www.phillips-corp.com
Phone: (714) 667-2311
Update as of 04/03/2020
| Top 40 Frequently Asked Questions |
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| Over the past week, we received hundreds of questions by phone and email; far more would ever have had time to answer individually. After reading all 524 client emails (just in the past week-and-a-half alone), we decided it would be most efficient to answer some of the most common questions in this format. Thus, these are the Top 40 Frequently Asked Questions, grouped into the following four categories: Unemployment Insurance, SBA Disaster Loan, PPP Loan, and Miscellaneous. Of course, we are always eager to answer our clients’ questions on an individual basis, however, right now we are receiving so many questions and a great many of them are asking the same thing. The problem with this is that it leaves us with no time in our (already extended) workday to address other concerns, or to research new developments. Thus, if you ask us something that is covered in this list (or in a previous email or webinar), please excuse us for directing you back to where it was answered previously. Additionally, we will be holding a live “Q&A Session” at least once or twice a week for the foreseeable future, but again, we will not be answering questions that have already been asked and answered. It remains your responsibility to use the resources we make available to you, and we sincerely appreciate you doing so. Should you have any questions which you believe have not been answered, please send us an email for possible inclusion in our next webinar or email blast. Thank you. Unemployment Insurance: 1) I own a dental practice that is now closed. Is there a problem for myself or my wife filing for unemployment? No, if you and your wife have been paid as an employee through your practice you should file for unemployment. 2) We have to layoff our employees and make them eligible for rehire before April 1st or we might be on the hook for up to 12 weeks of pay for them. Can you please guide me on what I need to do? At this point, the furlough does not have to have an exact return date. You will not be “on the hook for 12 weeks of pay”. 3) Regarding the Families First Act, if our staff is already furloughed, can they now ask for sick leave if the office is closed or do they continue with unemployment? We have 2 that have school-aged kids at home that would qualify. I told them to ask for vacation pay if theyd like. They continue with unemployment. If they are furloughed they do not get the sick leave. They also should not be paid vacation pay while on furlough. 4) The front desk lady is home because she has two young kids to take care of (they are out of school). Do I have to pay her half of 2/3 of her salary or am I exempt because I have less than 25 employees? I need some guidance, please. We highly recommend speaking to employment law attorney Anita York for any specific questions. Her contact info is Anita@EmployerLaw.com 5) I am a sole proprietor, I work at another office two days a week and get a Form 1099 from there. Given that I do have my own practice with rent, payroll, etc, I should apply as a sole proprietor, not an independent contractor? You most likely want to apply as a sole proprietor first. 6) As an employee of my corporation, can I file for unemployment in addition to applying for the paychecks protection loan? Yes, but you will need to start paying yourself your standard payroll once the loan is funded. 7) Does the PPP program loan factor in an employee’s unemployment compensation received? It seems like the employees could be double-dipping if they get unemployment checks and also full pay from their dental office via a PPP plan. Once the employee is receiving payroll from you they are no longer eligible for unemployment. They would again be employed and ineligible for unemployment benefits.8) How do I know if I’m self-employed?If you are not incorporated and report your income directly on your Schedule C, you are then self-employed. 9) When entering the past income, it is broken down by quarter? Does that mean I entered $5,000 for each quarter starting Sep 2018 to Dec 2019? So the total adds up to $20,000 per year? (A bit confused on this, because we only process one payroll in Nov each year for the total amount $20,000). You must enter the payroll based on when it was actually paid. So if you process one payroll for 20k in November, you would only have wages for the 4th quarter. Please keep in mind the EDD already has this information from your quarterly tax filings and it must match. 10) For my 1st office closure pay period (March 16-31), should I pay all of my employees for 10 days with the normal 7.5 hrs/day plus may salary and expect to be reimbursed (tax credit or SBA 7a loan)? No, you are only forgiven for wages paid after the loan is funded if you are planning on using the PPP Loan. If you use the tax credit you are not eligible to file for the PPP Loan at any point. 