HHS Reporting Requirements Finally Issued

09/28/2020 9:31:40 AM

HHS reporting requirements were finally issued on September 19, 2020.  The full disclosure is here.  Like we’ve seen with other Covid-19 related laws this year, the disclosure raised as many questions as answers.  This is a summary of what the requirements mean to most dental practices who received HHS relief funds, as we understand them to this point.

Dates

  • Reports must be submitted before 2/15/2021 for the calendar year 2020.
  • If you’ve used all your HHS funds on allowable items (discussed below) during 2020, no further reporting is required.
  • If you haven’t used all funds on allowable items by the end of 2020, you have until 6/30/2021 to do so, with a second report due by 7/31/2021.

Uses

Allowable use of funds is where the questions arise.  The reporting requirements indicate two permitted uses—healthcare related expenses and lost revenue.  Clarification is definitely needed!  Fortunately, they’ve already got it planned…for “sometime” before the reporting deadline.  In other words, who knows when.  But here’s how it appears:

Healthcare Related Expenses

  • Healthcare related expenses will cover the expenditures you made to comply with all the standards of care the pandemic demanded.  These include things like:

Plexiglas partitions                             UV lighting
Air filtering systems                            PPE—but not PPE that was reimbursed by patients or insurance
Suction machines for air particulates                 

But it also includes General and Administrative expenses that allowed you to “maintain healthcare delivery capacity.”  It lists examples such as:

Rent                                                      Insurance 
Nonclinical staff costs                           
Utilities

Again, these can’t include anything that was reimbursed by another source.  So some of your nonclinical staff costs paid with PPP funds, for example, will be tossed out.  But potentially the remainder of these costs for the period of approximately 3/15-12/31/20 will count.  Since these are all items you pay in a normal year, not just a pandemic year, we would expect there to be some limit on these—the amount above what you would normally spend, for instance.  But the guidance doesn’t indicate any limitation.

And that’s good because the second item is going to be surprisingly hard to meet:  lost revenue.

Lost Revenue

  • Lost revenue was originally announced as lost patient fees.  You were mostly closed for at least 6 weeks.  Easy peasy to prove lost patient fees, right?  But the new guidance changed the requirement to lost net income.  And so far, that is not materializing.  It’s true that in most cases total 2020 revenues will be down from 2019.  BUT the trend we’re seeing is that total expenses are even more down.  That makes net income actually higher than the prior year.  Additionally, expenses reimbursed by PPP costs must be excluded from the calculation.  Throwing out those expenses raises net income even higher.  If adjusted net income for 2020 ends up higher than 2019, there will be no lost revenue under this rule. 

Beyond those requirements, the actual reporting is looking as complex as bureaucracy can make it.  You will have to report specific expenses according to HHS rules which don’t line up with normal financial statement accounts.  In addition, you will have to report personnel metrics and patient metrics…and possibly promise your first-born child.  Hopefully, clarification will come soon.

We’ve been busy!

07/09/2020 06:00:00 AM

Have you been missing us? No worries, we’re still here and we’ve been busy! Not only are we preparing mountains of tax returns while still keeping up with all things related to Covid-19, we’ve been participating in conversations about reopening dental practices and practice management in general. Check out the latest blog brought to you by our friends at Surety Dental Solutions, written by our favorite practice management consultant, Dr. Sharon Tiger. Also listen to the latest edition of The Art of Dental Finance Podcast with Art Wiederman featuring both Sharon and Robert. You won’t be sorry you tuned in! 

How are things going?

06/08/2020 5:40:41 PM

So, you’ve been open a few weeks following the Covid-19 closures, how are things going? Do you know? Have you talked to your colleagues about how things are going with their practices following their reopenings?

To try and shed some light on production levels approximately 30 days from dental offices being allowed to reopen, we have created a VERY SHORT survey regarding production. Please take a moment to answer the survey, the more participants we have, the better the outcome. We will share results here on our blog once we have received several responses.

TAKE THE SURVEY

2019 Tax Refunds and Prep

05/21/2020 9:39AM

2019 Tax Refunds are S-L-O-W

Are you due an IRS refund for your already filed 2019 tax return and still waiting? You’re not alone. Our ADCPA counterparts throughout the country are reporting delays for both paper check and direct deposit refunds. The IRS was (and may still be) on skeleton crew and overall overwhelmed with all the COVID changes and stimulus checks. We expect much longer refund delays this year at a time when they’re needed more than ever.

