Boost Employee Benefits with Student Loan Matching Contributions

When it is hard to find employees, dental practices that can bring something to the table that attracts – and retains – good team members will win the war for talent. Here’s something to consider: expand your retirement savings plan to match employee student loan payments. 

Based on the guidance provided in IRS Notice 2024-63, dental practices can help employees grow their retirement savings, even if those employees are currently prioritizing paying off student loans. This option applies to retirement plans years beginning after December 31, 2023, so you can implement it right away too. Here’s a closer look at what this means for dental practice employers and their teams: 

  • New Matching Opportunities: Employers can now match qualifying student loan payments, allowing employees to benefit from retirement savings growth while managing their educational debt. This is a strategic move, especially for dental practices looking to retain younger staff who may be burdened by student loans.
  • Certification Process: Employees will need to certify that their student loan payments qualify for these matching contributions. This ensures that the benefits are accurately distributed and that employees receive the retirement contributions they deserve.
  • Flexible Plan Integration: The IRS guidance offers flexibility in how dental practices can integrate these matching contributions into their existing retirement plans. Employers can adopt procedures that fit within their unique plan structures, making the transition smoother.
  • Nondiscrimination Testing Adjustments: To accommodate this new benefit, the IRS has provided special relief from certain nondiscrimination tests for 401(k) plans. This helps ensure that offering student loan matching contributions won’t lead to compliance challenges.

Why This Matters for Dental Practices

By implementing this new option, dental practices can strengthen their employee benefits package, particularly appealing to staff members who are managing student debt. This can improve employee satisfaction and retention, contributing to a more stable and committed workforce.

What Next?

Dental practice owners should consider how this new guidance could enhance their retirement plan offerings. If you’re interested in exploring how to implement these changes in your practice – even if you aren’t currently a client – don’t hesitate to reach out for expert advice tailored to your specific needs. We can help ensure your plan is compliant and optimized for both your practice and employees.

Strength in Numbers: The Value of Our Dental Network for Your Practice

When you partner with Edwards & Associates, you’re not just getting top-tier financial and accounting expertise tailored to dental practices. You’re also gaining access to our extensive network of industry vendors. Over the years, we’ve cultivated relationships with a variety of trusted service providers, from attorneys to dental supply companies to human resources specialists, ensuring that our clients have everything they need to run a successful practice.

The Power of Connection

In the dental industry, having the right connections can make a significant difference in how efficiently your practice operates. Whether you’re looking for the best deals on equipment, seeking advice on practice management software, or need a reliable contractor for office renovations, or if you want to drop some insurance contracts but aren’t sure which ones, our network is here to support you. These connections aren’t just random business cards we’ve collected—they’re trusted professionals we’ve worked with closely, in most cases, for years, who understand the unique needs of dental practices.

The Added Value of Our Network

Partnering with us means you’re not just hiring an accountant; you’re gaining a team that’s committed to your entire practice’s success. Our network allows us to go beyond traditional accounting and financial services, offering you a holistic approach to managing your business. 

For instance, if you’re struggling with the administrative side of your practice, we can connect you with consultants who specialize in creating efficient systems and streamlining workflows. Need help handling the complexities of dental insurance? We’ve got contacts who can tell you which insurance contracts to stay away from and which ones to accept, explaining why in both cases. Or maybe you need a loan to purchase new equipment or expand your space? We know where you can get the best rates, and it is not always with a local bank. Our membership in the Academy of Dental CPAs allows us to create relationships with dental-specific lenders nationwide – and we are happy to connect these lenders with our clients. 

This extensive network is one of the reasons our clients stay with us for the long term. They appreciate that we’re not just focused on their books; we’re focused on their business as a whole. Our network provides value that goes beyond the numbers, helping solve challenges that may not even be on your radar yet.

