What We Know, What We Do NOT Know

[The Ever-Changing, Convoluted, Exasperating Times We Are Living In]
Here is what we know today.

Full Forgiveness of SBA Loans

  1. 75% of the PPP loan must be used for payroll. This includes gross payroll, group health insurance, retirement match and state unemployment costs.
  2. 25% of the PPP loan may be used for approved non-payroll expenses such as rent and utilities. We appreciate you asking if our accounting fees can be included in this expense. Unfortunately for us, the answer is no.  😊☹
  3. FTE (full time equivalent) on 6/30/20 must equal FTE on 2/15/20. Please see SBA.gov for additional questions/answers regarding what happens if an employee declines an offer to come back to work after being laid off.
  4. Funds not forgiven will become a loan with a 1% interest rate with a two (2) year term. Please realize that all of us in this office would be happy to be given a loan at this rate!!! So, this is NOT the end of the world if you do not get the entire PPP loan forgiven.
  5. You MUST request forgiveness within 90 (NINETY) days from receipt of the PPP money. This is 34 days AFTER your 8-week period is over. MARK YOUR CALENDARS now IF YOU HAVE RECEIVED YOUR MONEY.

Partial Forgiveness of SBA Loans
The Art of Dental Finance & Management
This podcast was presented on Wednesday and was hosted by Art Wiederman, our ADCPA California member with our own BJ Kaucher as a guest speaker.

If you have not taken the time, this is a good discussion of what we know and what we do not know regarding the PPP loan and the EIDL loan. Two of our other ADCPA members (Mark Rosen and Bob Gray) discuss the current information for the loans with BJ and Art. 
Forgiveness Documents
We recommend you keep a separate folder for all of your invoices. This should include payroll reports, bank statements, the lease agreement for renting your building, utility invoices such as water, electricity, internet. In other words, keep the documents for all qualified expenses that support the PPP loan in one place so that you can get the loan forgiven. 

If you are not already doing this, you will need to have your payroll company calculate the match for your employees. If you have questions about this, please call your payroll company to make sure this is being done. You must have proof that you are paying these costs.

To assist you with keeping track of these expenses over the 8-week period, we recommend you use our PPP tracker. Please see the link below.

Here is what we do not know today.

We do not have answers yet for these questions regarding the PPP loan forgiveness guidance. We could do a little rant as to how we feel about the guidance NOT being provided yet - but we will spare you. 

  1.  How much hazard pay/bonus is allowed?
  2. Can I pay my 2019 retirement contribution out of the PPP loan?
  3. How do I calculate my 2020 retirement contribution (we assume match, but what about profit sharing)?
  4. Can I increase payments to related parties?
  5. Can I begin paying wages to related parties that previously were NOT employed by the practice?
  6. How do I calculate a full-time employee (FTE)?
  7. If I rehire employees by 6/30/20, how long must they remain employed?
  8. If I hire different employees at different rates, how does that impact the FTE count?

Opening Your Practice
Henry Schien has announced a Practice Recovery Program to help dentists safely return to providing care for their patients and staff. Please follow this link for more information.

Billing Codes-How Do I Bill for PPE
Dr. Charles Blair has been our go-to for insurance coding questions and issues over the years. Here is what he recommends regarding billing insurance for PPE.

Final Words of Wisdom – PLAN! DOCUMENT!

The key to your success in this new COVID-19 world we live in is to plan and document.
Plan how you will reopen (if you haven’t yet): 

-           Plan staff education and training.
-           Plan patient education and communication.
-           Plan the cleaning and disinfection procedures you need daily, weekly.
-           Plan for the materials and supplies you will need.
-           Plan for the PPE and safety guidelines you must have in place.
-           Plan the adjustments to patient services you will offer.

Document the following:

-           New office protocols (now is a good time to update your HR manual) 
-           Staff meetings
-           Staff training
-           PPP spending (as listed above)
-           Patient communication
-           Staff consent to return to work

Have a safe, sane and great weekend! We love you and know you are the best!

Coleman, Ureda, Alford & Kaucher, PA