11) I furloughed most of my employees but told everyone to file UI. Should I only pay the people actually working, any requested PTO hours and let Unemployment Ins. pay the remainder? Yes. 12) They ask for net earnings of 3 mo over the last 2 yrs. Is that just what is on my W2, or do I also include my distributions, then add it to w2 earnings? It is only what is on your W-2. 13) My team is furloughed, voluntarily, and as yet no one is sick, they are just laid off. Do I still need to pay then COVID-19 sick pay if no one was sick at the time of furlough and if they are still not sick outside of the two-week incubation period following furlough? In other words, if they get sick while temporarily laid off, do they still get sick pay? If your staff is laid off or furloughed, you are not required to pay them sick pay. 14) How will my unemployment insurance withholding rate affect the payroll cost later if they all apply for the unemployment insurance for partial benefit? Most likely, due to this crisis, everyone’s rates will be raised. This is not a reason to not file unemployment. It is still our recommendation to furlough your staff if your office is essentially closed. 15) As an independent contractor, should I be applying for unemployment insurance or small business loan? You most likely want to apply for both. 16) Should I allow the staff to use accrued sick leave and vacation pay if they want? Your staff should be on furlough. If they are not on furlough, they can use vacation or PTO but you do not want to pay out sick leave unless they claim to be sick. 17) If some or all of my staff want to go on unemployment (it appears that with the $600 added CARES supplement most will make more money on unemployment, is this correct?), do I still apply for the PPP?Your staff does not have the ability to decide whether or not they want to be on unemployment. If they refuse work they have essentially quit and are no longer eligible for unemployment. 18) My dental corporation wants me to come in once a week (Full day) for emergency appointments. Correct me if Im wrong: If I am obliged to work, I assume I cant apply for unemployment and receive those benefits? You can report the wages received and still get unemployment. It will be reduced by the hours worked that specific week but would be back at the normal rate as soon as you no longer have work. Underemployed individuals are still eligible for unemployment. SBA Economic Injury Disaster Loan (EIDL) 19) Who qualifies and doesn’t qualify for an SBA disaster loan? If you have business lines of credit do you still qualify for this fixed-rate loan? All small businesses qualify and you can have open lines of credit and still qualify. They are also allowing you to have recent open SBA Loans. 20) Should the loan be under my personal name or corporation? The loan should be applied for your practice or business. For most clients, this will be their corporation. If you are not incorporated then and only then it would under your personal name. Please remember it is a business loan, not a personal loan. 21) I entered P&L expenses on the COGS line, should I attempt to modify my application and change it to a zero? If you applied before 3/29/20, there is a new simplified form to apply with. You could apply again with the correct amounts. If you applied after 3/29/20 it most likely won’t be a problem but we don’t have exact guidance of what to do. 22) Is the quick application all that is required for the grant or do I need to submit all the documents listed on the portal? For your application to be considered complete, I would go ahead and submit all the requested documents. 23) Can you apply for the payroll protection loan and if needed apply for the EIDL at a later date? We are generally recommending applying for the EIDL first. If you want to apply for it later that should be fine. However, you will most likely miss out on the 10k grant. 24) Is any portion of the EIDL forgivable? What is the $10,000 grant, is that forgivable? The $10,0000 grant is forgivable if used for payroll, rent, interest, utilities. It is the only portion of the EIDL that is forgivable. 25) In regards to the $10,000 grant from the SBA, do you know if it is a separate application from the Economic Income disaster loan? The grant is not a separate application. You must fill out the EIDL application to be eligible for the grant. CARES Act Paycheck Protection Program (PPP) Loan 26) As a sole proprietor, what figure do I use to calculate my payroll costs or salary? Sole Proprietors would include net earnings from self-employment up to 100k as “payroll costs”. 27) If employees go on unemployment for 4 weeks and I apply for the PPP, and employees return to payroll in May, will the forgiveness provision still apply? 