2025 Tax Changes for Dentists and Their Employees

The IRS has announced adjustments for 2025 that will impact deductions, credits, and thresholds. Staying on top of these changes can help maximize tax benefits for you and your employees. Here’s a roundup of the key updates:

Increased Standard Deduction for 2025

The standard deduction—helpful for those who skip itemizing—has increased for the 2025 tax year:

  • Single Filers: $15,000 (up $400 from 2024).
  • Married Couples Filing Jointly: $30,000 (up $800).
  • Heads of Household: $22,500 (up $600).

This deduction can be a valuable benefit to employees who don’t itemize, potentially lowering their taxable income and boosting their take-home pay.

Adjusted Marginal Tax Brackets

While the top tax rate remains 37%, income thresholds have shifted, impacting where different income levels fall. Here are the adjusted brackets:

  • 35% for income over $250,525 (single) or $501,050 (married).
  • 32% for income over $197,300 (single) or $394,600 (married).
  • 22% for income over $48,475 (single) or $96,950 (married).

Knowing where you or your employees stand within these brackets can help with planning deductions and contributions throughout the year.

Alternative Minimum Tax (AMT) Thresholds

The AMT exemption has also increased to $88,100 for individuals and $137,000 for couples, with phase-outs starting at $626,350 and $1,252,700 respectively. This is particularly relevant for high earners who may be subject to AMT.

Enhanced Earned Income Tax Credit (EITC)

The maximum EITC for families with three or more children is now $8,046 for 2025. This could be valuable information for your employees who qualify for this credit, as it can significantly boost their income at tax time.

Fringe Benefits & Health Flexible Spending Adjustments

  • Qualified Transportation and Parking Benefits: Monthly limits rise to $325.
  • Health Flexible Spending Arrangement (FSA): Contribution cap increases to $3,300, with a carryover limit of $660.

These changes allow dental practice owners to offer even more valuable pre-tax benefits, reducing taxable income for employees while supporting healthcare expenses.

Medical Savings Account (MSA) Limits

For 2025, minimum deductibles and out-of-pocket expenses for MSAs have increased slightly. For self-only plans, the deductible is at least $2,850, with a $5,700 out-of-pocket max. Family plans must have a minimum deductible of $5,700, with a maximum out-of-pocket of $10,500.

If you have any questions about how these changes may impact you or your specific situation, reach out to us to schedule a conversation. 

What Dentists Need to Know About New BOI Reporting Requirements

The new Beneficial Ownership Information (BOI) filing requirements are now in effect, and the deadlines are fast approaching. Don’t risk compliance headaches or costly penalties – including a $591 daily fine and possible criminal charges – let us handle this for you.

For most dental practices, BOI filing isn’t complicated but ensuring accuracy and protecting your sensitive business information is essential. Don’t outsource filing to a shady third-party vendor, as many are turning out to be. If you’d like to tackle it yourself, FinCEN’s website offers a straightforward filing option. 

Filing Deadlines for Existing Entities:

  • BOI report due by December 31, 2024
  • Contact us by December 2, 2024, for assistance

For those looking to take this off their plate entirely, our team at Edwards & Associates has the expertise to manage it seamlessly and securely. We’ll guide you through every step, making sure your filing is complete, compliant, and worry-free.

Contact us today and let us handle this so you can focus on what you do best — caring for your patients.

BOI Reporting FAQ

The process for BOI filing can be straightforward for small dental practices. Here are six critical questions to guide you through whether and how to file:

1. Does My Practice Need to File?

Most dental practices will need to file, especially if structured as corporations, LLCs, or partnerships registered with a state. There are 23 types of exempt companies, but most small, privately owned dental practices do not qualify for these exemptions.

2. Who Qualifies as a Beneficial Owner?

A ‘beneficial owner’ includes individuals who:

  • Exercise substantial control over the business, or
  • Own or control at least 25% of the company’s equity interests.

For dental practices, this typically means the practice owners themselves. Exceptions exist, including minor children, employees without ownership stakes, and certain creditors.

3. Who Is Considered a Company Applicant?

A company applicant is anyone who files the registration paperwork for your entity or directs that filing. In most cases, this will include the practice owner, or anyone designated to handle legal filings.

4. What Information Will I Need to Gather?

When preparing your BOI report, you’ll need the following details:

  • For the Company: Legal name, DBA names, primary U.S. business address, jurisdiction of formation, and tax identification number.
  • For Each Beneficial Owner and Applicant: Full legal name, birthdate, residential or business address, and a valid ID number (e.g., passport or driver’s license).

