Family Office FAQs

Family Office FAQs

 

LUTZ BUSINESS INSIGHTS

 

FAMILY OFFICE FAQS

family office faqs

lisa strutzel, family office services director

 

Although modern family offices have been in existence since the 19th century, the term is ambiguous to most people. What makes family office such an elusive concept? As all families are unique, so too are the offices and service providers that assist with managing their family capital. With that in mind, the following are answers to some of the more common questions asked about family offices.

Q: What is a family office?

A: A family office is a professional organization established to help a family manage its wealth. Single family offices serve one family – typically the first-generation wealth creators and their lineal descendants. Multi-family offices provide personalized advice and service to more than one unrelated family.

Q: Why establish a family office or use the services of a multi-family office?

A: Sustaining wealth between generations requires more than just managing money. It takes a commitment to manage the wealth as a family enterprise. Family office professionals have the knowledge and experience necessary to provide the complexity of services required to sustain and grow family capital. Their emphasis on the whole family provides a multitude of benefits, including a more focused approach to family continuity measures.

Q: What is the role of the family office?

A: Family offices have various roles depending on the needs of the families they serve. Some provide investment and financial assistance only; others provide both financial and lifestyle support.

Lutz Family Office has a comprehensive service offering, providing customized solutions based on clients’ needs. Some of the services we provide include:

  • Integrated financial planning – financial, tax, wealth transfer, and succession planning
  • SEC registered investment advisory services
  • Outsourced accounting services and bill payment
  • Property management and domestic staff support
  • Risk management services – protection of wealth by identifying and mitigating risks
  • Family meeting coordination
  • Family education planning – preparation of the next generation to handle the impact of wealth
  • Entrepreneurship support – assistance with identifying and vetting potential business opportunities
  • Family philanthropy assistance – mission statement development and strategic vision support

Q: What net worth is required to make using family office services feasible?

A: The sophisticated systems and professional capability required to run a single family office equate to high operating costs, necessitating a family to be worth at least $100 million for this exclusive option to be viable. For this reason, many high-net-worth families are opting to use the services of multi-family offices. The multi-family office offering is a cost-effective way to receive customized services while recognizing economies of scale from pooling resources. This may be the right solution for you if you don’t want the responsibility of establishing your own single family office or the combined net worth of your family is above $10 million, and you want the exclusive level of service provided by family office professionals.

Q: What does the term family capital refer to, and how does that apply to family offices?

A: Family capital is a multidimensional term for wealth, of which financial capital is only one component. High functioning families of wealth and their advisors take a broad view of wealth, realizing it encompasses human and social factors as well.

As aptly put by Henry David Thoreau: “Wealth is the ability to fully experience life.”

If you have any question, please contact us or click here to learn more about Lutz’s Family Office services.

ABOUT THE AUTHOR

402.763.2974

lstrutzel@lutz.us

LINKEDIN

LISA STRUTZEL, CPA, CAP® + FAMILY OFFICE SERVICES DIRECTOR

Lisa Strutzel is the Family Office Services Director at Lutz with over 14 years of past experience as a family office executive. She is responsible for assisting high-net-worth clients manage their family enterprise. 

AREAS OF FOCUS
  • Family Office Services
  • Financial Reporting
  • Philanthropy and Legacy Planning
  • High-Net-Worth Families
  • Aviation Matters
AFFILIATIONS AND CREDENTIALS
  • Certified Public Accountant
  • Chartered Advisor in Philanthropy, CAP®
  • Purposeful Planning Institute, Member
  • Nebraska Society of CPAs, Member
EDUCATIONAL BACKGROUND
  • BBA, Iowa State University, Ames, IA
COMMUNITY SERVICE
  • MCC Applied Finance Institute Advisory Board
  • The Hope Center for Kids, Past President and Treasurer
  • CAP Advisory Board Member
  • Women Investing in Nebraska (WIN), Volunteer

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Lutz Announces 2021 Shareholder and Director Promotions

Lutz Announces 2021 Shareholder and Director Promotions

 

LUTZ BUSINESS INSIGHTS

 

Lutz announces 2021 shareholder and director promotions

Lutz, a Nebraska-based business solutions firm, recently announced its shareholder and director promotions for 2021.

