Coronavirus as visualized by the CDC


The entire Willeford Group team is keeping up to date on the COVID-19 epidemic and the ways in which Coronavirus is affecting and may affect our clients’ practices.  We’ll be posting regular updates here on how Coronavirus may affect your dental practice, your finances, and your team.   Scroll down for updates – The latest updates will be at the top of the page.


New COVID Relief Package Highlights for Dentists; Second Round of PPP Loans Coming Soon (Note: Bill Has Not Passed Yet, So This Is Subject to Change & Is Our Preliminary Reading of the Bill) – December 21, 2020

PPP Funds Received: Key Updates

  • Expenses paid with PPP funds will now be tax deductible for money already received as well as for future PPP funds, if received.
  • PPP funds will not be taxable income.
  • Bill repeals the requirement of deducting the EIDL advance from the PPP forgiveness amount.
  • Simplifies the forgiveness process on PPP loans of $150K or less. (We have yet to see what that new process or form will be.)

EIDL Grant: Additional Round of Funding ($20B of Funds)

  • Small businesses may now receive the full $10,000 if you only received a portion of that in the first round of grants.

PPP Second Round of Funding (Small Businesses; $325B of Funds)

The SBA will have 10 days (after the bill is enacted) to establish regulations for the next round of PPP funding. Thus, please keep in mind that the highlights below are terms we anticipate being signed into law; however, the SBA’s regulations may alter this.

$284.5 Billion in funds will be available through the next PPP loans.

Paycheck Protection Program (PPP) offered through March 31, 2021.

Which businesses are eligible for the second round of funding? Businesses with less than 300 employees who have had a 25% or greater reduction in collections (i.e., gross receipts) in any ONE quarter of 2020, when compared to that same quarter of 2019.

PPE Expenses will now be eligible for forgiveness.

Creates a set-aside of funds for small businesses with fewer than 10 employees as well as minority-owned businesses and those located in distressed areas.

Individual Stimulus Checks Sent Starting Next Week ($166B of Funds)

Treasury Secretary Mnuchin believes payments will be processed starting next week and will be faster to send this time.

Individual, direct payments: Payments of $600 for individuals making up to $75K per year, if single filer. Up to $1,200 for couples making up to $150K per year as well as an extra $600 per eligible dependent child.

Direct payments will now be sent to mixed-status households: Will also be retroactive back to the CARES Act.

Enhanced Unemployment Benefits ($120B of Funds)

  • Federal Pandemic Unemployment Compensation (FPUC) Program: Provides additional $300 per week to supplement state and federal unemployment benefits from December 26, 2020 through March 14, 2021.
  • Pandemic Unemployment Assistance (PUA) program: Continues unemployment assistance to self-employed, freelancers, gig workers, and others. Increases number of weeks from 30 to 50.
  • Pandemic Emergency Unemployment Compensation (PEUC) program: If state unemployment benefits have been exhausted, then this provides additional weeks of federally-funded benefits for 24 weeks, up from 13.

Other Key Tax Provisions for Dentistry

Employee Retention Tax Credit: Extended through July 1, 2021; however, it is believed you are only eligible if you did not receive the PPP funds.

COVID-Related Pay Tax Credits: Extended to March 31, 2021. These are the refundable payroll tax credits for Emergency Paid Leave and Emergency Family Medical Leave Pay that were set to expire on December 31.

Charitable Giving Incentive Extended: One-year extension of the $300 “above the line deduction,” meaning you can take this deduction even if not using itemized deductions on your individual income tax return. Is now $600 if Married Filing Joint (MFJ).

Flexible Spending Arrangement (FSA) Relief: Allows individuals to carry over any unused health and dependent care FSA benefits from 2020 into 2021 plan year.

SBA Debt Relief Payments Extended ($3.5B of Funds)

Resumes debt relief payments of principal and interest (P&I) on small business loans guaranteed by the SBA under the 7(a), 504, and microloan programs. All borrowers with qualifying loans approved by the SBA prior to the CARES Act will receive an additional three months of P&I, starting in February 2021. Going forward, those payments will be capped at $9,000 per borrower per month. After the three-month period described above, borrowers considered to be underserved—namely, the smallest or hardest-hit by the pandemic—will receive an additional five months of P&I payments, also capped at $9,000 per borrower per month.

We will continue to keep our clients updated with the latest as the bill is signed into law and more information is released.





Phase 3 HHS Provider Relief: Now Based on Reduction in Gross Revenue–NOT Net Income – October 26, 2020 

Phase 3 HHS Funding Open Until November 6

New change as of 10/22:

  • You may now apply if you have a reduction in gross revenue.
  • The prior rule was that funding was based on net income, which made many dentists ineligible because expenses had decreased.

You may apply for MORE funds if:

  • You have less gross revenue this year than last year, AND
  • You already applied for HHS funds; OR
  • You have a new dental (healthcare) business that opened in the 1st Quarter, 2020.

Apply as early as possible, if you wish to apply! It appears that there will be a “first come, first served” aspect to who receives the funding, yet the HHS is attempting to help even more providers than last time by allowing you to submit updated figures and by allowing new businesses to apply. The HHS is trying to be equitable in what is given across phases and will spend the $20B based on the relative need of those who apply.

But, should you apply? We recommend filing if you:

  • Have a reduction in gross revenue (collections).
  • You are a new business owner as of 1st Quarter as you couldn’t apply earlier.
  • If you need the money to help your business before June 2021.

Why should you skip this Fund? We would consider not applying if:

  • You are selling your business.
  • You cannot spend the money on coronavirus-related expenses by June 2021.
  • You do not want to deal with the hassle of more paperwork to prove expenses.
  • If you did not apply in Phase 1 or 2, then you cannot apply now.

What can you spend the money on?

  • Supplies used to prevent, prepare for, or respond to the coronavirus during the reporting period. Such items could include personal protective equipment (PPE), hand sanitizer, or supplies for patient screening.
  • Equipment used to prevent, prepare for, or respond to the coronavirus during the reporting period, such as ventilators, updates to HVAC systems, etc.
  • Information technology or interoperability systems used to expand or preserve care delivery during the reporting period, such as electronic health record licensing fees, telehealth infrastructure, increased bandwidth, and teleworking to support remote workforce.
  • Facility-related costs used to prevent, prepare for, or respond to the coronavirus during the reporting period, such as lease or purchase of permanent or temporary structures, or to modify facilities to accommodate patient treatment practices revised due to coronavirus.
  • Other healthcare-related expenses not previously captured above that were paid to prevent, prepare for, or respond to the coronavirus.


Q: When must the HHS Provider Relief Funds be used?

A: If funds are not used in full by 12/31/20, recipients will have an additional 6 months to use the funds.

Q: Can I reimburse myself for expenses I previously spent before acquiring the HHS funds?

A: Yes, as long as the expenses are “eligible expenses,” attributable to the coronavirus.

Q: What reporting requirements are there?

A: Reporting systems will open 1/15/21, and the first reporting deadline is 2/15/21. Final reporting will be due 7/31/21 for providers who did not fully expend PRF funds prior to 12/31/20. As of 10/6/20, it is not clear how the reporting process will work.

Q: Do I need an HHS tracker?

A: No, but you need to track the funds, such as having a folder to keep copies of invoices used for this purpose. Detail in QuickBooks will not be sufficient to support that the funds were used for eligible expenses.

Q: What about lost revenue? Can the HHS funds replace lost revenue?

A: In addition to using the funds on actual expenses, you may use it to cover lost operating revenue in 2020 compared to 2019.

To keep the process simple, we are recommending dentists focus on using the funds for eligible expenses as stated above, not focusing the lost revenue.


Application deadline is November 6. Full details may be found if you CLICK HERE.

ADA News – October 22, 2020: CLICK HERE

HHS Webcast – November 2, 2020: CLICK HERE to register





Phase 3 HHS Provider Relief Beg

Updated SBA Loan Info from the ADA & our ADCPA – October 13, 2020

Updated Fact Sheet Released

The ADA and our ADCPA have released an updated fact sheet regarding SBA loans.

To read, please CLICK HERE.

  • This gives you the key facts in one, easy-to-read location.
  • Remember to wait to apply for PPP loan forgiveness until after the end of your 24-week covered period, unless you are selling your practice.
  • If selling your practice, tell your PPP lender immediately, and apply for forgiveness now.

The ADA continues to advocate for easing the process for forgiveness; for more funding for dentists; for PPP expenses to be tax deductible.

We will continue to stay abreast of all new developments and keep you informed.





Phase 3 HHS Provider Relief Began on Monday: Should You Apply? & New Spending Rules for HHS Funds – October 7, 2020

Phase 3 HHS Funding Began This Monday, October 5!

You may apply for MORE funds if:

  • You already applied for HHS funds; OR
  • You have a new dental (healthcare) business that opened in the 1st Quarter, 2020.

Apply as early as possible, if you wish to apply! It appears that there will be a “first come, first served” aspect to who receives the funding, yet the HHS is attempting to help even more providers than last time by allowing you to submit updated figures and by allowing new businesses to apply. The HHS is trying to be equitable in what is given across phases and will spend the $20B based on the relative need of those who apply.

But, should you apply? We recommend filing if you:

  • Have a significant reduction in net income, which is a new rule for these funds.
  • You are a new business owner as of 1st Quarter as you couldn’t apply earlier.
  • If you need the money to help your business before June 2021.

Why should you skip this Fund? We would consider not applying if:

  • You do not expect a decrease in net income by year end, especially if PPP expenses remain non-deductible as they are right now.
  • You are selling your business within the next year.
  • You cannot spend the money on coronavirus-related expenses by June 2021.
  • You do not want to deal with the hassle of more paperwork to prove expenses.
  • If you did not apply in Phase 1 or 2, then you cannot apply now.

NEW: What can you spend the money on? You will need to prove what you spent the HHS money on; however, it should not be as difficult as PPP proof because this is a grant and not a forgiven loan.

Q: When must the HHS Provider Relief Funds be used?

A: If funds are not used in full by 12/31/20, recipients will have an additional 6 months to use the funds.

Q: Can I reimburse myself for expenses I previously spent before acquiring the HHS funds?

A: Yes, as long as the expenses are “eligible expenses” attributable to the coronavirus.

Q: What are eligible expenses?

A: Eligible expenses include general and administrative expenses and healthcare-related expenses attributable to the coronavirus. This includes supplies and equipment used to prevent, prepare for, or respond to the coronavirus during the reporting period such as PPE, hand sanitizer, supplies for patient screening, or updates to HVAC systems.

Q: What reporting requirements are there?

A: Reporting systems will open 1/15/21, and the first reporting deadline is 2/15/21. Final reporting will be due 7/31/21 for providers who did not fully expend PRF funds prior to 12/31/20. As of 10/6/20, it is unclear how the reporting process will work.

Q: Do I need an HHS tracker?

A: No, but you do need to track the funds, such as having a folder to keep copies of invoices used for this purpose. Detail in QuickBooks will not be sufficient to support that the funds were used for eligible expenses.

Q: What about lost revenue? Can the HHS funds replace lost revenue?

A: In addition to using the funds on actual expenses, you may use it to cover lost operating revenue in 2020 compared to 2019.

There is a catch – lost operating revenue, according to the HHS notice of reporting requirements, is defined as operating revenue less operating expenses, which include salaries, benefits, medical supplies, interest, and depreciation.

To keep the process simple, we are recommending clients focus on using the funds for eligible expenses as stated above, not focusing on the lost revenue.

The application deadline is November 6. Full details may be found if you CLICK HERE.

Tips for Filling Out the HHS Fund Application

Reporting Change in Revenue:

  • Report only patient care collections, and you will report it by quarter for the first two quarters of 2019 and 2020.
  • If you do not expect to have lower collections and higher expenses (i.e., overall lower net income) by year end and you receive the Funds, then you may be expected to repay the Funds.

Reporting Change in Expenses:

  • Consistency is the key. Include the exact same line items for each quarter, and double-check that your expenses have increased in 2020. If they have not, then you may not need to apply for the loan–unless revenue has dropped significantly–because you will not need it as much as other businesses.
  • Expenses to include: personnel expenses; your doctor and other associate wages (if they have increased); production expenses (i.e., clinical supplies, lab); depreciation; interest to banks. In other words, they should be the operating expenses related directly to patient care.

The new net income requirement: Do not be surprised if your net income has increased or may by year end. Many practices are seeing a growth because they have saved money on expenses during and post-COVID closure. Especially once you remove PPP expenses, net income is likely to have increased.

Financial statement documentation: We recommend attaching only the Profit & Loss Statement, not the Balance Sheet. Additionally, you should share the information in an easy-to-read, quarterly format to give yourself a higher chance of quickly showing your need for additional funds. Please CLICK HERE for our instructions on how to print it in the best format for your application.

No Stimulus Package Until After the Election

Unfortunately, this means we will not know if Congress will allow PPP expenses to be deductible until after the election. This one item will have a significant impact on your taxes. As we’ve shared, the IRS has said they are not deductible, but Congress has been clear that their intention was to make them deductible.

PPP Loans & Buying or Selling a Practice

Are you selling your practice in the next 9 months? If so, we still recommend you apply for PPP loan forgiveness now, and make sure to tell the buyer, your CPA, your attorney and the bank that you are selling.

The SBA just released new guidance that supports what the banks have been doing for a few weeks: you are required to tell the PPP lender you are selling, and they will hold the PPP loan amount in escrow until your loan is forgiven by the SBA.

The new SBA guidance applies if you are selling more than 20% of your practice (either asset sale or stock sale).

If you complete the PPP application and meet the lender’s requirements with either the escrow account or repaying the loan, then you do not need to request approval to sell from the SBA.

Are you buying a practice in the next 9 months? If so, make sure to ask the seller if they have any COVID-related loans, and share that information with your attorney and bank so that you do not have any late financing surprises.





Phase 3 HHS Provider Relief Begins This Monday; PPP Loan Forgiveness Applications Update; Tax Free Health Insurance Benefits for Employees; Latest ADCPA Podcast: HHS Fund Changes – October 2, 2020

Phase 3 HHS Funding Begins This Monday, October 5!

Just announced late yesterday, you may apply for MORE funds if:

  • You already applied for HHS funds; OR
  • You have a new dental (healthcare) business that opened in the first quarter of 2020.

Apply as early as possible next week! It appears that there will be a “first come, first served” aspect to who receives the funding, yet the HHS is attempting to help even more providers than last time by allowing you to submit updated figures and by allowing new businesses to apply. The HHS is trying to be equitable in what is given across phases.

Full details may be found if you CLICK HERE. Additionally, the ADA legislator shared with our ADCPA last night that they will be releasing more information as soon as possible.

And, please scroll down to listen to our latest ADCPA podcast about this topic, recorded earlier this week.

What will be new about the amount you can request?

  1. If you did not receive 2% of “patient care revenue,” then you can request more now.
  2. An additional, equitable payment will be added on, out of the $20B budget, that will take into consideration:
  • Provider’s change in operating revenues from patient care.
  • Provider’s change in operating expenses, including expenses related to COVID-19.
  • Payments already received.

The application deadline is November 6, and the HHS will have webinars about the process.

