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HHS Provider Relief Fund Reporting Guidance

September 22, 2020 @ 11:25 am

HHS Provider Relief Fund Reporting Guidance On September 19, 2020 the US Department of Health and Human Services (HHS) issued Post Payment Notice Reporting Requirements.  All recipients of Provider Relief Fund (PRF) payments are required to comply with the reporting requirements described in the Terms and Conditions and specified in future directions issued by the Secretary.  Below is a link to a six-page directive on reporting requirements. Final Reporting Data Elements – PDF: This document provides the complete, detailed information on provider reporting guidelines, including intent, use of funds, and data elements requested. The purpose of this notice is to inform Provider Relief Fund (PRF) recipients that received one or more payments exceeding $10,000 in the aggregate of the data elements that they will be required to report as part of the post-payment reporting process. This is a supporting document to the July 20, 2020 Post-Payment Notice of Reporting Requirements (General and Targeted Distribution Post-Payment Notice of Reporting Requirement – PDF). The reporting system will now be available in early 2021. BiggsKofford Executive Summary: Reporting is available starting early 2021, but we recommend tracking qualified expenses, lost revenue and maintaining documentation before year end. Relief funds can be applied toward lost revenue up to …

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PPP Loan Update

September 21, 2020 @ 8:02 am

The U.S. Department of the Treasury recently announced rules required for business owners to make use of the Paycheck Protection Program’s (PPP) loan forgiveness feature. The updated guidance provides both challenges and opportunities for local business owners. In addition, the SBA opened its PPP Loan Forgiveness portal recently. However, there are still some important questions that need to be answered before submitting your forgiveness applications. As many of our clients received PPP and EIDL loans, we understand the desire to settle those debts as quickly as possible. Given all of these uncertainties though, we are advising our clients to hold off on the forgiveness process until further clarification is provided. Some of the more important aspects we are seeking additional information on are: There is potential for an “automatic” forgiveness for PPP loans under $150,000. Small businesses who received a Paycheck Protection Program (PPP) loan of $150,000 or less may be able to obtain automatic forgiveness after submitting a one-page attestation form. The attestation form would be limited to one-page, and the small business would simply attest that the loan is eligible for forgiveness and that the business complied with the requirements of the Paycheck Protection Program found in the CARES …

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HHS Extends Deadline for Phase 2 General Distribution Funding

September 14, 2020 @ 2:45 pm

Applications are now due by Sunday, September 13, 2020. Follow the link HERE to apply now.  The Phase 2 distribution is intended for Medicaid, CHIP, and dental providers, who didn’t receive funding in the first round of distributions. The HHS allocated $15 billion from the CARES Act Provider Relief Fund for these providers, and applicants can receive up to 2% of their reported revenue from patient care. The extension also brings good news for Medicare providers who missed out on the first phase of Medicare general distributions. Providers who experienced a change in ownership in 2019 or 2020 and were previously ineligible to apply, may also now be eligible for Phase 2 distributions. Contact the experts at BiggsKofford for additional information or guidance.

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IRS Issues Guidance on Payroll Tax Deferral

August 31, 2020 @ 11:19 am

The IRS issued guidance on the payroll tax deferral that was ordered by the President in a presidential memorandum on Aug. 8 (Notice 2020-65). The notice allows employers to defer withholding on affected employees’ compensation during the last four months of 2020 and then withhold those deferred amounts during the first four months of 2021. Implementing this deferral is optional for each employer. Some employers have expressed concerns due to unknown impacts, such as the impact on affected employees when the “catch-up” withholding is implemented in January of 2021. Or, the process for collecting these taxes from employees that no longer work for the organization. Under the guidance, employers can defer the withholding, deposit, and payment of the employee portion of social security taxes on wages paid from Sept. 1 through Dec. 31, 2020. The deferral applies to of the old-age, survivors, and disability insurance (OASDI) tax under Sec. 3101(a). The due date for withholding and payment of these taxes is postponed until the period beginning Jan. 1, 2021, and ending April 30, 2021. The deferral applies to any employee whose pretax wages or compensation during any biweekly pay period generally is less than $4,000. Under the notice, the determination …

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El Paso County CARES Act Grants Available

