continue receiving unemployment benefits.

We are anticipating the interim final rule will specify that a PPP borrower may exclude an employee from loan forgiveness calculations if the borrower made a good-faith, written offer of rehire and also documented the employee’s rejection of that offer. You may want to check with your HR Attorney on what the documentation should look like.

EIDL Loans – Update

Many of you were contacted yesterday (Wednesday, May 6, 2020), that your SBA EIDL Loan has been approved. Many of your approvals are at the range of $150,000. If you accept this approval, it will amortize over 30 years at 3.75% Fixed, with the 1st Twelve (12) months deffered. These EIDL Funds can be used for your payables, like Dental Supplies, Lab Fees, Office Supplies etc. We are recommending you do NOT use the EIDL funds to pay any Payroll. Please use your PPP Funds for your future as mentioned above.

ADCPA PODCAST – How to use the EIDL & PPP Funds?

Here is a great ADCPA Podcast on “How to use , the EIDL & PPP Loans”? Please listen  to Art of Dental Finance and Management on Apple Podcasts. https://podcasts.apple.com/us/podcast/art-of-dental-finance-and-management/id1440331736 I have attached to this e-mail the David Hochman Checklist – reopening your Dental office as mentioned in the ADCPA Podcast.

 

We are here for you!
My best to all
Allen

Congress Plans Next COVID-19 Relief Legislation

Dear Schiff Dental Clients
Good evening to all!
We are here for you!

Dr. Gehani, President of the American Dental Association sent this Issues Alert to all ADA members in which he asks them to reach out to their members of Congress to advocate for policy priorities that will benefit dentists, their employees and their patients.”

Please note, the ADA’s position on “when should the clock start running for the use of the PPP Loan Proceeds”, and the possibility of using your expenditures for your PPE Costs as part of the PPP Loan Forgiveness and / or a Income Tax Credit. This letter was sent to Congress by the ADA

We at Schiff are urging all of our clients to click on the “hyper link” embedded in the ADA e mail and for you to contact your members of Congress , and share with him / her how you feel about the current PPP Loan Process and the related expenditures for PPE Costs

We are proud to be working with the ADA on these policies. The ADA remains at the forefront to do what is “right” for the Dental Community.

 

Many thanks
My best to all!
Stay well!
Allen


Issues Alert  
Congress Plans Next COVID-19 Relief Legislation
As many states begin the reopening process, Congress will also be returning to Washington, D.C. to deliberate on the next legislative package in response to the COVID-19 pandemic. Our 163,000 members came together to ensure that Congress included our dental concerns in the previous package, the Coronavirus Aid, Relief and Economic Security (CARES) Act, and now we need your help once again!

We expect the next bill to expand on some of the provisions in the CARES Act, as well as address other concerns and issues brought forth by the pandemic. We are asking Congress to include the following provisions in the next phase of economic stimulus and COVID-19 relief legislation:

  • Give small businesses increased flexibility within the Paycheck Protection Program (PPP) for which they seek forgiveness for the PPP loans. This will allow small businesses to make more appropriate decisions about staffing and payroll based on when they plan to fully reopen.
  • Ensure adequate oversight over the distribution and loan forgiveness provisions in the CARES Act for PPP loans. This will guarantee that only those small businesses that were economically distressed as a result of the pandemic receive the funds and forgiveness.
  • Intensify the production of personal protective equipment (PPE) and focus its distribution to dentists and health care providers who are treating emergency cases or near-emergency cases now and in the future without an adequate supply of N95 masks and face shields. This will help the dental team to continue to practice in a safe environment for themselves and their patients.
  • Provide tax credits or allow PPP funds to be used for the purchase of additional PPE and safety improvements to the office. This will assist financially stressed practices in providing an additional layer of safety and protection.
  • Extend the Department of Health and Human Services’ discretionary authority during public health emergencies to provide targeted liability protections for providers who administer FDA-authorized COVID-19 diagnostic tests within their scope of practice until the end of 2020. This will expand the nation’s capacity to screen patients for COVID-19 outside of already burdened hospital emergency departments.
  • Permit nonprofit dental and medical organizations to utilize the PPP or future small business loan programs. This will ensure that non-profit medical and dental associations can continue to serve as a trusted resource for their health care professionals and patients.

Please click here to let your members of Congress know how important these provisions are for your dental practice, patients and our profession as a whole.

Thank you for your continued advocacy. Together, we will make a difference!

Stay well,

Chad P. Gehani, DDS
President

Are Your Losses from COVID-19 Covered Under Your Business Interruption Insurance Policy?

Dear Schiff Dental Clients

Good Morning to all! I hope each of you are well and safe

We are here for you!

Schiff Dental Client Update as of Friday, May 1, 2020  at 7:00 AM

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Why You Should Consider Filing a Business Interruption Insurance Claim

What is business interruption coverage?

This type of insurance coverage is known by several different names: business interruption, loss of use, loss of income are the most common descriptions.  Often this coverage is part of a liability or commercial policy.  Business interruption coverage provides loss of income following a disaster. The question becomes, “will your commercial insurance policy cover COVID-related losses”?

When we first reached out to insurance companies along with the ADA in early March, we were told they did not believe any coverage was available due to exclusions.  Some policies have specific virus-related exclusions while others have additional exclusions that seemed to indicate no coverage was available. We have since learned there are Attorney’s that are pursuing these claims on behalf of your Dental Practice.

Why does filing a claim now seem more viable?

Since our initial conversations in March, we have attended several webinars and read numerous articles by attorneys who specialize in insurance claims.  We now believe dentists should consider filing a business interruption claim.  Even though policies have exclusions, since practices were forced to shut down due to government mandates, ADA recommendations along with your State Board of Dentistry, there may be coverage available for loss of income due to the pandemic.

Here is a link to an excellent article written by attorneys Doug Alexander and David Briggs that provides more information about business interruption coverage and potential claims: https://sglaw.com/business-interruption-coverage-in-the-age-of-covid-19/  Please read this article.

In addition, we recommend that you listen to the Art of Dental Finance podcast, produced and hosted by our ADCPA colleagues, Art Wiederman, CPA (Los Angeles, CA).  Art’s most recent podcast covers business interruption insurance and the challenges we are facing with the US Treasury issuing no guidance. We highly recommend that you listen to it: https://www.hmwccpa.com/2020/04/29/are-your-losses-from-covid-19-covered-under-your-business-interruption-insurance-policy-with-attorney-randy-curry-the-art-of-dental-finance-and-management-podcast/

 

What to do next?

The statute of limitations for filing a claim “for the loss of income” could be 60 – 90 days after your Dental Practices was requested to close.  Therefore, we recommend contacting your corporate attorney as soon as possible.  Ask your attorney to review your insurance policies to determine the best course of action to take. Please also request of  your Attorney to contact Randy Curry, Esquire mentioned in Art’s Podcast. Randy can be contacted at 949-258-4381 or rcurry@currylawyers.com . Randy can share with you additional information about filing claims and answer your questions and concerns.

If you want to file a claim, it is very important for the claim to be filed correctly and in a timely manner.  While it is very likely the claim will be initially denied, a correctly filed claim may be eligible for reconsideration as part of a class action lawsuit or other government action.

If you want to be directed to a firm that will consider your case as part of a larger group of contingent fee claimants, then please consider contacting Keller Rohrback (Seattle, Washington)

Keller Rohrback is actively pursuing coverage on behalf of dentists (and other small business owners) across the country for COVID-19 related business interruption.

They are interested in talking to anyone who has been denied, and also anyone who is concerned that they may be denied or is unsure about making a claim for the “loss of income”.

Please contact John Oldach at: joldach@kellerrohrback.com or (805) 364-4590.

#################

We are here for you!

Please stay well…enjoy the weekend!

My best

Allen

 

The Art of Dental Finance and Management

Informative weekly podcast for dental practices.

This week’s topic:

Are Your Losses from COVID-19 Covered Under Your Business Interruption Insurance Policy?

with Randy Curry, Esq.

Attorney Randy Curry and Art discuss issues facing dentists during the COVID-19 pandemic in this episode of The Art of Dental Finance and Management podcast:

  • Whether a dentist’s business interruption policy can cover losses
  • Policy provisions in these types of policies
  • Ongoing litigation
  • Potential state and Federal legislation coming which could require insurance companies to cover situations such as COVID-19
  • What actions dentists should take to potentially receive financial benefit from these policies

Art also provides updates on:

  • Recent SBA Interim Guidance on calculating the PPP loan
  • Insight regarding bringing the dental team back early
  • New grant program from Facebook New CDT code issues to cover PPE costs expected when dentists re-open their offices

This episode is packed with helpful information for dentists to navigate these challenging times.

Schiff Dental Client Update as of Thursday, April 30, 2020 at 4:00 PM

Dear Schiff Dental Clients

Good afternoon to all! I hope each of you are well and safe

We are here for you!

Schiff Dental Client Update as of Thursday, April 30, 2020  at 4:00 PM

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PPP Loans – I now have my PPP Loan , what should I be doing?

Many of you have received your PPP Loans. If your practice is located in the Commonwealth of Virginia, you are more than likely going back to work this Monday, May4th. You should be on schedule to satisfy the 75% / 25% , PPP Loan requirements. This is also true for our clients in West Virginia (May 11th) as well. Texas is scheduled for May 11th and District of Columbia is scheduled for May 15th.  So , each of you should be well on your way to satisfy the PPP Loan Forgiveness. However, our clients in Maryland (TBD) and North Carolina (TBD), are to be determined.

We are stressing you (Maryland & North Carolina) wait to spend your PPP Funds until next Tuesday, May 5th. The reason for this is, we are awaiting the US Treasury guidance as well as the impact of the ADA (below) and the AICPA (also below). The guidance we are seeking, will answer many of your questions, such as…….

For example…..

  1. Can we spend our PPP Funds on May 2020 Rent?
  2. Can we spend our PPP Funds on our current utilities?
  3. Can we pay some of our team members, but not all team members?
  4. Can we just pay the Partners and not pay the team?
  5. If I received $100,000 in PPP Funds, and spend $60,000 on payroll Costs and $25,000 on intended costs, what is the ratio of Loan Forgiveness? ($85,000/$100,000 ?) x $15,000 or ($60,000/$75,000) x $15,000 or another method?
  6. If the doctors pay themselves more than $15,385, will they be penalized in regards to forgiveness?
  7. What if the Doctors pay themselves $15,385 only through payroll but take a Sub S distributions too?  Is that a problem?
  8. Can we wait until week #4 and start  the payroll process> or better yet , can we wait until week # 8 and pay 8 weeks worth of payroll then?
  9. Can I pay April, May and June Rent as part of my intended costs?
  10. Can I pay the intended costs now and just wait for payroll costs in the near future?
  11. I have my PPP funds, I intend to pay all of my employees, but some want to stay on unemployment…is this a problem?

The above, is an example of many of the questions we are receiving at this time. We need more guidance from the US Treasury to advise you . We have all seen over the last 6 weeks, how the “rules and regulations” change (almost hourly!), and I suspect we will have another change or two before this is all done. So, please be patient , at least and until next Tuesday, May 6th to allow us to guide you!

If you feel you need to start spending your PPP funds now, please do so. However, we are asking you to please wait a couple of days to allow for the guidance to occur. Why are we asking you to wait? We are working with closely with the ADA on the PPP Loan process and we suspect there will be changes to the PPP Loan forgiveness program as a result of the ADA’s involvement. The ADA is being very supportive very understanding and they are doing a great job in representing you. I am proud to be associated with them! Please understand , there are no guarantees, but we are doing our best , to create practical solutions at this time.

ADA Update

This afternoon, I spoke with the ADA (Government Affairs) on the following subjects

  1. PPP Loan Forgiveness starts when the States Governor’s open their respective States, NOT when the monies were funded! vs. current rules that state you must start spending now, upon receipt of the funds.
  2. PPE Equipment is acquired in 2020, would qualify as an “investment tax credit at 100%
  3. PPE supplies, if acquired in 2020, would qualify as PPP Loan forgiveness as “other intended costs”, in addition to Rent & Utilities.

As I mentioned above, the ADA is well aware of the above issues. I have discussed these at length with them. Please also see the attached letter.  The ADA letter is very much on point!

Also, the ADA Grassroots action will take place next Tuesday (May 5th). The ADA is hoping they will get the attention of Congress to address these issues. Congress resumes in mid May 2020.

AICPA Update

The AICPA (American Institute of Certified Public Accountants) is the world’s largest member association representing the accounting profession, with more than 431,000 members. The AICPA has also weighed in on the PPP Loan Forgiveness Program

Please read the AICPA suggestions on when the “8-week period” should begin

https://www.journalofaccountancy.com/news/2020/apr/ppp-loan-forgiveness-aicpa-recommendations-coronavirus-relief.html

This is exactly of what I have been saying all along>>> …… The eight-week period should commence once stay-at-home restrictions are lifted, not when loan proceeds are received.

