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  • #31
    anyone have link or details on how loan forgiveness amount may be calculated for a practice that shut down, doesn’t reduce any employee salary or benefits, but reduces total number of FTE-days worked per week as a result of a reduction in volume?

    edit: practice doesn’t shut down, but has reduced volume and therefore reduces man hours on the job (rather than waste time at work doing nothing). Doesn’t reduce anyone’s monthly salary by a penny.
    Last edited by jacoavlu; 03-28-2020, 07:42 PM.

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    • #32
      Originally posted by jacoavlu View Post
      anyone have link or details on how loan forgiveness amount may be calculated for a practice that shut down, doesn’t reduce any employee salary or benefits, but reduces total number of FTE-days worked per week as a result of a reduction in volume?
      History PR would be gross pay - adj to 100k for employees over limit $100k annual. By employee.
      Adjusted total by month gives run rate and total headcount. 2.5 x monthly average.
      Going forward PR for each would have a supplemental pay to bring each up to the average not to exceed the $100k by employee.
      Your report would be the same process as the average. Gross - adj over the limit. Adjusted amount and total employees.
      The logic is number of employees, total pay not to exceed the limit. NO restrictions on method for compensation (hrs, salary, FTE). There is also not a prohibition for revenue or parttime. Question is the actual certification of need. Do you request the total or only the shortfall? A favorable interpretation would be “funds spent on payroll to stay open”.

      https://eig.org/wp-content/uploads/2...on-Program.pdf

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      • #33
        A small business CPA analysis:

        https://wcginc.com/blog/paycheck-protection-program/

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        • #34
          Simple question for other Private practice docs:

          Assume we have 10 employees who we adore and want to keep. However, patient volume is now 40% of normal (and unlikely to change within the next couple months). Would you layoff 6 employees (and let them collect full unemployment benefits) or cut everyone's hours down to 40% (retain your employees, but they suffer with reduced pay)? (these are generalized numbers, but you get the concept)

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          • #35
            Originally posted by EastBayHand View Post
            Simple question for other Private practice docs:

            Assume we have 10 employees who we adore and want to keep. However, patient volume is now 40% of normal (and unlikely to change within the next couple months). Would you layoff 6 employees (and let them collect full unemployment benefits) or cut everyone's hours down to 40% (retain your employees, but they suffer with reduced pay)? (these are generalized numbers, but you get the concept)
            you need to look into the CARES act loan. Potential for forgiveness of 8 weeks payroll as long as you don’t fire people or reduce hours and pay.

            it’s a win-win for owners and employees

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            • #36
              Originally posted by beagler View Post
              Interesting write-up and the application form.
              Regardind the pay limitation. Wonder if author might weigh in on the payroll limitation:
              Employee’s annual comp is $300k
              A- Take payroll paid and reduce by $200k so net $100k
              B- Totally exclude $300k employee
              A is a limit and B is an exclusion.
              Both for qualifying and forgiveness.

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              • #37
                Originally posted by Tim View Post

                Interesting write-up and the application form.
                Regardind the pay limitation. Wonder if author might weigh in on the payroll limitation:
                Employee’s annual comp is $300k
                A- Take payroll paid and reduce by $200k so net $100k
                B- Totally exclude $300k employee
                A is a limit and B is an exclusion.
                Both for qualifying and forgiveness.
                I have read articles that interpret it both ways. Reading the bill I believe it is an exclusion in Sec. 1104:

                https://www.congress.gov/bill/116th-...bill/3548/text

                (4) the term “payroll costs” shall not include—

                (A) the compensation of an individual employee in excess of $33,333 during the covered period;

                Other section in the bill that discusses income limit:

                (3) REDUCTION RELATING TO COMPENSATION.—The amount of loan forgiveness under this section shall also be reduced by the amount of any reduction in excess of 25 percent of compensation in the most recent full quarter in which the employee was paid in compensation during the covered period of any employee who was compensated—

                (A) in an amount less than $33,333 during the period beginning on March 1, 2019 and ending on June 30, 2019; or

                (B) not more than $100,000 on annualized basis during 2019.

