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Everything you need to know about BMD and the industry.

IRS Provides Guidance for Payroll Tax Deferrals and Credits

April 13, 2020

Delay of Payment of Payroll Taxes Penalty and Interest Relief

                Under the CARES Act, provision was made for the delay in the payment of the employer portion of the Social Security, Medicare, and Railroad Retirement taxes for wages accrued during the period beginning March 27, 2020 and ending December 31, 2020. Instead of being due on the regular due date for the employer to deposit the taxes, one-half of the employer portion of the taxes for that period would be due on December 31, 2021, and the remaining one-half on December 31, 2022. Employers and self- employed individuals are both eligible for this relief provided they have not had indebtedness forgiven under either Sections 1106 or 1109 of the CARES Act. 

                What was not addressed was the imposition of interest and penalty for failure to make timely deposits of payroll taxes. This was resolved in Notice 2020-22 which was released on March 31, 2020.  Provided the employer pays the amounts by the due dates (December 31, 2021 and December 31, 2022), no penalty or interest will be imposed. However, this does not relieve the employer of making timely deposit of all employee withheld taxes and filing the quarterly Form 941.  

Advance Payment of Employer Credits Due to COVID-19

                On March 31, 2020, the IRS also released Form 7200, Advance Payment of Employer Credits Due to COVID-19. This form allows employers (but not self-employed individuals) who are eligible for tax credits for qualified sick and qualified family leave wages as well as the employee retention credit to request an advance payment of the credits that they will claim on the Form 941, 943, 944 series or Form CT-1. 

                This form may be filed for an advance payment of any credits that an employer anticipates receiving before the end of the month following that quarter.  Simply put, you must file this Form before you file the appropriate quarterly tax reporting form that you normally file.  It is important to remember not to file to request an advance payment for any anticipated credits if you have already reduced your deposits for those amounts. Of particular note is that Form 72 MUST be fax filed to (855) 248-0552.

Date Clarification for Payments Eligible for Qualified Sick and Qualified Family Leave Under FFCRA

                The IRS has also released Notice 2020-21 which states that the official dates between which wages earned (not paid) during the period April 1, 2020, and December 1, 2020, are those which are eligible for the credit. It was further stated in the FAQs on the IRS website that it is the date they are earned or accrued and not the date that the actual payment is made which is key. Therefore, the actual payment may occur in January 2021, but still be an eligible amount. 

For questions, or more information, please contact BMD Tax Member Priscilla Grant at pag@bmdllc.com or 330.253.5934.

Client Alert

Lessons Learned: Five Tips for Buying or Selling a Practice

November 19, 2020If you are anticipating buying or selling a practice during the coming months, you are not alone. The healthcare industry is experiencing a wave of integration. In fact, it has been occurring for several years. Many transactional healthcare attorneys have negotiated and closed dozens of these transactions for clients. They have negotiated on behalf of the sellers in some cases and the buyers in others.Client Alert

Ramping Up – A Quick Guide to Pressing COVID-19 Employment Law Issues

November 19, 2020As the country continues to grapple with a global pandemic that now seems to be never-ending, businesses everywhere are waking up to realize that the calming of the COVID-19 employment issues over the summer has come to an end. As cases rise exponentially in all 50 states as we head into the winter months, the number of employment issues related to COVID-19 will also increase dramatically. For these reasons, it is important that we return to the employment law basics that were covered this prior spring, while highlighting the many lessons we have learned along the way. As COVID-19 matters and concerns continue to hinder the working environment of every business, it is important that you reference this review to guide you through these tough issues and questions.Client Alert

Your Workplace Under Biden

November 9, 2020This is my favorite recurring post – Predictions of How a New Administration Will Affect Your Workplace. Four years ago, we accurately called the emasculation of the 2016 proposed FLSA Overtime Rules (the salary exemption threshold was set at $35,568 in 2019, rather than $47,476 as proposed), we forecasted a conservative shift of the NLRB and its results (a roll-back of employee rights, social media policy evaluations, and joint employer rules), and we nailed the likelihood of multiple conservative appointments to the United States Supreme Court and its long-term effects (although I completely failed to predict that my ND classmate Amy Coney Barrett would fill the final vacancy during the Trump administration). This time, the L+E Practice of BMD has decided to make it a group effort at predicting what will happen, what probably happen, and what might happen under President Biden. As always, please save this in your important files and pull it out four (or eight) years from now to judge our accuracy.Client Alert

HHS Provider Relief Funds Reporting Requirements: Important Updates Every Provider Should Know

November 4, 2020HHS continues to revise its reporting requirements for the use of the Provider Relief Funds. Providers with more than $10,000 in Provider Relief Fund payments must report on the use of the funds through December 31, 2020. The reporting window will begin on January 15, 2021 and providers must complete reporting obligations for FY 2020 by February 15, 2021 through a portal designed by HHS. However, providers that have unexpended funds as of December 31, 2020, will have an additional 6 months to use the remaining funds through June 30, 2021. These providers must submit a second and final report no later than July 31, 2021.Client Alert

Should I Apply for Phase 3 Funds? Important Considerations Every Provider Should Know

November 2, 2020On October 1, 2020, the Department of Health and Human Services (“HHS”) announced an additional $20 billion in new funding for providers through a Phase 3 distribution. Importantly, providers that previously received HHS Provider Relief Funds or already received payments of approximately 2% of annual revenue from patient care are eligible to apply. Eligible providers have until November 6, 2020 to apply for these Phase 3 Funds. However, the question from providers continues to be: Should I Apply for Phase 3 Funds?
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