I have shared this with the ADA as well. They are fully aware the AICPA is being fully supportive of when “does the 8-week period begin”, along with the ADCPA

US Treasury Guidance

We are still uncertain when the Treasury guidance will be released. As a result, the ADCPA Partner Group will meet on Monday, May 4th at 9 PM EST, in order to arrive at the “ADCPA Strategy”. This meeting will allow us, to consult with our clients on how to maximize PPP Loan Forgiveness as well as answer many of the questions that have been asking over the last few days

PPP Accounting procedures

Special “thanks” to Dr  Clayton McCarl (Greenbelt Maryland) for sharing how he has set up special accounting procedures. The procedures that Clayton has set up , will allow him, to account for the various disbursements out of the PPP Loan Proceeds. For example, all of the future payroll will come out of the newly created PPP checking account. ADP Payroll was very helpful in setting this up. Clayton has also set up reoccurring monthly expenditures out of the newly formed checking account as well. These procedures, if set up properly, will create ease when rendering an accounting to your bank after the 8-week period expires.

PPP Loan “resources” – smaller banks

Yesterday, it came to our attention, you may want to consider using a smaller bank (AMEX  or PayPal, etc ) for your PPP Loan Application process. We are recommending, if you have not heard from your primary bank on the status of your PPP Loan Application, you should consider applying to a smaller bank. Special “thanks” to Dr Jack Kayton (Charlottesville VA) for bringing this resource to my attention. Here is who Jack has worked with and speaks highly of.

Seth G. Bokelman

Market President

1111 Greenville Ave

Staunton, Virginia  24401

Cell: 540-520-4639

Fax: 540-887-6504

seth@myselectbank.com

I have also reached out to Seth, and he said to mention my name when applying for your PPP Loan, so the loan process can be expedited.

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We are here for you!

Please stay well

My best

Allen

Schiff Dental Clients Update as of Monday, April 27, 2020 @ 8:45 PM EST

Dear Schiff Dental Clients

Good evening!

I hope each of you are well and safe!

We are here for you!

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US Treasury Guidance

We were anticipating guidance from the US Treasury today, but as I am writing this as of 8:45 PM on Monday, April 27, 2020, we have not received any notifications as to when the guidance will be released. So, we are on “stand by”! If you have received your PPP Funds, please hold them and place them into a separate checking account awaiting our guidance.

PPP Funds – what is the Notification process ?

It is our understanding, the SBA will call your Cell Phone to inform you, you were approved for the PPP Forgiveness Loan. At that time, they will text you a “special code” to confirm your identity. Once confirmed, the funds will be placed into your account and you have 24 hours to executed the PPP Loan Documents.

EIDL Grants / EIDL Loans ?

With the new Stimulus funding, it is our understanding there was an additional $60B placed in the SBA EIDL Funds, to help fund those of you that have yet to obtain a EIDL Gant and / or EIDL Loan. Fingers crossed, you will contacted in the near future.

ADA Update

I am currently working with the ADA with the hopes of getting a “Income Tax Credit” for the investment you will have to make in the future for the new PPE Requirements. As you know, a Tax Credit is better than a Tax Deduction!

I am also asking the ADA to include in their letter to Congress, to include the use of the PPP Loan Funds for the cost of equipment and improvements to the facility to qualify for PPP Loan Disbursements.

The above is in process and had not been confirmed as of the date of this writing.

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We are here for you!

Please stay well!

My best

Allen

Schiff Dental Clients Update – Friday, April 24, 2020 4:30 PM

Dear Schiff Dental Clients

Good Afternoon to all!

I hope each of you are well and safe along with your families

We are here for you!

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Here is the Schiff Dental Clients Update – Friday, April 24, 2020 4:30 PM

Paycheck Protection Program (PPP) and Health Care Enhancement Act

President Trump has signed into law the Paycheck Protection Program and Health Care Enhancement Act at 12:30 PM EST today, Friday, April 24, 2020.

PPP Loan Application – update

The Small Business Administration (SBA) has announced today, they will resume accepting PPP loan applications on Monday, April 27 at 10:30AM EST from approved lenders. Please make sure your PPP Loan Applications are set up for “E-Tran” with your respective SBA Lender. The speculation for this delay is , there is hope that larger Corporations that received $10M (+/-), will return those funds to the SBA for redistribution to small business America.

If your Lender is NOT accepting applications, please consider a smaller lender in your market area.

Just a heads up – the speculation out there, is that these PPP funds will run out in 24 hours, not in days like last time (April 3, 2020).  There are that many pent-up PPP applications that are awaiting SBA approval. Time is of the essence! Please prepare your PPP Loan Application this weekend, if you have not done so.

 

Maryland Unemployment – update – Self Employed  

This morning at 7 AM EST, the Maryland Unemployment Division launched their new web site for the Self Employed. The web site went down , due to the fact there were 35,000 folks on the web site at one time. My suggestion is to apply after dinner tonight when the usage is less and hopefully access will be granted to you.

 

Here are the URL’s to consider using when applying for your Unemployment Benefits:

https://www.dllr.state.md.us/uim/employer/

https://secure-2.dllr.state.md.us/NetClaims/Welcome.aspx

https://beacon.labor.maryland.gov/beacon/claimant-page.html

https://beacon.labor.maryland.gov/ReBEACONClaimant/home/wfmRegister#/spa/wfmClaimantRegistrationWizard/0

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We are here for you!

Please stay well and enjoy the weekend!

My best

Allen

Schiff Dental Clients Update – Thursday, April 23, 2020 11:00 AM

Dear Schiff Dental Clients

Good Morning to all!

I hope each of you are well and safe along with your families

We are here for you!

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Here is the Schiff Dental Clients Update – Thursday, April 23, 2020 11:00 AM

PPP Loan Application Update

Please check in with your Lender to make sure all of your financial documents meet their lending guidelines and are ready for the funding , once this next STIMULUS is passed (hopefully later today). Please ask your Lender, if your documents are set up for “E-Tran”.

PPP Loan Forgiveness

I have built two (2) spreadsheets, that are geared to satisfying the 75% / 25% test within the PPP Loan Proceeds. One shows the payroll paid being paid over 8 weeks , and the other has the 8 weeks being paid all at once. As of today, we do not know what the US Treasury guidance will be on how we can spend these funds and be in accordance with the PPP Program. We will have to wait for further guidance on April 27th.

If I had to “guess”, my guess would be, the US Treasury will want us to take our employees “off of unemployment” and begin to pay them now, as we start the 8-week process. We will not know for sure, until Monday, April 27th. As a result, we are suggesting, you hold onto your PPP Loan Proceeds, place them in a separate checking account, and just wait until we gather for their guidance before we can counsel you.

Maryland Unemployment for the Self Employed

As you are aware, the Maryland “One Stop” web site will go live tomorrow, Friday, April 24, 2020. Today, the Maryland Unemployment Division issued additional guidance which can be found here

https://content.govdelivery.com/accounts/MDDLLR/bulletins/287febb

http://www.labor.maryland.gov/employment/uicovidcertfaqs.pdf

To file a State of Maryland Unemployment (Self Employment) claim, you will need to have the following information available, as applicable:

Social security number;

Date of birth;

Residential and mailing address;

Telephone number and email address;

Name, date of birth, and social security number of all dependents under 16 years of age that you will claim, as well the same information for each dependent’s other parent, such as the social security number and date of birth for any dependents that you claim;

If you worked for the federal government, you will also need a SF-8 or SF-50 form; and

If you are separated from military service, you will also need Form DD-214, member 4 copy.

To file your PUA claim, you will need to provide information and supporting documentation about your work and income history, which may include the following:

Documentation of the income that you earned in 2019 (Schedule K-1, Form 1099, or summary of quarterly payments); (You will need your IRS Form #1040 , Schedule C from 2019) < please contact your Schiff Team Member for these documents

All necessary licenses and permits for your self-employment; (You will need a copy of your Maryland Dental License)

Proof of an offer to begin employment that was postponed or withdrawn due to COVID-19

ADA Offers PPE Guidance to Dentists

As many of you know, our neighbors in Commonwealth of Virginia are about to go back to work. We are still unsure about other States that our clients are located in. The ADA has posted Guidance to Dentists as it relates to the PPE Requirement. It can be found here

https://www.ada.org/en/press-room/news-releases/2020-archives/april/postponement-statement?utm_source=cpsorg&utm_medium=cpsalertbar&utm_content=cv-postponement-statement&utm_campaign=covid-19

ADA – COVID-19 State Mandates and Recommendations

This is really a cool web page built by the ADA. If you type in your State where your practice is located, you will see regulations, recommendations and mandates regarding the safe practice of dentistry during the COVID-19 pandemic for your State

https://success.ada.org/en/practice-management/patients/covid-19-state-mandates-and-recommendations?utm_source=adaorg&utm_medium=covid-statement-200401&utm_content=stateaction&utm_campaign=covid-19&_ga=2.210030997.1038335142.1587600330-1150317135.1575809324

ADA – CDC Recommendations with respect to N95 Masks, KN95 Masks and Surgical Masks

Please visit this web site for CDC recommendations

https://success.ada.org/~/media/CPS/Files/COVID/ADA_Interim_Mask_and_Face_Shield_Guidelines.pdf?_ga=2.210030997.1038335142.1587600330-1150317135.1575809324

ADCPA PODCAST on PPP Loan Update (Sunday, April 19, 2020)

The Art of Dental Finance and Management Podcast

PPP Loan Update with Megan Mortimer, ADA Congressional Lobbyist and Allen M. Schiff, CPA, President of the ADCPA

https://www.hmwccpa.com/2020/04/22/ppp-update-with-megan-mortimer-ada-congressional-lobbyist-and-allen-schiff-cpa-adcpa-president-the-art-of-dental-finance-and-management-podcast/

 

Megan provides an update on how Congress is attempting to add funds to the PPP:

A timeline

What the ADA is doing to advocate for dentists in Washington D.C.

Valuable resources dentists can access through the ADA

 

Art, Megan and Allen also discuss:

Updates to the SBA regulations

Strategies dentists need to consider once they receive the money

How the money should be spent

How to account for the funds

How the government forgiveness works

I hope you enjoy the PODCAST and gain some insight by doing so!

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Please stay well and safe!

We are here for you!

My best

Allen

Schiff Dental Clients Update – Wednesday, April 22, 2020 8:15 AM

Dear Schiff Dental Clients

Good Morning to all!

I hope each of you are well and safe along with your families

We are here for you!

 

Here is the Schiff Dental Clients Update – Wednesday, April 22, 2020 8:00 AM

2nd major STIMULUS due this Thursday (tomorrow)

Yesterday, Republicans and Democrats in the US Senate agreed on an emergency program worth $484 billion to help small businesses, hospitals and boost coronavirus testing in the country. We are expecting the HOUSE to approve such STIMULUS tomorrow, Thursday, April 23, 2020.

PPP Loan Application Update

Many of you have already been notified by your SBA Lender, that you have been APPROVED for your PPP Loan. Congratulations!  However, many of you have NOT BEEN APPROVED.  It is our suggestion, that today, you contact your Lender, to make sure your PPP Loan Application along with supporting documentation is all set and ready to go, as soon as tomorrow, just in case your lender receives the funding to fund your PPP Loan. We expect the portion of the Stimulus set aside for the PPP Loans to go quick , like it did last time (April 3, 2020 through April 16, 2020)

PPP Loans – What is your Strategy?

Please hold your PPP Funds in a separate checking account for now. We are awaiting further guidance from the US Treasury on how these funds can be expended,. The guidance is expected to be released on April 27, 2020. Once we receive the guidance, we will be happy to meet with you, with hopes of maximizing your PPP Loan Forgiveness.

Maryland Dental Clients – Self Employed (Maryland Unemployment)

For those of you who are self employed and work in Maryland, you can file for Maryland Unemployment this Friday, April 24, 2020. We are expecting the Department of Labor to Launch its new web site, “One Stop Maryland” tomorrow.

Virginia Dental Clients

On April 15th Governor Northam ordered dental offices to postpone elective procedures until after April 24th. For further information, please click here> https://www.vadental.org/news-details/2020/04/15/covid-19-key-dates

EIDL Grants, EIDL Loans & PPP Loans

We are expecting additional EIDL Grants and EIDL Loans with this next Stimulus Package. It is estimated there is $60B set aside for the EIDL Program. So, we are hoping you will be notified by the SBA for your EIDL Grant and / or EIDL Loan, if you have not received thus far. In addition, please e mail your Schiff Team Member, the amount of your EIDL Grant, EIDL Loan and PPP Loan, the dates you were notified of each. We are tracking this information for all Schiff Clients, By doing so, we will have one master list that we can refer to. This list will help us manage your “8-week period”.

 

Please stay well and safe!

We are here for you!

My best

Allen

PPP Update with Megan Mortimer and Allen Schiff, CPA – The Art of Dental Finance and Management Podcast

21204 dental CPA

Informative weekly podcast for dental practices.

This week’s topic:
PPP Update with Megan Mortimer, ADA Congressional Lobbyist and Allen Schiff, CPA, ADCPA President

 

21204 dental CPA

 

Today, Art visits with two people who have been very instrumental in helping dentists across the country through the COVID-19 Pandemic:

  • Megan Mortimer, Congressional Lobbyist for the American Dental Association
  • Allen Schiff, President of the Academy of Dental CPAs

Megan provides an update on how Congress is attempting to add funds to the PPP:

  • A timeline
  • What the ADA is doing to advocate for dentists in Washington D.C
  • Valuable resources dentists can access through the ADA

Art, Megan and Allen also discuss:

  • Updates to the SBA regulations
  • Strategies dentists need to consider once they receive the money
  • How the money should be spent
  • How to account for the funds
  • How the government forgiveness works

This is a very informative, insightful, and timely episode to help dentists navigate these challenging times.