Why This Matters

In an industry as specialized as dentistry, it’s crucial to have vendors and service providers who understand the intricacies of your field. Working with a generalist may save a few dollars in the short term, but the expertise you gain from specialized vendors can lead to better outcomes and fewer headaches down the line. Our carefully curated network ensures that you’re always working with professionals who know the dental industry inside and out.

We believe that our clients deserve more than just excellent tax, financial and accounting services – they deserve a partner who’s invested in their overall success. Our extensive dental network is a testament to that commitment, providing you with the resources you need to run a thriving practice. When you work with us, you work with a team that’s dedicated to helping your practice grow, succeed, and meet the challenges of an ever-evolving industry.

Giving Back to Our Community

Remember getting ready for the first day of a new school year? While many of us were sad to see summer go, we were also excited about hanging out with our friends and learning new things. It was also a fun time to pick out new school supplies. (Anyone else remember Trapper Keepers?) Not all kids can approach the start of school with the same excitement and support, which is why the Community Partners of Dallas created their Back to School program.

Believing to whom much has been given much is required, the E&A team decided to gather school supplies and support our community with a team-building exercise. So this week we paused from our day-to-day work to put together 75 backpacks (25 for each grade level: K-2, 3-6, and 7-12) for abused or neglected children in the Dallas area. We encourage all of our clients and other readers to consider supporting this organization as well by putting together your own backpacks, organizing a school supply drive, or simply donating to the cause.

Afterwards, we gathered at Maguire’s for Happy Hour to enjoy more time with each other and raise a toast to a great day.

Solving Common Dental Practice Challenges with Virtual Assistants

In a recent Beyond Bitewings episode, Beth Lachance, the founder and CEO of Global Medical Virtual Assistants, joined the discussion to share insights on how virtual assistants are transforming the operations of dental practices and highlighted the growing trend of remote staffing as a solution for the administrative challenges faced by dental professionals. Her company specializes in providing virtual assistants who manage tasks like front desk operations, insurance verifications, and revenue cycle management, which are crucial yet time-consuming for practice owners.

Beth emphasized that many dental practices struggle with the demands of running a business while trying to focus on patient care, a topic we cover frequently on Beyond Bitewings. The administrative burden often falls on front desk staff, leading to inefficiencies and potential burnout. Virtual assistants offer a way to offload these tasks, allowing in-house teams to focus on patient care and improving the overall efficiency of the practice.

One of the key points Beth made was the cost-effectiveness of using virtual assistants – who can cost significantly less than employing full-time, in-house staff – without sacrificing quality. These virtual assistants are often dedicated exclusively to the practice they are assigned to, ensuring consistent and personalized service.

Moreover, virtual assistants can help practices scale more effectively by managing the administrative workload, thereby freeing up resources for growth. This is particularly important in the post-COVID era, where staffing challenges and rising operational costs have made it difficult for many practices to maintain profitability.

Beth also addressed concerns about the personal touch in patient care, assuring listeners that her virtual assistants are highly trained professionals who can seamlessly integrate into the practice’s workflow, just like any other remote employee. 

The episode provides valuable insights into how dental practices can leverage virtual assistants to streamline operations, reduce costs, and improve patient care. For dental professionals looking to optimize their practice management, exploring virtual assistance could be a game-changer. If you are interested in learning more, you can download Beth’s book, Best Tasks to Delegate to a Medical Virtual Assistant, on their website.

FTC’s Non-Compete Ban: Dueling Court Rulings

Keeping up with the Federal Trade Commission’s (FTC) rule banning most non-compete agreements is nearly a full-time job. We initially wrote about it here, then published an update here, and now we have even more information to share. 

Overview of Original Non-Compete Ban Ruling (April 23, 2024)

On April 23, 2024, the FTC announced a final rule that prohibits employers from entering into non-compete agreements with workers, including senior executives, after the rule’s effective date of September 4, 2024. The rule also renders existing non-competes unenforceable for most workers, with exceptions for senior executives and agreements made as part of a bona fide sale of a business. The FTC’s decision was driven by findings that non-compete clauses suppress wages, stifle innovation, and hinder new business creation. The FTC estimates that the ban will lead to a 2.7% annual increase in new business formation, higher worker earnings by an average of $524 per year, and significant reductions in healthcare costs.

