The HHS Provider Relief Fund (PRF) reporting portal was scheduled to open on 1/15/2021. The PRF Reporting portal’s operability has been delayed; however, you can begin the registration process to access the portal. Below are a few tips regarding the registration process:
Health Resources and Services Administration (HRSA) will announce the timeline for submission of the reports when the PRF reporting portal is available.
We will continue to provide updates on the reporting process as more details become available.
As you may be aware, if you received more than $10,000 in HHS Provider Relief Funds (PRF), you will be required to submit reports about the use of those funds. Preliminary details are as follows:
The Coronavirus Aid, Relief, and Economic Security (CARES) Act appropriated funds to reimburse eligible healthcare providers for healthcare related expenses or lost revenues attributable to the coronavirus. The reporting guidelines require recipients to report various data elements for calendar years 2019 and 2020. Much of the required information can be gathered from your financial statements and accounting records, but other required data will come from other sources. While you are waiting for your December financial statements to be prepared, there are several items you can be working on to prepare for the reporting process:
Review your 2020 purchases and identify the following items:
Gather Revenue from Patient Care Payer Mix (2019 and 2020 by calendar quarter) for the following categories: (for the dental clients, this information will come from your practice management software such as Dentrix, Eaglesoft, etc.)
Gather non-financial data to be reported by calendar quarter.
We will continue to provide updates on the reporting process as more details become available.
The Catalyst and DPA Team
Paycheck Protection Program Loans (PPPLs)
Previously, the CARES Act provided that forgiven loan proceeds used for qualifying expenses would be excluded from taxable income. Congress also intended that qualifying expenses paid for with PPP loans would be deductible, but this portion was not specified in the CARES Act.
New Law – The CAA, 2021 provides that qualifying expenses paid for with the proceeds of PPP loans are specifically tax deductible.This clarification applies to new and existing PPP Loans and has no additional limitations.
Additionally, the CAA, 2021 renewed funding for another round of PPP loans to first- and second-time small business borrowers.
Second-time borrowers must meet the following three requirements:
Finally, the CAA, 2021 creates a simplified PPPL forgiveness application process for loans up to $150,000. Eligible borrowers need to certify and provide the following information:
Emergency Economic Injury Disaster Loans (EIDLs)
The CARES Act provided various types of small businesses with access to Economic Injury Disaster Loans under Section 7(b)(2) of the Small Business Act. If a business applied for a disaster loan under this program during the covered period, they would receive an immediate advance, if requested, of up to $10,000. The CARES Act also stated that any EIDL Advance received would reduce PPPL forgiveness, essentially requiring the advance to be repaid.
New Law – The CAA, 2021 repeals the provision so that the receipt of an EIDL Advance will have no impact on PPPL forgiveness. The Act also provides that the EIDL is nontaxable and the deductions are allowed for otherwise deductible expenses paid with the amounts not included in income.
Borrowers that have already applied for and received forgiveness for the PPPL will soon be able to amend the application to request the EIDL Advance not reduce the forgiveness amount and request repayment.
**Note: Please watch for further communication once additional guidance has been released.
Subsidy for Certain Loan Payments
The CARES Act also provided benefits to businesses with current SBA Section 7(a) loans other than the new PPP Loans in the form of a government subsidy whereby the SBA will pay six months of principal, interest, and fees on qualifying loans. The payments were applied to the covered loan such that the borrower is relieved of the obligation to pay that amount at any future date.
New Law – The CAA, 2021 clarifies that the payments of principal, interest and fees on qualifying loans is tax-free and the related interest expense is deductible.
In addition to the original six-month forgiveness of payments, most entities are also eligible for an additional three months of payments beginning on February 1, 2021. Going forward these payments are capped at $9,000 per borrower per month.