This podcast sponsored by:

Crosstex International, now a proud member of HuFriedyGroup, and a recognized leader for its portfolio of Personal Protection Equipment (PPE), Dental Unit Waterline Treatments, Chemistries, Sterilization, Preventives, Nitrous-Oxide Equipment, and Single-use Disposables products.

 

Listen Here!


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Schiff Dental Clients Update – Sunday, April 19,2020 , 8:30 AM – Handouts for Clients – Schiff & Associates

Good Morning to all! I hope everyone is safe and well!

Happy Sunday to all!

We are here for you!

We have attached three (3) Handouts for your review

  1. EIDL & PPP Eligibility Guide – what expenses should you be paying with what Loans? Please keep in mind, these may change, once we received additional guidance. Please try to avoid paying Payroll with your EIDL Loan.
  2. PPP Loan Spending Guide – this is a decision tree we have created in conjunction with the ADCPA. This will give you an idea as to what you should be doing over the next 8 weeks, once you receive your PPP Loan Proceeds. Each of you have a different Agenda. Please reach out to your Schiff Team Member if you need help.
  3. PPP Loan Decision Tree- this is a decision tree, based on your PPP Loan, and whether you should use your PPP Loan Proceeds for what they were intended for, or just have a PPP Loan @ 1% (payable over 2 years) or consider the Employee Retention Tax Credit (RTC) in lieu of the PPP Loan. We can help explain the RTC, the Retention Tax Credit if that is of interest to you. It is our opinion, the PPP Loan will be a better deal for you in most cases.

Please keep in mind, this is our current understanding. We are still awaiting the US Treasury guidelines, which should be issued by April 27, 2020

Currents Stats on the PPP Loan Program

Please click on the hyper link below. You will see the amount of PPP Loans granted so far ( $342,277,999,103) an the number of PPP Loans granted (1,661,367) along with a State by State allocation of the PPP Loans. Also , please notice the other industries Dentistry is competing with (Construction, Professional, Manufacturing, Food Services and Retail, etc. etc.)

https://home.treasury.gov/system/files/136/SBA%20PPP%20Loan%20Report%20Deck.pdf

Pelosi: Lawmakers ‘very close’ on bipartisan agreement for additional PPP funding

We are hoping for those of you that did not receive your PPP Loan Proceeds as of this past Friday, this article should create some encouragement for you

https://thehill.com/homenews/house/493515-pelosi-lawmakers-very-close-on-bipartisan-agreement-for-additional-ppp-funding

Sole Proprietors – State of Maryland

This coming Friday, April 24, 2020, the State of Maryland will be launching its New Web Site for those of you that have not been able to file for Unemployment due to the fact you are a Sole Proprietor and the State of Maryland does not have any wages recorded for you. The New Web Site will be called “One Stop”.

 

We are here for you!

Stay well!

My best to all!

Allen


EIDL & PPP Expense Eligibility Guide – from Schiff & Associates
PPP Loan Spending Guide – from Schiff & Associates
PPP Loan Decision Tree – from Schiff & Associates

Schiff Dental Clients Update, Thursday, April 16, 2020 at 12:30 PM

Good afternoon Schiff Dental Clients

I hope each of you are well!

We are here for you!

 

PPP Loans are now exhausted

At 12 Noon today, Thursday, April 16, 2020, we were just notified, the PPP Loan Funds have been exhausted, just like we predicted on Tuesday of this week!

Please click on this link, for further details >> https://www.cbsnews.com/news/small-business-relief-paycheck-protection-program-is-out-of-money/

Here is a e-mail we just rec’d from a large local bank>>

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Sent: Thursday, April 16, 2020 11:35 AM

To: All Employees

Subject: PPP Funding is Depleted – Updated Communications Coming Shortly

The Bank has been notified that the SBA is unable to accept any more applications for the PPP program based on available appropriations funding at this time – the money is depleted.   We will be sending updated communications shortly.  Until then, please do not draft your own responses to customers without prior review and approval from compliance and marketing.   Thank you for your patience as we work as quickly as possible to provide additional information and updates.

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Received this morning from >> Wall Street Journal Bloomberg Forbes

Paycheck Protection Program set to run out of cash

The Paycheck Protection Program has exhausted most of its initial allocation of $350bn, with the Small Business Administration reporting that as of late Wednesday, it had approved more than 1.5m loans valued at more than $324bn. “The fund being exhausted clearly puts pressure on Congress to act and come to a reasonable conclusion,” said Rep. Patrick McHenry of North Carolina, the top Republican on the House Financial Services Committee. “Every day that passes that we don’t fund this program, more pain is felt by small-business folks and their employees.” Both Democrats and Republicans want to add $250 billion to the small-business aid program, but have been sparring for days over whether to add restrictions to the funds. Democrats want to expand access to the loans as well as include more money for hospitals, food assistance and state and local governments. Republicans, meanwhile, said they want to keep the bill focused on increasing small-business aid and defer other funding debates until the next, broader legislation is crafted. A resolution could be reached this week, with both chambers of Congress set to hold brief sessions.

PPP Loan Update

As you are well aware, we are suggesting you hold onto your PPP Funds for now, and not disburse them , until we have further guidance from the US Treasury and the SBA. We are also waiting on NEWS from the ADA, with hopes that Congress will change their stance on , “when does the 8-week period begin?”. As soon as we hear anything of substance to report, we will get that info out to you!

Here are the highlights of the ADA Letter, dated April 15, 2020, sent to The Honorable Nancy Pelosi, The Honorable Kevin McCarthy, The Honorable Mitch McConnell and The Honorable Chuck Schumer

………………………. We strongly support the Congressional efforts underway to increase funding for the PPP loans, EIDL loans, and EIDL grants to the greatest extent possible. Additional funding for these loans will help ease the burdens many dental practices and other small businesses are facing as the pandemic continues without an end in sight. Crucial business decisions will need to be made in the coming weeks and without additional funding we fear a return to normalcy will not be possible for many.

We further urge Congress to help streamline the SBA loan application process as many dentists report having great difficulty in accessing available loans and grants. We also request that the decision to limit the EIDL grants to $1,000 per employee be rescinded, as this does not take into account differences in compensation and small businesses were not aware of this limit when applying.

We would also like you to consider allowing small business dental practices to choose the 8-week period for which they seek forgiveness for the loans and rehire back staff before December 31, 2020, instead of requiring them to rehire staff by June 30, 2020. This would allow these practices to make decisions about staffing and payroll based on when they plan to fully reopen. The Occupational Safety and Health Administration classifies dental health care personnel in the very high exposure risk category[1] and the ability to fully reopen dental practices is contingent on the ability to completely control the coronavirus pandemic in a relatively short period of time.

We would welcome the opportunity to speak with you in more detail and answer any questions you have regarding these comments. ………………..

We need to cross our fingers and toes, and hope that Congress hears the ADA and the 160,000+ Dentists across America!

Montgomery Maryland  “Grants” – Schiff Clients, please read below:

If your practice is located in Montgomery County, MD, this maybe of interest to you! Please click on the hyper link below:

https://www.montgomerycountymd.gov/Biz-Resources/pheg/

We are here for you!

 

My best to all

Stay well!

Allen

Schiff Dental Clients Update, Wednesday, April 15, 2020 12 Noon

Good Morning Schiff Dental Clients!

Happy Wednesday! I hope each of you are safe and well!

We are here for you!

Here is an update, as of Wednesday, April 15, 2020 12 Noon

 

EIDL Grants

Many of you, since Monday of this week, have started to receive your EIDL Grants. We will need to know if you received your EIDL Grant, what day you received it and to what amount. The reason for this is, the EIDL grant will impact the overall loan forgiveness of your PPP Loan. Please e-mail your Schiff Team Member, so we can track such information.

 

EIDL Grants – if you are a 1040 Schedule C Taxpayer with employees and / or a Partner in a Partnership IRS form #1065 Schedule K-1 with employees

If you meet one of these criteria, please be certain you are maximizing your EIDL Grant to the max of $10,000 per practice. If you have more than 10 employees, your maximum EIDL Grant will be limited to $10,000. However, if you have 6 employees PLUS yourself as a self employed individual, you should receive $7,000 and not $6,000. If this is the case, I am suggesting you call the SBA at 800-659-2955, and explain to them , you are also employed at the practice and as a self employed individual. Please be sure to have your Federal ID# available at the time of your call to the SBA.

 

EIDL Loans

Many of you are receiving your EIDL Loans from the SBA. What we would like you to do, is to set up a separate Checking Account with your Bank as well as set up a separate General Ledger Account within your QuickBooks / Peachtree file as well. The reason for this is, we will need to render an accounting to the SBA, to confirm you are spending of your EIDL Loan funds are in accordance with your Loan Agreement with the SBA. These funds are open to audit over the next three (3) years. Please do NOT use the EIDL Loan for Payroll. You can use the EIDL Loan for current accounts payable, current vendor bills like Dental Supplies, Lab Fees and other related overhead, etc.

 

PPP Loan Funds

Many of you are receiving your PPP Loans from your respective Bank. What we would like you to do, is to set up a separate Checking Account with your Bank as well as set up a separate General Ledger Account within your QuickBooks / Peachtree file as well. The reason for this is, we will need to render an accounting to the SBA and your Bank , to confirm you are spending of your PPP funds are in accordance with your Loan Agreement with your Bank. These funds are open to audit over the next three (3) years.

The current US Treasury regulation state, once the SBA approves your PPP Loan, the Bank must disburse the funds to you within 10 days. Once you receive the PPP Funds, you have “8-weeks” to spend them in accordance with the CARES ACT. We would like you to inform your Schiff Team Member when you receive your PPP Funds, so we can track them and also create a “Game Plan” for you in terms of spending in order to afford you , the maximum loan forgiveness. We will also need to know if you received your EIDL Grant (see above), what day you received it and to what amount. The reason for this is, the EIDL grant will impact the overall loan forgiveness of the PPP Loan.

*** PLEASE HOLD YOUR PPP LOAN PROCEEDS as of now, until we gain further guidance from the SBA, the US Treasury and the ADA. We are hoping the ADA will be successful with their lobbying, thereby creating a delay as to when we have to spend the PPP Loans. My fingers are crossed, hoping we can spend them when we all go back to work! I will confirm with you as soon as I hear. But for now, please HOLD YOUR PPP FUNDS and do not spend them.

 

Availability of PPP Loan Funds

Yesterday, we were informed from our sources within the ADA and the SBA, the PPP Loans will be fully funded by this Thursday, April 16, 2020. So, if you have already filed for your PPP Loan with your Bank, you should be in line to receive your allotted 2020 PPP funds!

 

Baltimore City ? – if your Practice is located in Baltimore City …please read on!

Today, the City of Baltimore announced a partnership with Goldman Sachs and Lendistry to provide $10 million in potentially forgivable SBA Paycheck Protection Program loans to help vulnerable Baltimore City small businesses, including non-profit organizations, weather the economic impact of COVID-19. This program is made possible through the federal government’s C.A.R.E.S. Act and Goldman Sachs’ Small Business Stimulus Package. This fund targets underserved businesses, including those which do not currently have a relationship with a traditional bank.

In partnership with Goldman Sachs, Lendistry, a Community Development Financial Institution (CDFI) and an SBA authorized PPP lender, will begin accepting applications immediately. To apply, click HERE.

http://www.mylendistry.com/login.html?utm_source=Survey&utm_campaign=0e2dad603a-EMAIL_CAMPAIGN_2020_04_14_05_47&utm_medium=email&utm_term=0_ebb6f80bcc-0e2dad603a-364451865

Lendistry also offers online technical assistance to applicants, including their PPP Resource Guide and Payroll Resource Guide, which can be easily found on their homepage.

https://lendistry.com/?utm_source=Survey&utm_campaign=0e2dad603a-EMAIL_CAMPAIGN_2020_04_14_05_47&utm_medium=email&utm_term=0_ebb6f80bcc-0e2dad603a-364451865

Applicants should have the following documents on hand before applying:

  • 12 months of payroll documentation, including wages, health and retirement benefits and state taxes paid
  • Primary owner’s photo ID
  • 2019 Tax Return, or 2018 Tax Return & 2019 Year-End Financial Statement, or 2019 1099
  • Corporate Documents (varies by entity type: Articles of Inc., By Laws, Operating Agreement, Fictitious Business Name, Partnership Agreement)

Applicants can also contact Lendistry directly at 1.844.662.7297 or info@lendistry.com.

Baltimore Development Corporation

I hope you found the above informative. If you have any questions, please e -mail your team member at Schiff!

Please stay well!

We are here for you!

My best to all

Allen

Schiff Clients Update as of Tuesday , April 14, 2020 at 6:00 PM EST

Good afternoon Schiff Dental Clients
I hope each of you are doing well and are safe!
We are here for you!

Today, we were informed from our sources within the ADA and the SBA, the PPP Loans will be fully funded by this Thursday, April 16, 2020. So, if you have already filed for your PPP Loan with your Bank, you should be in line to receive your allotted 2020 PPP funds!

However, IF YOU HAVE NOT YET applied for your PPP Loan, I would suggest you start to gather the various documents ( see list below) tonight and submit them within your Banks Portal immediately. Many national consultants are suggesting you wait to apply for your PPP Loans. If I were you , I would not pay attention to this information and file for your PPP Loan BEFORE the designated funds run out .