Ruling 1: Northern District of Texas Ruling (July 3, 2024)

U.S. District Court Judge Ada Brown in the Northern District of Texas granted a preliminary injunction against the FTC’s non-compete ban, preventing the FTC from enforcing the rule against the plaintiffs (Ryan LLC and several trade associations, including the U.S. Chamber of Commerce.) The court found that the plaintiffs were likely to succeed in arguing that the FTC lacks statutory authority to issue the rule and that the rule is arbitrary and capricious. However, this injunction is limited to the named plaintiffs and is not a nationwide injunction. 

Ruling 2: Eastern District of Pennsylvania Ruling (July 23, 2024)

In contrast to the Texas ruling, Judge Kelley Brisbon Hodge of the U.S. District Court for the Eastern District of Pennsylvania upheld the FTC’s authority to issue the non-compete ban. In this case, the court found that the FTC does have the authority to issue such a rule and ruled against the plaintiff, ATS Tree Services LLC. 

What is Next?

These conflicting rulings create uncertainty about the future of the FTC’s non-compete ban. The Texas court has indicated it will issue a final order on the merits by August 30, 2024, just days before the FTC’s rule is scheduled to go into effect on September 4, 2024.  Regardless of what the Texas court does at the end of the month, it is likely that these cases will continue through the appeals process, eventually leading to a resolution at a higher court level.

For dental practices, this situation creates uncertainty. We will continue to monitor these developments closely and provide updates on any further movement or rulings.

Legislation to Expand Tax Breaks Voted Down by U.S. Senate

A significant piece of tax legislation was rejected by the US Senate last week even though it passed overwhelmingly by the US House in January 2024. This decision can impact both families and businesses, so we wanted to break down what it means for each. 

What Was in the Bill?

  • Child Tax Credit Expansion: The bill sought to increase the amount of the child tax credit and potentially expand eligibility to families that did not qualify before. 
  • Business Tax Breaks: The bill proposed to restore tax deductions and credits, including for equipment, interest costs, and research and development activities. These were not new breaks, but ones that had lapsed. 

Impact on Dental Practices and Families

  • For Families: The proposed child tax credit expansion will not go into effect. Those that currently qualify can still take advantage of the credit, but it will not be expanded to cover more families. 
  • For Dental Practices: For those that anticipated more easily writing off 100% of the cost of new equipment in the first year, that is now off the table. You will need to continue operating under the existing tax framework. 

Optimize Your Tax Situation

While this may not have been the outcome some had hoped for, there are still plenty of ways to take advantage of existing laws. There are myriad other tax credits and deductions for which both families and businesses may still qualify. We encourage all of our clients to take advantage of early tax planning so we can determine which ones will help lower your overall tax liabilities and optimize your tax strategy for this year and the future as well. 

Proactive tax planning is one of the keys to financial success, regardless of legislative changes. Reach out to us with questions or to schedule a consultation. 

FTC Non-Compete Rule Halted: Key Insights for Dental Practices

Recently, a significant development emerged for dental practice owners and administrators: the Federal Trade Commission (FTC)’s proposed ban on non-compete agreements has been temporarily paused. This delay, issued by U.S. District Court Judge Ada Brown in the Northern District of Texas, postpones the rule that was initially set to take effect soon. (You can read the post we wrote about this rule when it was announced here.)

The FTC’s Rationale

The FTC’s proposed rule aims to promote labor mobility and enhance wage growth by eliminating non-compete clauses that restrict employees from changing jobs. The FTC argues that these agreements inhibit innovation and economic growth, impacting nearly 30 million Americans. The proposal received broad public support, with many advocating for a national standard to supersede restrictive state laws.