2019 Taxes due JULY 15, 2020

 

It’s not too late!  We still have capacity to get existing client taxes prepared and filed by the new 7/15/2020 deadline.

If you have not yet submitted your data please do so ASAP.

Or…..

if you owe us outstanding questions or data, please take care of those needs at your earliest convenience.

PPP Forgiveness Applications will quickly engulf us after the 8-week periods begin to expire.  And those will be of the utmost importance.  Please take advantage of our availability NOW.  A normal extension will be available making the final due date October 15, 2020, and there is no expectation, at the moment, of this date being postponed.

RUMORS – Friday, March 27, 2020 1:52PM

We are withholding some information because we simply cannot corroborate it and misinformation leads to confusion.  TRUST ME ON THIS!  In the words of Phil Collins, “Can’t you see this is a land of confusion?”

Here are some rumors circling that are important to the decisions you are making but for which we do not yet have good answers.

  • You must apply for the SBA EIDL 7(b) loan before 3/31/20 or you cannot apply for both it and the PPP 7(a) loan.  This is UNCONFIRMED.  But let’s just be safe and get the application submitted if you are eligible.
  • You cannot receive both the SBA EIDL 7(b) loan and the PPP 7(a) loan.  This is UNCONFIRMED.  Opinions are conflicting.  It seems you can, at least, roll the EIDL loan into the PPP loan resulting in the end with only the PPP loan remaining.

Some things we believe ARE confirmed.

  • If your practice was not open before 2020 you are not eligible for an SBA EIDL 7(b) loan.  PPP 7(a) loan eligibility is still available, and will be based on your average payroll for the period 1/1-2/29/20.

Gardening Your Dental Team

Authored by David J Goodman, CPA, MST, fellow member of the ADCPA serving the New York Metro Area

Growing and caring for a vegetable garden is a team effort. A successful garden incorporates the care and maintenance by the gardener. Mother Nature has to do her part by providing rain, sunshine, soil chemistry, and pollinators. The perfect combination leads to a bountiful harvest. What happens if Mother Nature does not do her part? Sometimes you get a harvest (usually not a bountiful one); and sometimes there are no fruits to show for your efforts.

Each year my family plants and cares for a backyard vegetable garden. This year we had a larger harvest than in the past. I have to thank our new dog for joining the team and keeping the critters out of the garden. We planted tomatoes, peppers, zucchini, broccoli, and cucumbers. I find that our produce tastes so much better than what is purchased at the market. Before I get side tracked about the benefits of home gardening, I want to share my thoughts about how this relates to the dental team.

Cucumbers grow on a vine. The vines have tentacles that grow upward attaching the vine to whatever is in its path. For the last few years I have noticed that toward the end of the season, the cucumber vines begin to whither at the roots while the top of the vine still moves forward producing fruit. The fruit does not have the same quality as a healthy vine. Eventually the withering of the vine catches up to the top part of the vine and the plant dies.

I sometimes find that some dentists continue to move forward with their practices while leaving the team behind, just like the cucumber vine. The dentist continues, like the cucumber vine, to reach for the sky (e.g., learning new skills and improving patient care) forgetting the need for a strong, healthy, supporting base to back them up. Over time the practice loses some stability. There will still be fruit to bear at the top of the vine, but will it be the fruit that the dentist desires? As the base withers from lack of direction, appreciation, and leadership, the overall performance of the practice may suffer. It’s as if the team was not watered and provided sunshine. A weak team can eventually cause the practice to whither and even die.

A team that is not appreciated will struggle to support the dentist on his mission. I have heard from too many dentists that they believe their team does not deserve compliments. From the dentist’s viewpoint, that is because they are not living up to the dentist’s expectations or lack a sense of urgency. I believe that the reason for the disconnect is that the team is not clear on the dentist’s expectations. It is up to the practice leader to share the mission of the practice, getting complete team understanding, and acknowledged team agreement. It does not end here. Reinforcing mission-based behaviors can lead to stronger practice roots and help dentists to achieve the income and quality of life they desire.

Spread some sunshine on your team and watch your practice grow.

SWDC Ticket Drawing Winners

CONGRATULATIONS!

Beverly Rice/Dallas, TX – Dallas Cowboys Tickets

Bret Downing/Canton, TX – Dallas Mavericks Tickets

Jerod Yaeger/Okmulgee, OK – Dallas Mavericks Tickets

 

Reaching for the Stars and How to Keep Them

Employee Retention Tips

Great employees are a vital spark of any business. Losing employees, especially the great ones, is a concern for businesses, whether big or small, because it costs them not only money, but productivity and time. For small businesses, keeping the “great” (a.k.a. the hard-working and productive ones) employees is crucial. Here are a few tips on how you, as an employer, can retain those great employees.