75% of the forgiveness portion of the loan has to be spent on payroll. Therefore, if you get funded right away you most likely will not meet that 75% mark if the staff doesn’t come back for another month. The best option would be to delay receiving the money even if it means delay applying for the loan until you are ready to bring staff back. 28) Since employer pension contributions should be included when calculating payroll expense, should I include my 2019 employer contributions in my calculation even though I haven’t made the 2019 payment to my 401K Profit Sharing Plan yet? If so, during the first 12 wks after receiving the loan, should I make sure that I make a pro-rata 2020 employer contribution to the plan in order to maintain 75% of the previous year’s payroll expense? In our opinion, you should use your 2019 employer retirement contribution as part of the payroll costs. The reason for that is most likely the lender is going to be reviewing financials or tax returns so that is the figure they will see. Also, yes you can use the forgivable portion to pay the contribution. You just want to make sure you are using 75% for payroll costs. 29) For the payroll protection loan, if a portion of that is forgiven, that means I will not require to pay that portion back to the bank? Yes, the portion that is not forgiven will be required to pay back. The loan terms right now are 1% for 2 years with the first payment deferred for six months. 30) Since we have an S corp for the practice and LLC for the real estate, can we apply one for each business entity? As the LLC most likely does not have employees, it would not qualify for the PPP Loan. It might qualify for the EIDL however that is not a forgivable loan. 31) Do you recommend that I go and apply for the PPP loan as soon as the application process starts or wait as the money we might get should be spent with restrictions on time and ways? As of today (4/3/20), our understanding is that the loan application process will take a couple of weeks but then the loan will be funded very soon after approval. Given this information, we would recommend not applying until you are somewhat close to opening your practice so that you can use the PPP funds to help you restart your business and ramp up production. However, a hesitation with this plan might be whether the funds may run out. Our firm belief is that the government will release more funds but, of course, there is no guarantee of this. We will keep our clients updated on this matter as we learn more. 32) If I use last year’s payroll, it will be actually smaller than what it is currently. My associate’s annual salary is about $108,000.00 so really I should get an additional $8,333/month for her. Can I use figured costs with her additional salary or will they only look at W-3? There is a part you initial on loan, which states if you give fraudulent numbers that it is a crime. If I submit my W-3 they will see the actual number I put in is higher. No, you have to use the actual payroll numbers from the previous 12 months. They will be looking at source documents and we DO NOT recommend falsifying these forms. 33) After we decide to use the PPP, if an assistant makes $1100 by hourly income, can we give her $400 in bonus if she usually made $1500 before the COVID-19? For the payment to be forgiven, it would need to be paid thru payroll. You can pay her the full $1500 thru payroll as a taxable wage.Miscellaneous 34) I just heard that business taxes may have to be redone because of the new tax laws. Is that true? The provisions of the Cares Act do not affect the 2019 business tax returns. 35) I wanted to confirm the payment date for the 100-ES. Is it still due on 4/15? ALL tax payments due on 4/15/20 for both the IRS and FTB have been delayed to 7/15/20. 36) My daughter [name removed], age 22 and a full-time student has worked at Nordstrom for almost 2 years. We are not sure if she filled as a dependent. If so can we switch, since you have not filled her tax return yet? I believe Nordstrom corrected her W-4 recently after submitting her W2. Will she be eligible for $1200 for COVID-19 as a full-time student? Having someone as a dependent does not mean they aren’t eligible for the $1200 check. Qualified children (under age 17) will not be receiving any checks. Their parents will receive $500 per child with a maximum of 2 children. For a 22-year-old dependent, they would need to make sure they have filed a tax return even if they were claimed on another or the IRS will be posting a “simple” tax return shortly that they can fill out to get the check. 37) Have any of your clients had success with a specific lender? Or do you recommend one? We highly recommend using the lender that your practice already banks with as you will have an established relationship with them. This is not the time to switch banks. 38) Does [name removed] and I qualify for the $1200 payout? Please check your 2019 tax return for your Adjusted Gross Income (AGI). The income limits are as follows: Filed single income at or below 75k and MFJ income at or below 150k, each taxpayer will receive the full 1200. If your income is higher than this, please use this calculator to find out your stimulus amount. 39) Since the tax deadline has been extended from April to July, does that mean the IRA contribution for 2019 is also postponed to July? Yes, IRA contributions and HSA contributions have been postponed to 7/15/20. 