PPP Loan Forgiveness & Payment Due Letters

Want to apply for loan forgiveness now?

  • If you are selling or reorganizing your practice within the next year, then we recommend filing for forgiveness now.
  • Banks may hold the amount of your PPP funds in escrow, at the time of the sale, until they have received notification from the SBA that it has forgiven your loan.
  • Expect the forgiveness process to take a minimum of 5 months. The bank has 60 days to file your application with the SBA, and the SBA then has 90 days to review everything.
  • Yesterday, it was announced that the SBA will begin reviewing applications next week, but it already has over 96,000 applications that have not yet been reviewed.

Want to await legislation? It is extremely likely that Congress will pass legislation that automatically forgives all PPP loans of $150K or less. The SBA has received much criticism over the last few weeks due to the fact that it has not begun reviewing applications.

  • Now that the SBA and banks are seeing how tedious the forgiveness process will be, we may see a vote on this in the coming days.
  • However, if it does not happen in the next week, then expect it to be addressed again after the election.

Wonder if you can use the EZ Form? We recommend using the EZ Form, if possible. While there are a few qualifications to meet, you should meet them unless you have reduced wages for your team AND reduced the full time equivalents (FTEs). A few highlights:

  • Reduced Wages: Wage reductions cannot be larger than 25% and should be calculated as the annual salary or hourly rate of the team member during either the Covered Period or the Alternative Payroll Covered Period compared to the first quarter of 2020.
  • FTE: Note that a reduction does not occur if you were unable to rehire team members due to closure or if they turned down a written job offer from you.
  • More details about the requirements to meet may be found if you click here: EZ Form.

Have you received a payment notice for your PPP loan?

  • If so, you are not alone; however, you do not need to make payments as long as you apply for loan forgiveness within 10 months of the last day of your “covered period.”
  • The “covered period” is either 8 weeks or 24 weeks, depending on which one you choose.

Remember that the EIDL Grant of $10K will be due to the bank. As our spreadsheets have been showing, the amount of PPP forgiveness is reduced by the EIDL grant, if received. In essence, the government simply gave you an advance of the PPP funds but called it an EIDL grant.

Health Insurance for Employees

Open enrollment will be here very soon: November 1.

Are you considering changing your health insurance plan or changing the way in which you help your employees pay for insurance?

If so, we recommend considering the following:

Money paid to your employees to help them pay for an individual policy is only tax free to the employee if you have a benefit plan in place.

  • A cafeteria plan or Section 125 plan would work for this and is typically used when you also offer other benefits employees can choose from, such as money towards childcare expenses.
  • An ICHRA plan may be an excellent option and is intended for only healthcare. It is a brand new type of reimbursement plan that came out earlier this year. The full name is “Individual Coverage Health Reimbursement Arrangement” plan. An ICHRA plan requires 90 days notice before the first reimbursement, and we recommend using an attorney or potentially a resource such as Core Documents.

Money paid to employees towards their individual policy, with no cafeteria plan or similar type plan, is taxable income to your employee.

Money paid to your employees for a group office policy remains tax free to them.

A key to all of this is to make sure you are not discriminating amongst team members. Thus, there is the need for a legal document as well as making sure you are meeting the separate regulations for the insurance company (if it is a group policy).

Many dentists no longer offer a group policy but pay a flat dollar amount to employees to help cover the costs of the insurance they choose. In this way, you are able to stay out of healthcare decisions, and you are giving the employee the flexibility to choose their own plan.

Heroes Act Working Its Way Through Congress

  • Today, an ADA lobbyist shared that there is the possibility an agreement may be reached on the Heroes Act this week; however, if not, expect it to sit until after the election.
  • A key provision is whether Congress will vote to allow PPP expenses to be tax deductible. As we’ve shared, the IRS has said PPP expenses are not deductible, but Congress has been clear that their intention was to make the expenses deductible. Due to so many businesses still being in financial trouble, we are very hopeful this will pass.

Another key provision in this bill is the automatic forgiveness of some PPP loans. The current version of the bill creates a 3-tier system:

  • $50K or less: Only required to certify you met the spending requirements.
  • $50K – $150K: Must submit the certification to the lender.
  • $150K or greater: Current application process still applies.

Mail-in ballot provisions are included, which will likely cause the bill to stall. This part of the bill would ensure that every voter can submit an online request for an absentee ballot; prohibit states from requiring ID to obtain an absentee ballot; etc.

This Week’s ADCPA Podcast: What Dentists Need to Know About the Updates to the HHS Provider Relief Reporting Requirements

The HHS Provider Relief Fund has brand new reporting requirements that are based on calculating changes to net income rather than gross income.

Want to avoid some of these changes, if possible? On our ADCPA podcast this week, hosted by Art Weiderman, CPA, we share the latest interpretation and ways you may be able to simplify your reporting.

Listen here.





Payroll Deferral To Begin Today, But Should You Offer To Employees? – September 1, 2020

Executive Order Goes Into Effect Today

  • Payroll companies are not yet ready–even ADP is still asking for more guidance from the IRS.
  • What type of tax may be deferred? The Social Security portion of the employee’s withholdings, which is 6.2%, as well as your matching contribution as the employer. It only pertains to wages less than the threshold of $4,000 per pay period. More on that below.
  • Are you required to offer this option to your employees? That has yet to be determined. Thus far, it appears that you should follow the Executive Order if the employee requests you do so.

In addition, if you offer it to one employee, then we expect you will be required to offer it to all employees.

Should Your Employees Want to Use the Deferral?

NO. It is our opinion that the deferral is not in the best interest of most employees.

We highly recommend you have an open conversation with your team about how the deferral works and what the long-term implications will be for them. In this way, you are helping them make the best decision with the information you have right now.

The IRS has released new guidance stating that it will be the employee who is responsible for paying the deferred tax withholdings and not the employer, which leaves almost no benefit for the employees. While they would receive a larger net check now, how will they pay the taxes next year?

If your employees decide to defer the 6.2% tax withholding, then they are required to pay the taxes between January 1, 2020 and April 30, 2020. It will be extremely difficult for employees to increase their withholdings that significantly, and this could create a large cash burden for your employees.

In addition, as the employer, you will be required to pay the matching taxes by April 30. We recommend saving those taxes in your bank account now, for any deferrals, so that you can easily pay the deferred bill next year.

More Guidance Needed On Key Aspects of the Deferral

In what way are the wages calculated? The deferral is allowed for wages paid of $4,000 or less per bi-weekly pay period for the dates September 1 through December 31, 2020.

  • A question remains: How does the employer handle a situation wherein the employee was paid more than $4K in one pay period but then less than $4K in the following pay period?
  • Thus far, it appears per IRS guidance that you do not need to average the wages across pay periods. The employee qualifies for any given pay period that is less than $4K.

What happens if the employee leaves? Thus far, in IRS Notice 2020-65, the IRS has said:

  • The employee is responsible for the deferred taxes.
  • However, the employer is “an Affected Taxpayer” due to the required match and “may make arrangements to otherwise collect the total Applicable Taxes from the employee.”
  • More guidance is needed to determine exactly what the employer responsibility will be if the employee is no longer employed and/or cannot afford to pay the taxes.

Can an employee opt out? It is not yet clear if an individual employee has the option to opt out if the employer decides to follow the Executive Order. We expect more clarity to come on this aspect.

Tax Projections & Income Trends

Your net taxable income may be higher than you would expect it to be in this unusual year. We recommend you keep up with your tax payments and/or withholdings from your paycheck.

  • The trend we are seeing is that net taxable income is nearly identical to last year in many practices. In some cases, it is down by only 5-10%.
  • While collections are down 15-20% in many practices, dentists have saved nearly all of that in reduced overhead, and that increases net taxable income.
  • Please remember that PPP expenses may not be tax deductible this year. The IRS has stated that the loan will be forgiven but that the expenses will not be deductible, yet some members of Congress have said IRS guidance goes against the spirit of Congress’ intentions. We continue to hope the expenses will be deductible, but if they are not, that will significantly increase your taxable income, so please be prepared for that potential outcome.





HHS Provider Relief Fund Application Deadline Extended; Updated PPP Forgiveness Details; & Payroll Deferral to Begin Sept. 1 – August 26, 2020

HHS Relief Fund Application Deadline Extended to Sept. 13

  • The application takes about 30 minutes to complete.
  • The deadline to apply has been extended again–the deadline is now September 13.
  • The maximum you can receive is 2% of gross revenue filed on the last tax return.

The application and more information may be found if you CLICK HERE.

PPP Forgiveness: Keep It Simple & Possibly Wait

Live Oak & First Citizens were added to the list of banks accepting applications this week. Affinity and some other community banks have already been accepting applications while Chase and Wells Fargo appear to be waiting a few more weeks before they will begin this process.

Congress remains at a standstill on the new tax law that would grant automatic forgiveness for loans less than $150K in addition to providing other COVID-related relief for small businesses and individuals.

Is your PPP loan less than $150K? If so, you may want to wait to file your application. We expect a provision to pass that will exempt you from filing the full application. Unless you are selling your practice, there should no reason to rush to file the application now.

Are you thinking of applying for forgiveness now?

Keep the expense list simple.

  • List payroll expenses first. (Once the spending period was extended to 24 weeks, you should have been able to spend all of the PPP money on payroll expenses alone.)
  • Still need more expenses to receive forgiveness? Then move to rent or mortgage interest, but read below for new guidance.
  • By doing that, you save time and stress by not needing to get too creative or risky with the particulars of other aspects of allowable expenses.

PPP New Owner Comp & Rent Forgiveness Guidance

Yesterday, the SBA released nuanced guidance on two aspects of PPP forgiveness:

Owner’s comp max: It was determined that you must own greater than 5% of the business to be considered an owner for the compensation limit.

Self-rental forgiveness: Two key clarifications were made:

  • If you sub-lease a portion of your building, the only portion of rent eligible for forgiveness is the portion you used yourself. Thus, you should reduce the rent you are paying by the income received by you.
  • If you own your building and rent out a portion of your building, you are allowed forgiveness for only a portion of the mortgage interest. You will only be forgiven for the portion of the mortgage interest that is related to the fair market value of the portion of the building you are using for your own business.

Payroll Tax Deferral Slated to Begin Sept. 1

The President’s executive order goes into effect September 1, though the IRS has not yet released guidance on exactly how it will be implemented.

  • One aspect at issue is whether it is you or the employee who has the right to decide whether or not to participate in this deferral.
  • The concept is that you will be permitted to delay paying the employee’s portion of their FICA tax withholding–which is 7.65%–thus giving them a larger net check.
  • What’s the catch? You will need to pay these taxes for them at a later date, so it is simply a deferral of taxes, and you will need to save up the cash to be able to make this deposit next year.
  • Payroll companies are awaiting IRS guidance to reprogram their software, and we will continue to keep you updated as we have more clarity.





HHS Provider Relief Fund App is Now Easier; Payroll Tax Credits for COVID Pay; PPP Forgiveness Applications Available for Some – August 12, 2020

HHS Relief Fund App Now Easier

Application Shortened This Week:

  • Nearly half of the questions have been removed from the application, saving you or your team significant time!
  • The deadline to apply is August 28.

We believe it is worth considering an application if you are: a) not seeing COVID patients and b) are not concerned about your loan amount being made public.

As we have shared previously, we recommend you read the Terms & Conditions and FAQs, and make sure you feel comfortable agreeing to them before accepting the funds.

What is the maximum you can receive?

  • We recommend assuming this will be taxable income.
  • Thus, the maximum is 2% of gross revenue on the last filed tax return.
  • LESS the federal and state taxes you will pay–a safe assumption is 40%.

The application and more information may be found if you CLICK HERE.

Payroll Tax Credit for COVID-Related Employee Pay: Families First Coronavirus Response Act (FFCRA)

We encourage you to use the payroll tax credit to cover these wages as you help your team tackle new challenges.

By using the payroll tax credit, the government is paying the employee’s wages because you are reducing your payroll tax deposit by the amounts paid for this type wage. You are allowed to reduce the amount of the next deposit being made. Thus, at most, you should have only a temporary effect on your cash flow.

The payroll tax credit is the same as it was when it went into effect April 1 and remains in effect until December 31, 2020. Please read below for a reminder of a few key points.

Prior to deciding what type of pay may apply, we recommend calling your HR attorney or an HR company for advice. The nuances of each team member’s situation can change the type of pay you should be offering.

Emergency Paid Sick Leave

Use this type of pay when an employee is quarantined due to COVID or when they must care for someone who is quarantined or other similar conditions, if applicable.

  • Paid leave is up to $511 per day for up to $5,110 total per employee (after 10 days of unpaid leave).

Emergency Family & Medical Leave

Use this type of pay when an employee needs to care for their child due to school closures or a childcare provider being unavailable, if applicable.

  • Paid leave will be at 2/3 the employee’s pay (after 10 days of unpaid leave).
  • A cap of $200 per day for up to $10,000 per quarter.
  • May take up to 12 weeks of job-protected leave to take care of a child if their school is closed.

Payroll Tax Credit

  • You are reimbursed with a refundable tax credit of up to 100% of the qualified sick leave paid to each employee, per Bill HR6201.
  • To receive the credit, reduce the tax payment you would have made for the following payroll tax deposit.
  • If the amount you should receive as a credit is larger than the employer portion of the tax deposit (the FICA portion, in essence), then the IRS sends you a refund when you file your quarterly payroll tax return.
  • Your payroll company can help you keep track of the figures and reduce your tax deposits accordingly.
  • More information may be found on the IRS’ website HERE.

Yes, there is a possible hardship exemption, so you may want to ask your HR attorney or HR advisor about that. The exemption may apply if you are: a) a healthcare provider and b) a business with fewer than 50 employees, if the required leave would jeopardize the viability of your business.

PPP Forgiveness Applications Now Accepted by Some Banks

  • We are starting to see some banks accepting applications this week. Chase and Wells Fargo appear to be waiting a few more weeks before they will begin this process.
  • Is your PPP loan less than $150K? If so, you may want to wait to file your application. We expect a provision to pass that will exempt you from filing the full application.
  • The application for forgiveness can be viewed if you CLICK HERE.
  • Some banks are asking that you email them the application and supporting documentation; however, each bank’s process may vary.
  • Remember to close the bank account you opened for the loan proceeds, once the money has been spent.





New Details On CARES Act Provider Relief Fund; Terms Have Improved – July 23, 2020

Overview of the Provider Relief Fund (PRF)

Many dentists are asking us: Should I apply?

  • We recommend first calculating whether or not the dollar amount is worthwhile to you.
  • If it is not, then we recommend you ignore this fund and spend the few hours building your business, spending time with family, or taking time to relax.
  • If it is, then we recommend you read the Terms & Conditions and FAQs. Determine if you feel comfortable agreeing to them.

What is the maximum you can receive?

  • We recommend assuming this will be taxable income.
  • Thus, the maximum is 2% of gross revenue on the last filed tax return
  • LESS the federal and state taxes you will pay–a safe assumption is 40%.

Many dentists are choosing not to apply because the net money received is not large enough, in their opinion, to offset some of the terms and conditions. Only you can make this determination based on whether you are concerned about the terms.