SHAREHOLDER

Chris Bouchard

Chris Bouchard has been promoted to Talent Shareholder in Lutz’s Omaha office. He has been a prominent presence in the Omaha talent search market for the past 20 years and leads Lutz’s talent division. Bouchard focuses on direct-hire and temporary staffing and strategic assessment and selection of potential candidates with an emphasis on human resources, accounting, finance, and office administrative positions.

Ben Burton

Ben Burton, CPA, has been promoted to Tax Shareholder. Over the years, Ben has been a cultural leader at Lutz, active in developing our tax staff. His primary focus is providing income and state and local tax services to corporations, partnerships, and individuals. In addition, he specializes in trust and estate consulting and compliance. Burton works in Lutz’s Omaha office.

Ben Burton

Joe Donovan, CPA, has been promoted to Tax Shareholder in Lutz’s Omaha office. Joe is known for his ability to provide top-notch client service along with efficient project management and staff development. He primarily focuses his time on tax compliance, research, and consulting assistance to privately held companies in various industries, including real estate development and construction.

Jenna Grenier

Jenna Grenier, CPA, has been promoted to Tax Shareholder. She is a member of the Central Executive Committee and a key contributor to the tax operations of Central Nebraska. She focuses on providing tax and consulting services to privately held companies and their owners. Grenier works in Lutz’s Grand Island office.

Aaron Hoffman

Aaron Hoffman, CPA, has been promoted to Tax Shareholder in Lutz’s Omaha office. He is a go-to member for QuickBooks and small business accounting in addition to his strengths in serving clients and solving problems. He provides tax planning, research, compliance, and consulting services to privately held companies focusing on the real estate and construction industries.

Aaron Hoffman

John Kampfe, CPA, has been promoted to Tax Shareholder. He serves many of Lutz’s largest and most complex clients and is known for his technical expertise. His primary responsibilities include providing tax planning, research, and consulting services to privately held businesses and individuals. Kampfe works in Lutz’s Omaha office.

Julianne Kipple

Julianne Kipple, CPA, has been promoted to Healthcare Shareholder in Lutz’s Omaha office. She provides an elevated level of technical expertise to the healthcare clients she serves. Her expertise is in accounting and consulting services for healthcare facilities, including outsourced CFO services, Medicare and Medicaid reimbursement, and Medicaid Disproportionate Share Surveys (DSH).

DIRECTOR

Adam Austin

Adam Austin, CPA, has been promoted to Tax Director. He brings several years of experience to the Omaha/Lincoln tax practice. His commitment to mentoring and developing staff has proven to be invaluable. He is responsible for providing tax consulting and compliance services to individuals, partnerships, and corporations focusing on the healthcare, manufacturing, and agriculture industries. Austin works in Lutz’s Omaha office.

Clarke Beller

Clarke Beller, CPA, has been promoted to Audit Director in Lutz’s Omaha office. He has been integral in the construction practice from both a niche management and production standpoint. Clarke exemplifies the say-it-straight mentality, which both clients and team member’s respect. He specializes in providing auditing and consulting services to privately held companies and employee benefit plans with a focus on the construction industry.

Katie Byrd

Katie Byrd, CPA, has been promoted to Audit Director. She is heavily involved in several of the firm’s complex clients and does a tremendous job solving their problems. She provides assurance services to businesses focusing on the retail, service, manufacturing, nonprofit, and franchise industries. In addition, Katie assists with transaction advisory services and employee benefit plans. Byrd works in Lutz’s Omaha office.

Kirk Delperdang

Kirk Delperdang has been promoted to Healthcare Director in Lutz’s Omaha office. Kirk brings many years of experience, excellent client relationships and advanced technical knowledge to the healthcare department. He provides healthcare enrollment services to clients with a focus on Medicare providers and reimbursement analyses. In addition, he is responsible for leading Lutz’s cost report service line.

Nick Hall

Nick Hall, CFP, has been promoted to Director in Lutz Financial. He has a deep technical background in financial planning. He specializes in creating thorough, adaptive financial plans and investment management strategies for high-net-worth families. Hall works in Lutz’s Omaha office.