40) If we are offered an SBA loan, not a CARE one, what effect would that have on us for our personal taxes as it passes from the corporation to us personally? As an example, is it considered 500k income and we would need to make big tax payment on it? Loan proceeds are never taxable as you eventually will have to pay it back. IMPORTANT NOTICE: This message contains information that is privileged, private, confidential, or otherwise protected from use and disclosure. You are hereby notified that any review, disclosure, copying, or dissemination of this transmission, or taking of any action in reliance on its contents, or other use is strictly prohibited. Thank you for your cooperation.To ensure compliance with Treasury Department regulations, we advise you that, unless otherwise expressly indicated, any federal tax advice contained in this message was not intended or written to be used, and cannot be used, for the purpose of (i) avoiding tax-related penalties under the Internal Revenue Code or applicable state or local tax law provisions or (ii) promoting, marketing or recommending to another party any tax-related matters addressed herein. |
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Update as of 03/30/2020
Unemployment Resources:
Unemployment benefit calculator: https://www.edd.ca.gov/unemployment/UI-Calculator.htm
How to File for Unemployment in CA: https://www.youtube.com/watch?v=QQKrICx80H8&feature=youtu.be&MassEmailID=333573725&email_id=120&emailaddress=avani%40cagd.com&submission_date=3%2F16%2F2020+5%3A04%3A38+PM&MemberID=1DEDF335C2044600A778F0F1A8EE7245&confirmed=1&Modified=&phone=
After You File: https://www.edd.ca.gov/unemployment/After_You_Filed.htm
Alternatives to laying off your employees: https://www.edd.ca.gov/unemployment/Layoff_Alternatives.htm
Responding to Unemployment Insurance Claims: https://www.edd.ca.gov/Unemployment/Responding_to_UI_Claim_Notices.htm
Comprehensive CA Employer’s Guidebook (not-COVID-19 Specific): https://www.edd.ca.gov/pdf_pub_ctr/de44.pdf
| IMPORTANT NOTICE: This information is privileged, private, confidential, or otherwise protected from use and disclosure. You are hereby notified that any review, disclosure, copying, or dissemination of this transmission, or taking of any action in reliance on its contents, or other use is strictly prohibited. Thank you for your cooperation.To ensure compliance with Treasury Department regulations, we advise you that, unless otherwise expressly indicated, any federal tax advice contained in this message was not intended or written to be used, and cannot be used, for the purpose of (i) avoiding tax-related penalties under the Internal Revenue Code or applicable state or local tax law provisions or (ii) promoting, marketing or recommending to another party any tax-related matters addressed herein. |
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The Families First Coronavirus Response Act
On March 18th, President Trump signed this into law. Im sure youve read a lot about this, from all sorts of different sources. Hopefully, this section will clear up some questions.
Emergency Sick Leave
Currently, the law states that any employer with less than 500 employees must provide up to 80 hours (10 days) of paid sick leave to all employees if one of the following six eligibility criteria is met:
- The employee is subject to a federal, state or local quarantine or isolation order related to COVID-19.
- The employee has been advised by a health care provider to self-quarantine due to concerns related to COVID-19.
- The employee is experiencing symptoms of COVID-19 and seeking a medical diagnosis.
- The employee is caring for an individual who is subject to an order or quarantine;
- The employee is caring for a son or daughter of such an employee if the school or place of care of the son or daughter has been closed or the childcare provider of such son or daughter is unavailable due to COVID-19 precautions.
- The employee is experiencing any other substantially similar condition specified by the Secretary of Health and Human Services in consultation with the Secretary of the Treasury and the Secretary of Labor.
Under this section of the new law, it seems that there is no required qualification for employees to meet; all employees are eligible, and the employer cannot require their staff to use regular sick leave first. Employees who are diagnosed with COVID-19 or are quarantined are entitled to earn the full amount of their full regular wages, up to $510/day or $5,110/total; those who are caring for sick relatives are entitled to 2/3 of the regular wages, up to $200/day.
Public Health Emergency Leave
Any employee that has worked for you for at least 30 days and finds himself or herself unable to work because their childcare is unavailable or their childs school is closed is not entitled to 12 weeks of protected leave – 10 weeks of which must be paid at two-thirds the employees regular wages. This paid leave is capped at $200 per day and $10,000 in total.