Hire Well

It seems obvious, but employee retention begins with hiring. The consequences of a bad hire have a negative ripple effect across your office, and in some cases, cause your “great” employees to leave. One bad apple can spoil your bushel!   Try adding one or all of these ideas to your next interview:

  • Get at least one personal reference in addition to professional ones, this allows you to ask different kinds of questions which helps reveal their character.
  • Trust your Gut! The stomach is often called the “second brain” because it has almost as many neurons as your brain does. If you have an uncomfortable feeling, there is probably a good reason for it.
  • Be specific with the job description. Make sure you are clear about each aspect of the job and look for someone who has successful experiences with all of those aspects. A bad hire is someone who is great at one aspect of the job you need done, but awful at the others.

Be Competitive and Creative

As small business owner, paying a higher salary to employees may prove difficult, but by staying competitive and creative, you can put together a compensation package that is enticing without breaking the bank. Offer bonuses for a job well done. In addition to bonuses, offer extra vacation days, flexibility with work schedules, work-from-home days (if the position allows), added time to a lunch break one day a week, etc.

Acknowledge Achievements

We all know that employees need feedback to improve and be at their best, both positive and constructive. Provide positive feedback on a regular basis to motivate your employees and let them know their hard work is noticed and appreciated. A simple “awesome job with our patients today” can make a difference.   This goes double if you have Millennials working for you, they feed off acknowledgement. Constructive and/or corrective feedback is also important, especially if there’s an urgent issue or behavior that needs to be addressed.

Listen to your Employees

Its common knowledge for employers to give feedback to their employees, but you must also accept feedback from them. Ask your employees regularly what they need and want from their job and the company. Provide opportunities for both public and private feedback and attempt to create a culture where your employees feel comfortable expressing or offering their thoughts, opinions and ideas.

Encourage a Healthy Work-Life Balance

All businesses have high expectations from their employees. In today’s busy and on-the-go world, the scale often tips to more emphasis being placed on work duties than on home life. Promote an environment that believes home responsibilities are just as important as work ones, this helps reduce stress and pressure within you employees. Staff members that are well-rested and have adequate time to care for themselves and their families, perform better at work.

– Jennifer Johnson

Protect Your Identity

Identity Theft protection is a hot topic in today’s world. Here are a few tips to help protect yourself and your identity.

  1. Keep your personal information secure at home and in the workplace. Best practice is to shred documents that contain personal information before disposal.
  2. Protect your computer with firewalls and antivirus software. Check out www.onguardonline.gov for tips on Internet fraud prevention.
  3. Create strong passwords. This is no fun for anyone due to the need for so many passwords these days. So best practice is that you do not store your passwords on a shared computer.
  4. Set online account setting to send a text or email to alert you if an attempt is made to log in to your account from an unrecognized computer or change a password.
  5. When processing a financial transaction online check the beginning of the web address for “https” (Hypertext Transfer Protocol Secure). An “https” address versus just an “http” address verifies the website and means that nearly all information is encrypted between the website and the user.
  6. Check your credit reports annually. A free annual credit reports is available from each of the three major credit reporting agencies from a jointly operated site at AnnualCreditReport.com. A fourth agency, Innovis, also offers a free report every 12 months.

Madison Poe

2017 Filing Requirement Changes and Contribution Limit Updates

KEY Filing Requirement Changes and Contribution Limit Updates for 2017:

The list below describes changes to tax rules for 2017 that you will find important, so read and enjoy……

