Financial Updated for Dentists on COVID 19

Dear Valued Clients
In an attempt to give you further clarification on how to handle your practice during this time, we’re providing this follow up to our email from yesterday. It’s intended to give you more concrete action items, with online links (below) to take immediate action to help you address the reduced payroll for your staff. We’ve put together the following grid to easily understand what their (and your) options are. Please see additional comments and recommendation below it as well:
Action items for your practice:
1.      Have all employees file claims related to their situation (disability, paid family leave, school closures, general unemployment).
2.      For CA practices, file for the Work Sharing Program by completing CA form 8686. A few recommendations as you complete this form:
       a.      Box 7a: your departments can be Office Admin, Hygiene, Assistant, and Associates (Note, all must be W2. This does not apply to independent contractors).
       b.      Box 7e: We are unsure if you can put more than 60%. The standard rule disallows this if the employee sees a greater than 60% reduction in pay and hours. This is because the program is intended to only partially offset the reduction in time, not entire offset it. We cannot find any indication online COVID would allow a reduction greater than 60%. The safest approach would be to put 60% and allow the employees to file a standard UI claim for the difference.
       c.      Box 11: Indicate the state association mandate to close your office
       d.      Box 16 and 17. We generally recommend no.
       e.      Page 4: You can access your Employer Account Number by logging into your MyPay Solutions account online (or your PracticeCFO account and clicking the MyPay Solutions link on the top right), selecting your corporate folder on the left, choosing Accounting>12/31/19>Form DE9 or DE9C. Your number is the eight-digit number on the top right.
3.      We recommend you do not force your employees to take sick or vacation pay. The law does now allow you to do so.
4.      Review the email we sent yesterday on methods to preserve your cash during this time.
Note on the federal bill passing through congress
It’s too soon to tell, but there are provision are being debated that would do the following in the new coronavirus bill:
1.      In its current 110-page *draft* form, this proposed federal legislation includes provisions for two weeks of paid sick leave and up to three months of paid leave for workers affected by the virus, giving small and mid-sized businesses a tax credit to pay for the benefits. It also provides additional funding for state Medicaid programs, as well as free coronavirus testing for patients deemed in need of a test. Employers would receive a refundable tax credit for each calendar quarter. The credit is capped at $511 per day for sick employees and $200 per day for caregivers. However, the Senate is on recess and may not take up the bill until Tuesday. So, there is time for details to change. We’ll comment more as this bill gets closer to being signed, which the President has indicate he will do (we estimate this coming week).
2.      A temporary postponement in the requirement to pay your 2019 taxes due on 4/15/20.
3.      A federal government issued payment to certain households to provide general support and stimulation to the economy.
Essential vs Non-Essential Dental Procedures
Lastly, one of our clients provided this helpful chart to determine what procedures are considered Essential and Non-Essential. It’s extremely important that you continue to provide essential dental procedures for both your patients and your own cash flow.
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