At the conclusion of the Public Health Emergency Leave, employers with over 25 employees must return the employee to the same or equivalent position. However, employers with fewer than 25 employees are exempt from this requirement if:
- The employer makes a reasonable effort to restore the employee to an equivalent position; and
- The employees position no longer exists due to economic conditions; and
- The employer makes a reasonable effort to contact the (now former) employee if an equivalent position becomes available within a year.
Employers are to be reimbursed for these new mandatory employee benefits and certain associated costs such as health insurance premiums within three months with a payroll tax credit.
Some employers may be exempt by the Department of Labor, and the ADA is pushing for the exemption to include dentists as well, however, even with the reimbursements, this well-intentioned and bi-partisan law hurts all small business owners at a critical time. We expect the Department of Labor to release more guidance on this new law in the coming days, and we will be sure to keep you informed.
Unemployment Insurance Concerns
We have been receiving a lot of questions regarding Unemployment Insurance (UI, or simply Unemployment). A step-by-step guide to filing a claim for UI will be released shortly, however, here are some of the most frequently asked questions that weve received:
My general dentistry practice is a Schedule C (not incorporated). Can I file for UI?
Generally, no. With the new stimulus package, it may be possible later to file for UI. Youll want to go to the state website (link) and do the estimate and see if its allowed at that point.
I work as an Endodontist at multiple offices. How do I file for Unemployment?
It depends. If youre paid as an Employee (you receive a W-2), you qualify automatically. If you are paid as an Independent Contractor (you receive a 1099) and you take those earnings through your corporation and pay yourself a salary from that corporation, you also qualify. If you take earnings through your corporation and havent taken a salary, you probably dont qualify. If you are paid as an Independent Contractor and report your income on your personal return as a Schedule C, then you do not qualify currently, however, the government may make concessions later.
Am I taxed on my Unemployment?
You will be taxed at the federal level, but not at the state level.
If I file for Unemployment, wont I end up paying more payroll taxes in the long run?
We predict that all employers will see a rate increase regardless of whether any of their staff file for UI benefits. The reason is that many, many Californians are filing a claim for these benefits, and this will deplete the UI fund, so to speak. To replenish those funds, we expect all employers to see their UI rates increase in the coming months.
The UI application is asking if I am self-employed. How do I answer that?
You are self-employed if you file business income and expenses on a Schedule C of your personal tax return (Form 1040). If you are an officer of a corporation and you receive a salary (W-2), you are not self-employed.
What are the Pros and Cons of filing for Unemployment Insurance?
At this point and with the information available, we dont see any reason for doctors or dentists not to file for unemployment if their office is closed due to the COVID-19 pandemic. The Pro is that you will receive the benefit that you have been paying in to for years. There are a handful of very high earners who would not benefit by filing a UI claim (such as those with a multitude of revenue streams), but these instances are few and far between.
Taxes
Tax Deadlines
As of March 21st, the Treasury Department and Internal Revenue Service announced that the federal income tax filing due date (Tax Day) is automatically extended from April 15, 2020, to July 15, 2020. Nothing will need to be filed to qualify for this new tax deadline; it has been granted to all individual income taxpayers by default. Individual and Business taxpayers who need additional time to file beyond the July 15 deadline, can request a filing extension as usual.
The Franchise Tax Board of California has also extended their tax deadlines by an additional 30 days (beyond their original extension of 60 days) to match the federal governments deadlines.
Tax Payments
Individual taxpayers can defer payments up to $1 million while businesses can defer payments up to $10 million. The new deadlines to pay taxes due are now as follows:
INDIVIDUALS (FORM 1040)
BUSINESSES (FORM 1120, 1120S & 1065)
| 2019 Income Tax Payment | 2020 – 1st Quarter Estimate | 2020 – 2nd Quarter Estimate (CA ONLY) | |
| Originally Due: | April 15, 2020 | April 15, 2020 | June 15, 2020 |
| Now Due On: | July 15, 2020 | July 15, 2020 | July 15, 2020 |
| 2019 Income Tax Payment | 2020 – 1st Quarter Estimate | 2020 – 2ND Quarter Estimate (CA ONLY) | |
| Originally Due: | April 15, 2020 | April 15, 2020 | June 15, 2020 |
| Now Due On: | July 15, 2020 | July 15, 2020 | July 15, 2020 |
Additionally, the state of California is granting an extension of time to pay 2nd Quarter tax estimates – something that the IRS is not yet granting.