Many Banks are requiring the following financial documents:

  1. Drivers License – front and back
  2. 2019 Employee W-2’s
  3. 2019 Health Insurance paid
  4. 2019 401k  / SIMPLE Match
  5. 2019 State Unemployment Taxes Paid
  6. Signed and Dated PPP Loan Application

Good luck! Please start the process ASAP…….We are here for you!
Stay well!
My best
Allen

Schiff Dental Clients update as of Monday, April 13, 2020 8:35 PM EST

Dear Schiff Clients

We are here for you!

Good evening!

 

PPP Loan Applications

I want to first clarify the 7 PM e-mail update from this evening’s e-mail. Since the introduction of the PPP Loan, I am suggesting to all clients, that you apply for your PPP Loan. If you chose to accept it, we will need to determine your strategy. If you chose not to accept it, that’s your choice!

EIDL / SBA e-mail

At 8:35 PM , this evening, I was notified about the SBA EIDL / PPP Program. (see below) . With respect to the EIDL Grant >> please note this >> To ensure that the greatest number of applicants can receive assistance during this challenging time, the amount of your Advance will be determined by the number of your pre-disaster (i.e., as of January 31, 2020) employees. The Advance will provide $1,000 per employee up to a maximum of $10,000.

Now we have a clear understanding on how your EIDL Grant will be determine. Please check your e-mail (and / or JUNK or SPAM mail) for the same notification. You should have a notification as well!

Have a nice evening!

We are here for you!

My best

Allen


Dear Applicant,

On March 29, 2020, following the passage of the CARES Act, the SBA provided small business owners and non-profits impacted by COVID-19 with the opportunity to obtain up to a $10,000 Advance on their Economic Injury Disaster Loan (EIDL). The Advance is available as part of the full EIDL application and will be transferred into the account you provide shortly after your application is submitted. To ensure that the greatest number of applicants can receive assistance during this challenging time, the amount of your Advance will be determined by the number of your pre-disaster (i.e., as of January 31, 2020) employees. The Advance will provide $1,000 per employee up to a maximum of $10,000.

You may be eligible for another loan program, the Paycheck Protection Program, which is available through participating lenders. Below is a comparison of the two loan programs:

                                 Paycheck Protection Program                  Full EIDL Loan

PURPOSE Forgivable if used for payroll (minimum of 75% of the funds received) and the remaining for certain operating expenses (amount of any EIDL advance is not forgivable) To meet financial obligations and operating expenses that could have been met had the disaster not occurred (amount of any EIDL advance is forgiven)
TERMS Up to $10 million

1% interest rate

Up to $2 million

3.75% for businesses

2.75% for non-profits

FORGIVABLE YES NO – EIDL Loan

YES – EIDL Advance

MATURITY 2 years 30 years
FIRST PAYMENT DUE Deferred 6 months Deferred 1 year

 

To locate a Paycheck Protection Program Lender, please visit: www.SBA.gov/PaycheckProtection.

Information on available resources may be found at www.sba.gov/coronavirus. For more information on these services, please go to www.sba.gov/local-assistance to locate the email address and phone number for the nearest SBA district office and/or SBA’s resource partners.

Schiff Dental Clients update as of Monday, April 13, 2020 7:00 PM EST

Good Monday Evening to all Schiff Clients!

Happy Easter to all! I hope you and the family are doing well!

We are here for you!

 

ADA Lobbying update

Here is an update for you!

The ADA has written a letter to Congress (please see the attached) asking Congress for help………to delay the 8-week period, and using the PPP Funds for what they are intended for. I am hoping that Congress will react to the ADA letter in a positive way.

“We would also like you to consider allowing small business dental practices to choose the 8 week period for which they seek forgiveness for the loans and rehire back staff before December 31, 2020, instead of requiring them to rehire staff by June 30, 2020. This would allow these practices to make decisions about staffing and payroll based on when they plan to fully reopen”

I also hope all of the other industries (Restaurants, Hospitality, Travel, Sports, Theater , Retail , Airlines , Cruise Ships, etc etc) write a similar letter to Congress. If we can flood Congress with these types of letters, we will have hope they will listen to Small Business.

 

PPP Strategy as well as the computation of the PPP Loan Forgiveness

I think we should wait on the PPP Strategy as well as the computation of the PPP Loan Forgiveness because of this ADA letter and its chances of having the rules changed again AND because the US Treasury will be issuing regulations of the PPP Loan Program on April 27th. At that time, we will have a clearer picture as to what expenses would be allowed to arrive at the PPP Loan Forgiveness

My guess, this will all change again…..we will also gain clarity about the retirement plan accrual from 2019, as well. The rule to spend the funds by June 30th has changed too, and I suspect it will change again! Stay tuned!

 

Find your state’s disaster relief loans, financial support options, and other Coronavirus (COVID-19) resources for dentists and teams      

https://dentalbilling.com/dental-financial-coronavirus-relief-map/

 

There’s also a new loan tracker that has some interesting stats and is growing:

https://www.covidloantracker.com/

Video ? ….Cute short Video is also attached………….. thank you Dr Mel Weissburg my fellow Board Member of the MSDAF!

 

We are here for you!

Please Stay well & Safe!

My best

Allen

ADA PPP EIDL Funding Increase and Flexibility Letter to Congress

Schiff Update, Friday, April 10, 2020

Good Morning Schiff Clients!

Happy Good Friday to all!

I hope each of you are well and safe!

We are here for you!

IRS Update

Overnight, the Internal Revenue Service created some clarity for when your 2020 Quarterly Tax Payments would be due. So instead of having Payments due June 15, 2020 (2nd Quarter) and July 15, 2020 ( 1st Quarter), the Regulations point to BOTH the 1st Quarter and the 2nd Quarter are now BOTH due July 15, 2020 as one combined payment.  To me , that makes sense!

Independent Contractors

Today, April 10th is your day to file for your Paycheck Protection Program (PPP) Loan. We currently, do not have clarification from the SBA nor the US Treasury on how you as an IC , will submit your financial documents. My best advice at this time is , to please contact your SBA Preferred Lender Bank and inquire with them.

MSDA Webinar from TODAY  

Will be posted on www.MSDA.com

EIDL GRANTS / LOANS (update)

Yesterday (April 9, 2020) a number of 9,000+ ADCPA Dental Clients, received notification from the SBA, saying they were approved for $25,000. The $25,000 includes the $10,000 EIDL GRANT (which does not have to be paid back) and a preliminary EIDL Loan of $15,000 (30 years Loan at 3.75% Fixed) for their immediate working capital needs. The SBA message went onto say, do you want to accept the $15,000 EIDL Loan or would you like to apply for a greater EIDL Loan? Each of you will have a financial decision, when you receive your SBA notification.

I will continue to update you as the day progresses, if updates are warranted

Please enjoy the weekend!

We are here for you

My best to all

Allen

Schiff, Update Thursday, April 9, 2020

We are here for you!

Yesterday afternoon an updated FAQ’s was released on the Treasury’s website as to when the funds must be disbursed and when the 8 week period for forgiveness begins. Previously, some banks have mentioned an applicant could apply and not accept the loan until a later date. The FAQ’s posted on the Treasury website clarify that some funds must be distributed within 10 days of applying and that initial disbursement will start the 8 week period. Please take this into consideration when speaking with your lender when determining when to submit your application. We will be discussing this at length, on TODAY’s Schiff Client (ONLY) webinar.

Paycheck Protection Program (PPP) Loans

The amount of forgiveness of a PPP loan depends on the borrower’s payroll costs over an eight-week period; when does that eight-week period begin?

Answer: The eight-week period begins on the date the lender makes the first disbursement of the PPP loan to the borrower. The lender must make the first disbursement of the loan no later than ten (10) calendar days from the date of loan approval.

Example:

Practice applies for a loan today 04/08/20

Practice is approved by 4/10/20.

Practice must take an initial disbursement by 4/20/20 (assuming max deferment)

If the disbursement is taken by 4/20/20, only costs spent before 6/14/20 are eligible for the forgiveness (“the 8-week period”)

The CARES Act excludes from the definition of payroll costs any employee compensation in excess of an annual salary of $100,000. Does that exclusion apply to all employee benefits of monetary value?

Answer: No. The exclusion of compensation in excess of $100,000 annually applies only to cash compensation, not to non-cash benefits, including employer contributions to defined-benefit (Cash Balance) or defined-contribution retirement plans; payment for the provision of employee benefits consisting of group health care coverage, including insurance premiums; and payment of state and local taxes assessed on compensation of employees.

What time period should borrowers use to determine their number of employees and payroll costs to calculate their maximum loan amounts?

Answer: In general, borrowers can calculate their aggregate payroll costs using calendar year 2019. Applicants may use their average employment over the same time periods to determine the numbers of employees. An applicant not in business for the period between 2/15/19 and 6/30/19 may use the average payroll for the period 1/1/20 through 2/29/20.

Should payments that an eligible borrower made to an independent contractor be included in calculations of the borrower’s payroll costs?

Answer: No. We understand some major banks are still requesting this information but it is incorrect.

How should a borrower account for federal payroll taxes and withholding when determining its payroll costs for the purposes of the maximum loan amount?

Answer: Under the Act, payroll costs are calculated on a gross basis without making an adjustment for employee withholdings. The employer’s portion of the FICA tax (Social Security and Medicare) is not added to payroll costs. We understand it is a cost, but it is not an eligible cost for the purposes of this program. Some major payroll companies have been including these totals in there reports which is incorrect. You can input some of the data from your payroll company’s report onto our Schiff excel template to help you determine your approximate PPP Loan.

Do lenders need to independently verify information about affiliates?

Answer: No, it is the responsibility of the applicant to determine which entities are affiliates and determine the number of employees of the applicant and affiliates. Lenders are permitted to rely on the borrower’s certifications. Please remember, the purpose of the affiliation schedule is to make sure that businesses under common management have less than 500 employees. If you have multiple offices or have a PC owning a partnership interest we are recommending disclosing the related entities, the number of employees, and that there is common management. As long as the aggregate number of employees is under 500, this information won’t impact your loan application, it is just disclosure.

ADCPA PODCAST on the EIDL and the PPP Loan (April 5, 2020)

https://hwcdn.libsyn.com/p/b/b/6/bb6fcf5b10851d71/ADF069.mp3?c_id=69335237&cs_id=69335237&destination_id=844283&expiration=1586403221&hwt=3cfcdd3efd341e264e85f9d64b85752a

We are here for you!

Stay safe and healthy!

My best to all

Allen

Schiff Update, Tuesday, April 7, 2020, 4:15 PM

Good afternoon Schiff Clients!

I hope each of you and your families and employees are safe!

We are here for you!

We are receiving a lot of questions from clients about how to apply and when to apply for a Paycheck Protection Program Loan (PPP Loan Application Process). Each Financial Institution is different. Each Bank is requesting different financial documentation. There is no coordination from the SBA nor the US Treasury. So, we are all dependent on your Bank.

We understand this is the most critical question every dental practice has. If you receive the PPP Loan before it is needed, what can you do , what should you do?

I wanted to share my firm’s thought process with you , so we can help you make the best decision for your practice. You have to make this business decision as soon as possible, which is why we are suggesting you read through the options and worst-case scenarios we have listed below. There is no correct / wrong answer to this decision. What matters is, what is best for you and your practice.  Unfortunately , the outcome is based on factors outside your control. For example,  when the ADA and the various State Boards inform us we you can reopen. Since we cannot control any of these factors, each of you will need to make a decision that you feel is best for you and your practice.

As I see it, here are your Options:

  1. Apply today for a PPP loan, possibly get the funds as soon as possible, and spend the PPP during the next 8 weeks of receiving the funds. That’s great, but if the PPP Loan Origination date is let’s say is 4/13/20,  you will need to spend the PPP Loan by 6/08/20, or the 8 weeks window will have expired. I need to check with the ADA and the SBA, to see if the SBA and the U S Treasury , will allow us to pull the PPP Funds down now, and hold them until we all go back to work. I am not putting a lot of confidence in this happening. I hav ebeen in touch with the ADA through this process….Geeze!
  2. Apply now for a PPP loan, have the origination date delayed, if you can. Some banks say they can allow this; however, many banks are saying they cannot delay funding. Unfortunately, this is simply another factor that is outside your control as there is no consistency. Banks are learning as they go as to what options they can offer. I would certainly get a definitive answer from your bank on this point. One of our clients received an e-mail from PNC today, and they are saying “No, you can’t delay.  Once the application is approved the funding is done right after that”…..another Geeze!
  3. Wait to apply for a PPP loan, apply when you are about to reopen. This is the ideal situation, but the risk is the funds could run out. Yesterday, Wells Fargo annouced their funds ran out. There is  $349 billion in funds available for this program, but they could run out. No one knows if the funds will last or if they will be replenished. If you wait and don’t get a PPP loan, the consolation prize is you might be eligible for a credit 50% of wages paid in Q2, up to $5,000 per employee. The details of that are complicated though.You cannot obtain a PPP Loan and receive the Payroll Tax Credit, it is an either or.
  4. Other Financial issues surrounding the PPP Loan process and its timing
    1. You will be paying employees not to work at some point during that 8 week
    2. It may be possible that with the state and federal unemployment (additional $600 per week on top of state unemployment), your team could be earning more money on unemployment. So, by you deciding to pay them now, in effect reemploying them, they could start making less money than if they stay on unemployment….another Geeze!