August 12, 2020 @ 3:08 pm

El Paso County Allocates Additional CARES Act Funds to Small Business and Nonprofit Grants El Paso County continues its commitment to local small businesses and nonprofits with a new multi-million-dollar Regional Business Relief Fund program, launching this week. This Fund will act as a competitive grant application process to assist our small businesses and nonprofits with business-related costs incurred due to the COVID-19 economic disruption. The county will be allocating CARES Act funds to the Regional Business Relief Fund program, which will be facilitated by the county’s Department of Economic Development, in partnership with Colorado Enterprise Fund (CEF), a nonprofit lender certified by the SBA. This newest grant program is intended to provide tangible assistance to local businesses and nonprofits adversely affected by the pandemic, as El Paso County continues to focus on its COVID-19 response, recovery, and resiliency efforts. The funds under the El Paso County Regional Business Relief Fund program will be awarded as a grant rather than a loan and will not have to be repaid by recipients. El Paso County businesses and nonprofits with fewer than 500 employees can apply to receive a grant of up to $20,000, which can be used to pay for expenses and …

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HHS Provider Relief Fund – General and Targeted Fund Update

July 24, 2020 @ 2:31 pm

HHS Provider Relief Fund – General and Targeted Fund Update HHS issued a limited update Monday July 20th.  The update suggests that providers who received more than $10,000 in PRFs (i.e., any payment under the $50 billion General Distribution, Medicaid/CHIP distribution, or various targeted distributions) will be subject to “future reporting requirements” and that detailed instructions regarding these requirements will be released “by August 17, 2020.” While the announcement leaves many details vague, it does state that recipients must report within 45 days of the end of calendar year 2020 on their expenditures through the period ending 12/31/20.  The overview released on July 20 does not indicate whether providers who received $10,000 or less will be subject to any reporting obligations and does not provide detail as to the form or content of reports.  However, the following timeline is provided: August 17, 2020: Detailed instructions will be available by this date October 1, 2020: Reporting system comes available February 15, 2021: Report due for calendar year 2020 expenditures July 31, 2021: Second report due (only for those who expended funds in CY 2021) Please click HERE for the full announcement and don’t hesitate to contact your BiggsKofford advisor with any questions.

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Governor Signs the Healthy Families and Workplaces Act

@ 2:30 pm

The Governor signed the Healthy Families and Workplaces Act on July 14, 2020. 2020: For the remainder of this year, the Act will require all employers to comply with the emergency paid sick leave requirements of the Families First Coronavirus Response Act (FFCRA). The paid sick leave provision of the FFCRA mandates that an employer provide to each employee paid sick leave to the extent that the employee is unable to work or telework due to a need for leave because: (1) The employee is subject to a Federal, State, or local quarantine or isolation order related to COVID-19. (2) The employee has been advised by a health care provider to self-quarantine due to concerns related to COVID-19. (3) The employee is experiencing symptoms of COVID-19 and seeking a medical diagnosis. (4) The employee is caring for an individual who is subject to an order as described in subparagraph (1) or has been advised as described in paragraph (2). (5) The employee is caring for a son or daughter of such employee if the school or place of care of the son or daughter has been closed, or the child care provider of such son or daughter is unavailable, due …

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SHARED INVITATION

June 24, 2020 @ 9:28 am

Clients and Friends of BiggsKofford, I’m happy to pass along an invitation for the Scaling Up Workshop, being offered on Wednesday July 1. Many of the BiggsKofford Shareholders and clients have attended this workshop, and everyone believes it was well worth their time (and the small fee). As with most events – this will be held virtually next Wednesday morning. You can see the invitation and sign-up below. Best, Chris Blees BiggsKofford CEO WORLD-RENOWNED SCALING UP WORKSHOP NOW VIRTUAL ~ RESERVE YOUR SPOT TODAY Learn tools and strategies to help navigate this challenging time at this highly interactive VIRTUAL Scaling Up workshop. Participate from your computer. Hosted by Top Colorado Region Scaling Up Coach Wednesday, July 1, 2020 8:00 am – 12:00 pm MDT LEARN MORE OR REGISTER NOW > For the best results & biggest impact, bring your leadership team.  Our workshop will teach you to beat the odds and get started with the Scaling Up growth framework (Rockefeller Habits 2.0).   The world-renowned Scaling Up Business Growth Workshop has empowered more than 40,000 executives and their leadership teams to scale up smarter and accelerate profitable growth using a time-tested and results-driven methodology. Find CASH to weather the storm and seize opportunity Update …

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PPP Forgiveness Webinar Follow UP

@ 9:27 am

We want to thank everyone who was able to attend our Town Hall webinar this morning with Chris Blees, CPA, CM&AA and Austin Bucket, ACA, CM&AA. We had great input from the audience and some really insightful discussion. We hope you all found it valuable. For those who were not able to attend live, we have the recording of the webinar on demand HERE. We also have our presentation slides available HERE. Lastly, we have a summary of our Q&A session HERE for quick reference of common questions. If you have questions that did not get answered or something specific to your circumstance, please contact us and we will be happy to discuss how we can support you and your business. Again, thank you to all of our attendees as well as Chris and Austin for a great presentation.