Installment Agreements
As of March 25th, taxpayers under an existing Installment Agreement with payments due between April 1 and July 15, 2020 can choose to suspend their payments. Taxpayers who are currently unable to comply with the terms of an Installment Payment Agreement, including a Direct Deposit Installment Agreement, may suspend payments during this period if they prefer. Furthermore, the IRS will not default any Installment Agreements during this period. By law, interest will continue to accrue on any unpaid balances. More information is available on the IRS website.
Small Business Loans – This section contains information courtesy of Lendeavor
Government Loans
Small business owners in all U.S. states and territories are currently eligible to apply for a low-interest loan from the Small Business Administration (SBA). The SBAs Economic Injury Disaster Loan program provides small businesses and nonprofits that have been severely impacted by COVID-19 with working capital loans of up to $2 million that can provide vital economic support to small businesses to help overcome the temporary loss of revenue they are experiencing.
This is a government program not affiliated with any bank. This program is not a bank participation loan. It is financed and funded directly through the SBA Disaster relief program. You will need to apply directly with the SBA, and there are specific requirements to qualify for the relief funds. Please note that patience is needed as many details are being worked out and the call volume is significant.
Private Lenders
There do exist other avenues for urgent small business loans, through well-known banks like Bank of American Practice Solutions as well as the less well-known online lender, Lendeavor (which is recommended by our firm). Many dentists are using this downtime caused by COVID-19 as an opportunity to address longer-term debt and cash-flow solutions, and some industry leaders have already offered their customers the option to temporarily defer payments on their practice and commercial real estate loans. For example, Lendeavor has offered its customers a voluntary deferment of up to 60 days. For many dentists, this grace period will be enough. However, other dentists are still looking for longer-term financial solutions.
Lines of credit are always a great solution for quick access to cash. For lines of credit, dentists should start with the bank that already handles their business banking. Lines of credit should only be used as a tool to help manage the day to day cash-flow of a business, but for many dentists, a line of credit coupled with a 60-day payment deferral may be enough.
By now most healthcare professionals know that rates are very low, and they can refinance their business debt at a lower rate. But, more importantly, loan consolidation or a recasting of debt can be a powerful tool to significantly improve business cash-flow. With rates being very low, and with many dentists being offered grace periods on their existing loans, now is a great time for any doctor or dentist to truly assess long term cash-flow solutions.
For those that want to explore other options for managing their existing debt, contact Jason Schneller at Lendeavor to go over different options for debt consolidation and working capital to see what makes the best sense for you: 818-561-8106 | jason.schneller@lendeavor.com
Rent – This section written as a courtesy for our clients by Cecilia Chen, Esq.
Contact your landlord immediately to inquire about ways your rent payment can be suspended during this shutdown period, and perhaps extend your lease term by the similar period of rent suspension.
How sympathetic your landlord might be will depend on how leveraged they might be, meaning if they have loan repayments that are also due and not suspended during this time. California Governor Newsom has directed all evictions including commercial tenants to be halted during this time. It is important to keep in mind however that any non-payment of rent constitutes a material default under your lease that can cause you to lose many significant rights under your lease. In particular, it might trigger the inducement recapture clause that will obligate you to repay all tenant improvement allowance and free rents that might have offered to you at the signing of the lease. Skipping rent payments should not be done lightly.
This, however, is an excellent time to contact your business insurance companies and see what coverages you might have. Business interruption insurance typically covers a loss of income due to damage to property that is covered under the policy, as long as the cause of the property damage is a covered cause of loss, such as a fire or windstorm. While the COVID-19 pandemic and other pandemics are not typically listed as a covered cause of loss, certain specialized insurance policies and endorsements issued specifically in health care industries provide insurance coverage for losses caused by “communicable or infectious diseases” without requiring physical damage to the insured property. Check your policies and see what coverages you might have and talk to your insurance agent.