Additional Information

We were just informed from the ADA, “Mnuchin just said at the White House small business briefing that he looks forward to the House passing the $250 billion pension package on Friday (Aprl10th) after the Senate passes it on Thursday (April 9th).  We’re still waiting to hear whether Schumer will object in the Senate on Thursday”.

Worst-case scenarios:

  1. You get the funds in a week or so, you spend the funds on eligible costs during the 8-week forgiveness period that ends in June, and you need to pay employees at the end of June even if you are not open. Your cost is the expense in those weeks after the loan runs out but at least you built some goodwill with your employees, unless they are getting unemployment and it is higher than what you pay them.
  2. You get funds, keep employees on unemployment, and don’t use the majority of the funds until after the 8 weeks. You end up with a loan that has 1% interest for 2 years to pay wages when you reopen. Not free money, but cheap working capital and, if you can’t reopen for some time, this working capital is probably necessary.
  3. You wait for the loan and it isn’t available when you need it. You may have to look for alternative financing

None of those scenarios are terrible – they just aren’t as ideal as having 8 weeks of payroll covered. Again, the factors are out of our control, so we don’t have an answer. I know some consultants say wait as the money will be replenished if it runs out. This is fair, but we don’t really know if that will happen. Others say apply now and don’t wait. Also, fair, but you might be paying employees to sit at home. The point is no one knows the best answer, but all the options are reasonable as long as you know the risk and rewards of each.

And finally,  if and when you do apply and receive the proceeds from the PPP Loan, we are currently recommending that you open up a separate checking account to track the use of these funds; this will be important from a loan forgiveness basis. The same is true for the EIDL Loans. If you receive the proceeds from an EIDL Loan, please consider opening a spearate checking accout to track such funds.

Allen’s Webinars this week
1) ADA tomorrow at 3 PM
2) Schiff Client Webinar 10 AM on Thursday

3) Madow Brothers, 1 PM Thursday
4) MSDA Webinar, Friday at 10 AM
5) Robert T Freeman Dental Society, Friday at 2 PM

 

Please stay safe and healthy!

We are here for you!

My best to all

Allen

Schiff Update 12 Noon , Monday , April 6, 2020

Good afternoon to Schiff Dental Clients

I hope everyone is safe & well.

At 12 NOON , on Monday , April 6, 2020, here is a ADA Update, M & T Bank , TD Bank, BOA and other Banks and their PPP availability

########################

ADA– I just heard from the ADA, and the ADA shared with me they won the issue as to whether or not you can file for an EIDL Loan and a PPP Loan and get both. The ADA won! ….…The SBA will be issuing a statement that you can get both loans.

M& T Bank Update

From my contact at M & T Bank >>>>its best for customers to visit the following landing page which provides information they should have ready to streamline the process (including documents needed).

https://www.mtb.com/help-center/be-informed-business/coronavirus

TD Bank Update

TD Bank is accepting applications for SBA Paycheck Protection Program (PPP) loans electronically through our website.

Here’s what you need to know:

  • You can apply directly at www.td.com/paycheckprotection
  • Please visit our site as soon as possible to view the eligibility guidelines and documents required when submitting your application.
  • Here is additional information you may find helpful:
  • PPP does not require collateral or a personal guarantee but does require supporting payroll documentation.
  • If approved, loan proceeds with be deposited into a TD Business deposit account.
  • This is a limited time program that is only available until June 30, 2020.
  • For more information, please visit the SBA website at this link.

BOA Update

This list is from one of our Schiff Clients >>

We completed the application which asked for some information, such as:

  1. Average Monthly Payroll (per our calc) ……    BOA is asking for reports for all of 2019 through Feb 15 2020
  2. The amount we were requesting for the loan
  3. Name (including DBA), address, phone, fax of the practice
  4. Business organization (LLC, C Corp, S Corp, etc.)
  5. Ownership name, address, phone
  6. Contact name, address, phone, role/title with the business
  7. Check box questions re: good legal standing – no felonies, disbarred, discredited, etc.
  8. Check box statements re: all info provided is true and correct to the best of my knowledge.

It seems BOA will let you apply to “get in line” and then will ask for documentation at a later time.  It took me about 15 min to get through the application.  As of now it seems that they are only concerned with payroll documentation.

PNC Update

Please refer to my e mail of yesterday , on PNC financial document(s) requirements

####################

Finally, if you need help in compiling your financial information from SCHIFF, please reach out to your Schiff Team Member. They will be happy to help you

Please stay well!

My best

Allen

PNC PPP Loan Application Process

Good Morning Schiff Clients!

Happy Sunday! I hope everyone is well and safe!

For the PNC PPP Loan Application, you will need the following information completed prior to beginning the PPP Loan Application process for the System will “time out” and you will have to start over, for your information is NOT SAVED.

You need to create scans (PDF) of the following documents prior to starting the PNC PPP Loan Application process

  1. Copies of your Practices Monthly Gross Payroll (from your monthly payroll service) for the period of April 2019 through March 2020, you will need individual scans of each month. Please adjust the monthly gross payroll, for the excess compensation over $100,000 annually , back to the allowable amount of $8,333.33 per month ($100,0000 /12 months). You will need twelve (12) scans here, and each has to be uploaded separately within the respective month
  2. Copies of your IRS Forms #941 for 2019 Q2, Q3 and Q4 and 2020 Q1 AND Copy of your IRS Form 940 for 2019, all as one scan
  3. Copy of your Driver’s License – front & back
  4. Copy of Health Insurance Paid between April 2019 and March 2020, for both you and your team
  5. Copy of your 401k / Simple Match for the period of April 1, 2019 through March 31, 2020, to include Retirement Plan Accruals paid during this period for your Profit Sharing and Cash Balance Plans
  6. You will need to Print the PNC PPP Loan Application , sign and date, initial various questions, scan and include before the system times out. Keep clicking your mouse, so the system does not time out

My suggestion and to avoid the frustration with compiling so many financial documents, all at one time, is to compile of your documents before you start the PNC PPP Loan Application process. If you do, you can complete the PNC PPP Loan application within 30 minutes! The PNC PPP Loan Application is very user friendly, as long as you are thoroughly prepared

If you need specific help from PNC, please e mail Irina Falletta irina.falletta@pnc.com. You can access the PNC PPP Loan Application through your on line banking.

Good Luck!

We are here for you

Many thanks

My best

Allen

Banking Update 04/03/20

Dear Schiff Dental Clients

Good Afternoon!

Here is a banking update as of April 3, 2020 5:30 PM

BOA – accepting Loan Applications – ONLY if you are a commercial loan client with them or a BOA Credit Card Holder
(i.e) 1) Bank of America small business loan 2. Bank of America checking account for the business 3. Bank of America business credit card If the client has two of three items above they can apply for the PPP.
Chase Bank – accepting Loan Applications
Citicorp – next week – they will be accepting Loan Applications
First Citizens Bank – over the weekend they will be ready
Fulton Bank (formerly Columba Bank) – accepting Loan Applications now
Huntington Bank – accepting Loan Applications now
M & T Bank – they will be ready Monday , April 6, 2020
PNC Bank – should be later this afternoon / early evening
Sandy Spring Bank – accepting Loan Applications now
Souhern Bank – accepting Loan Applications next week
TowneBank – accepting Loan Applications next week
Wes Banco – accepting loan Applications now
Wells Fargo – Next Week
Zio Bank – Allen is waiting to hear from

As of 11 a.m., 1,926 loans were originated, totaling nearly $757 million from 245 lenders, according to a person familiar with the matter. (Bloomberg)

Please know, we are here for you . Please text me any questions you may have / or any stress you are feeling . My cell is 443-928-1696

Please enjoy the weekend and stay safe!

My best to all

Allen

PPP Loans? Need answers to questions? Please read here:

Dear Schiff Clients

Good Morning to all!  I hope each of you are well.

Good News! It appears the Treasury Department has reversed its original decision of the subtraction of Federal Payroll Taxes, because they didn’t want to lend our businesses the “Federal Taxes”, so we are now back to “Gross Payroll”  with NO adjustments for taxes. There is a minor exception to this, please read below, but I would not hold you up using the Schiff PPP Loan calculator. 

Here is an UPDATE:  7 PM on Thursday night the Treasury Department issued additional guidance on the Paychecks Protection Program (PPP) loans. 

The number one question everyone is asking – when do I apply?  

There are two factors to consider:

1)      When do you need the money?

2)      When will the funds run out?

Ideally, you want to get the PPP loan when you reopen your practice, but no later than 6/30/20.  This would allow for you to fund the first 8 weeks of payroll costs (defined below), rent, and utility costs while revenue is less than 100%.  This would allow you to be fully staffed and operational once it is recommended for you to reopen.  Unfortunately, we don’t know right now if the funds will be available at that time or how long the loan process will take.  The Treasury Secretary said he will work to replenish the funds if they run out, subject to Congress approval. Fingers crossed!

We don’t believe the funds will run out immediately, but we also don’t believe a business should wait until May 2020 to get a loan. Remember, based on my conversation with the larger Dental Lenders’, they are predicting the money may run out, so, lets apply as soon as possible, but please do not panic.  The Schiff & Associates Team met for over 3 hours today (Thursday), so we are well trained to help each of you! 

Don’t panic – even though we gave you a large list of items yesterday, the list might be significantly shorter than today’s list I gave you.  Contact your lender, gather your information, and work with your bank to figure out when financing will be available. Nothing official, but we have heard from some banks said, that they will be able to allow for the loan to be processed, funds reserved, and become available upon request (prior to 6/30). 

The PPP loan calculation has been simplified. Based on this update, do not include the #1099 “Associate” on line #7. We are being told as of now; the Independent Associate will file their own PPP Loan Application. 

Once approved, please speak with your Schiff Team Leader before you sign and take the proceeds so we can strategize on timing. Make sure your bank will allow you some breathing room, from application approval date to closing date of loan/proceeds given. 

Below is a summary of the Interim Final Rules (SBA 020-0015 – 13 CFR Part 120) issued Thursday evening.  Please note the application process appears to have been simplified compared to previous guidance you may have received.  Contact your lender and please read below to understand some additional details.

Q:           Am I eligible?

A:            Most dental practices are eligible for a PPP loan if you have 500 or fewer employees in the US and were in operation on 2/15/20.  Affiliation rules apply.

 

Q:           I’m an independent contractor – am I eligible?

A:            Yes and you must be able to submit documentation such as IRS Form #1099-MISC received, in the submission of your own PPP Loan Application.

 

Q:           How much can I borrower?

A:            Step 1:                  Aggregate payroll = Gross Wages Paid

                Step 2:                  Subtract any compensation paid to an employee in excess of annual salary of $100,000

                Step 3:                  Divide by 12

                Step 4:                  Multiply by 2.5

                Step 5:                  Add the outstanding amount of an EIDL made between 1/31/20 and 4/3/30, less the advance if received.  (unlikely)

Q:           What are my payroll costs?

A:            

Compensation to employees, employer portion of payments for group health insurance, retirement, state taxes on compensation (State unemployment (very small amount of money here)), and your net income from being self-employed (Limited to $100,000) (does not include 1120S K-1 income)

 

Q:           What is excluded from payroll costs?

A:            i) Compensation in excess of annual salary of $100,000 

 

Q:           Can I include payments to independent contractors as compensation?

A:           No, independent contractors have the ability to apply for a PPP loan on their own.

 

Q:           What is the interest rate on a PPP loan?

A:            1% Fixed Rate (previously reported as 0.5%, this has changed)

 

Q:           What is the maturity date?

A:            Two years (previously reported as 10 years, this has changed)

 

Q:           Can I apply for more than one PPP loan?

A:            A business (EIN) can only apply for one PPP loan. If you own multiple businesses, they may be eligible to apply individually but must be disclosed in the affiliation section of the Loan Application (Question)

 

Q:           Can I use e-signatures?

A:            Yes

 

Q:           Is the PPP loan first come, first served?

A:            Yes

 

Q:           When do I start making payments on a PPP loan?

A:            Interest accrued when funds are disbursed, but payment is not due for 6 months.

 

Q:           Can my PPP be forgiven?

A:            Yes, if the loan is used on eligible costs and employee and compensation levels are maintained.  At least 75% of the PPP Loan must be for payroll costs to obtain forgiveness.  The SBA will issue additional guidance on forgiveness.  Although not stated in the final rule, the Act states the funds must be used within 8 weeks of receiving the loan to be forgiven.

 

Q:           What are eligible costs?

A:            

  1. i) Payroll costs (defined above)
  2. ii) Group health care benefits

iii) mortgage interest payments (not prepayments or principal)

  1. iv) rent, on a lease dated before 2/15/20
  2. v) Utility (G & E, Telephone & Water) payments, under service agreements dated before 2/15/20
  3. vi) Interest payments on debt obligations incurred before 2/15/20

 

Q:           I incurred eligible costs before receiving the loan, can I reimburse myself?

A:            The SBA will issue additional guidance but under the Act the funds must be used within the 8 weeks following receiving the loan and prior expenses would not be eligible.

 

Q:           What forms do I need and how do I submit an application?

A:            i) SBA Form 2483- Paycheck Protection Program application form

  1. ii) Payroll documentation

 

Q:           What if the PPP funds are misused?

