Tax Insight: Medical Providers Can Claim ERTC (KROST)

Business Opportunities
November 19, 2021 - KROST Certified Public Accountants & Consultants

This is a thought leadership article from PrimeGlobal member firm KROST in the United States providing guidelines for medical practitioners considering claiming the Employee Retention Tax Credit (ERTC).

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Medical providers that perform elective procedures could have an opportunity to claim the Employee Retention Tax Credit (ERTC).

While most medical offices had to make a variety of operational changes to adapt to a safe environment during COVID, many of those operational changes do not meet the definition of a government shutdown for ERTC.

However, many states and local jurisdictions formally restricted elective procedures during 2020 or 2021, which could meet the threshold of a government shutdown.

While PPP forgiveness needs to be evaluated to ensure the wages are not double-counted, additional wages are often available after considering PPP. This is especially the case for providers operating multiple locations if they meet the definition of a small employer.

Consider the following example:

A medical practice with two locations operates in a jurisdiction that had a one-month elective procedure shutdown, meeting the definition of a partial government shutdown. An analysis of wages was performed to avoid overlap between PPP and ERTC, resulting in a credit of $100,000.

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KROST Certified Public Accountants & Consultants

Established in 1939 in Pasadena, California, KROST, is a full-service Certified Public Accounting and Consulting firm serving clients across various industries. Our focus is recognizing opportunities and creating value for our clients by equipping them with the tools to make better business and financial decisions for the future. As trusted advisors, our clients depend on us to provide timely information, innovative solutions, and result-driven teamwork to ensure success.

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