Sarah James

Sarah James, CPA, has been promoted to Tax Director in Lutz’s Hastings office. She is highly technical and has proven that she can take the lead and build solid relationships through her service and delivery. She is responsible for providing income tax planning, consulting and compliance for individuals and closely-held businesses.

Josh Jenkins

Josh Jenkins, CFA, has been promoted to Chief Investment Officer. He specializes in assisting clients with portfolio construction, asset allocation, and investment risk management. He is also responsible for portfolio trading, research and thought leadership as well as analytics and operational efficiency for the Firm’s Financial division. Jenkins works in Lutz’s Omaha office.

Jake Klabenes

Jake Klabenes, CPA, has been promoted to Audit Director in Lutz’s Hastings office. He specializes in audits of governmental agencies, specifically housing authorities, with additional experience in not-for-profit entities and low-income housing tax credit projects. In addition, he has been a pivotal contributor to the Central Nebraska assurance department through managing scheduling and implementing processes. 

Matt Longenecker

Matt Longenecker has been promoted to Tech Director. Throughout his six-year career at Lutz, Matt has built a reputation for solving problems no one else can. He is responsible for meeting with outsourced IT clients to develop a plan to resolve their technical issues. This includes designing a solution plan, presenting a proposal, and managing the technical support staff to implement the project. Longenecker works in Lutz’s Omaha office.

Alex Lutz

Alex Lutz has been promoted to Tech Director in Lutz’s Omaha office. He is responsible for technology and data analytics consulting, service and technical escalations, as well as building processes and procedures to improve the quality of service on the MSP helpdesk. During his 9 years at Lutz, Alex has emerged as a leader with a rare combination of technical, operational, and cultural skills. 

Steve Nebbia

Steven Nebbia, CPA, has been promoted to Consulting Director in Lutz’s Omaha office. He is responsible for providing business and analytics consulting as well as tax consulting and compliance. Steven plays a vital role in overseeing tax operations and department changes. He uncovers critical data for decision-making, including implementing automation for tax processes using Robotic Process Automation (RPA).

Jonathan Patent

Jonathan Patent, CPA, has been promoted to Tax Director in Lutz’s Lincoln office. He provides tax compliance and consulting services to clients with a focus on the construction and real-estate industries. In addition, Jonathan provides tax research and multi-state tax compliance services. Patent also plays a vital role in recruiting and staff development initiatives within the firm. 

Dan Sweeney

Dan Sweeney has been promoted to Tax Director in Lutz’s Hastings office. He is often called on as a resource when highly technical issues arise, creating challenges and opportunities for our clients. He focuses on several areas, including tax preparation and planning for individuals, businesses, and estates and trusts. His experience also includes international tax and tax research.

Ryan Wade

Ryan Wade has been promoted to Tech Director. His primary responsibility is to manage the software solutions practice, including team administration, client relationship management and consulting on CRM and ERP strategy and solutions. Ryan is also the lead on Lutz’s online client portal, Threadworks. He oversees the design, development and implementation of the software internally and externally. Wade works in Lutz’s Omaha office and is active in the Omaha community. He is currently the Chair of the Nebraska Tech Collaborative.

Chris Wagner

Chris Wagner has been promoted to Director of Retirement Plan Services in Lutz Financial. He specializes in providing company and corporate retirement plan consulting and investment advisory services. Under his direction, Lutz Financial’s retirement plan division has grown to provide consulting and investment advisory services to more than 100 companies. Wagner works in Lutz’s Omaha office.

RECENT POSTS

Family Office FAQs

Family Office FAQs

What makes family office such an elusive concept? The following are answers to some of the common questions asked about family offices…

read more

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Lutz Announces 2021 Manager, Senior, Associate and Tech Division Promotions

Lutz Announces 2021 Manager, Senior, Associate and Tech Division Promotions

 

LUTZ BUSINESS INSIGHTS

 

Lutz announces 2021 manager, senior, associate and tech division promotions

Lutz, a Nebraska-based business solutions firm, recently announced its manager, senior, associate, and tech division promotions for 2021.