5. What Is a FinCEN Identifier, and Should You Consider It?

A FinCEN Identifier is an optional unique number that you or your company can request, simplifying the reporting process by allowing you to file your BOI without disclosing sensitive personal details like a Social Security Number. If privacy is a concern, this may be worth considering.

6. How Do I File My BOI Report?

The BOI report can be filed electronically here on FinCEN’s website. Before starting, make sure you have all necessary information ready to avoid delays or errors.

2025 Brings Modest Social Security Cost-of-Living Adjustment

The Social Security Administration (SSA) recently announced a 2.5% cost-of-living adjustment (COLA) for 2025, set to begin in January. While this increase may seem modest, it’s designed to help beneficiaries keep pace with inflation, which has a significant impact on day-to-day expenses like groceries, housing, and utilities. For dental practice owners and administrators who work closely with senior patients, understanding these adjustments can provide helpful context when advising patients and their families. And if you have seniors in your life, this is a great article to share with them to help explain the upcoming changes.

What the 2025 COLA Increase Means for Social Security Benefits

With the 2.5% COLA adjustment, the average monthly benefit for retired workers is projected to rise from $1,927 to approximately $1,976, translating to an extra $50 per month. Those with longer work histories or who delayed retirement to maximize their benefits could see larger increases.

This year’s adjustment is lower than recent years, particularly compared to the heightened increases when inflation was at its peak. Although the lower COLA may suggest that inflation is moderating, many seniors may find that expenses in essential areas, such as healthcare and housing, continue to rise faster than the COLA.

Considering Medicare Premiums in Your Net Benefit Increase

It’s crucial to remember that Medicare Part B premiums are also anticipated to increase in 2025. Since Medicare premiums are deducted directly from Social Security benefits, this can reduce the net increase that seniors will actually see. 

Preparing for Financial Stability with the 2025 COLA

This year’s Social Security increase offers some relief, but it’s essential to remember that expenses continue to fluctuate. Dental practice administrators may want to communicate these changes to patients and families who could benefit from additional financial planning, especially as they look toward managing both dental and healthcare costs in retirement.

For more information on the 2025 Social Security COLA, visit the official announcement from the Social Security Administration.

Retirement Contribution Limits for 2025

The IRS recently released Notice 2024-80, detailing retirement plan contribution limit changes for 2025. These updates offer dental practice owners, administrators, and employees an opportunity to increase retirement savings. 

Increased 401(k) Contribution Limits

For 2025, the IRS raised annual contribution limits for 401(k), 403(b), most 457 plans, and the federal government’s Thrift Savings Plan:

  • Employee Contribution Limit: Increased from $23,000 in 2024 to $23,500 for 2025.
  • Catch-Up Contribution (Ages 50+): Remains at $7,500.
  • Secure 2.0 Catch-Up Contribution (Ages 60-63): $11,250 for employees nearing retirement.

Dental practice employees aged 50 and older can now contribute up to $31,000 to their retirement accounts, allowing them to grow their savings more robustly as they approach retirement.

IRA Contribution Limits Remain Steady

For those using traditional or Roth IRAs, the annual contribution limit remains unchanged at $7,000 in 2025, with a $1,000 catch-up for those 50 and older. Although there is no increase here, IRAs continue to be a valuable addition to retirement planning strategies, particularly for dentists and practice employees looking to diversify retirement savings.

Roth IRA Income Limits

The IRS also adjusted income thresholds for Roth IRA contributions, providing opportunities for higher-income earners to still participate, albeit with limits:

  • Single and Head of Household Filers: Phase-out range is $150,000 – $165,000.
  • Married Filing Jointly: Phase-out range is $236,000 – $246,000.

These limits mean that practice owners and employees within these income ranges may have reduced Roth IRA contribution options, while those exceeding these thresholds are ineligible.

SEP and SIMPLE IRA Limit Increases for 2025

For dental practice owners utilizing Simplified Employee Pension (SEP) IRAs or Savings Incentive Match Plan for Employees (SIMPLE) IRAs, there are new limits for 2025:

  • SEP IRAs: Increased to $70,000 from $69,000 in 2024.
  • SIMPLE IRAs: Employee contribution limit raised to $16,500, with the $3,500 catch-up remaining unchanged.