For those of you who are leasing your office from a landlord who previously sold you the dental practice, those sellers have the good fortune of having sold their practices at the right time and have a responsibility to help their successors through this challenging time. Remind them that their actions will determine how they will be remembered by their patients and the community and consult with your attorney on how to best negotiate the lease.
Contact attorney Cecilia Chen for more information: www.PracticeAtty.com or (855) 850-4111.
Disaster Response Planning
Lastly, Id like to touch on the Disaster Response Plan mentioned earlier. Experts recommend businesses of all sizes and in all industries to have some sort of disaster response or disaster recovery plan. If you dont currently have one, now is a good time to begin planning on out. If you could have foreseen this pandemic and planned for it, what would you have done differently? What procedures would you have had in place to fall back on? Heres a great resource from Ready.Gov on drafting a DRP. We paid an IT security firm to help us create one and I would be happy to send you the referral if youre interested, but the truth is, some templates and guides can be found online for free. The wording and the structure arent important; all that matters is that youve thought through what you would do when or if another disaster strikes.
In Closing
We at Phillips Accountancy have decided that whats most important to us is standing behind the dental and medical communities that we serve. If a colleague of yours forwarded this to you, and youre not one of our clients but you still have additional questions, email us atinfo@phillips-corp.com. Were on your side whether youre our client or not. This is an immensely difficult time for all of us, but we will get through it together. Thank you.
Sincerely,
Andrew Phillips, PAFM; Business Manager
PHILLIPS ACCOUNTANCY CORPORATION
Did you recently join this email list, or was it forwarded to you from a colleague? Were glad youre here. The following are some subjects that have been touched on in previous emails. If you have been on this email list for a while, you can skip it – theres nothing new to you here. Otherwise, read on. . .
Financial Considerations
If there was ever a time to take a close look at your personal and business financial situation, now is that time. Since we do not know how long this situation will last, you must maintain an adequate amount of cash to weather the storm. Consider opening a line of credit if needed or confirm with your bank the process of drawing on any line of credit you may already have. If your practice has any outstanding loans, consider asking those banks if they would consider deferring payments entirely or at least allow you to make interest-only payments. Finally, dont wait any longer to reduce spending – do it now.
IRS Closing Some Offices
To contain the spread of coronavirus, the Internal Revenue Service is closing some offices, beginning with Northern California, Seattle, Puerto Rico, and New York. These closures include some taxpayer assistance offices. Expect more closures in the coming days and weeks. As a result of these closures, tax return processing may be slower than usual, along with tax refund payments.
Payroll Taxes
The California EDD has granted a 60-day extension of time for businesses in the state to file their state payroll reports and/or to deposit state payroll taxes without penalty or interest. It is possible to use this extension to maintain adequate reserves of cash during this time but be careful not to spend what you cannot replace by the end of the 60-day extension. If you wish to utilize this extension, please contact your payroll company or the EDD Taxpayer Assistance Center at (888) 745-3886.
OSHA
Employers dealing with coronavirus worries can add another concern – federal workplace safety regulators expect them to track infections or risk being fined. The Occupational Safety and Health Administration issued the guidance in early March, equating Covid-19, the illness caused by the new coronavirus, to other infectious diseases such as tuberculosis and hepatitis A.
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IMPORTANT NOTICE: This email is intended only for the addressee named above. It contains information that is privileged, private, confidential, or otherwise protected from use and disclosure. If you are not the intended recipient, you are hereby notified that any review, disclosure, copying, or dissemination of this transmission, or taking of any action in reliance on its contents, or other use is strictly prohibited. If you have received this transmission in error, please reply to the sender listed above immediately and permanently delete this message from your inbox. Thank you for your cooperation.
To ensure compliance with Treasury Department regulations, we advise you that, unless otherwise expressly indicated, any federal tax advice contained in this message was not intended or written to be used, and cannot be used, for the purpose of (i) avoiding tax-related penalties under the Internal Revenue Code or applicable state or local tax law provisions or (ii) promoting, marketing or recommending to another party any tax-related matters addressed herein.