MANAGER

Michael Greteman, CPA, ABV, has been promoted to M&A Manager. His primary responsibilities include assisting with merger and acquisition projects and providing valuation services for estate and gift taxes, litigation support, marital dissolution matters, complex equity structures, and financial/tax reporting. He focuses on analyzing and interpreting company historical and projected financial data and financial modeling. Greteman works in Lutz’s Omaha office.

Lauren Harris, CPA, has been promoted to CAS Manager in Lutz’s Omaha office. She specializes in small business consulting including payroll tax reporting and compliance, software installation, training and support, and outsourced accounting assistance.  In addition, she works with clients to improve their internal processes and procedures.

Tyler Hohenstein, CPA, has been promoted to Tax Manager. He is responsible for providing tax consulting and compliance services for clients in a variety of industries with a focus on individual and business income tax. Hohenstein works in Lutz’s Grand Island office.

Brad Newton, CPA, has been promoted to Operations Manager in the tax department in Lutz’s Omaha office. He is responsible for assisting the tax department head in applying process improvements, implementing new software, gathering and analyzing firm data, as well as training and overseeing tax interns.

Mark Otte, CPA, ABV, has been promoted to M&A Manager. His primary responsibilities include assisting with merger and acquisition projects and providing valuation services for estate and gift taxes, litigation support, marital dissolution matters, purchase price allocations and financial/tax reporting. He focuses on analyzing and interpreting company historical and projected financial data and financial modeling. Otte works in Lutz’s Omaha office.

Robby Renshaw has been promoted to HR Manager in Lutz’s Omaha office. She is responsible for leading the campus recruiting and experienced hiring efforts for our Omaha and Lincoln offices. In addition, she focuses on the Firm’s employee relations and retention initiatives. Robby also assists with performance management and onboarding.

Dani Sherrets, CVA, has been promoted to M&A Manager. She specializes in merger and acquisition advisory services and business valuations. Dani focuses on analyzing and interpreting financial statements, building financial models, performing valuation analyses, developing marketing and transaction materials and conducting due diligence. Sherrets works in Lutz’s Omaha office.

Zach Weis, CPA, has been promoted to Tax Manager. He is responsible for providing tax consulting and compliance services to businesses and individuals with a focus on the real estate and construction industries. Weis works in Lutz’s Omaha office.

SENIOR

Ty Bardsley has been promoted to Senior Accountant in the tax department in Lutz’s Lincoln office. He is responsible for the preparation of individual and business income tax returns for clients with a focus on the real estate and construction industries.

McKenzie Bruce has been promoted to Senior Accountant in the tax department. She provides tax planning and compliance services for clients with a focus on preparing individual and business income tax returns. Bruce works in Lutz’s Omaha office.

Will Frei has been promoted to Senior Accountant in the audit department in Lutz’s Omaha office. He is responsible for providing credibility to clients through financial reporting. In addition, he works to maintain a high level of objectivity and confidentiality in all areas for clients in a variety of industries.

Kaylee Hartman, CPA, has been promoted to Senior Accountant in the tax department in Lutz’s Omaha office. She provides tax consulting and compliance services for clients with a focus on individual and business income tax.

Kelli Hesselgesser has been promoted to Senior Accountant. She specializes in preparing income tax returns for individuals and businesses. In addition, she provides outsourced accounting services and collaborates with clients to prepare accurate financial data. Hesselgesser works in Lutz’s Grand Island office.

Taylor Hoyt has been promoted to Senior Accountant in the tax department in Lutz’s Omaha office. She specializes in providing tax consulting and compliance services to clients in a variety of industries with a focus on individual and business income tax returns.

Nikki Hullinger, CPA, has been promoted to Senior Accountant in the audit department. She is responsible for performing audits, reviews, and compilations for clients with a focus on the housing and manufacturing industries. Hullinger works in Lutz’s Omaha office.

Leslie Masek has been promoted to Senior Accountant in the tax department in Lutz’s Lincoln office. She provides tax consulting and compliance services for clients with a focus on individual and business income tax.

Justin Oehm, CPA, has been promoted to Senior Accountant in the tax department. He is responsible for preparing individual and business federal income tax returns with a focus on the construction and real estate industries. Oehm works in Lutz’s Omaha office.