That being said, some concerns have been addressed by the HHS this afternoon as shared by the ADA. The ADA’s publication is excellent, and we have copied that below to make sure you have the latest.

In addition, the application deadline has been extended to August 3.

Remember, one of our concerns remains–the dollar amount you receive will be published, so if you are concerned about privacy, then we recommend you consider not applying. For instance, this may be an issue with divorces, child support, or other dentists knowing your income.

Balance Billing Issue Clarified

Many of you have already applied for the Provider Relief Fund, 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 the following:

  • 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-19 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

Again, this is straight from the ADA’s alert.

  • 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 & Other Help Available

  • HHS is hosting a webinar for dentists and Medicaid/CHIP providers to learn more about the application process. Register now. The webinar will be held on Monday, July 27, 2020 at 3 PM ET.
  • The 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 8 PM ET.
  • HHS instructions are available to act as a guide for applying for 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 eligibility 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 CLICK HERE for regular ADA updates





Should You Apply for HHS Relief Funds? – July 21, 2020

A Legal Take on the Provider Relief Fund

As you’ve seen, we’ve been sharing our concerns about some aspects of the Provider Relief Fund.

The following video provides insight from one of the dental attorneys, Ali Oromchian, that we’ve had as a guest on Coffee with Kate.

Click here to watch Ali as he discusses a legal take on the Provider Relief Fund in his two-minute video.

Some key pointers from Ali include:

  • Before you rush to sign on the dotted line, consider the fine print.
  • Providers accepting emergency funding during the Coronavirus pandemic must agree not to charge COVID-19 patients more than what would be covered by in-network insurance (i.e., there cannot be balanced billing for COVID-19 patients).
  • Buried in the fine print of the form is the statement: “HHS broadly views every patient as a possible case of COVID-19.”
  • This would mean that any provider who accepts emergency funding must agree not to charge patients more than insurance reimbursement.
  • According to the fine print, this applies to any patient, whether or not they are confirmed with COVID-19.
  • Since legislation to ban balanced billing is still being debated in Congress, HHS needs to clarify if this is what is actually meant by their agreement.
  • If so, this would bypass Congress to change long-standing practices for many medical and dental providers, if they accept federal relief funds.

Provider Relief Fund Overview & Reminders

What is the Provider Relief Fund? On July 10, the U.S. Department of Health and Human Services (HHS), through the Health Resources and Services Administration (HRSA), announced $4 billion in relief funds for healthcare providers, including dentists and doctors.

When is the deadline to apply for funds? The deadline has been extended from Friday, July 24 to Monday, August 3.

Where can you apply for funds? Through the Enhanced Provider Relief Fund Payment Portal.





Potential 2016 Tax Refund: Form Due Tomorrow & Update on Provider Relief Fund – July 14, 2020

2016 Potential Tax Refund if the ACA is Ruled Unconstitutional: Due July 15

There is a new, last-minute development on the Affordable Care Act (ACA) that may create a refund for you!

Details were released late yesterday, and the turnaround time on this strategy is very short–the form is due tomorrow.

If another CPA filed your 2016 personal tax return, we recommend you look at that return today or tomorrow morning to review if you paid either the 3.8% Net Investment Income Tax or the 0.9% Medicare Tax. If you did, you may be eligible for a refund. Read on to learn more.

More details:

  • On Friday, the U.S. Supreme Court agreed to hear California v. Texas (U.S. Supreme Court Docket 19-840), which addresses the constitutionality of the Affordable Care Act (ACA).
  • It’s only IF the Court holds that all, or a portion, of the ACA is unconstitutional, that taxpayers may be entitled to refunds for the taxes imposed by the ACA. These include the extra 0.9% Medicare tax and the 3.8% Net Investment Income Tax that have been paid on prior-year returns.
  • Refunds are limited to years where the statute of limitations is still open.
  • As a result, you should consider filing protective refund claims to keep the period open for 2016 claims. These protective refund claims must be filed by Wednesday, July 15, 2020.
  • To file a protective claim, please CLICK HERE, and mail in the form using certified mail by tomorrow night. The address to mail the form to is on page 3.

You are not obligated to file a protective claim, but if you do not and the ACA is overturned by the courts, the current expectation is that you will not be able to recover taxes for any closed years.

There is no guarantee that if the ACA is overturned and you file a protective claim that you will get refunded the ACA taxes you paid.

Relief Fund Application Steps

We now have updated information on the steps that you will go through to apply for the Provider Relief Funds.

As a reminder, you are eligible only if your TIN matches a list approved by the HHS.

Before you apply, PLEASE READ the terms and conditions to the program found in this link: 

What you will need on hand if you want to apply?

You will need an Optum ID. See link below.

  • If you already have an Optum ID, you can click on “Sign In.”
  • If you do not have an Optum ID, please click on “Set Up Optum ID,” and follow the prompts.

If you’d like assistance, contact support at 1 (855) 819-5909 or

There are 3 steps to the application process once you have your Optum ID. You cannot move to “Step 2: Revenue and Tax Information” until you have successfully completed “Step 1: TIN Verification.” (Verification for step 1 should come via email, usually within 24-48 hours.)

Step 1: TIN Verification

You will need your organizational NPI number, legal business name as reported on your tax return, and your taxpayer identification number (TIN).

Step 2: Revenue and Tax Information

Please follow the instructions as laid out in the link below.

These instructions are extremely helpful and will walk you through each “field” of the application.

You will need:

  1. Most recent business federal tax return that was filed
  2. First Quarter 2020 Form 941
  3. FTE Worksheet (link provided in the HHS instructions)
  4. Lost revenues due to COVID (please see explanation in HHS instructions)
  5. Total of increased expenses due to COVID
  6. Payer mix (% of patients that are self-pay, commercial insurer, Medicare, etc)
  7. Amount received on your PPP loan, if applicable
  8. Business bank account information

After submitting the application and other requested information, the link will still say “Get Started” in case you need to re-apply due to incorrect information on the initial application. This warning does not mean that your application was not submitted.

Step 3: Attest to Payment and Terms

This step will not be completed until you receive the funds. You will need the check number and the Provider Relief Fund payment amount received.

Knowing that they have opened up eligibility to many more dental practices and knowing that it no longer seems to be required that you previously billed Medicare/Medicaid, it seems as though all interested dental practices should start the application process to see if their TIN is on the curated list.

Please remember the deadline if you want to apply is July 24, so you will want to start this application process right away.

We will continue to monitor the Provider Relief Fund, as well as other opportunities, and will continue to share the latest news with you.

Extension & Estimated Tax Payments Due Tomorrow

This tax season has been been overshadowed by the pandemic, the CARES Act, EIDL and PPP loans, and now the Provider Relief Fund. And, we know you are also focused on rebuilding your business!

During this busy time, please remember your personal taxes are due tomorrow on July 15. Even if you filed an extension, that only gives you an extension of time to file the return, but it does NOT give you an extension of time to make any tax payments for 2019. Penalties and interest will start to accrue on July 16 for any unpaid balance.

Estimated payments for 2020, if you pay those, are also due on July 15 for first and second quarter.

If your personal return is on extension, you now have until October 15 to file the return.





New Funds Available: CARES Act Provider Relief Fund Expanded to Include More Dentists – July 13, 2020

Overview of the Provider Relief Fund

Did you receive the ADA’s email on Friday stating that all dentists are now eligible?

While it appears that more dentists will be eligible, it may not be all dentists, and the Health and Human Services (HHS) website has not been fully updated. While the application process is expected to be easy, the terms of the program are unique, and we recommend you take the time to read all of them.

In actuality, you will not know if you are eligible for the funds until you start the application process. It is at that point your Taxpayer Identification Number (TIN) will be verified against the HHS list.

The application deadline is July 24, and we recommend you apply soon, if you would like to receive these funds. As has been typical of most COVID-related fund programs, many questions surround the Provider Relief Fund, and we highly recommend you read all terms and conditions before applying as you will be required to consent to terms that may not be desirable or accurate for your business.

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.

A few weeks ago, it was opened up to dentists who treated Medicare and Medicaid patients.

On Friday, July 10, the Department of Health and Human Services opened this program up to more dentists.

Key Facts to Know Before Applying for the Funds

  • You are eligible only if your TIN matches a list approved by the HHS. There are steps to follow (in the FAQs) if your TIN is not on the approved list.
  • The money received is taxable income. The ADA is lobbying for this to be non-taxable, but we recommend that you assume it will be taxable and that you will receive a 1099.
  • This is not a loan–you do not pay this money back to the government.
  • The amount of money you receive is 2% of Gross Revenue on the most recently filed 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 Provider 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.
  • If you already received Provider Relief Funds from HHS (see below), you are not eligible for another round of Provider Relief Funds.
  • It appears you will be required to attest to the fact that you have treated patients who either likely had COVID or who you know had COVID at the time of the visit.

Details of Terms & Conditions

Below are three links for your review. We suggest you review these links VERY CAREFULLY.

  • The first link is the link to the CARES Act Provider Relief Fund page on the Department of Health and Human Services website.

  • The second link is a list of Frequently Asked Questions (FAQs) for dentists as it applies to this program. Below, we’ve also pulled a list (from the second link) of six items that make a dentist eligible for these funds.

          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 either (i) have filed a federal income tax return for fiscal years 2017, 2018, or 2019 or (ii) be an entity that’s 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, he/she must 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.
  • The third link are 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:

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.

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.

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.

Should you Apply?

If your business needs the 2% of revenue, as a taxable benefit and not a loan, then it is worth reading the terms and applying if you meet the conditions. In reality, only you can evaluate if you feel comfortable with all of these.

If you do not need the additional cash, then you may want to skip this relief funding. Why? Because the terms currently appear to be difficult to meet, and it could be time consuming for you to work on this on an ongoing basis.

Currently, the conditions of receipt of the funds state that you cannot use the money for the same expenses you used the EIDL or PPP money on, and you cannot use it to pay yourself.

In addition, it currently appears you will be required to file a Quarterly report with HHS detailing exactly how you spent the funds.

Documents you will need to upload when you apply include:

  • Most recent federal tax return for 2017, 2018, or 2019.
  • First Quarter 2020 Form 941, Form 940 Annual Federal Unemployment Tax Return, or a statement as to why neither form is required to be filed.
  • Potentially a Full-Time Equivalent worksheet.
  • Potentially a Gross Revenue worksheet.

We will continue to monitor the Provider Relief Fund, as well as other opportunities, and share the latest news with you.






Salary & Benefits Poll RESULTS Plus the Latest on Tax Credits & PPP Loans – July 1, 2020

Results From Our Joint Poll with DentalPost

The results are in from our Comeback Salary & Benefits Poll.

Over 1,600 people responded to our poll, and the results show that dentistry is rebounding better than expected!

To read the full report that shares what dental professionals like you have to say about pay and benefits post-closure, click here.

A few of the significant trends we are tracking show:

  • Demand for hygienists is now higher than it was pre-closure.
  • Only 56% of practices offer benefits such as PTO, 401k, or health insurance.
  • 83% of practices report that team wages are back to the same level of pay.
  • 84% of practices have rehired their team.

In our results, you will also see the current pay range by job type.

PPP Loan Application Deadline To Be Extended

If you haven’t yet applied for a PPP loan, you may still have time! Last night, the Senate voted to extend the deadline by 5 weeks to August 8. The bill is expected to pass the House and be signed by the President.

If you have already received PPP funding, you cannot file a second time; however, read on for more relief that may be coming for small businesses.

Another Round of PPP Funding?

A Bill is being drafted in the Senate that would “repurpose” the $135B of unspent PPP funds. Two competing versions of the bill exist, but some of the elements we may see in the final bill include:

  • Businesses may need to employ fewer than 10 employees.
  • Proof of significant income drop–potentially greater than 50%–may be required.

Some industries may be excluded, but dentistry should be allowable.

The bill is expected to pass at the end of July, but the timeline may be as late as August.

Families First Tax Credit (FFCRA)

A higher volume of dentists are calling us with team members out because either they or a family member is sick with COVID-19.

If this happens in your practice, remember there is a tax credit that will cover a portion of the employee’s wages. The credit is part of the Families First Coronavirus Response Act (FFCRA).

The Family Medical tax credit is available for wages paid through December 31, 2020.

Emergency Paid Sick Leave: If your employee is sick with COVID-19 or is taking care of someone who is sick with COVID-19, then the maximum credit is $511 per day up to $5,110 or $200 per day up to $2,000 to care for others.

Emergency Family & Medical Leave: If your employee is out due to lack of child care related to COVID-19 then the cap is 2/3 of the employee’s pay up to $200 per day for up to $10K per quarter. The first 10 days the employee is out may be treated as unpaid leave.

How do you receive the money? You can either reduce the employer-paid portion of your tax deposit by the allowable wages or file Form 7200 requesting the payment. If choosing the first option, the credit will be taken into account on the next quarterly filing of Form 941, and any remaining credit due to you will be paid as this is a refundable credit.

An excellent resource for more details related to HR issues may be found on Bent Ericksen’s website. Click here for Bent Ericksen’s coronavirus page.

Another Round of Stimulus Checks Coming?

The House Democrats proposed another round of stimulus checks, and the President is sharing he would like to send checks for an even larger amount than proposed.

It is not clear how soon this may happen; however, it is expected to be before year-end. The House Democrats proposed $1,200 per household.

PPE Tax Credit Gaining Support

As you may have seen in recent ADA news, the ADA continues to support a PPE tax credit for dental practices.

The credit is currently being discussed as a $25K tax credit.

Tax credits are more valuable than tax deductions because tax credits are a dollar-for-dollar reduction of your tax bill whereas tax deductions only reduce your tax bill by the percentage tax bracket you are in for the year.

Dentistry Rebounding Well!

In reviewing our clients’ financial statements, we are finding that over 85% of our clients’ income has returned to within 20% of their pre-closure income.

Of that group, the vast majority expect to be back to 100% of their production by the end of July.

Remember to review your tax withholdings and/or estimated tax payments to make sure you are back on track to keep pace with income that may be very similar to last year. If you skipped payroll checks, as many dentists did, that means you also skipped some of the tax payments you normally count on having paid to meet safe harbor.






Our Salary & Benefits Poll with DentalPost Takes Less Than 10 Minutes! Plus: Loan Updates – June 24, 2020

How Do You “Stack Up” Post-COVID?

We have joined with DentalPost to gather information about current salary and benefits, post-COVID.

Take our very short poll, and we’ll share the results so you can see how your pay and benefits compare to your colleagues. This is open for 1 week.

You may also share this email with your team–they will have unique questions they can answer once they click on the poll. We’re interested in hearing from both dentist owners and employees!

Repaying EIDL

Wondering how to repay the $150K EIDL? Some clients have accepted the funds but have decided to repay it now to avoid the interest or terms of it.

You can receive EIDL payoff information by contacting the SBA Disaster Loan Servicing Center at (800) 736-6048.

If you already have the funds, we recommend considering holding onto the money until January or February, unless you are selling your practice. If you are selling, we recommend not accepting this loan as it will need to be paid off in full at the time of the sale.

