As you support your patients and communities during the COVID-19 pandemic, Sykes & Company, P.A. is here to answer your questions and translate changing regulatory and tax matters as they happen at the federal and state levels. Our national practice helps to inform your pharmacy business about industry-wide best practices.
On this page, you will find resources, timely business updates and news specific to the pharmacy industry.
2021 Employee Retention Tax Credit for Independent Pharmacies
Scotty Sykes, CPA, CFP® discusses how pharmacies can approach obtaining this tax credit, which could save your pharmacy a lot of money—and foster pharmacy growth. Read more.
2020 Employee Retention Tax Credit for Pharmacies
The Consolidated Appropriations Act (CAA), signed into law at the end of 2020, expanded the Employee Retention Tax Credit, which helps businesses struggling economically due to COVID-19 to keep employees on the payroll. Read more.
How Will The Signed COVID-19 Relief Bill Affect Pharmacies
Watch and learn how the signed COVID-19 Relief Bill affect Pharmacies. Read more.
$900B COVID Relief Bill
This update summarizes the $900 billion relief bill Congress passed in December 2020. Read more.
CARES Act Update: HHS Provider Relief
The deadline to apply for HHS provider relief has been extended to September 13, 2020. In this video, Scotty Sykes, CPA, CFP® discusses the relief fund and what independent pharmacies need to be aware of. Read more.
HHS Provider Relief Fund Update
The Phase 2 General Distribution Funding has been extended yet again to September 13, 2020. Independent pharmacies need to be aware that while these funds do not need to be repaid, they are taxable and certain amounts may require reporting on how the funds are used. Read more.
IRS Says Provider Relief Fund Payments Are Taxable
Between the CARES Act and the PPP Health Care Enhancement Act, which both passed earlier this year, $175 billion was allocated to the Provider Relief Fund. This funding was used to reimburse providers, including pharmacies, for lost revenue or expenses as a result of the COVID-19 pandemic. Read more.
Managing Your Pharmacy’s EIDL Program Funds
If your pharmacy was approved for an Economic Injury Disaster Loan (EIDL) through the Small Business Administration, what’s next? Read more.
Paycheck Protection Program Flexibility Act (PPPFA) Key Provisions
The PPPFA, which amends the CARES Act and the Small Business Act, modifies certain provisions related to the forgiveness of loans under the Paycheck Protection Program (PPP). Read more.
Midyear Elections Notice Offers Employees Flexibility
IRS Notice 2020-29 provides employees more flexibility for midyear elections in health coverage, cafeteria plans, HSAs and health FSAs, and dependent care plans. Read more.
PPP Loan Forgiveness Application Available Now
The SBA and U.S. Treasury unveiled the PPP Loan forgiveness application, which is required for borrowers seeking loan forgiveness. Read more.
Carefully Document Use of PPP Loan Funds
New SBA guidance states that PPP loans of less than $2 million have a safe harbor on certifying economic need for the funds. PPP safe harbor repayment deadline extended to May 18, 2020. Read more.
Update: Tax Deductibility of Expenses under PPP
Currently, expenses paid for through PPP funds are not tax deductible to the extent of loan forgiveness, preventing a double tax benefit. Read more about the current legislation and guidance we are still waiting for. Read more.
Section 139 Allows for Some Payments to be Tax-Free and Tax Deductible
President Donald Trump’s national emergency declaration triggered the disaster provisions of the tax law, including Section 139 which makes some payments tax exempt. Find out more about the payments that fall under this status. Read more.
Employer-Provided Education Assistance Provision under the CARES Act
The CARES Act has an added provision for educational assistance that includes paying student loan debt of up to $5,250 for your employees on a tax free basis to them. Obtain additional guidance on how to utilize this provision. Read more.
PPP Loan Forgiveness for Pharmacies
Ollin Sykes and Scotty Sykes provide early insights on what pharmacies will need to track and report regarding use of PPP funds. Read more.
Financial Relief for Medicare Providers – Accelerated and Advance Payment Program
The CARES Act has a relief program specific to health care providers of Medicare Part A and Part B that independent pharmacies may want to consider. Read more.
Considerations for receiving PPP Loan Forgiveness
Read our blog post about PPP Loan Forgiveness. Read more
Paycheck Protection Program | Forgivable Loan Program
Read our blog post about the federal PPP program. Read more
$30 Billion Allocated to Healthcare Provider Relief Grants
New funding for providers of Medicare Part A and Part B based on 2019 fee-for-service billings will support health care related expenses and lost revenue due to COVID-19. Read more.
Federal Reserve – Main Street Lending Program
Read our blog post about the Main Street Lending Program. Read more.
Good Neighbor Pharmacy Connect Special Edition – CARES Act Part 2
This podcast, recorded on June 30, 2020, provides new updates on the CARES Act stimulus provisions as well as guidelines for loan forgiveness. Scotty Sykes, CPA, CFP® shared his insights as part of a professional panel on relief programs and resources. They also discuss how pharmacies can adapt business practices for a new environment due to COVID-19. Listen to the podcast.
Good Neighbor Pharmacy Connect Podcast
Scotty Sykes, CPA, CFP® participated in a podcast with Good Neighbor Pharmacy on loan and tax provisions within the Coronavirus Aid, Relief and Economic Security Act (CARES Act). Listen to the 30-minute podcast here.
How the CARES Act Can Improve Cash Flow and How to Act On It Webinar
Scott Sykes, CPA, CFP® and Ollin Sykes, CPA.CITP, CMA held a webinar for the NCPA on how the how the CARES Act provides relief for your independent pharmacy. Watch as they breakdown the bill and outline ways you can utilize the resources available to you. View the webinar.
Paycheck Protection Program UPDATE: Applying for Loan Forgiveness Webinar
Scott Sykes, CPA, CFP® and Ollin Sykes, CPA.CITP, CMA held a webinar for the NCPA on The Paycheck Protection Program as the SBA and Treasury finally issued more information with the release of the PPP Forgiveness Application. They highlighted key areas and updates to the Paycheck Protection Program (PPP) including: the PPP Forgiveness process, Covered Periods, eligible expenses and Payroll Costs, full-time-equivalents and documentation among many others. View the webinar.
NCPA’s Kurt Proctor has recorded a 20-minute update to the webinar with Ollin Sykes and Scotty Sykes with the important new information on the small business loan program and more. View the update.
Key Performance Indicators that Impact your Bottom Line, Cash Flow and Valuation Webinar
Ollin Sykes and Scotty Sykes held a webinar for the American Associated Pharmacies called Key Performance Indicators that Impact your Bottom Line, Cash Flow and Valuation. Watch so you can proactively plan and outperform industry averages. This course will define a sound accounting system for pharmacies and will overview certain key performance indicators that pharmacies must know in order to enhance their bottom line, increase cash flow and maximize their pharmacies’ value. View this webinar.
Advisory Services Disclaimer
The information contained herein is intended to be used and must be used for information purposes only. It is not intended to be a source of advice for accounting, tax, financial, investment or other purposes or for credit or financial analysis with respect to the material presented. It should not be used as a substitute for professional consulting. Before making any decision or taking any action, you should consult a Sykes & Company, P.A. professional.