Business Community Concerns

On the other side of the coin, the rule encountered significant opposition from the business community. Organizations like the U.S. Chamber of Commerce contend that the FTC has overreached its authority, arguing that non-compete agreements are vital for protecting proprietary information and maintaining business stability. These agreements are seen as crucial for fostering investment in employee training and protecting business interests.

Potential Disruptions

Legal challenges emphasize the potential economic and operational disruptions the rule could cause. Critics highlight that implementing the rule could lead to substantial upheaval across industries, suggesting that the FTC’s approach is too aggressive. They advocate for a balanced solution that considers both worker mobility and the contractual protections businesses rely on.

Implications for Dental Practices

For dental practices, the impact of this rule is particularly pertinent. Non-compete agreements are frequently used to protect sensitive business information and keep employees from approaching former patients when they leave a practice or open their own. Eliminating these agreements could force dental practices to rethink their hiring and retention strategies.

Looking Ahead

The Supreme Court’s Loper Bright Enterprises v. Raimondo finding in June could also impact the legality of this FTC rule since it shifted how courts interpret the statutory authority of federal agencies. The outcomes of these cases will likely set important precedents for federal regulation of employment practices, affecting how non-compete agreements and other contracts are managed.

We are committed to helping our dental practice clients understand these regulatory changes and will continue to provide updates on any developments that may impact your practice. 

The New Overtime Rules & How They May Impact Your Dental Practice

The U.S. Department of Labor has rolled out new regulations under the Fair Labor Standards Act (FLSA) that significantly adjusts the salary thresholds for overtime exemptions, directly impacting Dallas-area dental practices. These updates are set to phase in on two critical dates: the initial salary threshold will increase to $43,888 on July 1, 2024, followed by a further increase to $58,656 on January 1, 2025. These expanded overtime pay protections, if they are implemented, would impact more than 4 million U.S. workers.

More than a dozen businesses and industry lobbying groups have joined together to file suit against this ruling, saying it ignores concerns raised by the business community and runs afoul of the court’s past legal decisions on the issue. But regardless of whether the suit is successful in halting these new overtime rules or not, it is important for dental practices to understand how they can impact your operations and budget for the additional cost.

As of July 1, employees who are categorized under the white-collar exemptions (executive, administrative, and professional) must earn at least $43,888 annually to remain exempt from overtime pay. By January 1, 2025, this threshold will leap to $58,656, encapsulating a larger group of employees under the overtime pay requirement unless their salaries are adjusted accordingly.

The rationale behind these increments, as noted by the Department of Labor, is to better align the salary thresholds with modern wage standards and economic conditions, ensuring fair labor practices. This significant increase – nearly 65% above the previous level – reflects both inflationary adjustments and a push towards enhancing worker compensation.

Dental practices must now consider whether to increase the salaries of affected employees to maintain their exempt status or to reclassify them as non-exempt, which would make them eligible for overtime pay. The financial decision may be an easy one. Changing affected employees to non-exempt will likely be the lower cost option since dental offices are rarely open more than 40 hours a week, largely insulating them from overtime pay considerations. But this decision involves not just financial considerations, but also operational ones, as changing employee status can affect morale and workplace dynamics.

Moreover, the DOL’s final rule includes a mechanism for automatic adjustments every three years, intended to keep the salary thresholds relevant with economic changes. This addition underscores the need for ongoing vigilance and flexibility in human resource planning within dental practices.

In light of these changes, dental practice owners are encouraged to:

  • Conduct a thorough review of all employees’ salaries against the new thresholds.
  • Consider the potential financial impact of salary adjustments versus the cost of overtime pay.
  • Communicate with affected employees about how these changes might impact their pay structure or job classification.
  • Update payroll systems and policies to accommodate these new rules and any future adjustments.

As these regulatory changes take effect, proactive planning and open communication will be key in navigating the transition smoothly. We will continue to update you on any further developments. If you have questions or want help with both tax and financial planning for your practice, reach out to us so we can help you plan for these changes and make recommendations for your specific situation.