You Can Apply Early for PPP Forgiveness

The SBA has confirmed you will be allowed to apply for forgiveness prior to the end of the 24 weeks.

While we await banks releasing exact timing on this, we recommend planning on filing as soon as you can after using the funds.

You are allowed to take up to 10 months after the end of the 24 weeks, but it would simplify your financial and tax situation if you have this resolved early.

New Colorado Grant Coming

A bill has been passed by the Colorado Senate to assist small businesses with a new grant.

Preference will be given to businesses owned by women, veterans, and minorities and to those who did not receive the PPP loan. To follow it, you may track Bill 20-222.






PPP Updates: EZ Loan Application, Changes to Maximum Pay & Benefits Paid; Tax Return Extensions & Estimated Payments Due 7/15 – June 17, 2020

New PPP EZ Loan Application Released: Overview

The SBA and Treasury issued a press release this morning announcing the new PPP EZ loan application. Revisions were also made to the full forgiveness application.

The application for full forgiveness is now more borrower-friendly, and the addition of the EZ application is a change we have been eagerly awaiting.

There is discussion about automatically forgiving loans of a value lower than $150K, so stay tuned for that, if it comes to pass.

The EZ application will be even faster to complete, and we believe most dentists will qualify to use it. The EZ application is for borrowers meeting one of the folllowing criteria:

  • Criteria 1: Self-employed with no employees at the time of applying for the PPP, and did not include any employee wages in the PPP calculation (not S-Corps–only independent contractors, sole proprietors); OR
  • Criteria 2: Did not reduce the salaries or wages of their employees by more than 25%, and did not reduce the number of employees or the number of hours of their employees between January 1 and the end of the covered period; OR
  • Criteria 3: Experienced reductions in business activity as a result of health directives related to COVID-19 as compared to February 15, and did not reduce the annual salary or wages of their employees by more than 25% during the covered period compared to January 1 – March 31.

New PPP EZ Loan Application Released: Additional Details

Full details related to the PPP EZ forgiveness application can be found in the instructions for the application. The following details are key for you right now:

  • You will be asked to provide the number of employees at the time of the loan application and the number of employees at the time of the forgiveness application.
  • The application requires you to list the covered period you are using. You are allowed to choose either 8 or 24 weeks, and the period must end by December 31.
  • You still have the option to choose an “Alternative Payroll Covered Period.”

PPP Limits for $100K+ Earners Increases But…

The application increases the amount of PPP funds that can be used on payroll for employees earning $100K or more but with some key caveats.

Once again, the SBA has answered some questions but created more questions in the process! In the current version of the forgiveness application:

  • PPP funds may be used to pay employees earning $100K or more up to $46,154 during the covered window, if using 24 weeks. (An increase from $15,385.)
  • The maximum pay to owners is capped at $20,833 (i.e., 2.5-month equivalent for someone who is paid $100K/yr).
    • In more detail, the cap is the lesser of $20,833 or 2.5 times your monthly compensation in 2019, if using a 24-week period.
    • Note that, for an 8-week covered period, the amount is capped at the lesser of 8/52 of your 2019 compensation or $15,385.
  • “Owner” is defined as “owner-employees, a self-employed individual, or general partners.”

PPP Spending Clarification: Employees Only

The SBA provided some additional clarity that we have been awaiting for weeks.

  • Health insurance: You can only include the employer-paid portion of premiums for the employees. Owners, as defined above, are now excluded from receiving forgiveness on owner premiums.
  • Retirement plan contributions: These are also only allowed for employees and not self-employed individuals or general partners with the exception of “owner employees” (such as in a Corporation). Owner-employees are allowed to use PPP funds for up to 2.5 months’ worth of the 2019 contribution. Of course, this does not include employee deferrals.

Easy Expense Tracking Form

We’ve created an even easier tracking spreadsheet to use, in conjunction with one of our ADCPA Firms, Rosen & Associates. (A copy of the spreadsheet was included in our most recent e-blast.)

You can still use our previous spreadsheet if you update the dates, but the new spreadsheet is simple to use with the new EZ application.

If you are using a 24-week covered period, it’s even easier to use PPP money on payroll and rent, and then track the smaller expenses only if you won’t meet the loan forgiveness without them.

Tax Return Extensions & Estimated Tax Payments: 7/15

If you wish to make a payment with your extension, the payment is due July 15 as penalties and interest will start to accrue on any unpaid balances.

If you cannot make your retirement plan contribution by 7/15, an extension is needed.

Personal Estimated Tax Payments Due July 15: If you pay estimated taxes during the year, remember both the first- and second-quarter estimated payments are due July 15. If your income is down, you may choose to pay a lower amount than the voucher we gave you; however, if your income rebounds, then you may be charged interest and penalties for late payment. We hope the IRS will allow an exception for this later in the year.

Buying or Selling a Practice?

We typically advise dentists on 2-3 practice transitions per month. Right now, we have 6 transitions in the works and are seeing practice sales increase.

Most buyers are looking for a COVID discount, so the ideal time to sell is once your practice has returned to pre-COVID production. And, keeping overhead as low as possible is key so that your EBITDA is as high as possible.

Thinking of buying or selling? Give us a call, and we will help review the cash flow of the opportunity as well as the asset allocation and tax effect of the transition.




Initial May Dental Practice Trends & More Funding Opportunities…Plus Even More PPP News! June 11, 2020

An ADA Update: Medicaid Provider Relief Fund Distribution Portal Now Open

Are you a Medicaid provider? If so, there is a new program that will give you a reimbursement that is similar to a grant–it does not need to be repaid.

The Enhanced Provider Portal is now accepting applications–we recommend applying now if you are a Medicaid provider. Eligible Medicaid and Children’s Health Insurance Program (CHIP) providers can apply to the Medicaid Targeted Distribution portion of the CARES Act Provider Relief Fund, which has thus far been only for medical Doctors.

To apply, please access the portal here. Also, be sure to read the Medicaid Provider Distribution Instructions and download the Medicaid Provider Distribution Application Form. The deadline for submissions is July 3, 2020.

As noted in yesterday’s Issues Alert, HHS has announced that eligible Medicaid and CHIP providers can apply for Provider Relief Funding. HHS is allocating $15 billion total for this fund. To be clear, this money is not a loan and is unrelated to the Small Business Administration loans such as the Economic Injury Disaster Loan (EIDL) or the Paycheck Protection Program (PPP) loans.

The payment to each eligible provider will be:

  • At least 2% of reported gross revenue from patient care with the final amount each provider receives determined after the data is submitted, including information about the number of Medicaid patients served by the provider.

To be eligible for relief funds, the applicant must meet requirements that can be read in the above links or in the email sent by the ADA.

The ADA is continuing to work with HHS to distribute additional provider relief funding more broadly to dentists. We are hopeful for continued progress in this area and plan to share more details when they become available.

The ADA is proud to support dentists as they return to serving their communities. With your voices, our advocacy efforts will continue to drive our profession forward. Be sure to visit for regular updates.

PPP Update: Partial Loan Forgiveness Now Possible Again

The SBA has once again changed the terms of the PPP forgiveness, but luckily, each change is more beneficial to you.

In essence, you will once again be able to receive partial loan forgiveness even if you do not spend 60% or more of the PPP money on payroll-related expenses.

Earlier this week, Treasury Secretary Mnuchin and the SBA released a joint statement indicating that partial loan forgiveness is now back on the table. According to the press release, “If a borrower uses less than 60 percent of the loan amount for payroll costs during the forgiveness covered period, the borrower will continue to be eligible for partial loan forgiveness, subject to at least 60 percent of the loan forgiveness amount having been used for payroll costs.”

What does this mean? It means that if you use less than 60% of your PPP funds on payroll-related costs, the actual percentage used for payroll-related expenses will dictate the maximum possible loan forgiveness amount. For example, if you received $50K in PPP funds and only spent $25K (or 50%) on payroll-related costs, then the highest possible amount you could be granted for loan forgiveness is $41.6K (because the $25K spent on payroll would become 60% of your potential loan forgiveness amount).

Remember: The goal is to strive for full forgiveness! While we wanted to take this opportunity to explain the new, preliminary rules surrounding partial forgiveness, please note that our recommendation is to aim for full forgiveness now that you have more time and more flexibility for spending PPP funds. Of course, we know there may be circumstances where full loan forgiveness may not be possible, but we anticipate that partial forgiveness will be the exception rather than the rule among our clients.

Coming Soon: Main Street Lending Program

In early April, the Federal Reserve began taking steps to make additional loans available to small businesses as a means of providing even more support to our economy during the pandemic. One of the avenues being used to provide these additional loans is known as the Main Street Lending Program.

Though not yet fully operational, earlier this week, the Federal Reserve issued a press release stating that it expanded the Main Street Lending Program so that even more small businesses would be eligible to receive support.

What do you need to know right now about the Main Street Lending Program? The following highlights are key for you right now:

  • You are eligible even if you received a PPP loan.
  • Minimum loan of $250,000
  • Interest rate will be a minimum of 3% and will be LIBOR + 3%
  • 5-year term & interest deferred for 1 year

How can you apply? Once the Main Street Lending Program is operational, small businesses can apply for Program loans by contacting an eligible lender.

Production Rebounding Faster Than Anticipated!

Our clients’ production is improving faster than most dentists in the recent ADA poll. The May numbers are just coming in, but clients are sharing that they are at 85-110% of production and some have not added extended hours or days.

Today’s ADA poll reports a much bleaker picture than our clients are seeing, and by year-end, along with what we are hearing from our ADCPA colleagues across 9,000 dentists, we expect annual income to be down only 10-15%.

Based on what we’ve been hearing from each of you, as well as from our ADCPA colleagues with whom we represent 9,000 dentists nationwide, we now anticipate only a 10-15% drop in revenue by year-end.

In addition, many clients are reporting they no longer need longer breaks in between patients to change over rooms. Most have gotten into a rhythm with the new procedures and can quickly see the next patient.

On the flip side, we also know that many of you are putting in extra days and hours that can’t be maintained long-term at the risk of burning out, and we don’t want to overlook that! Please know that we hear the difficulties many of your are facing right now, and we sympathize with you. We are also here to continue supporting you in any way we can, so please reach out if we can be of help!

We welcome you to continue sharing your experiences with us so that we can keep a pulse of what’s really happening in the dental community.

Did you know that many experts view dentistry as a bellwether for the economic rebound? You may enjoy reading this article–came out in the NY Times yesterday: CLICK HERE.

More PPP Changes Coming?!

Is your head spinning with all the PPP changes? Have no fear, we’re here to keep it all straight for you and tell you the key aspects you need to know.

Looking ahead, we are expecting more help from the government for your business. What types of issues may be on the table now?

  • PPP Expenses May Become Tax Deductible: This aspect of the PPP loan is of utmost importance to us, and we are very hopeful this will occur. Right now, the IRS has said the expenses are not deductible, and this would increase your taxes significantly. We believe this was not the spirit of the CARES Act, and a bill has now been introduced to change this. Called the Small Business Expense Protection Act of 2020, we expect this bill to be passed unanimously by the Senate this week.
  • Second Round of PPP: Another round of loans is being considered as a way to put more money into the economy, particularly at the small-business level. It would require bipartisan legislation, and a bill was introduced for this yesterday in the Senate. The bill offers additional funding for employers with less than 100 employees, with particular focus on self-employed individuals and sole proprietors.
  • Industry-Specific Tax Incentives: The Administration is considering industry-specific tax incentives. As we have specifics on that, we will let you know.
  • Awaiting Loan Forgiveness Form: We are awaiting the new loan forgiveness form as well as guidance from banks as to how soon they will start accepting applications. There is some talk of automatically forgiving loans less than $150,000 which would save you a lot of time, so we’ll keep you in the know as we hear more!

Client Idea Board: Suggestions for Your Consideration

Many of you have been getting creative during the pandemic as you work around new health and safety requirements and recommendations.

As a way of coming together as a dental community to help one another as we all continue to weather this pandemic together, we’d like to share some of the new approaches we’ve been hearing about.

Aerosol procedures: My associate and I alternate who does aerosol procedures so that she does one half of the day and I do the other. That allows one of us to be able to check hygiene without having to constantly disrobe. We actually kind of like it this way and think we may stick with this kind of schedule.

Virtual check-ins & temperature checks: We email the medical history form to the patient when booking their appointment and ask them to fill it out online. I’ve hired someone to check patients’ temperatures and blood pressure in the parking lot.

Have a new approach you’ve been trying out that might be helpful to others? Send it our way, and we’ll continue idea sharing with one another.

May Job Trend & Comeback Poll Just Released

Read DentalPost’s May Job Trend & Comeback Poll yet? To read it CLICK HERE. Tonya Lanthier and her team tell me they are seeing week-over-week growth in team member hiring, and there is a shortage of potential candidates.

The majority of job posts are for Dental Assistants, at 42.8%; however, Dental Hygienists are at the highest rate of demand as seen in the last 5 years.

Overwhelmingly, 84% of dentists are looking to hire a team member with a positive mindset! Coming in second is 72% of Doctors hiring for good communication skills.

Are you looking for new team members? DentalPost now offers multi-tiered service levels and an improved logarithm so you can find the best fit team member with more accuracy in less time!





PPP Flexibility Act of 2020:  More Details & Our Revised Spending Spreadsheet –June 4, 2020

Last night, the Senate passed the bill that the House passed last week without some of the expected modifications.   The President is expected to sign it into law. You can breathe a huge sigh of relief!  Keep reading for the key points from the update.

These changes will nearly guarantee you will meet full loan forgiveness as you were loaned about 11 weeks of payroll and now have 24 weeks to spend it.

Exclusive for Clients:  We’ve Updated Our Tools

We’ve sent our clients links to the updated tools in the email newsletter. However, if you need the links resent, please contact us for the links to our updated PPP Expense Tracking Spreadsheet and out updated EIDL & PPP Eligibility Spending Guide.

Major Points from the Bill

    • No, Congress did not include PPE spending as an eligible expense for PPP funds.


    • 8 Weeks Expanded to 24 Weeks: You now have 24 weeks to spend the PPP funds and we do expect the maximum of $15,385 to be increased as well–possibly to $46,154.


    • The current cap is still $15,385 in PPP paid to employees or business owners paid over $100K per year but it stands to reason this cap will be increased due to the extension of weeks. If this happens, we will let you know.


    • You have the option to elect an 8-week-only spending period if you have already received the PPP funds. There has not been guidance on how you will elect that period nor on when lenders will start accepting loan forgiveness applications.


    • The loan forgiveness application needs to be revised and there is talk of the government no longer requiring you to even fill out a full application if your loan is smaller than a certain dollar amount they may put in place.


    • You now have up to 10 months after the end of the loan period to apply for loan forgiveness. While it is our hope that lenders will start accepting forgiveness applications as soon as your spending period ends, the SBA hasn’t announced when businesses may start applying for forgiveness.


    • 75% Rule Reduced to 60%: Payroll Related Expenses only need to equal a minimum of 60% of the total PPP funds received, instead of the original 75%.


    • Key Change: Loan forgiveness is now a cliff. Partial forgiveness has been eliminated. You will either receive 100% or 0% forgiveness. Multiple senators have recommended that partial forgiveness be added back in as a technical correction.   Currently,  you MUST spend 60% on payroll-related expenses or you lose ALL forgiveness.