Elizabeth Prinz, CPA, has been promoted to Senior Accountant in the tax department in Lutz’s Omaha office. She is responsible for the preparation of individual and business income tax returns for clients with a focus on the nonprofit industry. In addition, she assists with busy season intern training.

Austin Sabaliauskas, CPA, has been promoted to Senior Accountant in the tax department. He specializes in providing tax consulting and compliance services for individuals and businesses with a focus on the real estate industry. Sabaliauskas works in Lutz’s Omaha office.

Matt Siedhoff, CPA, has been promoted to Senior Accountant in the client accounting services department in Lutz’s Omaha office. He specializes in providing outsourced accounting services. In addition, Matt focuses on QuickBooks support, tax and payroll compliance, and accounting assistance including compilations.

Brooke Sorensen has been promoted to Digital Marketing Specialist. She is responsible for executing Lutz’s digital marketing initiatives, including writing and editing content, planning social media posts, coordinating external email communications, and managing the Firm’s SEO strategies and implementation. Sorensen works in Lutz’s Omaha office.

Mike Tichenor, CPA, has been promoted to Senior Accountant in the audit department in Lutz’s Omaha office. He is responsible for providing credibility, objectivity, and confidentiality to clients through efficient and effective financial reporting. Tichenor focuses on the construction and agriculture industries.

ASSOCIATE & TECH

Holly Anderson has been promoted to Marketing Coordinator. She assists with the coordination and implementation of Lutz’s strategic sales and marketing plans for all divisions and locations. Holly focuses on advertising, branding and proposal execution. Anderson works in Lutz’s Omaha office.

Matt Hendrock has been promoted to Project Engineer in Lutz’s Omaha office. He is responsible for deploying new technology solutions to enhance or replace outdated technology infrastructures. In addition, he provides server maintenance and hardware replacements for Lutz Tech clients.

Dan Mendoza has been promoted to Senior Project Engineer. He is responsible for implementing new technology and hardware solutions for Lutz Tech clients. In addition, he assists the service desk with network troubleshooting. Mendoza works in Lutz’s Omaha office.

RECENT POSTS

Family Office FAQs

Family Office FAQs

What makes family office such an elusive concept? The following are answers to some of the common questions asked about family offices…

read more

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Lutz named a 2021 Top 100 Firm by INSIDE Public Accounting

Lutz named a 2021 Top 100 Firm by INSIDE Public Accounting

 

LUTZ BUSINESS INSIGHTS

 

IPA Top 100 2021

Lutz named a 2021 top 100 firm by inside public accounting

INSIDE Public Accounting (IPA) recently announced their annual financial performance analysis and ranking of the nation’s largest public accounting firms. This year, Lutz made its fourth appearance on the IPA Top 100 list, coming in at #83.

“Lutz is proud to be a Top 100 Firm and we anticipate continued revenue increases in the future. Our customer’s changing needs continue to challenge our team which in turn expand our service offerings. We are committed to investing in the development of our employees and provide tailored solutions to help our clients succeed,” said Managing Shareholder, Mark Duren.

IPA Top 100, 200, 300 and 400 firms are ranked by U.S. net revenues and are compiled by analyzing more than 500 responses received this year for IPA’s Survey and Analysis of Firms. This is IPA’s 31st annual ranking of the largest accounting firms in the nation. A full list of the 2020 IPA Top 100 Firms can be found at: https://insidepublicaccounting.com/top-firms/ipa-400/

RECENT POSTS

Family Office FAQs

Family Office FAQs

What makes family office such an elusive concept? The following are answers to some of the common questions asked about family offices…

read more

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Stark Updates + Preparing for Physician Compensation Changes

Stark Updates + Preparing for Physician Compensation Changes

 

LUTZ BUSINESS INSIGHTS

 

Preparing Your Practice for Physician Compensation Changes

Stark updates + preparing for physician compensation changes

lauren duren, healthcare & cas manager

 

At the end of 2019, the government amended the federal physician self-referral law (Stark Law). This amendment brought significant changes to how compensation is reported under the group practice definition. This blog discusses the Stark regulation updates and how the changes will affect your physician compensation models.

 

What is the Stark Law? Why is it Important?

