Are Medical Practices Eligible for Employee Retention Credit (ERC)?

Key Takeaways

• The ERC is a refundable tax credit initially introduced by the CARES Act in 2020 to help businesses keep employees on payroll.

• Medical practices, including dental and hospital-affiliated ones, may be eligible for the ERC under certain conditions.

• Eligibility for the ERC includes experiencing a significant decline in gross receipts or a full or partial suspension of operations due to government orders.

• Even if you’ve received PPP loans, your medical practice may still qualify for the ERC.

• Understanding the eligibility criteria and how to apply can result in substantial financial relief for your practice.

Are Medical Practices Eligible for ERC Refund

Let’s cut to the chase: Yes, medical practices are potentially eligible for the ERC refund. The key is to meet specific criteria set by the government. Firstly, your practice needs to have faced either a significant decline in gross receipts or been subject to a full or partial suspension of operations due to government orders related to COVID-19. These criteria are not as daunting as they may seem, and many practices qualify without realizing it.

For instance, if you had to reduce your operating hours or limit the number of patients due to social distancing mandates, that could count as a partial suspension. Moreover, if your cash flow took a hit and you saw a notable drop in income, you might meet the decline in gross receipts criterion. But remember, the devil is in the details, and understanding these guidelines is critical.

Several instances of government regulations that have influenced medical practices include:

• Enhanced disinfection and hygiene protocols;
• Social distancing guidelines and restrictions on the number of people allowed inside;
• Directives requiring people to remain at home;
• Suspension of non-essential patient services;
• Disruptions in the procurement of medical supplies.

Common Misconceptions about ERC Refund for Medical Practices

Despite the potential benefits, there are several misconceptions that may prevent medical practices from claiming the ERC. Let’s debunk some of these myths:

1. “We received PPP loans, so we’re not eligible for the ERC.” Initially, this was true. However, legislation has since changed, and now you can benefit from both PPP and ERC, though not on the same wages.

2. “Our practice was never fully shut down, so we don’t qualify.” Partial disruptions to your business, like reduced operating hours or patient capacity limits, can make you eligible.

3. “The process is too complex and not worth the effort.” While the application process requires meticulous documentation, the financial upside can be significant and is often worth the effort.

4. “Only large practices can claim the ERC.” The credit is available to all sizes of businesses, including small and medium-sized medical practices.

5. “The ERC is only for businesses that have suffered severe losses.” Even moderate declines in revenue or minor operational disruptions can qualify you for the credit.

Now that we’ve cleared up these misunderstandings, it’s essential to focus on the facts and not let these myths deter you from pursuing the ERC if your practice is eligible.

It’s important to address these misconceptions because they can lead to missed opportunities for financial support that your practice might desperately need. Let’s tackle these one by one to ensure you have the right information.

Many medical practices have inadvertently overlooked the ERC under the assumption that it doesn’t apply to them, particularly due to misinformation or lack of awareness. By dispelling these myths, we open the door to potential savings and financial stability that can help your practice navigate through the aftermath of the pandemic.

How ERTC Express Help Medical Practices Maximize ERC Benefits

ERTC Express is a service that simplifies the process of claiming the Employee Retention Credit. We understand that healthcare professionals are busy saving lives and may not have the time or expertise to navigate complex tax codes. ERTC Express steps in to handle the heavy lifting, ensuring that your practice claims the maximum amount you’re entitled to.

We start by evaluating your eligibility, looking into factors such as the impact of government orders on your operations and any fluctuations in your gross receipts. Our team of experts can quickly identify qualifying factors that you might overlook. We also ensure that you don’t claim credits on wages already covered by PPP loans, avoiding any potential legal complications.

ERTC Express also assists with the intricate paperwork, interpreting legislation changes, and ensuring that your claim is compliant with the latest tax laws. Our support can be invaluable, particularly when dealing with nuanced situations unique to the healthcare industry.

Step-By-Step Guide: How ERTC Express Help Medical Practices Maximize ERC Benefits

To maximize the ERC benefits for your medical practice with the help of ERTC Express, follow this step-by-step guide:

Step 1: ELIGIBILITY 

Our Account Executives excel in assisting medical practices with the ERC application process, ensuring the collection and preparation of all necessary documentation for submission. They remain accessible throughout the application process to address any further questions or provide additional information. This dedicated support is crucial in helping medical practices navigate the complexities of ERC eligibility, ensuring they are well-informed and prepared at every stage.

Step 2: PROCESSING

After establishing eligibility, our team of CPAs and Customer Success Agents immediately begins processing your medical practice’s ERC claim. We employ our “Power of 3” system to mitigate audit risk and solidify the defensibility of your claim. This method involves three distinct CPA teams who review and agree on the final credit calculation for your practice, enhancing the accuracy and reliability of your claim.

Step 3: RECEIVE YOUR FUNDS

For medical practices, our billing is contingent on the successful receipt of your ERC funds, establishing a risk-free partnership. Our success is directly linked to yours, ensuring our interests are perfectly aligned. We stand by your side until your practice successfully secures the ERC refund, and our fees are only applied post-receipt of the funds, highlighting our commitment to your practice’s financial advancement and satisfaction with our services.

By following these steps with the assistance of ERTC Express, your practice can navigate the ERC claim process efficiently and with confidence, maximizing your potential refund.

Get Maximum Medical Practices ERC Refund with ERTC Express

The ERC offers a valuable opportunity for medical practices to obtain financial relief during challenging times. ERTC Express can significantly simplify the claiming process, ensuring that practices receive the maximum benefit they’re entitled to.

Don’t let misconceptions or the complexity of the process prevent you from exploring this option. It could provide a financial lifeline for your practice.

Frequently Asked Questions (FAQ)

What criteria must medical practices meet to be eligible for the Employee Retention Credit?

Medical practices are eligible for the ERC if they have experienced a significant decline in gross receipts or were subject to a full or partial suspension of operations due to government orders related to COVID-19. It’s important to note that wages used for PPP loan forgiveness cannot also be claimed for the ERC.

Can medical practices that received PPP loans still qualify for the ERC?

Yes, medical practices that have received PPP loans are still eligible for the ERC. However, they cannot claim the ERC on wages that were paid using funds from the forgiven portion of the PPP loans.

Is the ERC only available to large medical practices?

No, the ERC is available to medical practices of all sizes. Small and medium-sized practices are just as entitled to claim the credit as larger ones, provided they meet the eligibility criteria.

Do partial disruptions to business operations due to COVID-19 qualify for the ERC?

Yes, partial disruptions such as reduced operating hours or patient capacity limits due to government orders can qualify a medical practice for the ERC.

How does ERTC Express help with the ERC claim process?

ERTC Express assists medical practices by evaluating eligibility, calculating the credit amount, preparing the claim, submitting it to the IRS, and providing follow-up assistance with any IRS inquiries. Our expertise ensures that practices claim the correct amount and remain compliant with tax laws.