    • Rehire as Late as Dec. 31st: You now have until Dec. 31st to rehire your employees, which is extended from June 30th. This key change gives you even more flexibility rehiring your team as you adjust to new schedules and part-time opportunities.  The rehire comparison date remains Feb. 15th.


    • Changes to the FTE Rules: The rules on rehiring employees have changed. We’ve given a detailed account of the new rule below.


    • Repay Over 5 Years, Not 2: The PPP loan will now have a maturity of 5 years, instead of 2 years. It appears that you will be required to request this extension of time from your lender; however, with the above flexibility, you should not need more time to repay the loan. Rather, strive for full loan forgiveness.


    • You may Defer Employer Payroll Tax Payments up to the end of 2022: Congress has added this provision, which now allows you to pay the matching FICA tax portion of your payroll taxes to 12/31/22.While this is an option, we highly recommend against using this provision. We recommend paying your FICA taxes on the current schedule and delaying a vendor payment before “borrowing” against your future taxes. Not only is it very difficult to get caught up when you are behind on tax payments, but it may also be time-consuming for you to keep track of the remaining balance and related due dates for multiple payroll runs.



Dentists May Not Need to Meet Full-Time Equivalent Rule

An exemption from the full-time equivalent (FTE) rule now exists, making it extremely likely that dental practices no longer need to rehire employees to reach February 15, 2020 levels of employment.

This extremely important new aspect may relieve many dentists from what had become a difficult aspect of the PPP loan terms.  It has not yet been clearly defined as to what types of documentation you will need to apply from the exemption, but here’s the language from the Bill, with minimal editing so you may use it for planning purposes:

Exemption Based on Employee Availability during 2/15-12/31…loan forgiveness will be determined without regard to a proportional reduction in FTE if you can, in good faith, document:

A) Inability to rehire individuals who were employees on Feb. 15th AND

B) Inability to hire similarly qualified employees for unfilled positions by 12/31/20 OR

C) Inability to return to the same level of business activity as the business was reporting prior to Feb. 15, 2020, due to compliance with requirements established or guidance issued by Sec of Health & Human Services, OSHA, or CDC during Mar. 1 – Dec. 31, 2020, related to the standards for sanitation, social distancing, or any other worker or customer safety requirement related to COVID-19.

More guidance is needed on the documentation you will need to have in place to prove you meet this exemption; however, we anticipate most dental practices will have seen a decline by Dec. 31. In positive news, we have been polling both our Academy of Dental CPAs colleagues and our clients and we anticipate many practices will see a decline in revenue by year-end of only 10-15%, which is significantly lower than the 30-60% some experts have predicted.


A Few Key Unknowns from the Bill

Some issues that were not addressed by the new bill:

    • No clarity was given on exactly how retirement plan contribution will be calculated, and thus which portion will be allowable


    • There was no comment on whether you can pay related parties such as children and spouse.


    • Applications for loan forgiveness will probably not be expected from the lender until at least January 2021 but we await on guidance on whether you will be allowed to submit them early.



 Planning Tip Summary

We recommend using the new flexibility to keep record-keeping as simple as possible.  Plan to spend the PPP money on the extra payroll and other large expenses that are easy to track such as Rent and Utilities. Thus, you will have fewer and easier expenses to prove with the loan forgiveness application.

Our team looks forward to a future where every person can live with good health, peace and equality and hope you, your family, and loved ones are staying well as your business continues to recover. Here’s to overcoming unexpected challenges and boldly moving forward!




Calculating FTE for PPP Loan Forgiveness: Updated Info! – May 27, 2020


There have been more clarifications of the FTE rule to meet for PPP forgiveness.

The updated rule is this: you must have FTE employees equal to, or greater than, the number of FTE employees on 6/30 as you did on 2/15/20. But, the SBA made it a little more complicated than that–you must meet a few more specific benchmarks by using one of the below calculations:

Safe Harbor Method: we’ve been running calculations today and believe you will likely be able to meet the new rule in this simplified way (read on for more info) OR

Alternate Method: only look at this option as a way to meet the FTE rule if you don’t meet the Safe Harbor.

For more information on these methods, check out the FAQ section at the end of this update.

To help you with calculating your FTE accurately for PPP loan forgiveness, we’ve put together a spreadsheet you can use. Clients, contact us for a copy of the spreadsheet if you did not receive the link through email. Have questions about FTE or using our spreadsheet? Let us know, and we’re happy to help!

Please remember these details are not yet carved in stone–we fully expect Congress to extend the number of weeks of spending and that would probably change the 6/30 date. Most likely, a vote will occur tomorrow and we expect the spending period to increase to at least 12 weeks but probably to at least 16 weeks.

PPP Reports for ADP Customers

If you use ADP as your payroll service provider, we encourage you to take advantage of the following reports that have been made available to you under the Payroll Reports section you’re used to accessing:


  • PPP Forgiveness Cost


  • PPP Forgiveness Detail

After reviewing ADP’s reports, we have the following notes to share with you:

  • The current version of these reports is calculating correctly; however, they have made edits and may continue to do so. Thus, you may want to compare it to a standard Payroll Details report to double-check the figures before relying on them.
  • These reports are a great tool to help you determine the amount of PPP funds you should transfer during the 8-week covered period and should also help with filling out the PPP loan forgiveness application.
  • Word of caution: Make sure you’re careful not to run either PPP forgiveness report by pay period. The rationale? The forgivable portion will not cap out anyone paid over $100K unless you include the entire covered period to date. As an example, if you received PPP funds on 4/22, you can run the forgiveness report from 4/22 through today’s date to transfer your current PPP reimbursement. Afterward, you can continue to run the report with the same start date and future end date to keep a running tally of what has already been reimbursed and what is still available to transfer/forgive.


Retirement Plan Contributions & PPP Eligible Expenses

One of the most popular topics we receive questions about when it comes to PPP spending and forgiveness is retirement plans. Below, you’ll find answers to the most frequently asked questions we’ve received.

For a 401k plan, can I contribute 3% of wages paid during the 8 weeks or only the 3% match?
Unfortunately, the SBA did not provide details on the exact calculation to use. Without that, we are left to project what will be allowed.

As of right now, we expect you will probably be allowed to contribute both the 3% of wages matching contribution as well as 8 / 52 of the 2019 profit sharing contribution for the employees’ portion. I believe you will also be allowed to contribute for the owner Doctor of a Corporation or Partnership using the 2019 contribution; however, there is more debate about that aspect.


Most Popular FAQs Today…

Read on for answers to some of the most common questions we’ve been asked lately.

How do you calculate FTE?

The FTE is based on a 40-hour workweek, not whatever the full-time hours are for your office and it is calculated by employee.

Take the # of hours worked and divide it by 40. That gives you the FTE. If using the Alternate FTE Calculation, you have the option to assume each part-time employee equals 0.5 FTE; however, in most cases we expect the full calculation to come out more in your favor.

What is the Safe Harbor Method for calculating FTE?

This is the easiest way to meet the new hiring requirement for full loan forgiveness. The goal is you must have at least the same number of FTE on 6/30 as you did on 2/15/20 but calculated in this way:

Step 1: calculate the average FTE you had for the time period 2/15/20 – 4/26/20

Step 2: calculate the total of FTE you had only on the date of 2/15/20

Step 3: is Step 1 a lower figure than Step 2? In most cases, it will be.

  • If the answer is yes, then make sure the FTE on 6/30 is equal to or greater than 2/15. If it is, you have met Safe Harbor on FTE for full loan forgiveness
  • If the answer is no, then try meeting it using the Alternate Method


How large of a bonus can you pay?

The SBA did not define a specific amount nor cap on the allowable bonus. We expect any reasonable bonus paid to those employees earning less than $100K per year would be acceptable; however, if it is a bonus amount you typically would not pay in your size business, then it might not be acceptable. In addition, we would recommend large bonuses to family members.


Can I pay a larger payroll check to the Associates & Owners?

Yes, you are allowed to pay employees more than $15,384 during the 8 weeks–you just cannot use PPP money to do it. Thus, transfer from the PPP account only the portion that is allowable for forgiveness so that the rest of the payroll comes out of your other funds.

Are there other Owner pay limitations?

Yes, you are only allowed forgiveness for the lesser of 8 / 52 of what was paid to the Owner for 2019 compensation or $15,385 across all businesses. In essence, the Guidance just stating you are not allowed to pay bonuses to the Owner Doctor.

For a Sole Proprietor, the cap is 8 / 52 of your 2019 Net Profit.

How are Utilities defined?

The definition of utilities, under the new Guidance, is “business utility payments for the distribution of electricity, gas, water, transportation, telephone or internet access which began before 2/15/20.”

How many months of rent can be paid?

The SBA did not put a cap on this and we expect you can pay all deferred rent payments, in addition to the rent you need to pay for the 8 week period of time. It appears prepaying one month of rent is probably acceptable.

Last Call for Complimentary Break-Even Analysis

During the month of May, we’re offering complimentary, break-even calculations! We’ll calculate 2019’s break-even as well as 1st Quarter 2020 and one for May based on your new level of expenses.

Of course, we can complete this at any time during the year as a separate, billable project.

Just email us if you would like to take advantage of this service.


How May We Help?

Our entire team is here to help you rebuild your business and tackle financial issues that may be weighing on your mind, even while we are completing tax returns and advise on practice transitions.   Please reach out to us if we may be of further help!


SBA Guidance Released Friday Night:  Top 10 PPP Spending Strategies to Maximize Forgiveness – May 26, 2020


I hope you enjoyed your Memorial Day weekend with family and friends! Both my Granddaddy and my Dad served in the Navy, with Granddaddy serving during 3 wars and retiring as a Captain. Thus, this type of dedication and sacrifice is part of the fabric of our family and our team is extremely grateful to all of the veterans who have served our country in the armed forces—thank you for your service.


SBA Guidance Finally Released!

On Friday evening, May 22, the SBA finally released the long-awaited Guidance on PPP spending. The SBA says this is an “interim rule,” meaning even more clarification may be released in the future. Continue reading for details!

Rather than give you a laundry list of issues addressed in the SBA Guidance, we’ve analyzed it for you! We have written updated, top 10 PPP spending strategies, to be used as a checklist, so you maximize your cash flow and then forget about the rest of the PPP issues that do not relate to you.   Then, you can get back to seeing patients and spending time with your family while keeping stress surrounding the PPP forgiveness as low as possible.

Surprises in SBA Guidance?

Overall, there are no extremely significant surprises in the Guidance—if anything, the SBA has continued to make it even easier to meet full loan forgiveness. That being said, there are key nuances it is vital to know.

And, remember, we are still awaiting a vote from Congress on extending the number of weeks of spending to at least 12 weeks and possibly 16 or 24 weeks.

Now that we have the Guidance, in reality, the only reasons you may not meet full forgiveness is if:


  • You will not rehire 75% of your full-time equivalent employee count by June 30th OR
  • You have reduced any individual employee’s pay by more than 25% OR
  • You will not be able to spend 75% of the PPP money on “payroll related expenses”

Note that many of the below recommendations are based on the lack of specifics in the SBA Guidance. Meaning, it is my opinion that these strategies will be allowable for loan forgiveness because the long-awaited Guidance has not disallowed them; however, the SBA can continue to add clarification.


What Should You Do Next?


  1. Prioritize which strategies are easiest for you to complete


  1. Then, enter your estimates for that spending on our spreadsheet.


  1. Will you meet the requirements for forgiveness?


If yes, then forget about the rest of the PPP details & get back to rebuilding your business. Simply track the expenses as they occur on the spreadsheet.


If no, call/email us and we’ll help you design a strategy that does help you maximize loan forgiveness.

Top 10 PPP Spending Strategies to Use Now

#1: Decide if you may have a problem meeting the 1st two basic aspects of loan forgiveness. These are: a) meet the full-time equivalent (FTE) rehire rule and b) keep each employee’s pay at a minimum of 75% of what you used to pay him/her. Calculating this now gives you time to plan a strategy to solve the issues while you still have time to rehire employees or change pay rates.

If you will meet them, then move on to only concerning yourself with spending 75% of the PPP on payroll-related expenses by the end of 8 weeks.

If you will not meet them, call or email us and we’ll help you design a strategy to meet loan forgiveness

#2: Add family members to the payroll. If you do not already have your family members on the payroll, you can add them to increase both the number of FTE as well as meeting the 75% spending rule.

#3: Prepay rent, but not mortgage. Non-payroll related expenses capped at 25%.

  • Yes, you will be able to include all rent paid during the 8 weeks, even if it was for prior months of rent that were deferred.
  • Lease must be in place by Feb. 15th
  • No, you will not be allowed to prepay your mortgage. The SBA specifically states you cannot include a prepayment of interest on the mortgage.


#4. Prepay the retirement plan contribution, if you would have normally waited until later in the year.  Both the matching contribution to employee deferrals as well as the profit-sharing contribution you make for the employee’s portion of the plan should be eligible, as long as you pay it during the 8 weeks.

Key change: for those paid more than $100K on an annualized basis, the retirement contribution and health insurance is the amount that was paid on your behalf in 2019, not what you expect the contribution to be for 2020

Stayed the same: still no retirement contribution or health insurance is allowed for owners of Sole Proprietors or those filing a Schedule C


#5. Prepay the health insurance premium, if it would be due soon after the 8 weeks. Please remember the only portion of the health insurance premium that counts towards loan forgiveness is the portion you pay, not the employee paid portion. And, all premiums paid during the 8 weeks, even for prior months of delayed invoices, count.

#6. Pay a bonus or extra hazard pay to your team. This is now allowed for employees with NO cap on the amount of the bonus. Not allowed for those paid more than $100K per year. The payroll that is covered for loan forgiveness is payroll either incurred OR paid during the 8 weeks.

#7. Prepay the 1st payroll that will fall after the end of the 8-week spending period. Make sure to explain to your team how long they will need to make that cash last before you will be running the next payroll.

#8. Choose your pay period wisely. Decide now the pay period you will use for the PPP loan forgiveness application. You may choose either:


o  The date you received the PPP money in your bank account OR


o  The “alternative pay period” which begins on the 1st day of the 1st payroll cycle after receiving the PPP and ends 56 days later.

Note that wages paid after the 8 weeks, but were incurred (earned) during the 8 weeks, will be eligible for loan forgiveness as long as they are paid in the first regular payroll date following the end of the “alternative pay period.”

Yes, you are allowed to pay non-working employees for loan forgiveness, but only if paid on the same schedule you normally pay them.

#9. Rehire 75% of the FTE employees. Calculate it now—if you will meet this aspect, then ignore the details of what will happen if you don’t meet it. If you may not rehire 75%, then read on as to new guidelines that may help you meet it. Review team members who have a change in employment and decide if they will be excluded from the loan forgiveness calculation.

#10. Create a process for saving your documentation & follow it. The Guidance is very clear that the lender will be requesting significant documentation such as a copy of your lease, receipts, invoices, health insurance statements, bank transfers and expense tracking (such as a spreadsheet). You are allowed to keep electronic copies–I recommend setting up a few folders in Windows to track each item. If needed, you can then upload those to our secure portal if you would like help filling out your application.