The Stark Law prohibits physicians from referring patients for certain Designated Health Service (DHS) paid for by Medicare to any entity in which the physician has a financial relationship.  This is a strict liability statute – meaning, the physician’s intent to influence referrals does not matter.  If in violation, the monetary penalties can be significant.  Exceptions apply, but arrangements must meet every element of an exception.

Under the Stark law, a referral by a physician to the physician’s own practice can implicate Stark. Thus, many physicians rely on an exception to assure compliance. Certain exceptions (Physician Services; In-Office Ancillary Services) rely on the practice meeting the definition of a “Group Practice.” Thus, to qualify for the Stark exception(s) and allow partners/employees of a physician practice to “refer” DHS to their own practice, the practice must meet the definition of “Group Practice” – and every element within.

To meet the definition of a group practice, you must:

  • Be a single legal entity.
  • Have at least two physicians.
  • All physicians must provide a full range of patient care services.
  • Substantially all the physicians’ services must be furnished through the group/Substantially all the group’s services must be provided by the physician members.
  • Be a unified business.
  • Distributions of expenses and income must be pre-determined.
  • Compensation cannot be based on the volume or value of referrals (for DHS.)

 

Notable Rule Changes/Clarifications

There are a few notable changes and added clarification to the Stark Law. These include:

  • Restructuring the regulation
  • Removal of the Medicaid reference related to DHS
  • Update and clarification to the definition of “Overall Profits;” end of “split pooling;” robust discussion of pod pooling/distributions

Timeline

On November 19, 2020, the Centers for Medicare & Medicaid Services (CMS) and the Department of Health and Human Services Office of Inspector General issued a final rule modernizing the Stark Law. Many of the revisions to the Stark regulations became effective January 19, 2021; however, revisions to the physician group practice regulations will become effective January 1, 2022.

As of that date, there are several implications for group practices from these changes, but most notably, these changes revise the rule related to the distribution of overall profits and productivity bonuses.

Profits from all the DHS of the practice, or a component of the practice that consists of at least five physicians (a “5+ physician pod”), must be aggregated before distribution. Group practices that use split pooling need to modify their compensation methodologies to account for this change by January 1. 

Physician practices also need to be aware of important commentary from CMS on the special rule that clarifies CMS’s intentions regarding permissible DHS profit sharing and additional revisions to the regulation text that impact profit sharing, which may also necessitate (or, in some cases, permit) changes to certain group practice compensation methodologies. Changes to the group practice definition will not become effective until January 1, 2022.

 

Solutions for Group Practices That Do Not Meet Revised Stark Regulations

There are several possible solutions for group practices that do not currently meet the Stark revisions for the group practice compensation formula.

For some larger group practices where certain pods or subsets of at least five physicians exist, multiple revenue distribution models can be adopted. As an example, Pod 1 can be distributed one way, while Pod 2 can be distributed another, as long as the same method for distributing overall profits for every physician in the pod is the same.

Practices with less than five physicians may identify other models.  If there are fewer than five physicians in a group, “overall profits” mean the profits derived from all the DHS of the entire group and they may aggregate DHS profits among less than five physicians (because the entire group is less than five physicians.)

CMS confirmed that any physician in the practice may be paid a share of the overall profits of the group practice; the share does not have to be just among owners.

 

What is Changing in Physician Compensation?

The reality is that physician compensation is changing. From provider mix, reimbursement models, workforce demographics, and the ever-changing regulations and compliance, it is important now more than ever to remain current with rules and regulations to ensure agreements are in line with the current statutes.

Value-Based Participation

The Stark rule update adds another exception that allows physicians to be paid profits from DHS that relate directly to a physician’s participation in a value-based enterprise.

“Profits from designated health services that are directly attributable to a physician’s participation in a value-based enterprise may be distributed to the participating physician.” It is important to note that value-based enterprises must meet the Stark definition.

Value-based enterprise (VBE) means two or more VBE participants:

  1. Collaborating to achieve at least one value-based purpose,
  2. Each of which is a party to a value-based arrangement with the other or at least one other VBE participant in the value-based enterprise,
  3. That have an accountable body or person responsible for the financial and operational oversight of the value-based enterprise, and
  4. That have a governing document that describes the value-based enterprise and how the VBE participants intend to achieve its value-based purpose(s). Arrangements will have to be reviewed for compliance. 