These adjustments make SEP and SIMPLE IRAs even more attractive for dental practices, particularly for smaller practices that want flexible and tax-efficient retirement options.

Higher Limits for Defined Benefit Plans

Defined benefit plans, typically more common in larger practices or for practice owners aiming for high retirement contributions, also saw an increase to $280,000 from $275,000 in 2024. They can provide substantial savings potential, enabling dental practice owners to make large contributions that help secure their retirement and enjoy tax advantages.

HSA Contribution Limits Updated

While not a retirement plan, Health Savings Accounts (HSAs) are an essential part of long-term financial planning, especially when considering future healthcare costs:

  • Individual Contribution Limit: Increased to $4,300.
  • Family Contribution Limit: Increased to $8,550.
  • Catch-Up Contribution (Ages 55+): Remains at $1,000.

HSAs can complement a retirement plan by covering qualified medical expenses in retirement, allowing practice owners and employees to plan more effectively for future healthcare needs.

Strategic Considerations for Dental Practice Owners

These retirement plan updates provide a prime opportunity for dental practices to enhance their employee benefits and retirement strategies. Here are a few ways to leverage these changes:

  1. Encourage Increased Contributions: Educate employees on the benefits of maximizing their retirement contributions, especially with the new limits in place.
  2. Evaluate Plan Offerings: If your practice doesn’t currently offer a retirement plan, consider setting up a SIMPLE or SEP IRA, which provides higher contribution limits and tax benefits.
  3. Take Advantage of Catch-Up Contributions: For those over 50, the ability to make catch-up contributions is a valuable tool to accelerate retirement savings.
  4. Consider Employer Contributions: Adding employer contributions or matching can enhance employee satisfaction and loyalty, helping retain valuable team members.

Planning for a Financially Secure Future

With the updated IRS retirement plan limits for 2025, dental practice owners and their employees have an opportunity to boost their savings and ensure a financially secure future. To make the most of these changes, reach out to us for individual planning. Proper planning can help you maximize tax benefits, increase retirement readiness, and support your team’s financial health.

If you have questions about how these changes could impact your practice’s retirement planning, reach out to us for guidance. We’re here to help you understand the new limits and implement strategies to make the most of them.

Understanding the Business Side of Dentistry with Dental Student Sarina Arzani

In the latest episode of Beyond Bitewings, Sarina Arzani, a third-year dental student from A&M College of Dentistry, joined the discussion to provide valuable insights for fellow dental students and young dentists. The focus of the episode was on the challenges new graduates face when transitioning from school to the business world of dentistry and how to effectively prepare for that transition.

The Gap Between Dentistry and Business Knowledge

Sarina highlighted a common concern among dental students: while they are equipped with extensive knowledge and skills related to dentistry, they often feel lost when it comes to the business side of running a practice. Many students, especially those nearing graduation, realize they lack the tools to navigate the financial, operational, and management aspects required for success after dental school. Sarina shared how her peers are searching for jobs but don’t know what to prioritize or where to start when evaluating potential employers or thinking about opening their own practices.

The Importance of Building a Strong Team

A key takeaway from the discussion was the importance of building a strong support team early on. Sarina emphasized that starting this process during the D3 or D4 year is crucial for feeling confident and prepared when entering the real world of dentistry. Whether it’s financial advisors, practice management experts, or networking with fellow dentists and vendors, surrounding yourself with a knowledgeable team can make all the difference. Sarina noted that dentists who are successful in both clinical practice and business consistently credit their support teams for much of their success.

Dealing With Information Overload 

Sarina also touched on the overwhelming amount of information available to dental students as they approach graduation. From job offers to setting up a practice, knowing what advice to follow can be challenging. One strategy discussed was how building relationships with experienced professionals can help filter the most relevant and valuable advice. Having a network of trusted experts can simplify the decision-making process and reduce the confusion that often comes with entering the business side of dentistry.

Making Connections Early

Networking emerged as a key theme in the conversation. Sarina encouraged students to start making connections early, whether through conventions like the Southwest Dental Show where the podcast was recorded or via social media, where many dentists and professionals share valuable insights. By building these relationships and learning from others’ experiences, dental students can better understand the type of practice they want to create and the best way to achieve their goals.

Leveraging Social Media in Dentistry

Interestingly, Sarina, who is considered a social media influencer, spoke about the power of social media in dentistry. She described how platforms like Instagram and YouTube offer an excellent opportunity for networking, learning, and even marketing future dental practices. For those looking to stand out in today’s competitive environment, leveraging social media is becoming increasingly important, especially for reaching younger patients and staying connected with peers in the industry.