The spirit behind the SBA’s Guidance is that they do not want an employer to be penalized on loan forgiveness as a result of an employee’s actions or requests.

How will PPE expenses affect your practice? Check out this exclusive report –May 18, 2020

As practices reopen, Covid-19 precautions are resulting in new expenses.  How will PPE costs affect your practice?  Kate Willeford conducted a survey of 300 practices and has summarized her findings in a new white paper.


Reopen Yet? Latest Updates While You Work– May 6, 2020

We have a lot of updates for you today, so grab a cup of coffee, and let us help you plan your reopen!

Welcome back, if you are seeing patients today! Many of our clients either opened last Friday or this Monday. Nearly all of the rest of them, except for those in CA and a few other states, are planning on opening by May 15th.

Getting enough PPE and preparing for the new OSHA guidelines continue to be of concern while discussing each employee’s plans to return to work. Both the Federal and State governments have set the expectation that employees will no longer receive unemployment if they decline a job offer that was made in writing.  If you’re having trouble sourcing PPE for your team, check with your state governments. Several states have created PPE banks to assist small businesses with supplies.


Do we have the new SBA guidance yet?

We’re receiving guidance (in the form of FAQs) from the SBA about twice a week, yet almost none of the information relates to loan forgiveness. Over the weekend, the AICPA pushed the Department of the Treasury to release all guidance on forgiveness, as it is now urgent for businesses to know the rules.

Additional info is also available in my interview with the Golden Proportions newsletter.

The one new piece of SBA guidance related to loan forgiveness is that rehiring 75% of your team will not be affected by employees choosing to leave your employment.



Will a borrower’s PPP loan forgiveness amount be reduced if the borrower laid off an employee, offered to rehire the same employee, but the employee declined the offer?

No. The SBA and Treasury intend to issue an interim final rule excluding laid-off employees whom the borrower offered to rehire (for the same salary/wages and the same number of hours) from the CARES Act’s loan forgiveness reduction calculation. To qualify for this exception, the borrower must have made a good faith, written offer of rehire, and the employee’s rejection of that offer must be documented by the borrower.

If an employee turns down a job offer, will they lose unemployment?

Employees and employers should be aware that employees who reject offers of re-employment may forfeit eligibility for continued unemployment compensation. They will also lose unemployment pay once paid more than the State cap, which is $300 on average.

I’ve reopened. What should I spend the EIDL or PPP money on right now?

You should start spending the PPP money if you are open. Even though we do not have full SBA guidance on the specifics of spending, we know enough of the key rules for you to start using it. It is the businesses that are still closed that are hoping, by waiting, they will have some flexibility with the 8-week spending requirement. As of today, you must:


  • Spend 75% of the PPP money on “payroll-related expenses.”
  • Understand that “Payroll-related” includes only: Gross Wages + State Unemployment Tax + Local Taxes (rare to have) + employer-paid portion of group health insurance + matching portion of retirement plan deferral.
  • Spend 25% of the PPP money on other overhead. This includes only: rent or mortgage interest + utilities such as internet, telephone, electricity, water. Clients, please contact us for a link to our spreadsheet to keep track of the expenses so you can file for loan forgiveness 60 days after the end of the 8-week period.
  • Know that the maximum pay, out of PPP funds, to Doctors usually paid more than $100K? $15,384.61 during the 8-week period. This is pay for 56 days, not two full months.
  • Keep employee pay at least 75% of regular pay.


When do I receive my EIDL loan approval letter?

Some applicants received an email this weekend stating that the SBA is experiencing delays and will give them loan information as their loan is processed. There is not a reliable way to check on the status, so please keep an eye out for SBA emails in your inbox.

May I use EIDL or PPP money to pay for PPE, supplies & lab bills?

You may only use the EIDL money to pay for those expenses.

How do I code PPP paid expenses?

In order to keep accurate records of your Overhead, I recommend using the same Wage and Supply codes as the ones you normally use. Because you would only need PPP Wage codes for an 8-week period of time on your P&L, it is more efficient to use existing codes. If the expenses become non-deductible, we will use a Contra account to reduce the expenses in one line-item, in each section of your Financials, so that you continue to see your true Overhead by Wage type. New PPE may be coded to the new expense code we have set up in your QB file.  If you do not know the code, ask your Staff Accountant for it.


8-Week Forgiveness Window for PPP Spending: The Latest Update

Even the NY Times is talking about the problem with small businesses and the 8-week window for spending. The consensus across business industries is the desire for Congress to start the 8-week window of spending from the date the State allows your business to open, not the date you received the money.


PPP Expenses: Not Tax Deductible?


On Friday, the IRS issued guidance stating you cannot take a tax deduction for the portion of the PPP money you spend on expenses that will be forgiven. (This does not apply to the entire loan–just the forgiven portion, which is what we’ve expected all along.)

What’s the rationale behind not allowing dentists to take a tax deduction on the portion of the PPP loan that’s forgiven?

It is because you aren’t being taxed on the PPP money when you receive it.


Will this change?

It may. The AICPA has taken the position that, while the IRS is being consistent with prior Codes, they believe the intent of Congress was different—no taxable income but also allow businesses to take the deduction. It’s unclear how successful the AICPA will be on getting the IRS to change their guidance, but we are hoping for legislative action next week.


PPE Costs for the Practice

DSOs estimate PPE will cost them about $4 per patient. At a Non-DSO practice, we believe your costs are probably closer to $8-10 per patient. Using the ADA recommended code D1999, when billing for this cost, may allow you to be reimbursed by the insurance company.

The insurance company may offer reimbursement for up to 2 months.


Do You Know Your New BAM, or Break-Even, for Reopening?

Proactively planning the collections and loan proceeds you will need to use for the next month will be a key to success.

The BAM or “Break-Even” of your business is the amount of cash you need in your bank account to cover both fixed and variable expenses.

Our most profitable clients hire us to calculate this for the business at least once a year as they set their production, collections, and bonus goals. Right now, many dentists are bringing the team back on different work schedules, which will affect the Break-Even. In addition, there are the added costs of PPE and expenses that vary based on the number of patients seen (e.g., supplies and lab bills).

Clients, please contact us for a link if you would like to download our Break-Even spreadsheet to calculate your new, estimated Break-Even. In addition, we’ve created tabs so you may calculate: 2019’s Break-Even as well as 1st Quarter’s trend. (To view correctly, click on “click to enable editing”).

Would you prefer to have some help with this? Have no fear, we are here! To help you with your reopening, we will offer this as a complimentary service during the month of May. Simply email us, and we’ll ask you for updated overhead figures.


Conversation About Returning to “Business as Usual” with Janice Hurley on May 8


Grab a cup of coffee (or your favorite drink to enjoy), and call in to discuss trending topics with Kate and your colleagues. At this next session, Kate will interview Janice Hurley, Dentistry’s Image Expert, to discuss ways to position yourself and your practice for optimal results when we’re back to “business as usual.”

Our clients-only “Coffee with Kate” series is a great way for you to ask Kate any questions you have and to discuss ideas with her and your colleagues, much like being at a virtual coffeehouse with your friends. There’s no boring PowerPoint or set script we must follow!

The next session takes place this Friday, May 8 at 11 AM ET/10 AM CT/9 AM MT/8 AM PT.


Would you like to send your questions in advance to make sure they get answered? Email them to by this Thursday, May 7.  Clients, contact our office to register for this event,

About Janice

Janice Hurley, Dentistry’s Image Expert,  aids dentists and their teams in implementing the practices necessary to achieve success with each other and their patients.

Learn more by visiting

Janice Hurley is known as Dentistry’s Image Expert. She has more than 25 years of experience as a dental consultant, helping professionals use the tools they have to gain higher treatment acceptance and attract quality patients.   Janice is an international author and speaker on what it takes to project professional excellence and confidence so that others feel it INSTANTLY.  She is frequently asked to speak at dentistry’s top conferences as well as for Seattle Study Club groups and local dental societies. As a speaker, she is engaging, knowledgeable, and receives excellent audience and host reviews.


For the past 12 years, Janice has also been recognized by Dental Economics as a Leading Continued Education Provider. Additionally, she has been a contributing author to Dentistry’s major publications and textbooks for hygiene.


Projected Revenue Trends?

Did you listen to the ADA webinar that showed multiple revenue models from top analysts? Interestingly, the projections varied widely from one analyst to the next. I believe the revenue effects from the Coronavirus Closure will also vary depending on the density of your town and the number of cases you had. Some rural practices have only seen a slight decline in production and had such few cases that they are open today to a full schedule of patients.

Other practices have been closed, except for emergencies, yet plan on opening soon with extended hours and added Saturdays as patients are ready to be seen. And, of course, others must remain closed for another month. The good news is that most practices had the highest income in the 1st Quarter that we have seen in the last 10 years, so that creates hope for a rebound.

Key points to consider are:

  • It may take up to 5 years to catch up to 1st Quarter, 2020
  • Some models suggest we will find that 2nd Quarter will result in a decline in revenue of up to 80%
  • For the rest of the year, we may see a decline in revenue of 27-52%
  • Next year, there will possibly a decline of 7%

In what ways can you rebound faster? Focus on fixing issues you already knew existed, such as hygiene profitability, case acceptance, recare appointments, and patient relationships. Create a way to make dentistry even more affordable for those with job or insurance changes. While it is difficult to spend money in a crisis, investing in the right practice management consultant, marketing and systems will create well-needed growth.   Finally, use your social media to let patients and potential patients know what you are doing to make your office safe for patients.  Many elderly people are forgoing necessary care out of fear of the virus.  Be proactive, reach out, and let them know that you’re committed to keeping them safe and healthy.

New Loan Program from the SBA

Another new loan is coming. Details have been announced on the “Main Street Lending Program.”

The “Main Street Loans” will now have a minimum of $500K (instead of $1M) and will be a 4-year loan with interest rates expected to be between 2.5% to 4%. There are no details yet on when you can apply, but we know you will apply directly through a bank and that interest & payments will be deferred for 1 year. We’ll keep you posted!


Answers to Common Questions about the Coronavirus Crisis


When will my employees stop receiving unemployment?

This varies by state and some states, such as GA, just increased the wage cap from $55 to $300 yesterday. Your employees will no longer receive unemployment benefits once you pay them more, in a week, than the cap set by the State. Once they no longer receive the State unemployment, they will no longer receive the extra weekly $600 that has been provided from Federal funds.

I’m opening in the next week! May I go ahead and spend the EIDL or PPP money? Yes, if you need to spend it then go ahead. Even though we are awaiting regulations for forgiveness and the hopes of a delayed 8-week period, the details of those are primarily a concern for dentists who cannot see patients in the next 2 weeks. If you continue to follow our spreadsheets, you will be following the most current rules and expectations.

What is the best way to pay my Associates if they normally paid on Collections? Consider treating the Associates as you would have if they were just joining the practice as a new Associate. Meaning, consider using a Draw as part of the pay. Particularly if you are aiming for full loan forgiveness, you will need to pay them as much as you can.

Here’s how to calculate their pay:


  • Pay the Associate the amount they have actually earned, with the expectation that you will collect at your typical rate of collection.
  • The ideal collection rate is 98% of Net Production but yours may be lower so use the lower percentage when appropriate.
  • Once you collect the money, if you underpaid the Associate pay them the difference.
  • If the above pay level is not the maximum allowable that could be paid to them, consider paying the maximum and using a Draw concept to reduce future pay by the excess Draw they have just taken.
  • Rules may be put in place to disallow this; however, right now it is possible. Keep track of the additional pay
  • This could be either a Bonus or called a Draw that is used to reduce future pay on Collections.
  • Please remember that the maximum allowable pay to the Associate is not the full $8,333 per month because an 8 week period of time is only 56 days and not 2 full months. Thus, the maximum you can pay each person who normally receives over $100K is $15,384.61 for the entire 8-week period



Have You Considered Membership Plans?


If you are not yet using a Membership Plan for your patients or need to redesign the one you have, I recommend considering this as one of the best ways to increase revenue in your practice.

Two companies that continue to rise to the top are Kleer and Boom Cloud and there are many others. Now is an excellent time to attend some of their webinars and learn how you can use this as a tool to combat patients having lost their insurance during closure and/or not having as much money to pay for procedures they need.


Additional Funding Bill Passed:    Some Banks Start Processing Tomorrow -April 23, 2020

The House and the Senate have both passed an additional funding bill to supplement the money already distributed by the SBA.


Bill Expected to be Signed Tonight

Both Senate and House have voted to approve additional funds for both the EIDL and the PPP loans. The $484B bill is expected to be signed into law later this evening.


  • $310B is for PPP loans


  • $60B of that will be loaned from medium, small & community lenders


  • $60B is for EIDL loans


  • $75B is for hospitals & healthcare providers


  • $25B to accelerate testing


Which Bank Should I Use?


The SBA just released a list of eligible lenders by State.

Click here to find a bank in your area.

Some banks will start processing applications tomorrow & we expect funding to run out within days. If you want to apply for funds, plan on filing as soon as possible.


When Is SBA Guidance Coming?

As far as we know, the SBA still has the deadline of Monday to release specific guidelines on spending the PPP money.

Three points of clarification were offered last night; however, they mostly pertained to extremely large businesses and their options for other liquidity.


Spreadsheet to Track PPP Spending

Have you downloaded the Excel spreadsheet we sent our clients last Thursday? Clients can use it to track the amount of money you have remaining to spend for the 75% of “payroll-related costs” and 25% for other costs.  If you need it resent, contact us!

Of course, as any regulations change, we will continue to let our clients know.

Please stay well and enjoy your family as you prepare for a strong comeback with your business!


What is the Latest PPP & Dental Business News? – April 23, 2020

Prepare PPP Application While Awaiting Vote & Guidance

The date for refilling PPP funds is still up in the air, but if you haven’t already applied, you should be working on your application now.   Some banks are also accepting applications while they await the increased funding, so check with your lender.

Upcoming Vote on Additional PPP Funds; SBA Guidance Coming

We expect the House to vote no earlier than this afternoon on adding $310B in PPP funds. It a appears that the House is in alignment with the Senate, so we don’t expect the dollar amount to change. The President may sign the bill into law as early as Friday.

SBA Guidance Due Monday

The CARES Act gave the SBA until Monday to offer specific guidelines on ways you must spend the PPP money for the loan to be forgiven. Until released, we continue to recommend you wait to spend both the EIDL and PPP money.


Is This the Last Round of PPP Funding?

Yes, it may be. If you wish to apply for PPP money, I recommend applying in this round because it is possible that there will not be a third round of funding.

Treasury Secretary Mnuchin has stated he expects no more rounds of funding; however, we know more funding is needed to support small businesses.

Senate Majority Leader, Mitch McConnell, is pushing to delay negotiations on another stimulus Bill until after May 4, citing concerns about the national debt–that Bill is not yet expected to include PPP funds.


Can Your Bank Process Your PPP Application?

Make sure to read all emails from your bank if you have an existing loan application with them. Today, Bank of the West said anyone who applied after April 8 will not get funding due to the cap they will have on funding. Bank of America should have sent all email updates by late last night.