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New PPP Loan Forgiveness Applications Released

June 18, 2020 @ 8:38 am

The U.S. Small Business Administration (SBA), in consultation with Treasury, released Wednesday a revised loan forgiveness application for the Paycheck Protection Program (PPP). The SBA also unveiled a new EZ application for forgiveness of PPP loans. Join us for a Town Hall Webinar today at 10:00 by registering HERE for more information and input from the experts. You can find the updated applications HERE on our COVID-19 Resource Page. Application highlights The revised PPP Loan Forgiveness Application and instructions include a number of notable items. Among them are: Health insurance costs for S corporation owners cannot be included when calculating payroll costs; however, retirement costs for S corporation owners are eligible costs. Safe harbors for excluding salary and hourly wage reductions and reductions in the number of employees (full-time equivalents) from loan forgiveness reductions can be applied as of the date the loan forgiveness application is submitted. Borrowers don’t have to wait until Dec. 31 to apply for forgiveness to use the safe harbors. Borrowers that received loans before June 5 can choose between using the original eight-week covered period or the new 24-week covered period. New EZ application details The EZ PPP Loan Forgiveness Application requires fewer calculations and less …

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The Current State of the PPP Forgiveness Process

June 16, 2020 @ 3:27 pm

On June 5th, President Trump signed the Paycheck Protection Program Flexibility Act of 2020, which made significant changes to the PPP program. The Bill he signed was the exact law passed as H.R. 7010 by the House of Representatives. Since then, the Treasury Department issued regulations on June 11th, which included some important pronouncements. All of the information below, as well as any updates will be discussed at our PPP Loan Forgiveness Town Hall Webinar this Thursday the 18th at 10:00 am. Register for that HERE and send any questions you would like addressed ahead of time to mwoolfolk@biggskofford.com. No 60% Cliff The Treasury Department does not consider the 60% requirement, which replaced the 75% requirement as to amounts spent on “payroll costs” to be a “cliff.” If a PPP borrower cannot spend 60% or more of the loan proceeds during the 8- or 24-week testing period on payroll, state and local payroll taxes, group health insurance and retirement plan contributions, then there will nevertheless be PPP loan forgiveness based upon whatever is spent on the above “payroll costs,” plus up to 66% of the amount spent on the above items, to the extent of permissible rent, interest and utility …

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HHS Provider Relief Fund Expanded to Medicaid & CHIP Providers

June 10, 2020 @ 7:04 am

HHS Provider Relief Fund Expanded to Medicaid & CHIP Providers Today, the U.S. Department of Health and Human Services (HHS), through the Health Resources and Services Administration (HRSA), is announcing additional distributions from the Provider Relief Fund to eligible Medicaid and Children’s Health Insurance Program (CHIP) providers that participate in state Medicaid and CHIP programs. HHS expects to distribute approximately $15 billion to eligible providers that participate in state Medicaid and CHIP programs and have not received a payment from the Provider Relief Fund General Distribution. HHS is also announcing the distribution of $10 billion in Provider Relief Funds to safety net hospitals that serve our most vulnerable citizens. The safety net distribution will occur this week. “Healthcare providers who focus on treating the most vulnerable Americans, including low-income and minority patients, are absolutely essential to our fight against COVID-19,” said HHS Secretary Alex Azar. “HHS is using funds from Congress, secured by President Trump, to provide new targeted help for America’s safety-net providers and clinicians who treat millions of Medicaid beneficiaries.” HHS is providing support to healthcare providers fighting the COVID-19 pandemic through the bipartisan CARES Act and the Paycheck Protection Program and Health Care Enhancement Act, which allocated $175 billion in …