Support from Edwards & Associates PC

As a final note, Ash reminded listeners that they offer free contract reviews for new dental graduates entering their first associateships. With decades of experience in dental-specific accounting and financial services, the firm provides invaluable support for dentists at all stages of their careers. Whether it’s reviewing employment agreements, offering business advice, or helping with long-term financial planning, they are dedicated to supporting the dental community.

Understanding What you Can (and Can’t) Write-Off for Your Dental Practice

On a recent episode of Beyond Bitewings, we tackled some of the most common—and occasionally amusing—questions we receive from dental practice owners. The main focus is on a hot topic: vehicle write-offs. Let’s break down the conversation and explore what you need to know before deciding to write off that new ride.

Can I Deduct My New Car Purchase?

One of the most frequently asked questions we get from dental practice owners is whether they can write off a newly purchased vehicle. The answer, as with many things in tax law, is “it depends.”

  • Business Use Matters: For a vehicle to qualify for a deduction, it must be used primarily for business purposes—at least 50% of the time. This usage ratio is crucial. If your dental practice requires you to travel between multiple locations or regularly transport supplies, you might be in luck. However, if your business use is less than 50%, you may only be able to deduct a portion of the expenses, such as through the mileage rate.
  • Vehicle Type Counts: The type of vehicle also influences how much you can deduct. Heavier vehicles, those weighing more than 6,000 pounds, may qualify for more significant deductions under the Section 179 rule, but again, their primary use must be business-related. Your typical compact car used mainly for commuting? Not so much.
  • Beware the Sales Pitch: One of the most significant points raised was a caution against taking tax advice from your car salesperson. While they may claim that you can write off your new car purchase, the reality is more nuanced. Factors such as income limitations, vehicle weight, and business use percentage all play a role in what can actually be deducted. In other words, don’t let a good sales pitch lead you to believe you’ll get a tax break that doesn’t really apply to your situation.

The Changing Landscape of Business Travel

Another interesting takeaway from the episode is how the traditional use of vehicles for business purposes has shifted. Gone are the days when dental practice owners would need to drive to the bank, post office, or even Continuing Education (CE) events. With everything now accessible online or delivered to your doorstep, justifying business mileage for these activities is much harder.

What About the EV Credit?

In recent years, many dental professionals have shown interest in electric vehicles, partly due to the potential for a federal tax credit. However, Lorraine Kent, tax manager at Edwards & Associates, points out that high-income earners—like most dentists—often don’t qualify for the electric vehicle (EV) credit due to income limitations. So, before you sign on the dotted line for that new Tesla, be sure to consult with your tax advisor to see if you’re eligible for the credit.

Gifts and Incentives: Tread Carefully

In another part of the discussion, the team addressed the issue of gifts. Say you want to reward your top-performing associate with a nice gift—perhaps a Rolex. You might think this is a great way to show appreciation, but the IRS has different ideas. Business gifts are generally limited to $25 per person per year. Anything above that has to be reported as wages, which means it’s subject to payroll taxes. So, while a luxury watch might seem like a generous gift, it could complicate your tax situation significantly.

The Bottom Line

Vehicle write-offs and other deductions can be valuable, but only if they’re handled correctly. As a dental practice owner, it’s crucial to have a trusted advisor who can guide you through these complex issues and help you make the best decisions for your practice. If you have questions or need help understanding what’s deductible and what’s not, don’t hesitate to reach out to the team at Edwards & Associates. We are here to help you navigate the financial intricacies of your dental practice with clarity and confidence.

For more information on tax strategies tailored to dental practices, check out other pages on our website and listen to the full podcast episode on Beyond Bitewings. Stay tuned for more insightful discussions on managing the business side of dentistry!

The Advantages of the Recent Interest Rate Cut for Dental Professionals

While a rate cut was expected today, many people were surprised when the Federal Reserve slashed interest rates by a substantial half percentage point. This larger-than-expected cut has far-reaching implications for various sectors of the economy, including the dental industry. Below, we break down what this significant rate reduction means for dental practice owners and managers, as well as its broader economic impact.