A:            If misused, you will be subject to additional liability such as charges for fraud

 

Q:           What certifications must be made? (summary below)

A:            i) The applicate was in operation on 2/15/20 and had employees

  1. ii) Current economic uncertainty makes this loan request necessary to support the ongoing operations of the applicant (Due to COVID-19 this is a near certainty for any practice)

                iii) the funds will be used to retain workers and maintain payroll or make mortgage interest payments, lease payments, and utility payments.  Failure to do so could result in fraud charges.

  1. iv) Documentation verify the number of employees as well as the eligible costs incurred for the eight-week period following the loan will be provided to the lender.
  2. v) Loan forgiveness will be provided for the sum of documented costs.  Not more than 25% of the forgiven amount may be for non-payroll costs.
  3. vi) The applicant has not and will not receive another loan under this program.

                vii) The information is true and accurate.

                viii) The tax documents provided are identical to ones filed with the IRS.

 

Q:           What payroll costs do I use?

A:            The lenders are required to confirm the average monthly payroll costs for the preceding calendar year (2019)

 

Q:           What other information do I need to provide?

A:            Lenders may need to include a customer identification program 

 

Items not in the guidance:

My business opened during 2019, what numbers do I use?

For new businesses (that were not in business from 2/15/19 – 6/30/19), average monthly payroll may be calculated using the time period from 1/1/20 to 2/29/20. You should use this period it, annualize it for the calculation and then reduce for the annualized $100,000 per employee limitation. 

What bank should I use?

Start with a bank you already conduct business with. This program isn’t highly profitable for banks but they are providing this service to help their customers stay in business. They are more likely to assist existing customers first.

Should I apply through multiple banks?

No, as part of the application you must certify that you do not have any other pending applications for this program.

What is my business type?

Please look at your tax return:

  • Schedule C (form 1040) – Sole proprietor or LLC if you have organized an LLC under state law. 
  • 1065 – Partnership
  • 1120S – S corporation
  • 1120 – C corporation

What do I list for the number of employees?

We don’t know. We think it should be FTE’s however we think banks will just be counting W-2s. Because the 2019 number shouldn’t directly impact the forgiveness calculation, we expect you will use the 2019 number of W-2’s just so that it makes the loan application process go smoothly. This would include spouse and other related party W-2s. We think this is just to verify that the number is 500 or less. Please ask your lender what number they expect should be used.   

What are the state taxes do I include?

Total payroll in line one already includes state income tax withheld. This is not a tax of an employer; this is just part of the employee’s payroll so you do nothing special with this. The state taxes you add to your payroll cost are the state tax you pay as an employer which means for most businesses, State Unemployment taxes (SUTA). Some businesses are required to pay additional taxes, such as an employer portion (not the employee portion) of Paid Family Medical Leave taxes. Again, this is the employer portion only, not the employee’s withholding. Your payroll company should be able to provide these figures.

Where do I include rent, utilities, and mortgage interest in the loan request?

These are not part of the loan application. The loan is based on 2.5 months (about 11 weeks) of payroll costs. You may then use it for 8 weeks of payroll, rent, utilities, and mortgage interest. The additional weeks in the calculation are meant to cover these overhead expenses. 

Q:           How do I track my costs?

A:            We recommend you create a new bank account to track the deposit and use of the funds.  Documentation is required.

 

Q:           How does this impact my pending EIDL grant?

A:            We don’t know – the EIDL grant was supposed to come out as emergency funds and then the PPP provide later working capital to cover payroll and overhead for two months.  However, the administration rushed the PPP loan and is making the application available before anyone has received the EIDL grant.  We believe this means the EIDL loan may not be able to refinanced into the PPP loan. Information will be forthcoming. If you would like an EIDL Loan, you must apply for an EIDL Loan before you apply for an PPP Loan

 

Q:           My partnership is owned by two S corps, do the S corps need to apply for their own loan?              

A:           The S corporation owners receive a W-2 through their own PC and those wages can’t be included in the partnership application.  The S corp owner can file its own PPP application or an EIDL application with similar results.  

 

Q:           My partnership is owned by two individuals; do I include their K-1 income in payroll costs?

A:            We don’t know. However it is reasonable to assume that since a business includes the income of the sole proprietor, that the partnership should also include the K-1 income (limited to $100k per partner). This is a good faith answer to a question not answered (yet) in the instructions. We recommend pointing this out to your lender and asking what they will treat as acceptable under their procedures as they will need to review and approve the application with the payroll documentation provided.

 

Q:           When can I apply?

A:           

Starting April 3, 2020, small businesses (C-Corp, S-Corp, Partnership, LLC)  and sole proprietorships can apply for and receive loans to cover their payroll and other certain expenses through existing SBA lenders.

Starting April 10, 2020, independent contractors and eligible self-employed individuals can apply for and receive loans to cover their payroll and other certain expenses through existing SBA lenders.

 Why is my bank requesting additional information?

This is new and banks are doing their best to answer questions even if they don’t know answers. According to the final rules an applicant needs to complete the application, provide payroll records, and may need to verify their identity/business.

What do I do with the funds if I receive them and the Practice is not open yet?

You will have 8 weeks from the loan origination date to spend the funds and qualify for loan forgiveness (subject to additional rules to be issued by the SBA). If not used during the 8 weeks, they can be used in future periods, just not forgiven. You may rehire employees even if the practice isn’t open so that they are ready and available when needed or you may have working capital for later in the year to cover eligible costs.

My employees will be receiving more from unemployment than they will be receiving pay, why will they come back?

As the Treasury Secretary mentioned yesterday, if someone refuses work (pay), they are no longer eligible for unemployment. Further, employees who have been recently let go will be excited to have a paycheck again. There is so much uncertainty now that anyone that you want to be part of your team will gladly accept a paycheck over unemployment. 

As the owner, I was advised to stop taking a paycheck. How does this impact this decision?

As of the loan origination date, the owner (and employees) should go back onto payroll for the 8 week period if you want to maximize loan forgiveness (subject to additional rules to be issued by the SBA)

My employees have been collecting unemployment for the last few weeks, will my unemployment insurance tax rate go up?

We do not know at this time, but it is possible.

Q:           What information do I need?

A:            According to the final rules:

  1. The PPP application https://home.treasury.gov/system/files/136/Paycheck-Protection-Program-Application-3-30-2020-v3.pdf
  2. Please be sure to check with your Bank, for their application process

Q:           Where can I learn more?

A:            https://home.treasury.gov/policy-issues/top-priorities/cares-act/assistance-for-small-businesses

Please be sure to e-mail your Schiff Team Member if you need help today. During the interim, please compile your Quarterly 941’s, confirmation of your Health Insurance Premiums Paid and the Retirement Plan Match and Accrual from 2018 paid in 2019. 

Stay well!

My best to all
Allen

Updated EIDL Grant/Loan Application from the SBA

If you filed your EIDL Grant/Loan Application before Sunday, March 29 at 9:30 PM EST, the MSDA, in conjunction with Schiff & Associates, is recommending you reapply using the new website from the Small Business Administration (SBA).

Apply Here


On March 27, 2020, President Trump signed into law the CARES Act, which provided additional assistance for small business owners and non-profits, including the opportunity to get up to a $10,000 Advance on an Economic Injury Disaster Loan (EIDL). This Advance may be available even if your EIDL application was declined or is still pending, and will be forgiven.

Although many of you spent 3 or 4 hours completing the original EIDL application, it is important to fill out a new application using the streamlined process. This new application will take 30 minutes or less to complete. In order to qualify for the Advance, you need to submit this new application even if you previously submitted an EIDL application. Applying for the Advance will not impact the status or slow your existing application.

Since only $10 billion was allocated to the EIDL Grants, it is imperative that you fill out the streamlined application as soon as possible to give you the best chance of receiving the $10,000 advance.

Sincerely,
Marlene Shevenell, DDS
President, MSDA

Greg Buckler, IOM, MBA, MSM
Executive Director, MSDA


The MSDA recommends the following resources for the most current information about the coronavirus.

MSDA Website
Maryland Department of Health – Coronavirus
Office of Governor Larry Hogan
American Dental Association – Virus
Center for Disease Control – COVID-19
World Health Organization – Coronavirus Outbreak
US Chamber of Commerce – Combating the Coronavirus
Maryland State Medical Society

Notice from the U.S. Small Business Administration

We know you are facing challenging times in this current health crisis. The U.S. Small Business Administration is committed to help bring relief to small businesses and nonprofit organizations suffering because of the Coronavirus (COVID-19) pandemic.

On March 27, 2020, President Trump signed into law the CARES Act, which provided additional assistance for small business owners and non-profits, including the opportunity to get up to a $10,000 Advance on an Economic Injury Disaster Loan (EIDL). This Advance may be available even if your EIDL application was declined or is still pending, and will be forgiven.

If you wish to apply for the Advance on your EIDL, please visit www.SBA.gov/Disaster as soon as possible to fill out a new, streamlined application. In order to qualify for the Advance, you need to submit this new application even if you previously submitted an EIDL application. Applying for the Advance will not impact the status or slow your existing application.

Also, we encourage you to subscribe to our email updates via www.SBA.gov/Updates and follow us on Twitter at @SBAgov for the latest news on available SBA resources and services. If you need additional assistance, you can find your local SBA office and resource partners at www.SBA.gov/LocalAssistance. If you have questions, you may also call 1-800-659-2955.

Our Joint Correspondence with the ADA

Dear Schiff Clients,

Happy Monday to all!

I hope each of you are well, and your family is well and your employees are well too!

As all of you know, I have been working with the ADA along with my Academy, the ADCPA, in getting a message out to the 200,000 Dentists in the US. There was a FORBES Magazine Article published this week that contradicted my comments on the ADA webinar this past Friday. That created a lot of confusion for the 10,000 Dentist that were on the podcast. As it turns out, we needed to put together a joint correspondence with the ADA, which is attached, which supports my comments on the ADA Friday webinar. TG!

Click Here to Read Our Joint Correspondence with the ADA

We are here for you! 03.26.20

Good Morning to all Schiff Clients,

I hope each of you are well and safe and healthy!

Today at 12 Noon, I will be sharing my understanding of the CARES ACT along with the Applications for Funds within the State of MARYLAND (Instructions for Maryland are below). For the Maryland Application, you will need the following:

  1. Federal ID#
  2. Maryland Unemployment #
  3. SIAC # (621210)
  4. Attach a IRS Form W-9
  5. Attached 2 Years of Profit & Loss Statements
  6. Attach the MSDA e mail from 03.17.20, recommending you close your Dental Practice

To sign up for the 12 Noon webinar, please register here  >>  https://www.msdaf.org/assetprotectioncourse?utm_source=MSDA+Webinars+-+COVID-19+Update&utm_campaign=MSDA+Webinars+-+COVID-19+Update&utm_medium=email

 

Here are the details as well as the hyper links for the MARYLAND Application

For Your Business

Maryland Small Business COVID-19 Emergency Relief Loan Fund

The COVID-19 Emergency Relief Loan Fund is being administered by the Maryland Department of Commerce. It offers $75 Million of working capital to assist for-profit small businesses with less than 50 full- and part-time employees that are experiencing disrupted operations due to COVID-19. Eligible uses include working capital to support payroll expenses, rent, mortgage payments, utility expenses, or other similar expenses related to the ordinary course of business operations. General terms and conditions include the following:

  • Loans up to $50,000 (not to exceed three months of cash operating expenses).
  • 0% for the first 12 months; 2% for the remaining 36 months.
  • Deferral of any payments for the first 12 months, and straight amortization beginning in the 13th month through the 36th month.
  • Business must be established prior to March 9, 2020 and in good standing.
  • Applicants must have employees on their payroll for whom they have had payroll taxes withheld (i.e. W-2 employees).
  • Two years of historical financial statements and most recent interim statement to benchmark revenue against (if available).
  • Six month pro forma of estimated lost revenue or other documented loss evidence.
  • Minimum personal credit score of 575.
  • No collateral requirements.

These funds are intended to provide interim relief, complementing actions with your bank, business interruption insurance provider, and other financial partners. Use the links below to view more information and to access the online application.

COVID-19 Emergence Relief Loan Fund Webpage

COVID-19 Emergency Relief Loan Fund Application (UPDATED LINK)

Maryland Small Business COVID-19 Emergency Relief Grant Fund

The COVID-19 Emergency Relief Grant Fund is being administered by the Maryland Department of Commerce. It offers $50 Million of working capital to assist small businesses and nonprofit organizations with less than 50 full- and part-time employees that are experiencing disrupted operations due to COVID-19. Eligible uses include working capital to support payroll expenses, rent, mortgage payments, utility expenses, or other similar expenses related to the ordinary course of business operations. General terms and conditions include the following:

  • Grants up to $10,000 not to exceed three months of cash operating expenses for Maryland businesses and nonprofits impacted by the COVID-19 with 50 or fewer employees.
  • Must be established prior to March 9, 2020.
  • Business must be in good standing.
  • Applicants must have employees on their payroll for whom they have had payroll taxes withheld (i.e. W-2 employees).
  • Annual Revenues of the business or nonprofit not to exceed $5 million as evidenced by Financial Statement or other financial documentation.

These funds are intended to provide interim relief, complementing actions with your bank, business interruption insurance provider, and other financial partners and the participant is expected to seek longer term funding through another source. Applications are being accepted online. Use the link below to apply.

COVID-19 Emergency Relief Grant Fund Webpage

COVID-19 Emergency Relief Grant Fund Application (UPDATED LINK)

 

If you are in need of your two (2) years Profit & Loss Statement, please email your Schiff Team Member directly and they will be happy to help you!