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                • #38
                  Not an attorney, but I know one in DC.
                  Not included in the loan amount calculations nor in complying in the loan forgiveness. Is that proper? Might be able to find one for yes and one for no.

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                  • #39
                    Great info thus far, thanks to all. Does anyone know if a list of lenders has been released yet? I'm a little worried about the $350B drying up.

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                    • #40
                      Originally posted by beagler View Post
                      Reply from the above. HCE over $100k in payroll could be “adjusted” for purposes of loan qualification and forgiveness. The excess is eexcluded. Big difference for a PP.


                      Email response below:
                      Hey Tim! Thanks for the email People making over $100,000 are not excluded... they are just capped (as we read the law). Here is the text... "payroll costs..."

                      ``(II) shall not include--

                      ``(aa) the compensation of an individual
                      employee in excess of an annual salary of $100,000,
                      as prorated for the covered period;

                      Did you need our help with determining the efficacy of the PPP loan?

                      Warm Regards,

                      Jason Watson, CPA
                      Managing Partner

                      Connecting: For more efficient access, you may call my direct line at 719-428-3261. We also might have better success conveniently scheduling our conversation- please call 719-302-8681 direct and speak with Amanda Rowles ([email protected]). I attempt to read and reply to emails twice a day- this is an effort to provide better client response and interaction.

                      WCG Inc.
                      2393 Flying Horse Club Drive
                      Colorado Springs CO 80921

                      719-387-9800 phone, ext 203
                      719-345-2100 text message
                      719-428-3261 direct
                      855-345-9700 fax

                      Comment


                      • #41
                        Originally posted by Tim View Post

                        Reply from the above. HCE over $100k in payroll could be “adjusted” for purposes of loan qualification and forgiveness. The excess is eexcluded. Big difference for a PP.


                        Email response below:
                        Hey Tim! Thanks for the email People making over $100,000 are not excluded... they are just capped (as we read the law). Here is the text... "payroll costs..."

                        ``(II) shall not include--

                        ``(aa) the compensation of an individual
                        employee in excess of an annual salary of $100,000,
                        as prorated for the covered period;

                        Did you need our help with determining the efficacy of the PPP loan?

                        Warm Regards,

                        Jason Watson, CPA
                        Managing Partner

                        Connecting: For more efficient access, you may call my direct line at 719-428-3261. We also might have better success conveniently scheduling our conversation- please call 719-302-8681 direct and speak with Amanda Rowles ([email protected]). I attempt to read and reply to emails twice a day- this is an effort to provide better client response and interaction.

                        WCG Inc.
                        2393 Flying Horse Club Drive
                        Colorado Springs CO 80921

                        719-387-9800 phone, ext 203
                        719-345-2100 text message
                        719-428-3261 direct
                        855-345-9700 fax
                        Our group accountant read it the same way.

                        $349 billion is going to run out faster than toilet paper.

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                        • #42
                          For any Private practice dental folks--- Cain Watters did a great webinar that we watched and was very helpful. Easy to understand. Takes about an hour. I'm not sure how well this would help the medical folks. Cain Watters Webinar

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                          • #43
                            Originally posted by ddswifey View Post
                            For any Private practice dental folks--- Cain Watters did a great webinar that we watched and was very helpful. Easy to understand. Takes about an hour. I'm not sure how well this would help the medical folks. ]
                            I'm a medical folk and that was very good, thanks for the link.

                            Comment


                            • #44
                              When calculating wages paid to employees do I include the Medicare and social security tax paid by me as the employer portion while calculating their monthly salaries, in addition to what employees pay under their portion?

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                              • #45
                                Originally posted by Kamban View Post
                                When calculating wages paid to employees do I include the Medicare and social security tax paid by me as the employer portion while calculating their monthly salaries, in addition to what employees pay under their portion?
                                https://recovery.chase.com/content/d...-worksheet.pdf

                                I believe Chase shows Gross wages and then deducting for net.

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