Certain other entities are eligible for another eight months (vs. three months) beginning on February 1, 2021 and these payments are also capped at $9,000 per borrower per month. Eligible entities include the following:
The CARES Act provided an employee retention credit for employers that closed, suspended operations, or had a decline in gross receipts of greater than 50% due to COVID-19. This refundable credit is allowed against an eligible employer’s share of Social Security payroll taxes (6.2%). The CARES Act also stated recipients of PPP loan funds were not able to utilize this credit.
New Law – Beginning January 1, 2021 through June 30, 2021, the Act extends and expands the following CARES Act provisions:
Retroactive to March 12, 2020, the CAA, 2021 allows employers who received PPP loan funds to potentially qualify for this credit.
**Note: Any wages used to determine the payroll tax credit for family medical or sick leave as part of the FFCRA that was passed may NOT be considered in determining qualified wages for this credit. Additionally, wages paid for with the PPP loan funds may NOT be considered in determining qualified wages for this credit.
Tax Provision Extenders & Other Tax Updates
Business Meals for 2021-2022
With the passage of this Act, taxpayers may deduct 100% of business meals (rather than the current 50%) if the expense is for food or beverages provided by a restaurantincluding carry-out or delivery meals. This benefit is effective for expenses incurred after Dec 31, 2020 and before January 1, 2023.
FFCRA Sick Pay & Emergency FMLA Credit Extended
The Families First Coronavirus Relief Act (FFCRA) passed earlier this year allowed employers subject to the EPSLA and the Expanded FMLA paid leave requirements a fully refundable tax credits to cover the cost of the leave wages related to COVID-19 from April 1, 2020 to December 31, 2020. These credits have been extended to March 31, 2021.
This email provides a summary of a few significant provisions in the Consolidated Appropriations Act of 2021 which was signed into law on December 27, 2020. The details of the provisions are beyond the scope of this new blog.
Leadership in Uncertain Times
HHS extended the application deadline to apply for the HHS Provider Relief Funds to September 13, 2020. You must submit your TIN (tax identification number) for validation by the deadline in order to apply for funding. In addition to extending the deadline, HHS also simplified the application process. Please use this link to obtain an updated copy of the application for reference only: https://www.hhs.gov/sites/default/files/provider-distribution-application-form.pdf?language=en
*Please note the application will still need to be completed via the online portal. As part of this revised application process, the only document dentists will need to upload with the application will be your most recent federal tax return.
Practices receiving more than $10,000 in relief funds will be required to submit reports about the use of their provider relief funds. Complete reporting details have not been released yet. Here are a few things we do know from the HHS Provider Relief site and FAQ:
**As a reminder you cannot use the HHS Provider Relief Funds for the same expenses covered by the PPP Loan.
Contact our office is you have questions or need assistance coming up with a plan for the use of all relief funding.
HHS announced some major updates on the Provider Relief Fund (PRF) including extending the application deadline to August 28.
Starting the week of Aug. 10, and through Aug. 28:
On July 22nd we sent an update listing some concerns related to the HHS Provider Relief Funds and also included a copy of the terms and conditions. Some of those concerns were related to the balance billing language as well as the reporting requirements. There have been recent updates as follows:
Term on Balance Billing (as clarified in the ADA hosted webinar on Tuesday 8/28)
Reporting Requirements (as clarified in the ADA hosted webinar on Tuesday 8/28)
For more information, you are encouraged to watch the ADA recorded webinar from 8/28. Use the link below to get to the ADA website page that has the link to the recorded video – it’s about an hour long. You need to scroll down the page to the section titled “The Latest” and look for Webinar: Updates on the SBA Loans, Provider Relief Fund, Labor Issues and Congressional Action.
Note: If you received an EIDL loan, per the EIDL loan agreement, you need to report to the SBA any proceeds received from other government sources and they will determine if the funds are a duplication of benefits. You will need to notify them via email at firstname.lastname@example.org. Be sure to include your loan and application numbers found at the top of your loan paperwork (SBA Form 1391)
Please feel free to contact our office if you have any questions about this program.