ERTC Credits for Dental Offices
There is an opportunity for your office to explore claiming the Employee Retention Tax Credit (ERTC).
Click Here to see an article for more information on the credit. As noted, there are two ways to qualify for the ERTC:
1. You had a 50% decline in revenues in a 2020 calendar quarter vs. 2019. Or you had a 20% decline in revenues in a 2021 quarter vs. 2019. This is not likely an avenue for you to qualify.
2. You were partially or totally shut down by a government order. The law is clear that you only qualify for the credit if a government entity mandated a shut down or partial shut-down. Dentists received a decree from Governor Noem that you “should” shut down. It was clearly not a mandate. The good news is executive order 2020-12 changed the “should” to a “SHALL” on April 6th 2020. The Board of Dentistry was following the direction of the Governor who, with the verbiage change mandated the closure of dental offices. The Board took no action until April 7th, the day after Governor Noem’s mandate.
The good news is we have three years to amend forms 941 to take this credit. There is not a rush. You will qualify for the credit for wages paid on the dates you were shut down. Example – ABC Dental, LLC, an S Corporation paid, was closed by Government Order from April 7, 2020 to May 11, 2020—when the order was lifted. During this period the following wages were paid that were not used for PPP Forgiveness:
1. Owner $20,000 – Credit $5,000
2. Employee 1 $4,000 – Credit $2,000
3. Employee 2 $5,000 – Credit $2,500
4. Employee 3 $3,000 – Credit $1,500
5. Total qualifying wages $22,000 – Total Credit $11,000
Feel free to review the article and reach out to the KTLLP ERTC Team if you would like us to perform an analysis.