    • Filing Deadline Changes for Partnership Returns – Partnership returns are now due 2 ½ months after year-end, which is March 15th, for calendar year firms. A six-month extension can be requested for those needing more time. If you were a client on 3/15/17, we have automatically filed an extension or prepared a tax return for filing on your behalf.
    • Filing Deadline Changes for Regular Corporations – Regular corporation returns are now due 3 ½ months after year-end, which is April 15th, for calendar year firms. A five-month extension can be requested for those needing more time. The deadline for S corporations has not changed.
    • Filing Deadline Changes for Owners of Foreign Accounts – Returns for owners of foreign accounts are now due April 15th, up from the prior deadline of June 30th.   A six-month extension can be requested for those needing more time.
    • 2017 Standard Mileage Rate – The standard mileage rate for business driving is 53 ½ cents per mile.
    • 2017 Depreciation Limit – For 2017, $510,000 of business assets can be expensed. This amount phases out dollar for dollar once over $2,030,000 of assets are put into service during the year.
    • 2017 Social Security Amounts to Note – The Social Security wage base is $127,200 in 2017. The amount needed to qualify for coverage is $1,300 per quarter or $5,200 for the year.
    • 2017 HSA Contribution Limit – The limit on deductible HSA contributions in 2017 is $3,400 for self-only coverage & $6,750 for family coverage. Individuals born before 1963 can contribute an additional $1,000.   Minimum policy deductibles stay the same at $1,300 for singles & $2,600 for families. Taxpayers age 50 & older can make catch-up contributions of $1,000.
    • 2017 Retirement Plan Contribution Limits – The 401(k) contribution limit is $18,000. Taxpayers born before 1968 can contribute an additional $6,000. These amounts apply to 403(b) & 457 plans as well. The contribution limit for SIMPLE plans is $12,500 & taxpayers age 50 or older can contribute an additional $3,000. The limit for defined contribution plans is $54,000.   Retirement plan contributions can be based on up to $270,000 of salary.
    • 2017 Gift Tax Amount to Note – The gift tax exclusion amount is $14,000 per done.

Sales and Use Tax for Dentists

Sales and Use Tax for Dentists

In general dental services and appliances are exempt from sale and use tax. However, the sales of non-prescription tooth pastes and tooth brushes can be subject to sales and use tax. See Sec.151.313 http://www.statutes.legis.state.tx.us/Docs/TX/htm/TX.151.htm

If you decide to sell non-prescription items to your patients, the first step is to apply for a Sales and Use Tax permit. You can apply for a permit online using Webfile https://comptroller.texas.gov/taxes/permit/. The Sales and Use Tax permit also allows you to be exempt from paying sales tax on any items that you purchase for resale.

Next, you need to set up your dental software to track taxable transactions to allow for accurate record keeping. Contact your software help desk for helping in creating the necessary monthly taxable activity reports.

If you are required to collect sales tax on non exempt transactions such as toothbrushes and toothpaste, your reporting and remittance schedule depends upon how much sales tax you are collecting within a monthly, quarterly or yearly time frame. You are required to file a Texas Sales and Use Tax Return (Form 01-117) and submit the collected tax based on the collection levels below:

You must file Monthly if you collect $500 or more tax in a month.

You must file Quarterly if you collect <$500 per month or <$1500 per quarter.

If you collect less than $1,000 in tax per year, then you need only file one per year. However, if you are collecting close to this level of tax then a quarterly filing pattern is a safer option.

The Texas Comptroller allows multiple methods for reporting and payment including paper filing and Webfile (see https://comptroller.texas.gov/taxes/sales/filing-requirements.php). Your tax professional can assist you.

Payment Card Industry Data Security Standard (PCI) Compliance

Everyone’s Doing It

Is your company PCI compliant? PCI was one of the hot 2016 acronyms and it isn’t going away. Not familiar? Its official name is “Payment Card Industry Data Security Standard.” Rolls right off the tongue, right? You know those fancy new credit cards with the computer chips? Those are the result of PCI compliance.

If you accept credit or debit cards as a form of payment from your patients, and who doesn’t these days, then PCI compliance applies to you. If you’re not PCI compliant, your merchant fees will be higher—an unnecessary added overhead cost (interpret—less money in your pocket). But even scarier, if you’re not PCI compliant and there is fraud or a breach in your patient’s data, you will be responsible…for covering those fraudulent charges, for any associated legal fees, for potential fines for the violation—expensive stuff. Is this a real worry? Will this really ever happen to you? Maybe not. After all you know all your patients, for the most part. You have good relationships with them. They’re not like the random customer at the register in Wal-Mart. But what about that next new patient that walks in the door?

Despite urgings by Visa, MasterCard, etc, despite the fact that companies continue to get hacked, most businesses have still not upgraded to the new technology. The reasons vary but the most common have little to do with cost and everything to do with time. You’re busy! Your current credit card machine is working fine so why go to the trouble of dealing with this now?

But if not now, when? Do yourself a favor and put it on your schedule to get it handled—like for a specific date and time, not just on your elusive To Do list. Or better yet, set someone responsible in your office to handle it and report back to you. This isn’t rocket science and doesn’t require your dental expertise. It just requires someone doing a bit of research and informing you so you can make an educated decision. And if you’re not happy with your current merchant provider or aren’t sure you’re getting the best rate or service—contact us. We know a vendor who will give you an honest rate assessment and help to ensure you are compliant.