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JOIN US! PPP FORGIVENESS WEBINAR WITH THE EXPERTS

June 9, 2020 @ 1:14 pm

THE PREMIER PPP FORGIVENESS WEBINAR WITH THE EXPERTS The PPP Flexibility Act was signed into law last Friday. In a joint news release, the Small Business Administration and the Treasury Department said they will “promptly” issue rules and guidance; a modified application form; and a modified loan forgiveness application. These new rules have allowed greater flexibility to allow for more forgiveness. But, they also create more questions. So, we’ve decided to host a Town Hall meeting to provide answers! We are excited to invite you to engage with the Directors of our Paycheck Protection Program Response Team as they discuss the key aspects of the PPP Forgiveness process, give you the tools needed to navigate these uncertain times, and answer any questions you may have. The SBA is expected to release new regulations and an updated forgiveness application. Our Experts will cover these new rules. THURSDAY, JUNE 18 AT 10AM Register HERE! We look forward to seeing you then!     MEET OUR PANELISTS   Chris Blees, CPA, CM&AA   Managing Partner of BiggsKofford Director of BiggsKofford’s Mergers & Acquisition Services Licensed Investment Banker (Series 7 and 79) with Aaron Capital Chairman of the Alliance of M&A Advisors (AMAA)         Austin Bucket, ACA, …

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Breaking News: Significant Changes to PPP Loan Forgiveness Rules

June 4, 2020 @ 8:09 am

Breaking News: Significant Changes to PPP Loan Forgiveness Rules The Senate on Wednesday evening passed by voice vote a House-passed Paycheck Protection Program reform bill, clearing it for President Donald Trump’s signature. The legislation — titled the Paycheck Protection Program Flexibility Act — was introduced by Republican Rep. Chip Roy of Texas and Democratic Rep. Dean Phillips of Minnesota. It is intended to make loans more accessible under the program by making its terms of use more flexible. The most significant changes: PPP borrowers can choose to extend the eight-week period to 24 weeks, or they can keep the original eight-week period. This flexibility is designed to make it easier for more borrowers to reach full, or almost full, forgiveness. The payroll expenditure requirement drops to 60% from 75%. However, this comes with the stipulation that borrowers must spend at least 60% on payroll or none of the loan will be forgiven. Currently, a borrower is required to reduce the amount eligible for forgiveness if less than 75% of eligible funds are used for payroll costs, but forgiveness isn’t eliminated if the 75% threshold isn’t met. Borrowers can use the 24-week period to restore their workforce levels and wages to the …

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Important Highlights from the PPP Forgiveness Application

May 20, 2020 @ 7:46 am

Important Highlights from the PPP Forgiveness Application The SBA released the first draft of the Forgiveness Application and related Instructions on Friday evening (5/15/2020).  The application and instructions can be found HERE. Most of the Forgiveness Application and Instructions follow the same calculations and interpretations that we have been providing our clients to maximize their forgiveness planning. However, this new application provides some new clarifications and changes to the forgiveness process. Here are some important changes to note: Owner Compensation Limit: For the first time, the Forgiveness Application indicates that Owner Compensation will be limited to an amount equivalent to 8-weeks of 2019 compensation. We knew owner compensation would be limited to $15,385, which is 8-weeks of $100,000. But the application now adds this additional limitation. Example: If an owner’s 2019 W-2 was only $60,000, the 8-week limit would be $9,231 (60,000 / 52 X 8), rather than the $15,385 limitation on all other employees.  If an owner’s 2019 W-2 was $100,000 or more, then the limit will be $15,385.   Cash AND Accrual Accounting Allowed: Prior to release of this application there was much debate about whether the law allowed for cash-method or accrual-method calculations of eligible expenses. The …

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Requirements for CARES Provider Relief General Fund Recipients

@ 7:45 am

Requirements for CARES Provider Relief General Fund Recipients Below is an article from the GreenbergTraurig Law Firm blog. GreenbergTraurig did a great job at researching and summarizing the extremely complex process regarding the Relief General Fund and required documentation. We appreciate the hard work that went into this article. The original format of the article can be found here. Many providers have received large payments from the U.S. Department of Health & Human Services (HHS) in April 2020 under the federal government’s effort to provide relief during the Coronavirus Disease 2019 (COVID-19) public health emergency. Many terms and conditions accompany the acceptance of such payments and all recipients must submit documents sufficient to demonstrate that funds are used for healthcare-related expenses or lost revenue attributable to COVID-19.  While HHS has not issued full guidance on the specific documentation requirements (though such guidance may be issued shortly), HHS has promised significant antifraud and comprehensive audits over the use of the general distribution funds.  Providers retaining the funds should plan to document their use of funds and comply with the reporting requirements.   The CARES Act Provider Relief General Distribution Fund Under the Coronavirus Aid, Relief, and Economic Security (CARES) Act (PL 116-136), …

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COVID-19 RESOURCES