Benefits for Dental Practices

The substantial drop in interest rates presents several enhanced opportunities for dental practice owners and managers:

  1. Significantly Lower Borrowing Costs: With this hefty rate cut, securing loans for practice expansion, equipment upgrades, or refinancing existing debt becomes even more affordable. This can free up considerable cash flow for other essential investments in your practice.
  2. Enhanced Equipment Financing Opportunities: Investing in state-of-the-art dental technology – and thus improving patient care and practice efficiency – could be a bit easier now since the rate cut makes financing new equipment more cost-effective.
  3. More Attractive Practice Acquisition Terms: For dentists looking to buy a practice or expand to multiple locations, the current interest rate environment makes such investments more financially viable.
  4. Substantial Refinancing Opportunities: If you have existing loans or mortgages for your practice, refinancing at lower rates could reduce your monthly payments and overall debt burden.
  5. More Accessible Working Capital: Securing working capital at lower interest rates can help you better manage cash flow, especially during slower periods or when investing in new equipment, added staff, or new locations.

Economic Implications

The substantial interest rate reduction has broader implications for the economy:

  1. Stronger Economic Stimulus: This larger rate cut is likely to encourage more borrowing and spending, potentially stimulating economic activity more significantly. This could lead to increased consumer spending on dental services.
  2. Potential Inflation Concerns: While reduced interest rates often lead to increased economic activity, a cut of this magnitude might raise some inflation concerns. However, in the current economic climate, this effect may still be moderated by other factors.
  3. Boosted Real Estate Market: This rate cut is likely to provide a significant boost to the real estate market. This could be particularly beneficial if you’re considering purchasing property for your practice.
  4. Enhanced Stock Market Effects: Interest rate cuts of this magnitude often lead to increased stock market activity (i.e., the Dow jumped 300 points within 15 minutes of the rate announcement), which impacts overall economic sentiment and can potentially increase patient spending power.

Strategic Considerations for Dental Practices

Given these significant developments, dental practice owners and managers should consider the following strategies:

  1. Comprehensive Financial Plan Review: Now is a good time to reassess your practice’s financial strategy in light of this new, lower interest rate environment. This might involve revisiting expansion plans or accelerating equipment upgrades more aggressively than previously planned.
  2. Immediate Debt Evaluation: Conduct a thorough review of your current debt structure since there may be opportunities to refinance at more favorable terms.
  3. Accelerated Investment in Growth: With borrowing costs now lower, this could be an ideal time to invest more heavily in practice growth, whether through marketing, new services, or additional staff.
  4. Enhanced Patient Financing Options: Consider offering more attractive patient financing options at these competitive rates, which could encourage patients to proceed with treatment plans they might have previously delayed.
  5. Heightened Economic Awareness: Keep a close eye on economic trends and their potential impact on your practice and patient base. This significant rate cut could lead to more pronounced changes in patient behavior and spending patterns.

When interest rates change, it is a good time for dental practices to optimize their financial strategies and potentially accelerate growth plans. However, it’s crucial to approach these enhanced opportunities with a well-thought-out plan that aligns with your practice’s long-term goals.

As dental CPAs, we’re here to help you navigate these economic changes and make informed decisions for your dental practice. Whether you’re considering refinancing, expanding, or simply want to understand how these changes affect your bottom line, don’t hesitate to reach out for personalized advice.

Why We Don’t Outsource to Offshore Resources

Today, when many accounting firms are having trouble hiring skilled talent, many are turning to offshore resources to cut costs and increase profits. However, at E&A, we’ve made a conscious decision not to follow that path. For us, the security of our clients’ data and the quality of our services take priority over increasing profits. Here’s why…

The Value of Data Security

In the dental industry, patient confidentiality and data security are not just essential—they’re legally mandated. As your accounting firm, we handle highly sensitive financial data about your practice, employees, and even your patients. By keeping our operations within the U.S., we ensure that your data is protected by domestic privacy laws such as HIPAA and the Gramm-Leach-Bliley Act (GLBA). These laws provide stringent regulations on how client information should be managed, something many offshore firms may not know about or be subject to. Additionally, we are not willing to risk losing control over where and how your data is handled. Offshore jurisdictions may not have the same level of oversight, enforcement, or cybersecurity standards, which can mean increased vulnerability to data breaches and less accountability.

Maintaining Accuracy and Expertise

When you work with us, all of your accounting work is performed by qualified professionals who are familiar with the dental industry, U.S. tax laws, and other pertinent regulations. It is rare for an offshoring provider to have specialized industry knowledge, which can lead to inaccuracies and missed tax-saving opportunities.