 

Please stay safe and healthy
My best to all
Allen

Financial Checklist Recommendations

Good morning to all! As you know, things are evolving quickly…this is a very “fluid” issue…suggestions are welcomed!

Here is a checklist of items that you should consider putting in place this week (beginning Monday, March 23, 2020):

Banking & Finance – “Payment Relief”

Please be sure to email your commercial banks (please cc me on the e-mail) and request for “payment relief” from your bank. Most banks are offering between 60 to 90 days deferment. Please visit www.schiffcpa.com for daily updates as to what your bank may be offering.

Here is a “suggested e-mail” that you are welcome to use:

Good Morning,

I am writing to you requesting help with a “90-day payment relief” for my current commercial loan with your bank. This is as a result of the state and national dental association’s recommendations to limit our practice to emergency treatment due to the COVID-19 outbreak. In addition, I would like to extend my current line of credit from $50,000 to $100,000. Any help that you can offer me would be greatly appreciated. Please let me know what information you may need from Schiff & Associates (my CPA) in evaluating these credit facility requests.

Most Sincerely,

Dr. _____________

Other Banking Opportunities – SBA Financing

Consider applying for the SBA Disaster Relief Loan. Please consider the SBA if you have already exhausted your other financing options, such as your current lender or line of credit increases.
Here is the link:  https://disasterloan.sba.gov/ela/

Credit Card Financing

Please contact your credit card company. Some credit card companies are offering $0 minimum payment and 0% interest for 60 to 90 days. Some have already removed March 2020 finance charges!

Contact Your Landlord

Please reach out to your landlord. Some landlords have already written our clients, offering no rent for April 2020 and repaying the rent (spreading it out) once we get back to business. Here is a suggested e-mail to your landlord:

Dear _______,

I hope this email finds you and your family well & safe.  I am writing this email to request “deferment of my lease payment” for at least the next 60 to 90 days, considering the current COVID-19 situation.  I have been requested to close the office for now from both the American Dental Association (ADA) and the Maryland (your State name here) State Dental Association (MSDA) until this situation has been resolved. As a result of closing, I am unable to see patients in a regular capacity, so I am requesting this lease deferment.

I look forward to hearing from you soon. I have also copied my CPA in case there is financial information you may need in evaluating this request.

Thank you,

_________ DDS / DMD

Other Practice Expenditures

Dental supplies and lab fees represent your largest expenditures outside of payroll. Please ask these vendors for payment options during the time the practice has limited operations. Payroll, the largest practice expenditure, hopefully, will be covered by the Federal Stimulus Package we are waiting for at the time of this writing. Please also consider stopping AUTOMATIC WITHDRAWALS from your practice and your personal checking accounts.

Contact Service Companies

Examples: Demandforce, Lighthouse, Patient Activator, BirdEye, etc, social media, Yelp (look through credit card & bank transactions for any other vendors).

Scale down some of these services if you feel it would be appropriate. Please keep in mind, you may need them, for example, if you need to send a “mass email” to your patients, so please be careful with your decision here.

Health Insurance

I am recommending 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.

Your Payroll If You Are Incorporated

At this time, please do not run your own pay through your payroll service in order to save both the payroll fees, retirement contributions, and payroll taxes at this time.  If you need money from your practice, please withdraw funds as an “officer loan”, “distribution” or “draw”. This is true for the self-employed as well.

April 15th Tax Deadline  

This has now changed to July 15th Federal tax deadline. Even though the Federal tax filing deadline and payments have been extended to July 15th, I would like to file your individual 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 now have until July 15th to pay. This will help you budget and allow you to know what your liability is. If you have a tax refund, you may apply it to cover future estimated tax payments. Or you can request a tax refund to be sent to you now. Please us know!

Please feel free to forward this email to any of your colleagues and peers. All of our previous newsletters are posted on my website https://www.schiffcpa.com/updates-on-covid-19/.

Stay safe, stay healthy and remain POSITIVE! We will get through this…together!

Wishing you the very best,

Allen Schiff, CPA, CFE
Schiff & Associates, LLC

A Checklist You Should Consider This Week

Good morning to all! As you know, things are evolving quickly…this is a very “fluid” issue…suggestions are welcomed!

Here is a checklist of items that you should consider putting in place this week (beginning Monday, March 23, 2020):

Banking & Finance – “Payment Relief”

Please be sure to email your commercial banks (please cc me on the e-mail) and request for “payment relief” from your bank. Most banks are offering between 60 to 90 days deferment. Please visit www.schiffcpa.com for daily updates as to what your bank maybe offering.

Here is a “suggested e-mail” that you are welcome to use:

Good Morning,

I am writing to you requesting help with a “90 day payment relief” for my current commercial loan with your bank. . This is as a result of the state and national dental association’s recommendations to limit our practice to emergency treatment due to the COVID-19 outbreak. In addition, I would like to extend my current line of credit from $50,000 to $100,000. Any help that you can offer me would be greatly appreciated. Please let me know what information you may need from Schiff & Associates (my CPA) in evaluating these credit facility requests.

Most Sincerely,

Dr. _____________

Other Banking Opportunities – SBA Financing

Consider applying for the SBA Disaster Relief Loan. Please consider the SBA if you have already exhausted your other financing options, such as your current lender or line of credit increases.
Here is the link: https://disasterloan.sba.gov/ela/

Credit Card Financing

Please contact your credit card company. Some credit card companies are offering $0 minimum payment and 0% interest for 60 to 90 days. Some have already removed March 2020 finance charges!

Contact Your Landlord

Please reach out to your landlord. Some landlords have already written our clients, offering no rent for April 2020 and repaying the rent (spreading it out) once we get back to business. Here is a suggested e-mail to your landlord:

Dear _______,

I hope this email finds you and your family well & safe. I am writing this email to request “deferment of my lease payment” for at least the next 60 to 90 days, considering the current COVID-19 situation. I have been requested to close the office for now from both the American Dental Association (ADA) and the Maryland (your State name here) State Dental Association (MSDA) until this situation has been resolved. As a result of closing, I am unable to see patients in a regular capacity, so I am requesting this lease deferment.

I look forward to hearing from you soon. I have also copied my CPA in case there is financial information you may need in evaluating this request.

Thank you,

_________ DDS / DMD

Other Practice Expenditures

Dental supplies and lab fees represent your largest expenditures outside of payroll. Please ask these vendors for payment options during the time the practice has limited operations. Payroll, the largest practice expenditure, hopefully will be covered by the Federal Stimulus Package we are waiting for at the time of this writing. Please also consider stopping AUTOMATIC WITHDRAWALS from your practice and your personal checking accounts.

Contact Service Companies

Examples: Demandforce, Lighthouse, Patient Activator, Bird Eye, etc, social media, Yelp (look through credit card & bank transactions for any other vendors).

Scale down some of these services if you feel it would be appropriate. Please keep in mind, you may need them, for example if you need to send a “mass email” to your patients, so please be careful with your decision here.

Health Insurance

I am recommending 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.

Your Payroll If You Are Incorporated

At this time, please do not run your own pay through your payroll service in order to save both the payroll fees, retirement contributions and payroll taxes at this time. If you need money from your practice, please withdraw funds as an “officer loan”, “distribution” or “draw”. This is true for the self-employed as well.

April 15th Tax Deadline

This has now changed to July 15th Federal tax deadline. Even though the Federal tax filing deadline and payments have been extended to July 15th, I would like to file your individual 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 now have until July 15th to pay. This will help you budget and allow you to know what your liability is. If you have a tax refund, you may apply it to cover future estimated tax payments. Or you can request a tax refund to be sent to you now. Please us know!

Please feel free to forward this email to any of your colleagues and peers. All of our previous newsletters are posted on my website https://www.schiffcpa.com/updates-on-covid-19/.

Stay safe, stay healthy and remain POSITIVE! We will get through this…together!

Wishing you the very best,

Allen Schiff, CPA, CFE
Schiff & Associates, LLC

A COVID-19 Business Response Update as of March 23, 2020

We are here for you!

Needless to say, last week was a very trying week, but also a rewarding week as well! I am here for you!

Many of you are asking so many excellent questions. The most popular question is, “I have paid my last payroll for March 2020, what should I do”?

As you know, each situation is different. Some of you are continuing to pay your teams. Some have decided to pay their teams their paid-time off hours (PTO). Some of you have stopped paying your teams. That is all fine. Please keep in mind, if you eventually suggest to your teams to file for unemployment, your message should be consistent with all of your employees. You should put the message in writing , either via group e-mail or group text e-mail. Below is a suggested letter that you may send. Please keep in mind, I am not a labor attorney; you should run this by your HR attorney before releasing it. The letter is merely an accommodation and a suggestion.

######################

Dear Employee,

Because of the current crisis, we have decided to close the dental office at this time. As a result and as your employer, I (we) have decided to lay you off from your current employment with_____________________ DDS, DMD, EIN#______________, effective Monday, March 23, 2020.

We are encouraging you to file for (Maryland, District of Columbia, Virginia, West Virginia, North Carolina, Texas, Missouri ) unemployment at this time. Here is the website that you should use to file your unemployment claim. Please note, our last payroll date is _______________.

Maryland

https://secure-2.dllr.state.md.us/NetClaims/Welcome.aspx

District of Columbia

https://does.dcnetworks.org/claimantservices/Logon.aspx

Virginia

https://www.vawc.virginia.gov/vosnet/registration/ind/uiclaim.aspx

West Virginia

https://uc.workforcewv.org/consumer/

North Carolina

https://des.nc.gov/apply-unemployment/filing-your-unemployment-application

Texas

https://twc.texas.gov/jobseekers/unemployment-benefits-services#applyBenefits

Missouri

https://www.mo.gov/work/unemployment/

Please acknowledge receipt of this letter by indicating your signature and date below and return a copy to us for your personnel file. 

Very truly yours, 

________________________________, DDS, DMD

#####################

Once again, I am not a HR attorney, so please be sure to have your HR attorney approve the above.

Stimulus Package

We are still waiting to hear about the Federal “$1 Trillion Dollar Stimulus Package”. As I mentioned on the MSDA webinar on Friday, March 20, 2020, it is my understanding the Stimulus Package could include up to 4 months of your payroll. THIS IS UNCONFIRMED at this time, for there is currently a major debate going on within Congress. The $1 trillion could in fact be $2 trillion…we simply do not know…we have to wait and be patient!

My point of bringing up the Stimulus Package is this: the whole unemployment issue could be a “non-issue” because the Stimulus Package may include a “government loan” whereby the Federal Government will reimburse our payrolls. Please remember, Schiff & Associates is in this with you because 99% of our client base are all dentists…like you!

Finally, I want to emphasize to each of you that you must remain calm, remain confident, and have positive “themes” within all of your correspondence with your teams. Together we shall overcome this crisis!

If you have specific questions, please email me (aschiff@schiffcpa.com). I will respond as quickly as possible.

Wishing you the very best,
Allen Schiff, CPA, CFE
Schiff & Associates, LLC

Important COVID-19 Banking Information

Due to the recent development of COVID-19, your banking information may have changed:


Bank Terms
Affinity Bank 1 day turn around on Lines of Credit (if existing customer) and 3 months deferred payments.
Bank of America Interest only 90 days, must request
Bank of America 60 day deferral of payments + line of credit
BBVA Compass 60 day deferral of payments + line of credit
Chase 60 day deferral of payments or interest only for 60 days + line of credit
Citicorp Currently working on a deferral program on a case by case basis
First Citizens No payments for 60 days (must request), business unsecured loans for up to 24 months with a low fixed interest rate
Lendeavor 60 days deferred payments
M&T 90 day payment deferral,interest accrues during the 3 months
PNC Interest only 90 days & possible 90 day total deferment
PNC 60 day deferment
Prosperity Bank 60 day deferral of payments + line of credit
South State Interest only 120 days
Wells Fargo 3 month deferment
Zion Bank Review each request, It could be a line of credit, interest only period, or a deferment of P&I for a period of time
SBA Express Loan Payment , limited to 10% of Fee Income , priced at prime 3.25% plus 1% to 3%
Student Loans Will be mandated to come up with a payment deferral program;   https://www.sba.gov/funding-programs/disaster-assistance

 


Please contact us for more information.

Important Message from the ADA and AGD

Ask your members of Congress to include dentistry in COVID-19 relief packages
As you know, the novel Coronavirus, COVID-19, has resulted in dentistry taking action to stop its spread. The ADA has called for dentists to stop performing elective procedures until further notice to curtail the virus. This has resulted in significant negative repercussions to the cash flows of many dentists around the country.

To address the issues stemming from actions taken by dentistry to halt the spread of COVID-19, we are asking that Congress include dentistry in any COVID-19 relief packages. We are seeking for Congress to include these measures to help the profession:

  • Easing and expediting the process for businesses to apply for Economic Injury Disaster Loans through the Small Business Administration.
  • Deferring all monthly payments on federal student loans for all health care professionals, including dentists, without penalty.
  • Deferring or eliminating payroll tax matching and payments, as well as deferring quarterly income tax payments for small business owners.
  • Providing additional tax cuts for small businesses, which could include expanding Section 199A to include all small businesses regardless of income.
  • Applying all telehealth de-regulation to virtual check-ins for dental evaluations (teledentistry) and support payment for these services within both Medicaid as well as commercial plans.
  • Waiving an Employer’s Annual Federal Unemployment Tax for 2020 for small business employers with under 50 employees or freeze the current rate.
  • Requiring all business Interruption Insurance policies to cover national emergencies, including those related to diseases such as COVID-19.
  • Allowing for a onetime withdrawal without penalty from an individual’s 401k.

