REGARDING UNEMPLOYMENT:  If you were paying yourself payroll, have closed your office and have not yet filed for unemployment personally, please hold off a bit longer.  There is legislation in the works that may provide coverage for your payroll costs but they may not apply if you are already drawing unemployment.  We are looking into this as quickly as we are able.  Details are very thin and unclear.  Similarly, if you are considering closing your office and have not yet advised your staff to file unemployment, please hold off a bit longer to see what relief may be available in the very near future.  Already if any of your staff are home with school age children, there is some relief available under the most recently passed bill HR 6201, providing a tax credit for sick leave paid to them which would allow you to pay them a bit longer before they need to seek unemployment benefits.  Again details on this are very obscure and their application to dentists is exceptionally murky for multiple reasons.  We are providing details as quickly as we can.

Find here a resource to help you gauge your coming cash needs during the downturn.  Another excellent resource from our partners within the Academy of Dental CPAs (www.ADCPA.org).

IRA and ROTH contributions for 2019 are due “no later than the time prescribed by law for filing the return.”  Don’t you love tax talk? 😉  The due date of filing the 2019 individual return this year has been set as 7/15/20.  Therefore, 2019 IRA and ROTH contributions may also be made as late as 7/15/20.  Keep in mind that the market is at a low point and may continue to fall but is expected to fully rebound.  This may be a good time to get your retirement contribution invested at bargain prices.

Q:  I Just received an email from the ADA saying that they’re lobbying for SBA loans for the dentists.  Low interest rates and 36 hours turnaround.  Should we wait to see if this comes to fruition or move forward with the Line of Credit as originally planned?

A:  Move forward with the LOC as originally planned.  This should be pursued immediately rather than wait for a possible SBA solution that is not yet assured.

Q:  What steps should I take right now to mitigate the financial hardship my practice is facing?   

A:  Start here…

1. Check our website regularly for updates. (Click here for Covid-19 updates)

2. Obtain or renew a Line of credit.  Ask for $100,000. 

3. If your office hours are shortened, consider Texas Work Share Program 1^st, then unemployment for your staff.

4. Contact your lender about getting loans deferred.

5. Contact your landlord and see if they will allow a deferment or other arrangement.

6. Contact major vendors and ask for deferral of payments due. 

7. Contact your credit card company and see if they will allow a deferment and/or interest free period.

8. If you provide health insurance and must lay off staff temporarily, contact your provider to see if the coverage will remain in place or what steps you need to take in the interim.

9. If you typically make a retirement contribution early in the year, delay that contribution.  You typically have until 9/15 or 10/15 to fund a retirement plan other than an IRA or ROTH.

10. If you can personally afford to skip some paychecks, consider doing so.  This will reduce payroll taxes and leave cash in the practice to support your employees and pay fixed expenses.

11. This is temporary so give thought to staff retention, patient communication and a plan for ramping up production once you are on the other side.

Covid-19 Practice Operations Survey

Please take a few minutes to read and respond to our survey regarding your current, general practice operations during Covid-19. This is not limited to clients, any dental practice owner can respond so please don’t hesitate sharing it with your colleagues who might participate, the more participation we have, the better results and information to share. Thank you!
https://www.surveymonkey.com/r/NJTSF2L

Tax Day pushed to July 15 from April 15

https://abc11.com/business/tax-day-pushed-back-amid-viral-outbreak-mnuchin/6031749/

Please be aware that although Texas has not yet imposed restrictions on keeping your practice open, many other states have.  Oregon issued an order last night that practices must shut down until 6/15/20 for all elective and non-urgent procedures.  And it’s not for the reason you may think.  Not to prevent the spread of the virus, though that will surely be a good bi-product, but because the state is running desperately low on supplies—masks, etc—needed by those who are directly interacting and treating the COVID-19 patients and who need the most protection.  Those supplies will continue to dry up across the country and eventually you are likely to be affected by a similar order.  6/15/20 is a much further date than we’ve seen so far and so the implications here could be much bigger than at first believed.  Though this is not a forgone conclusion, we want you to be aware so you are not shortsighted in your current decision making.

Please know that while your offices are closed, we are here for you! We are working feverishly to provide you timely and relevant information, to answer your questions, to provide the financial information your bank needs to extend a line of credit, and to complete your tax returns. Please note we are prioritizing tax returns differently than we normally would. If we are expecting you to receive a refund, you are being moved up the queue so we can help with your cash flow as much as we can. Thank you for your continued confidence in E&A as we support your through this difficult time.

According to our source at TWC, it is likely that the layoffs and unemployment related to Covid-19 will ultimately not affect your TWC rate. Under normal circumstances, unemployment benefits received by your former employees if you terminated them for no fault of their own, would eventually increase your TWC rate and the amount of tax you must pay quarterly.

If you have employees that you must temporarily release, consider paying them any sick time or PTO they have available at your next normal payroll schedule, and have them go ahead now and apply for unemployment. That will get the unemployment process started so that after their final (before reopening!) check from you, TWC benefits will begin soon after.

From the Texas Workforce Commission: Unemployment Benefit Claim Self-Service for Employers

If your business has been affected by the coronavirus (COVID-19), TWC can help you manage layoffs and unemployment benefit claims. You can manage claims online at any time by using TWC’s online unemployment portal, Employer Benefits Services, or by calling TWC’s Tele-Center employers’ line at 866-274-1722 from 8 a.m.-6 p.m. Central Time Monday through Friday.

When an individual submits a claim naming your company as the last employer, TWC sends you a Notice of Application for Unemployment Benefits. When you respond to this notice, be sure to include information if your business was impacted by COVID-19. Respond online using our Unemployment Insurance Employer Response portal: https://apps.twc.state.tx.us/EMPRESP/security/logon.jsp

TWC is experiencing an increase in call volumes and hold times on our Tele-Center phone lines. You are encouraged to use TWC’s online unemployment portal, Employer Benefits Services, to handle your claim needs quickly. EBS is available 24 hours a day, seven days a week. We also encourage you to sign up for Electronic Correspondence so you can receive your TWC communications online as soon as possible. If you are new to EBS, you will need to create a TWC EBS Administrator account when you first log on.

Log on to EBS to:

• Manage access to your online account by setting up an EBS Administrator Account

• Sign up for Electronic Correspondence so you can receive your TWC communications online as soon as possible

• Appeal Online and View Appeal Status: An appeal is your written notice that you disagree with a TWC decision and want your case decided through the appeal process

• Submit a Shared Work Plan: Find out how to avoid laying off workers by reducing the hours of some employees, who can also receive a partial unemployment benefit payment

• Submit a Mass Claim Request: Streamline the unemployment benefits claims process if faced with layoffs by taking advantage of our mass claims process

• Designate an Address for Mailed Correspondence: Choose one mailing address to receive your unemployment insurance notices at a single location, even if you have multiple locations

• Respond to a Notice of Maximum Potential Chargeback: Chargebacks concern claims where you were not the claimant’s last employer, but that may affect your tax rate

TWC will investigate why your former employee lost their job and mail a decision explaining whether they are eligible for unemployment benefits. TWC has waived the work search requirement for all claimants at this time