Complete your application now and submit it so you are in the queue for the next round of funding. Expect funds to run out extremely quickly as many banks already have more applications than they will be able to process.



Financial Resources Relief Map

Do you wonder if unique funds, such as Facebook Grants or local disaster relief, are available in your State? EAssist has put together a comprehensive guide that lists many website resources in one convenient place, including unemployment websites.


Latest ADCPA Podcast:

PPP Update with ADA Congressional Lobbyist & Our ADCPA President


In this episode, 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.


Leadership In the Time of COVID-19


The neuroscience of leadership can serve you well as you help your team prepare for reopening. Golden Proportions Marketing shares ways to incorporate Dr. David Rock’s SCARF model into your leadership style. Learn how important Status, Certainity, Autonomy, Relatedness & Fairness is to your team as you focus your leadership skills.


Have You Been Denied a Claim Made Against Your Business Interruption Insurance?


Weeks ago, I started recommending that you file a claim against your policy so you could have a denial on the record if future legislation would address this issue.

A dental attorney in Seattle is actively pursuing the start of a Class Action Lawsuit. He is interested in talking with anyone who has been denied, concerned they may be, or is unsure about making a claim. If interested, you may reach out to John Oldach at or (805) 364-4590.


We’re All in This Together – April 20, 2020


The Willeford Group, and our colleagues in the industry, are here to help you get your practice up and running when our state reopens.

Update on CARES Act Loans & Tax Credits – April 11, 2020

EIDL Loan Grant Changed

The SBA has changed the program. The maximum is now $1K per employee, not the flat $10K as promised in the CARES Act. In addition, initial loan disbursements will be capped at $15K per applicant, rather than up to the $2M initially approved. Emails are starting to go out from the SBA, so be on the lookout. At this point in time, money is not expected to be dispersed for at least a week. The changes were made due to the overwhelming demand for the grants.


Estimated Tax Payments

The IRS has now extended the deadline for BOTH 1st and 2nd Quarter Estimated Payments to July 15th.


PPP Money Loaned Thus Far


The SBA estimates they have loaned about $140B of the $325B allocated for the PPP loans. Congress is expected to eventually increase the funding by another $250B but is not supposed to be back in session until April 20th. Yesterday’s interim vote failed, but it is possible they will vote again next week.


Employee Retention Tax Credit

You are not eligible for this credit if you use the PPP loan. To qualify, your collections must drop more than 50% compared to the same quarter in 2019. The maximum credit is the lesser of 50% of an employee’s pay or $5K for the year. In every case we’ve reviewed, the PPP money has the potential to save you more cash than this tax credit does.


File for PPP Now or Wait?


Our office is receiving a lot of questions from clients about when to apply for a Paycheck Protection Program Loan. We understand this is the most critical question every practice has at the moment.


Read through your options here.


How May I Use My PPP Loan?

If you accept the money now, I recommend waiting at least a week to spend it with the hopes we have SBA guidance by then. For forgiveness, only 25% may be spent on non-payroll expenses. Thus, be careful to save enough money for employee payroll & benefits. The SBA has not released specifics on the pending terms, but we will share the news with you as soon as we have it.

Stimulus Checks Sent!

Many people have received the stimulus checks which are $1,200 per adult + $500 per child, for households earning up to $75K Single & $150K Married, with a gradual phase-out up to $99K Single; $198K Married. Payments are sent via direct deposit if you use that for your tax returns when you file them.




New SBA Guidance: Should Fund Within 10 Days – April 8, 2020

New SBA guidance has just come out requiring banks to fund the PPP loan within 10 days of approval. This definitely has an impact on when you may want to apply.

Most banks are sharing that you can decline the loan and then reapply. Or, you can ask the bank to hold your application. And, of course, you can just wait to apply.

It appears the Senate will vote this Thursday on adding $250B to the PPP loan program and it is expected that will make the funding last until at least April 20th.

Should I Continue to Apply Now or Wait?

Our office is receiving a lot of questions from clients about when to apply for a Paycheck Protection Program Loan. We understand this is the most critical question every practice has at the moment.

Unfortunately, we won’t know until July what would have been the best answer and you need to make a decision well before then. We want to communicate our thought process to help you make the best decision for your practice.

You have a business decision to make and that can be stressful, which is why we suggest reading through the options and worst case scenarios below.

There is no right or wrong answer, the outcome is based on factors outside your control (when you can reopen and when the program’s money runs out). Because you can’t control those factors, you just need to make a decision that you feel is best and know that all options were reasonable.

The terms of the PPP loan are excellent: 1%, 2 year term, no payments for 6 months. Prior to the pandemic, this is a loan we would have gladly accepted for working capital.

Thus, keep in mind that even if you only receive loan forgiveness for a portion of the loan (once you rehire the team), you benefit from having access to a very low interest rate loan that you can wait to pay back.


Option 1: Apply now for a PPP loan, possibly get the money within a week, and spend it during the next 8 weeks. That’s great and it works, but if the origination date is 4/10, by 6/5 the 8 weeks have expired and you will need to have full payroll by 6/30–even if there isn’t work for employees  — to obtain loan forgiveness. That works if you are open anyway when the 8 weeks expires.  The only downside is you’ll be paying people not to work at some point during that 8 weeks.


Option 2: Wait to apply for a PPP loan and apply closer to when you are about to reopen. This is the ideal situation, but there is a risk that the funds could run out by then. There are $349 billion, with another $250B hopefully added, in funds available for this program, but it could run out. No one knows if the funds will last or when they will be replenished. If you wait and the don’t get a PPP loan, the consolation prize is you might be eligible for a tax credit of 50% of wages paid in Q2, up to $5,000 per employee. The details of that are complicated but , we can help you navigate that if you will need it.


What is the Worst Case Scenario?

Option 1:  You get the funds in a week, you spend the funds on eligible costs during the 8 week forgiveness period that ends in June, but then you need to pay people at the end of June even if you are not open. Your cost will be the expense in those weeks after the loan runs out, but hopefully you have built some goodwill with your employees.

Option 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.

Option 3: You wait for the loan and it isn’t available when you need it. You look into taking the federal credit against wages.

None of those scenarios are terrible – they just aren’t as ideal as having 8 weeks of payroll covered when you could use your team to produce revenue.

So What Do I Do?

Because the factors are out of everyone’s control, the decision is a personal one that only you can make. Now that you know more about the options, you might choose to base this decision on your financial stability, desire to take on debt, and your tolerance for risk.

More Webinars Coming Soon!

Benco Webinar: This Thursday 3 EST. I’ll be sharing the latest information about the loans as well as other ways to strategize maximizing your $$$. I’ll be joined by Tim Twigg of Bent Ericksen as he discusses the latest HR issues.

Virtual Study Clubs: Dentists have really enjoyed the private Q&A sessions that we are offering for clients and their study clubs. Simply email to book one!

Have a topic you would like covered in Coffee With Kate? We welcome your suggestions!

How else may we help?

We’re here for you! For the fastest response, please email us with your specific questions, and we’ll respond as soon as we can.

UPDATE: File SBA 7(a)/PPP Application Soon  – April 3, 2020

We’re updating our recommendations on some of the small business relief available under the CARES act.   After talking to multiple bankers and the SBA, you should plan to file by Monday, April 6.

Why the change?

  • New info! It appears that you will be able to wait to accept the funds for up to 4 months after being approved.  Note: This is not guaranteed, but we’ve got enough of a consensus from bank CEOs to make it worth filing ASAP.


  • If this continues to be true, it gives you the flexibility I want you to have to spend the money during the best 8 week period of time for your practice.


  • Funds are expected to run out, and we cannot expect the $349B to be increased with enough certainty to tell you to wait.

Can you fill out the application right now?

  • No, you can’t. The SBA application has already changed 4 times in the last 18 hours, and continues to change. You will need to get the correct application from your bank.


  • Your goal right now is to gather the documents we’ve recommended that you have on hand so you are ready to fill out the application once it is final.


  • I’m hearing mixed things from bankers–some say each bank will have its own, unique application while others expect the SBA to give them a master application sometime today.


Calculating Payroll Costs for Application


  • Your payroll company may be able to give you a spreadsheet–both ADP and Paychex now have a report you can download. However, until the SBA gives more guidance, this report may be incorrect for the purposed of your application.


  • We will also give your clients a spreadsheet that they may use, once we have the final guidance from the SBA


  • As you know, the loan maximum is based on this calculation of payroll costs.

We sent our clients instructions via email yesterday. If you need us to resend those instructions, please contact us.

We’ll Have a Live Webinar Soon to Help!

Once she has the final SBA guidance and application forms, Kate will host a live webinar for clients to walk you through filling out the application.  Watch your email for information about this free, live webinar! We’re dedicated to helping our clients weather this crisis, and we are here to answer your questions and help you get the aid that you’re entitled to!








Willeford Group’s “COVID Care Club” – April 2, 2020

New! Join Our “COVID Care Club.”

On April 1, we began billing at our usual rates for the time and expertise related to the pandemic. While we have offered our clients a complimentary service until now, this situation will continue for many weeks and perhaps for months.

For many of you, we realize the challenges of COVID-19 are foremost on your mind. Want priority service? Join our new “COVID Care Club.”

A COVID Care Club membership of $300 tells us you want those questions, including help with SBA loan services, answered ASAP.  We’ll prioritize your Coronavirus-related questions.

Ready to sign up today? Contact Greg at grege@twgcpas or (770-246-2248).

How else can we help?

We’re here for you! For the fastest response, please email us with your specific questions, and we’ll respond as soon as we can.


SBA 7(a)/PPP Loan Applications -Updated Guidance for Your Practice, April 2, 2020

Consider waiting to file your SBA 7(a) PPA Loan Applications!


Yes, you may now begin applying on Friday and can even start filling out the application now.   However, based on new guidance that came out last night, we recommend you consider waiting to file.


The timing of when to apply is going to be a difficult decision to make.  Factors to consider are:

  • When you believe you may be able to reopen.
  • When the 8-week period of time for spending the money will be most beneficial to your practice.
  • When you plan to rehire your employees.

We will be discussing these considerations on today’s webinar, and we’re talking to CEOs of banks to have more information for you soon.

In the meantime, if you are anxious to fill out the application, please contact us for updated instructions based on the new guidance.

Note: We are awaiting more guidance from the banks on a few items, so you may need to edit your application before filing.


Additional Tip for Tracking Loan Funds

We recommend that each business set up a separate bank account for the PPP and EIDL loan proceeds. This money should only be used for the eligible expenses covered under each loan.




Money In, Money Out: COVID-19 Relief, April 1, 2020

This morning, Kate Willeford, CPA, recorded a special edition of the Money In, Money Out Podcast. It’s No April Fools: Covid-19 Relief Money covers what small business owners need to know about the loans and grants available under the CARES act, and will take you through the steps your business needs to take today.

The Podcast page also includes a link to the forms for PPL relief.

Take some time to listen to this excellent episode.  Your practice can weather this crisis, but you need to act now.

CARES Act and SBA Loans: Action Plan Update — March 29, 2020

Hopefully, you are spending time with family and relaxing as much as possible this weekend!


Yesterday, I spent hours of multiple conference calls with my Academy of Dental CPAs colleagues, ADA legislators, and HR attorneys. There is a lot of misinformation going around and I can assure you that I’m staying at the forefront of the latest interpretations and legislative expectations so that you always have the most up-to-date information.



In fact, in conjunction with the ADA and some of my ADCPA colleagues, today I have co-written an interpretation of the CARES Act that will be published by the ADA and sent to their members very soon.


Please remember it will take at least 2-3 weeks for the Dept. of Labor, IRS, and others to create regulations for the new CARES Act.



I will have more details to share with you next week; however, I know you may be concerned about whether you should take any action this weekend. Thus, this is a brief update to help you stay focused on the actual facts and the steps you can take this weekend to help your personal and business cash flow.



Immediate Action Plan
  • Apply for the EIDL Loan. If you haven’t yet filed for this, I’m still recommending that you do it. Ignore the rumors that you can’t apply for this and the 7(a) loan because that is misinformation!   Clients, contact us for our new checklist & FAQs sheet!
  • Prepare to apply for the new CARES Act SBA 7(a) Loan. You cannot yet apply for this, but you can start gathering documents. Banks estimate that you won’t be able to apply for at least a week, but the SBA is allowed to take up to 15 days to implement this program,  also called a PPP Loan.  Clients, contact us for our new checklist & FAQs sheet!
  •  Plan your cash flow. Use the weekly, 3-month spreadsheet we sent out a week ago.  Clients, contact us for our spreadsheet!
  • Use our Emergency Solutions Spreadsheet. We sent this out a few days ago  Clients, contact us for our spreadsheet!
  • Start filing for partial unemployment for your employees. Due to new aspects of the CARES Act, I still recommend this for nearly all dentists. You do NOT need to lay off your team to receive this assistance.


Have HR Questions?


If so, stay tuned! We will host a third Coffee With Kate with another HR attorney, Ali Oromchian, this week.


Dept. of Labor clarifications came out on Thursday and some HR attorneys now believe that you may be exempt from paying the extended FMLA wages in HR 6201 if your office is required to be closed.


For HR questions, I recommend you call an HR attorney. At this stage of the Coronavirus situation, nearly all HR questions are now more legal in nature than accounting/tax-related.


My team and I are working very long hours to stay on top of what you need to know and we’ll continue to update this site, as well as to send updates to current clients via email.


We’re here for you!  For the fastest response time, please email me or my team with your specific question and we’ll respond as soon as we can.


Hope you and your family stay healthy,

EIDL Loan Application Checklist — March 28, 2020

Our team has developed this checklist to help our clients who are applying for EIDL aid.    Remember, if you haven’t applied yet, apply this weekend. This is valuable aid for you practice.

20 EIDL Application Checklist

(*Note to clients  – To get a clickable version of the checklist, please contact us! *)


Stay Tuned for More News on the CARES Act! – March 28, 2020

More information on the CARE act is on the way.  Right now, our team is working to help our clients apply for the benefits that this act has opened up for dental practices and families.  This is especially important since many states have eliminated all non-emergency visits for the foreseeable future.

If you have not yet applied for the EIDL loan, we recommend doing that this weekend. 


Kate is meeting with the ADCPA and 2 ADA legislators as we speak and has confirmed you should also plan on applying for the SBA 7(a) loan once it becomes available in the next 2 weeks.


For Current Clients Only: Coffee with Kate on Thursday March 26 – March 24, 2020

The Coffee with Kate program originally scheduled for tomorrow has been moved to Thursday so that we can discuss the final version of the CARES act.  Please check you email for the flyer (labeled with the originally scheduled date) so that you can register to attend this free, client-only webinar and get your Coronavirus-related HR questions answered.




Highlights from the Senate “CARES” Act, Which Has Not Yet Passed the House – March 24, 2020

This is very preliminary information, and is meant to give you a better idea of what MAY pass the House this evening.  Please use this only as general guidance–we will send an update with all the specifics once the Bill has officially passed Congress. And, keep in mind, ALL of these terms are subject to change prior to a final vote. The CARES Act stands for “Coronavirus Aid, Relief and Economic Security” Act.