Now is the time for physician group practices to examine their current compensation plans with these technical payment rules. It is not too early for group practices to evaluate whether any changes are necessary to their physician compensation methodologies in order to comply. This is also a good opportunity to update compensation plans for reasons other than compliance. Physician groups should also examine new methods of payment they are participating in or contemplating participating in so that they can assess now whether they can modify physician compensation in 2021 both to be compliant and to further attract and incentivize excellent health care providers.

If you have any questions or would like to learn more about this topic, please contact us.

ABOUT THE AUTHOR

402.827.2062

lduren@lutz.us

LINKEDIN

LAUREN DUREN + HEALTHCARE & CAS MANAGER

Lauren Duren is a Healthcare & CAS Manager at Lutz with over six years of relevant experience. She provides healthcare consulting, as well as outsourced accounting services to clients with a focus on QuickBooks, tax, and payroll compliance.

AREAS OF FOCUS
  • Healthcare Accounting Consulting
  • Outsourced Accounting
  • Tax
  • Payroll Compliance
  • QuickBooks
  • Financial Reporting, Budgeting & Forecasting
  • Provider Compensation Plans
  • Practice Benchmarking
  • Private Physician Practices
  • Nonprofit Industry
AFFILIATIONS AND CREDENTIALS
  • American Institute of Certified Public Accountants, Member
  • Nebraska Society of Certified Public Accountants, Member
  • National Medical Group Management Association, Member
  • Nebraska Medical Group Management Association, Member
  • Certified Public Accountant
EDUCATIONAL BACKGROUND
  • MBA, University of Nebraska, Omaha, NE
  • BSBA in Accounting, University of Nebraska, Omaha, NE
COMMUNITY SERVICE
  • Lutz Gives Back, Volunteer

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Employee Retention Credit + Healthcare

Employee Retention Credit + Healthcare

 

LUTZ BUSINESS INSIGHTS

 

employee retention credit + healthcare

employee retention credit + healthcare

justin korth, tax manager
Lauren duren, healthcare and cas manager

 

  • Did your business suffer a revenue decline in 2020?
  • Do you expect a revenue decline in 2021 compared to 2019?
  • Did your business experience a shutdown in 2020?
  • Did your business experience a “full or partial suspension of operation due to a government order in 2020?”
    • Were you affected by any directed health measure order (I.e., being forced to halt any procedures/surgeries)?
      • If yes, and more than a nominal portion (more than 10%) of the business was affected during any of the shutdown periods in 2020, please contact us for further consideration as the credits available under this program are significant.
  • Did your business continue paying employees during these times of disruption?

If so, there may be significant opportunities to claim refundable tax credits on wages paid in 2020 and 2021.

 

OVERVIEW

The Consolidated Appropriations Act (CAA), signed by President Trump in late-December 2020, extended and expanded the Employee Retention Credit (ERC), a refundable payroll tax credit.

The CAA repealed a provision under the CARES Act signed in March 2020 that made Paycheck Protection Program (PPP) borrowers disallowed from using the ERC. Now both programs can be used by eligible employers retroactively and prospectively, although double-dipping the same wages is not allowed. Many employers may now qualify for significant benefits in 2020 and/or 2021.

2020 ERC (WAGES PAID 3/13/2020 – 12/31/2020)

To be eligible for the 2020 ERC, employers (including affiliated entities) must demonstrate one of the below:

  • Full or partial suspension of operation due to a government order in 2020 (refer to IRS guidance), OR
  • At least 50 percent decline in a 2020 calendar quarter’s gross receipts compared to the same quarter in 2019.

If the business meets one of the qualifying requirements, it must consider the average number of full-time employees in 2019. Employers (including affiliated entities) with fewer than 100 full-time employees are likely qualified.

The credit is 50 percent of up to $10,000 in wages (including health care expenses) per employee for calendar year 2020 (maximum $5,000 credit per employee). There may be limitations for owner and family members of owners.

The credits must be claimed on amended payroll tax returns (Form 941-X). Calculations can be complicated when considering interplay with Paycheck Protection Program (PPP) first draw, FFCRA credits (expanded paid sick leave/emergency FMLA leave), and the Provider Relief Funds.