We believe that including these policies in any COVID-19 stimulus package will help the dentists, like yourself, that are taking voluntary action to prevent any further spread of the virus.

 

Take action today by asking your Senators and Representative to include programs aimed at helping dentistry in any COVID-19 relief packages.

 

Thank you,

 

Mike Graham

Senior Vice President

Government and Public Affairs

 

Click here to take action now!

Towson MD Dental CPA

Tell Congress to consider dentistry in COVID-19 response

AGD is contacting you to ask for your help in generating support for targeted relief funding for dental practices amid the COVID-19 outbreak. Many dentists are voluntarily postponing elective procedures to help combat the spread of COVID-19, leaving them on the hook for fixed practice expenses while facing a significant dip in revenues.

As Congress and the Administration move forward with developing an economic stimulus package that will support health care providers and their patients during this crisis, AGD is working to ensure that general dentists and their patients are included in those proposals.

AGD has requested that direct financial support be allocated to ensuring the availability of personal protective equipment (PPE) and supporting the many dental practices that are facing financial hardship due to voluntarily postponement of elective procedures in response to the spread of COVID-19.

Three weeks of lost billings for a general dentist that owns their practice could, on average, amount to a loss of over $41,000, while potentially incurring over $23,000 in practice expenses, excluding owner dentist salaries. The nationwide impact on general dentists of lost billings from elective procedures coupled with fixed practice expenses during a 3-week period will amount to financial losses in the billions of dollars, even by low-end impact estimates. These losses will undoubtedly harm the nation’s economy and the ability of dentists to maintain their practices and deliver care to patients.

We need your help to elevate this message in Congress by voicing your concerns to the legislators who represent you in Washington, D.C.

Please Take Action and Urge Your Members of Congress to Support COVID-19-Related Relief for Dentistry Today!

Click here to tell Congress to consider dentistry in COVID-19 response!

My best to all…please stay healthy!

 

 

HR6201 – Families First Coronavirus Response Act

HR6201 – FAMILIES FIRST CORONAVIRUS RESPONSE ACT

 

The bill still needs to be passed by the Senate and then signed by the President before it becomes law. This is a very “fluid” situation. It is changing by the minute.

So many of you have called, e-mailed and texted me your questions. All the questions revolve around the payment of compensation to your teams, now and in the future.

Below are my notes as they relate to your questions:

 

Unemployment issues

 

Employees can collect 24 weeks of unemployment.

 

It is mandatory to pay employees if they are being asked to work remotely.

 

Unemployment law is unique to each State. If the Dental Practice is closed and it is out of the employee’s control, the employee can apply for unemployment.

 

Schiff Dental CPA Clients – Please go to your individual State unemployment website to review the frequently asked questions. Please see the direct links below:

 

Maryland – https://www.dllr.state.md.us/employment/unemployment.shtml

Virginia – https://www.governor.virginia.gov/media/governorvirginiagov/governor-of-virginia/pdf/Frequently-Asked-Questions-from-Workers-Regarding-COVID-19.pdf

 

DC – https://dccouncil.us/council-unanimously-passes-emergency-covid-19-response-bill/

 

Pennsylvania – https://www.uc.pa.gov/Pages/covid19.aspx

 

Texas – https://www.khou.com/article/news/health/coronavirus/how-do-i-file-for-unemployment-in-texas-due-to-covid-19/285-a7ee5287-dc88-4ccc-bcb5-5d1eea831695

 

North Carolina – https://des.nc.gov/need-help/covid-19-information

 

West Virginia – Nothing posted yet.

 

No penalty now if the employee files for unemployment-this was confirmed with the ADA today (we needed to hear this today, before we could release this update).

 

Associates treated as independent contractors are not employees and cannot claim unemployment.

 

I am waiting for clarity from the stimulus package with respect to the following questions:

Does an employee have to use their PTO before they can file for unemployment?

How much of the current and future payrolls will be subsidized by the Federal Government? How will they be subsidized?

Will there be payroll tax refunds from the payroll taxes paid thus far in 2020?

Will there be “tax credits” issued in lieu of tax refunds?

 

There are still many unanswered questions. We need to be patient and allow the Stimulus Package to be passed…it is forthcoming.

 

Legal & Financial Topics

 

The ADA is trying to get dentists exempt from the HR 6201 Stimulus Bill. https://www.ada.org/en/publications/ada-news/2020-archive/march/ada-lobbies-coronavirus-legislative-package

The ADA may lobby the insurance commissioners to gain help with office overhead insurance policies (business interruption policies). Many policies exclude pandemics.

I have just become aware of some large group dental practices not abiding by the ADA recommendations and “scaring” young associates into working. This is very sad!

We are encouraging all clients to secure a line of credit (LOC) with their bank.

 

Clinical Topics

What is a “dental emergency”? Examples include life-threatening, soft tissue bleeding, postoperative, for medical clearance, denture adjustment…please see the ADA website for further definitions.

“Routine dental treatment” examples include ortho extractions, cosmetic, aesthetic, prophy.

M95 masks – You cannot practice dentistry without these masks, but these masks are almost impossible to get because they are now being directed to hospitals.

 

Covid -19 – If an employee meets the following criteria:

  • The employee has a current diagnosis of COVID-19.
  • The employee is quarantined (including self-imposed quarantine), at the instruction of a health care provider, employer, or government official, to prevent the spread of COVID-19.
  • The employee is caring for another person who has COVID-19 or who is under a quarantine related to COVID-19.
  • The employee is caring for a child or other individual who is unable to care for themselves due to the COVID-19 related closing of their school, childcare facility, or other care program.

If an Employee falls within these four (4) categories, they will qualify for the “Emergency Paid Leave Benefits”

This section creates a new federal emergency paid leave benefit program. Eligible workers will receive a benefit for a month (up to three months) in which they must take 14 or more days of leave from their work due to the qualifying COVID-19-related reasons. Days when an individual receives pay from their employer (regular wages, sick pay, or other paid time off) or unemployment compensation do not count as leave days for purposes of this benefit.

The program will be administered by the Social Security Administration (SSA).

I will be in touch as the situation progresses…please email me any specific questions you may have after you have had a chance to read this information.

 

My best to all…please stay healthy!

A friendly update from Schiff & Associates, LLC!

What a difference a weekend makes! A lot has changed since last Friday. The purpose of this email is to bring you and your team up to date on the latest C-19 financial issues. I have also included many websites for your review as well as upcoming webinars that may be of help to you and your team.

 

States Update – From my understanding, the following states have recommended that dentists only see “emergency patients” and to consider closing over the next two (2) weeks: VA, DC, MA, and CA. I have not heard recommendations for MD, PA, NC, TX, MO, and WV at the time of this writing. If you are practicing in one of these states, you now have questions regarding compensation to you and your teams.

 

From Bent Eriksen’s website:

If the employer believes it is in their best interest to close the business, for any reason, but particularly for something like a Coronavirus/influenza outbreak, then they have the right to take that action. Whether or not the employees are paid while off work will depend on their exempt/non-exempt status.

 

Exempt employees (Salary employees):

If the absence is initiated by the employee (including for his or her own illness or that of someone for whom he or she is caring), the employer may dock the exempt employee for full-day absences only, provided no work of any kind is done during the course of the day, even from home, like checking and answering emails.

If the absence is initiated by the employer (e.g., the employee must stay home for a mandatory quarantine period, even though he or she is asymptomatic and willing to come to work, business closure), the employer may dock the exempt employee only for full seven-day absences that coincide with the employer’s pay week so long as no work is performed during that entire absence.

 

Non-exempt employees (Hourly Employees):

Pay may be docked for any and all non-work time.

Tim Twigg, President and Owner of Bent Ericksen & Assoc. Below is a hyperlink to Tim’s website, that will answer all of your questions regarding your employees.

 

https://bentericksen.com/coronavirus-faqs/

If by chance you do not get your question answered, please call or email Tim at 541-685-9003  timtwigg@msn.com. Please also keep in mind, State Labor Laws will supersede Federal Laws. So, please check with the State Labor Board in the state you are practicing in.

 

Patient Office Protocol – If you do remain open, you may want to consider removing every other chair in your reception area, so you can create “social distancing”.

 

Banking – Each of you should have a line of credit. A line of credit (LOC) is designated by your banker to be used in difficult financial times. Now is the time to make sure your LOC is in place. I have spoken with all of the major banks that lend to dentists. If you are currently banking with BOA, Wells Fargo, PNC, M & T, etc, please continue to bank there and meet with your Loan Officer while discussing your line of credit with that financial institution. If on the other hand, you do not have any banking relationships, email me and I will put you in touch with a bank that may help you. Here is a “short list” of items that will be needed in order for the bank to determine your credit worthiness:

1)     Bank Application

2)     Personal Financial Statement

3)     2019 FYE P&L and Balance Sheet for all entities

4)     2019 W-2

 

Websites and other Resources

MSDA webinar

Coronavirus Disease 2019

https://mailchi.mp/37e98d3f04a1/new-coronavirus-disease-2019-covid-19-virtual-course?e=a63213230b

Tuesday, March 17, 2020
6:30 PM – 8:30 PM

COVID-19 and other Respiratory Viruses: What Every Dental Practice Needs to Know

http://vivalearning.com/

March 17, 2020 7 PM EST

Alex Nottingham JD MBA, Founder, and CEO of All-Star Dental Academy, talks about how to best approach a crisis.

https://www.youtube.com/watch?v=UMYnVxjKXXo

Commonwealth of Virginia

What Employers Need to Know About H.R. 6201

https://www.vadental.org/news-details/2020/03/16/what-employers-need-to-know-about-h.r.-6201

 

Your Website – You may want to inform your patients what your office policy is during this crisis.

Business Interruption Insurance

https://www.natlawreview.com/article/coronavirus-factors-insurance-industry-to-consider-part-1-business-interruption

ADA

https://www.ada.org/en/publications/ada-news/2020-archive/march/ada-adds-frequently-asked-questions-from-dentists-to-coronavirus-resources

Journal of Dental Research

https://journals.sagepub.com/doi/10.1177/0022034520914246?fbclid=IwAR3UUNZBfMOgiyKP6byyzEC_mCYSpyHM3JKbf8kUevIQjn2SIDb6hx-B8jw

CDC

https://www.cdc.gov/coronavirus/2019-ncov/infection-control/control-recommendations.html?CDC_AA_refVal=https%3A%2F%2Fwww.cdc.gov%2Fcoronavirus%2F2019-ncov%2Fhcp%2Finfection-control.html

 

Let’s all pray this situation comes to an end real soon and we can return to normalcy!

Stay safe & healthy.

A Friendly Notice from Schiff & Associates, LLC!

No doubt, Covid-19 has taken all of us by surprise. It is amazing how this health issue that was first detected in China in December 2019 has taken the world under its ugly arms and created havoc on our everyday life, disrupting our normal routines, our family lives and of course our business lives.

Late in this week, I have received a number of calls/e-mails about how I can prepare my business to sustain this outbreak, and what precautions I should be implementing now in order to “weather the storm”. Part of the challenge is we simply do not know how long this may last. We need to start preparing now for how this Covid-19 is impacting our patients, clients, customers, and of course our employees. Here are some tips for you to consider:

Patient Office Protocol – It may make sense when confirming future patient appointments for you to have a team member designated to call the patient and ask the very pertinent questions. Have you been out of the United States recently? If so, when? If so, where? Have you been experiencing a fever recently? What other health issues you have been experiencing recently that we should have knowledge of?

Banking – Each of you should have a line of credit. A line of credit (LOC) is designated by your banker to be used in difficult financial times. Now is the time to make sure your LOC is in place. If you don’t have a LOC, please call or email me, and I will help you secure a LOC.

Investments – Please be certain to meet with your Investment Adviser. Before the Covid-19 pandemic became an issue, the capital markets were performing amazingly well. I am hoping we can return to this normalcy soon!

Employees – Here are some of the questions and comments we are receiving from clients:

“Any idea what the Maryland law is regarding if we have to pay our employees if we have to close the office. We are not nearly as busy as normal! New patient numbers so far down and patients saying they are sick and canceling. Can our employees collect unemployment if needed?  Can I cut hours if I need to? We still have a decent week, just worried for the next month.” “I was wondering if you might have, or could get, a consensus on how other dentists are handling this virus crisis?  Closing, reduced hours, screening patients, paying staff, sick leave, lay-offs, temporary furloughs, etc, etc? Anything you know would be helpful.”

These are certainly excellent questions on everyone’s mind. As many of you know, I am the President of the Academy of Dental CPAs. At the ADCPA, we have established amazing professional relationships with the Thought Leaders in Dentistry. One of those Thought Leaders is Tim Twigg, President, and Owner of Bent Ericksen & Assoc. Below is a hyperlink to Tim’s website, that will answer all of your questions regarding your employees.

https://bentericksen.com/coronavirus-faqs/

If by chance you do not get your question answered, please call or email Tim at 541-685-9003  timtwigg@msn.com

Let’s all pray this situation comes to an end real soon and we can return to normalcy!