Senate Bill Highlights: Current Version


SBA 7(a) Loan Program


  • You will be able to apply for an SBA loan 7(a) loan through banks and avoid filing directly through the SBA .  Fees are waived


  • This loan will cover expenses back to March 1st and through Dec. 31st


  • It is expected the loan will be forgiven if used for: payroll paid to employees who you do not lay off; mortgage payments; potentially other debt payments. There will be a process for requesting forgiveness for the loan given for the period of March 1 – June 30th. The amount forgiven will be reduced proportionally by the number of employees you laid off (going back to March 1st) relative to the prior employment levels.


  • Payments are deferred for 1 year


  • Maximum loan will be $1M for the Express Loan until December.


  • You will not be able to apply for this loan if you already receive funding from an SBA Economic Injury Disaster Loan (EIDL)


Are you wondering which banks offer this type financing? Affinity Bank, Bank of America, Wells Fargo and many others. Click here for a list.


Checks Sent to Individuals


  • There will be recovery checks of up to $1,200 per taxpayer plus $500 per child in household.


  • The checks are reduced for higher-income taxpayers: phase-out begins for Single tax filer with income above $75K & for Married Filing Joint income greater than $150K.


  • The income used for calculation is your income on the 2018 tax return.


  • The check is completely phased out for workers earning more than $99K Individual & $198K Joint.


Delay of Tax Deadlines


  • The April 15th deadline for filing and tax payments is moved to July 15.


  • Quarterly Estimated Tax Payments with be delayed to Oct. 15 for 1st and 2nd Quarter Payments.


  • C Corporations may postpone Estimated Tax Payments to Oct. 15th.


Special Use of Retirement Funds


  • The Senate bill removes the 10% early withdrawal penalty for virus-related distributions of up to $100K from a Qualified retirement plan (401k plans, for example)


  • Taxes on that distribution may be paid over the next 3 years.


  • The bill expands the distributions to include virus-related issues such as being laid off, furloughed and lack of work due to child care issues.


Payroll-Related Issues


  • Employers may choose to defer payment of the employer share of the Social Security tax.


  • This payment may be deferred for up to 2 years in this way: a) first half due 12/31/21 b) second half due 12/31/22


  • Again, part of an SBA loan may be forgiven for payroll.


Have More HR Questions?


If so, stay tuned! We will host a second Coffee With Kate with another HR attorney this Thursday.  This is a client-only Webinar.


Are You Communicating Well Enough With Patients? during the Shutdown?


My most successful clients are spending a significant amount of time recording Doctor video messages for patients and posting them on social media. They are still paying their team to call patients and they are posting about ways in which they are cleaning the office to be a safe haven for patients upon their return.

I highly recommend Rita Zamora as a resource:

We’re here for you!  Please call us at the office or my cell is 770-265-7729.


What Features Could the Final SBA Relief Bill Offer for Practices Like Yours? – March 23, 2020

Congress’ SBA Loan Relief Program may end up offering:

  • Aid retroactive to March 1st
  • Use of SBA 7(a) loans while forgiving the portion used to cover payroll and payments on pre-existing debt— but for only employees retained after March 1
  • A loan amount that is  tied to owner’s overhead

You will not be allowed to also receive SBA Econ Injury Disaster (EID) Loan if you use this program.

Weekly Cash Flow Planning Solution and Relief Updates – March 22, 2020

My team and I are working very long hours to stay on top of what you need to know during this crisis.
In addition, we are completing Financial Statements and Tax Returns so you will be able to file for refunds or loans as soon as possible.
Also, we post quick updates on Facebook, Instagram, Linked In and Twitter so look us up there as well!


Short Term Cash Flow Planning Solutions


The most frequent questions I’m being asked these days all begin with “can I afford to pay…” followed by “how long can I afford that?”.  To help you be able to plan weekly cash flow for the next three months, we have a solution for you!  


* Contact us for a spreadsheet and instructions to plan your weekly cash flow. This service is complimentary–you don’t have to hire us for a billable project.
* To help even more during this crisis, we’ll be happy to answer a few questions about it — again, this service is complimentary for our regular clients!
* Of course, we’re also here for full budgeting and cash flow planning when you are ready.  Our most successful clients hire us for Profit Projection services and we update Projection to Actual each quarter so they may stay focused and achieve their income and savings goals.


Other Cash Flow Saving Recommendations

Review your retirement plan options:
  • Reach out to your Retirement Plan Administrator for options for your plan.
  • You may be able to “freeze” your retirement plan, but only before your employees work  1,000 hours for this year.
  • You may be able to consider a “partial termination” of your plan.
  • As I’ve mentioned in the past, you may be able to reduce the profit-sharing part of your 2019 contribution.
  • You may be able to make more modifications for the 2020 tax year.
File a claim with your insurance company:
  • Currently, your Business Overhead Insurance does not cover business interruption unless it is from a physical interruption, such as a hurricane.
  • That said, there is a movement to try and negotiate with the insurance companies and request that the virus pandemic be covered.
  • Because we do not yet know what coverage may be included by either the insurance companies or the government, I recommend filing a claim with your insurance company now.
  • While the insurance company will tell you that the claim is not covered, if the circumstances for eligibility change, I think it is wise to be able to prove that you filed a claim.


Have More HR Questions?


If so, stay tuned!  We will host a second Coffee With Kate with another HR attorney this Wednesday.


We’re waiting on the new relief bill to pass so that we’ll have updated information for you in the webinar.


What is Coming in the Next Relief Package?

The “Phase 3” package will be the one that is expected to include 2 sets of checks that will be sent directly to Americans beginning April 6 & May 18.  It may include:
  • The FMLA payroll tax credit passed this past week may be clarified to include money you have already paid employees, starting last week.  The IRS is expected to clarify the Bill by the end of this week.
  • Small businesses may be able to receive either a Grant or a Loan that will cover payroll and other overhead.
  • The next relief package is now expected to cover Americans for a 10-12 week window of time (the initial proposal was for only 6 weeks).
  • Checks may be sent to each American for $1,000 (plus $500 per child in household) if income is less than $75K for Individual tax filers & $150K for Married Filing Joint.  There is a phase-out, or reduced pay, for up to $99K Individual
We’re here for you!  Please call us at the office, or my cell is 770-265-7729.
Hope you and your family stay healthy,



SBA Loans, Tax Credit Update, and Paying Employees – March 21, 2020

Should I Apply for SBA Economic Disaster Loan?

I would recommend waiting a few days, if you haven’t filed yet.  Why?  


  •  Because better options may be coming when the “Phase 3” Relief Bill passes.
  • If you have owned a practice for more than 3 years, you would typically apply for an SBA loan as a last resort–you should use a regular bank loan first.
  • Nearly all banks are offering 3 months deferred payments.


Go to if you wish to apply.


What are the SBA loan Pros and Cons?


  • Loan will be for up to $2.0 million for a business applicant and all its affiliates.
  • Rates for businesses will be 3.75% fixed for 30 years.
  • All loans will have a repayment term of 30 years. Payments can be deferred for the first 12 months.
  • Smaller loans: the maximum loan amount will be 50% of gross profit from your last tax return. In other words off last year’s tax returns… Sales – Cost of Goods Sold = Gross Profit x 50% = Maximum Loan Amount.
  • Larger businesses will require additional documentation if they need more than $500,000.


  • All 20% or more owners will fully personally guaranty the loan– with collateral usually including your home and other personal assets.
  • Proceeds may be used for working capital for business expenses only, including supplies and materials, payroll, debt payments, utilities.
  • Timeline is expected to take less than a week for approval using the scoring system after a business applies directly online (they will use tax return transcripts as well to verify applications). They are targeting 30 days to close.
  • Businesses will be required to retain receipts and evidence of what they spent the proceeds on for a period of 3 years and may be subject to SBA Audit to insure only eligible business expenses were paid.


Should I Apply for a Line of Credit?


Yes, you should!  And, if you have an existing Line of Credit, go ahead and ask for a Distribution into your business bank account.

Today, we helped a client cut their interest rate in HALF when a bank quoted 9.9% for a LOC and we were able to share what the competitors are offering!  Read below for the current loan trends but, for Lines of Credit, I’m seeing no more than 4.5%.

Affinity Bank, for example, is offering a $50K LOC for existing clients.  They approve you within 1 day and close within 2 weeks.


Should I Ask about a Deferment on My Loan Payment?


Yes, you should.  Nearly all banks are offering a 3-month deferment right now.  Make sure to ask how the bank will handle the interest for the deferment period and only use it if needed.


Should My Employees (or I) File for Unemployment?

Hopefully, that will not be necessary.  If you have enough saved for income reductions and/or can use a Line of Credit or loan personal money to the practice, etc. then you should not need to have your employees file for Unemployment.   The goal of the Families First Act (passed day before yesterday) is for you to be able to pay your team for office closure while being made whole through refundable tax credits to your Payroll Tax Deposit.


Our last Newsletter covered this topic and we hope for even more assistance in the next Bill that is going through Congress.


If you or your employees have already filed, that is fine and you can potentially pay them more after mid-April by paying them under the new rules.


What is Coming in the Next Relief Package?


The “Phase 3” package will be the one that is expected to include 2 sets of checks that will be sent directly to Americans beginning April 6 & May 18.  It may include:

  • A payroll loan that may be for 100% of 6 weeks of payroll, capped at $1,540/week
  • Checks to each American for $1,000 (plus $500 per child in household) if their income is less than $75K for Individual tax filers & $150K for Married Filing Jointly.  There is a phase-out, or reduced pay, for up to $99K Individual.


Loan Payment Relief Comparisons


We and our associate ADCPA members around the country ( ) are experiencing favorable results with lenders in regard to the current closures being recommended in the dental industry. Don’t make assumptions, but contact your lender and get an agreement in place with them. Here are some specific examples of what we are seeing:

* Affinity Bank – 60-day deferral of payments + 1-day turn around for a line of credit

* BOA – 90-day interest-only + line of credit

* BBVA Compass – 60-day deferral of payments + line of credit

* Prosperity Bank – 60-day deferral of payments + line of credit

* Chase – 60-day deferral of payments or interest-only for 60 days + line of credit

* Wells Fargo – 3-month deferment

* PNC – Interest-only 90 days & possible 90-day total deferment

* PNC – 60-day deferment

* South State – Interest-only 120 days

* First Citizens – No payments for 60 days


We’re here for you!  Please call us at the office, or Kate’s cell is 770-265-7729.

We hope you, your family, and your team stay healthy, and we’re here to address all your concerns.



Personal Tax Deadlines Have Been Extended Due to Coronavirus – March 20, 2020

Good news from the Department of the Treasury for you and your team:

It’s official!  The personal tax filing deadline has now been extended to July 15th!

As a reminder, tax payments will not be due until then–including Quarterly Estimated Tax Payments for 2020. If you wait to pay, you will not accrue any penalties or interest!

This should provide some much-needed relief and peace of mind for our clients and their teams.

Also, stay tuned – later today Kate will give you important information on SBA loans so that you can keep your practice solvent in the face of shutdowns.

Remember, if you have any questions, the Willeford Group team is here for you and your practice!

The Families First Act and You – March 19, 2020

Did you know? The Families First Act was signed last night.

Here are a few things about this legislation that affect you, your tax planning, and your team:

  • Leave money paid is NOT going to be considered compensation for the 6.2% social security tax.
  • Thus, dentist owners will NOT be required to pay a matching contribution for that portion of the leave money.
  • The first 10 days of FMLA Leave after April 2 are NOT required to be paid, but employees may elect to use accrued PTO for those days.
  • Employers WILL receive a tax credit equal to 100% of Leave pay. Maximums exist, depending on the type of Leave.
  • The tax credit is a refundable tax credit that offsets your payroll tax deposit.
  • A hardship exemption for businesses with fewer than 50 employees is NOT a given yet, but the ADA is actively fighting for that exemption.
  • The Response Act is in effect until Dec. 31

Right now, the COVID-19 situation is changing hourly, as Federal and State governments work to come up with solutions to keep small businesses and their employees afloat during the crisis.  The Willeford team is tracking legislation that affects our clients and their financial situations.  Stay tuned for more updates!


Coffee with Kate– Coronavirus Edition – March 18, 2020

Willeford Group Clients! Check your email or your member portal for a link to the latest Coffee with Kate.  This episode is essential for helping your practice weather the coming weeks and months.  Remember, our team is here to answer your questions and help you plan for issues related to COVID-19.

The Coronavirus Twilight Zone – March 18, 2020

“… You’ve just crossed over into the Twilight Zone…”

Much has changed since Susan & Kate talked last week. This week, many dental practices are being requested to shut down. What are the things they need to consider in shutting down?

In regards to the practice, here are a few things to consider. And as a bonus, here are a few things to consider personally.

The latest episode of Money In, Money Out is available to everyone: clients and the merely curious.

Check out the latest episode here,  and click here for a PDF checklist of things to do before you put your practice on a COVID-19 Hiatus.

Cash Relief Coming: Passed House & Awaiting Senate– March 15, 2020

Cash flow relief, for paying employees, is on the way!  My team and I are closely following this Bill and will definitely send you the final facts once the bill has been signed by the Senate.


So that you may plan for the week ahead, while we await the Senate returning to session to vote on the bill that passed the House, here is the latest version:


  • As an employer, if you need to pay your employees for sick leave, you would receive a tax credit against the Quarterly payroll taxes you pay.  Meaning, you would not receive a check for the wages right away; rather, you would receive a reduction of the payroll taxes you were supposed to pay for the Quarter
  • This tax credit will only cover wages paid to the employees for required coronavirus related sick leave.  In other words, the credit covers a portion of wages only if you had to pay the employee for this particular virus
  • Note that it is not yet known whether the Bill will make a distinction between whether the employee stayed home by choice or if you required the employee to stay home
  • The maximum tax credit is currently $7,156 per employee for the year
  • Hardship exemption: the tax credit covers employers with fewer than 500 employees and there will be exceptions, that have not yet been clarified, for small businesses that claim paying the employees is not possible because it creates an undue hardship on the employer.  Meaning, the House has left open the possibility that you will not be required to pay the employees, even though the tax credit will exist
  • April 15th deadline may be extended: we still expect this to occur; however, it is not a part of this Bill.  The administration is trying to determine it the decision requires the vote of Congress and, if extended, I expect it will be for a minimum of 3 months and you will not owe penalties or interest on any unpaid taxes paid after April 15th

Do you know your legal requirements as it relates to paying your employees for sick leave?  The rules vary by State and whether or not an employee is classified as an Exempt or Non-exempt employee.  I highly recommend reaching out to your HR Attorney to make sure you know the specifics for your business, in addition to reviewing your employee manual.


Another excellent resource is Bent Ericksen (an HR company that specializes in HR for dental offices) and they have written answers to the most popular questions:


As you know, my team and I have been working from our homes for years, which has positioned us to be able to continue preparing your tax returns, accounting, tax & transition services with no interruption. We already had the technology in place to continue working seamlessly without a brick and mortar office and we’re stocked up on soap and hand sanitizer!


We’re here for you as we all weather this situation and hope you and your family stay healthy,