2021 ERC (WAGES PAID 1/1/2021 – 12/31/2021)

To be eligible for the 2021 ERC, employers (including affiliated entities) must demonstrate one of the below:

  • Full or partial suspension of operation due to a government order in 2021, OR
  • At least 20 percent decline in a 2021 calendar quarter’s gross receipts compared to the same quarter in 2019.
    • An election is available to use the immediately preceding calendar quarter for eligibility testing (e.g., 4th quarter 2020 gross receipts for Q1 2021 eligibility).

Should a business meet one of the requirements and have fewer than 500 average full-time employees (including affiliated entities) in 2019, it is likely eligible for the 2021 ERC.

The credit is 70 percent of up to $10,000 in wages (including health care expenses) per employee for each 2021 calendar quarter (maximum $28,000 credit per employee since program was extended through the end of 2021). There may be limitations for owners and family members of owners.

The credits must be claimed on payroll tax returns (Form 941). An advance refund can be claimed by filing Form 7200. This process and the calculations involved are complicated, especially when considering the interplay with Paycheck Protection Program (PPP) second draw, FFCRA credits, and the Provider Relief Funds.

The American Rescue Plan Act of 2021 extended this program through December 31, 2021.

 

NEXT STEPS

If you believe your business may qualify for the Employee Retention Credit, please contact your Lutz Representative or give us a call at 402.496.8800.

 

Updated on 7.13.2021

ABOUT THE AUTHOR

402.514.0007

jkorth@lutz.us

LINKEDIN

JUSTIN KORTH + TAX MANAGER

Justin Korth is a Tax Manager at Lutz with over four years of experience in taxation. He is responsible for individual, business, and fiduciary income tax returns, estate & business planning, and taxpayer representation on IRS matters. In addition, he provides consulting on small business accounting.

AREAS OF FOCUS
  • Income, Business, and Fiduciary Income Tax Returns
  • Taxpayer Representation
  • Estate and Business Planning
  • Client Accounting Services
  • Small Business Accounting Consulting
  • Forensic & Litigation Support
  • Real Estate Industry
  • Agriculture Industry
  • Medical Staffing Industry
  • Manufacturing Industry
AFFILIATIONS AND CREDENTIALS
  • Nebraska Society of Certified Public Accountants, Member, Legislation Committee
  • American Institute of Certified Public Accountants, Member
  • Certified Public Accountant
EDUCATIONAL BACKGROUND
  • BSBA in Accounting and Finance, University of Nebraska, Omaha, NE
COMMUNITY SERVICE
  • UNO Young Alumni Academy, Member
  • St. Vincent de Paul Knights of Columbus, Member
  • Youth Catholic Professionals, Board President
  • JPII Newman Center, Development Committee Member
  • UNO College of Business Scholars Academy, Mentor
  • Sacred Heart Catholic School, Mentor

402.827.2062

lduren@lutz.us

LINKEDIN

LAUREN DUREN + HEALTHCARE & CAS MANAGER

Lauren Duren is a Healthcare & CAS Manager at Lutz with over six years of relevant experience. She provides healthcare consulting, as well as outsourced accounting services to clients with a focus on QuickBooks, tax, and payroll compliance.

AREAS OF FOCUS
  • Healthcare Accounting Consulting
  • Outsourced Accounting
  • Tax
  • Payroll Compliance
  • QuickBooks
  • Financial Reporting, Budgeting & Forecasting
  • Provider Compensation Plans
  • Practice Benchmarking
  • Private Physician Practices
  • Nonprofit Industry
AFFILIATIONS AND CREDENTIALS
  • American Institute of Certified Public Accountants, Member
  • Nebraska Society of Certified Public Accountants, Member
  • National Medical Group Management Association, Member
  • Nebraska Medical Group Management Association, Member
  • Certified Public Accountant
EDUCATIONAL BACKGROUND
  • MBA, University of Nebraska, Omaha, NE
  • BSBA in Accounting, University of Nebraska, Omaha, NE
COMMUNITY SERVICE
  • Lutz Gives Back, Volunteer

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