In the world of dental accounting, precision is key, and every dollar matters when managing expenses, payroll, financial planning, and tax strategies. By choosing not to use offshore resources, we maintain a higher standard of accuracy, ensuring that nothing is lost in translation or neglected because someone unfamiliar with U.S. dental practice operations is handling your books.

Knowing Where Your Data Is At All Times

One of the benefits of working with us is knowing exactly where your data is stored and who is handling it. Offshore companies may not have the same level of security, so if a data breach occurs, who is responsible? How is your data being stored, and in which country’s jurisdiction does it fall? With our firm, there are no unknowns. Your data stays secure within the U.S., where it is subject to strict privacy regulations.

Choosing Security Over Profits

It’s no secret that offshoring can significantly reduce costs. However, we believe that the potential security risks, coupled with the loss of control over data, are simply not worth it. By keeping our work in-house, we may not maximize profits the same way firms using offshore labor do, but we offer our clients something much more valuable: peace of mind.

We’ve invested in state-of-the-art cybersecurity measures to protect your sensitive financial information, and our team is well-trained and vetted, so you can feel confident that your practice’s financial health is in safe hands.

Why This Matters to Dental Practices

As a dental practice owner, your focus should be on providing top-quality care to your patients. You shouldn’t have to worry about the safety and accuracy of your financial records. By choosing an accounting firm focused solely on those in the dental industry that doesn’t offshore its work, you’re choosing a partner that values security, precision, and transparency as much as you do.

If you want more information about how we safeguard your data and offer the best accounting services for your dental practice, feel free to contact us today. We’re here to help you build a stronger, more secure financial future.

IRS Opens Second Employee Retention Credit Voluntary Disclosure Program

The Employee Retention Credit was created to provide financial relief of up to $26,000 per employee to businesses that retained employees by subsidizing wages during the pandemic. However, many businesses, including dental practices, fell prey to aggressive marketing by deceitful companies that intentionally misled people into believing they were eligible for these credits when they were not. A promise of free money is hard to turn down, so many businesses decided to take the gamble that the IRS would not catch up to them while others unknowingly claimed the credit that did not qualify.

Once the IRS started looking into these claims, they found that up to 90% of them contain some type of fraud and sent more than 25,000 disallowance letters to claimants as of early August 2024. But also knowing that many businesses were duped into filing ERC claims, they launched a voluntary repayment program that ended in March 2024. Now, the IRS has launched a second ERC voluntary disclosure program with a deadline of November 22, 2024, so businesses can correct their mistakes and avoid potential audits, fines, and requirements to repay the credit. 

Common warning signs

Dental practices that claimed ERCs should carefully reassess their claims, especially if third-party firms assisted with the filing. Common red flags that could indicate a fraudulent ERC claim include:

  1. Practices that remained fully operational and did not experience a significant decline in gross receipts may not qualify for the ERC. 
  2. Some businesses misunderstood what constitutes a full or partial suspension under a government order, and many of the ERC mills relied on this confusion. Simply facing challenges during the pandemic doesn’t qualify as a suspension. Dental practices were considered “essential businesses” in almost every location and were not subject to many of the closure mandates.  Therefore, this aspect applied for a very limited period and a few limited geographical locations during 2020 only. If your claim was based solely on a full or partial suspension, your ERC may be considered erroneous.  
  3. Claiming wages paid to family members can lead to problems, as these claims are often ineligible or calculated incorrectly.
  4. Wages that were counted towards PPP loan forgiveness cannot also be claimed for ERC. Double-dipping in this manner is a common error.

What to do now

If you are concerned that some or all of your claim may not be accurate, we encourage you to do the following:

  1. Review your claims: It’s essential to thoroughly review all ERC claims to ensure compliance with IRS rules and all claimed quarters and wages meet eligibility requirements.
  2. Reach out to us: We understand the complexities of the ERC, can provide guidance on the voluntary disclosure program, and can help you correct any errors in past claims.
  3. Participate in the disclosure program: If you suspect your practice may have claimed the ERC incorrectly, consider enrolling in the IRS’s voluntary disclosure program before the November 22, 2024, deadline. This proactive step can help you avoid future interest, penalties and even up to five years in jail.
  4. Stay updated: Tax regulations are constantly evolving. We will continue to provide you with the latest updates on ERC rules and other relevant tax credits, but if you have specific questions, don’t hesitate to call us.

Correcting ERC claims through the voluntary disclosure program can prevent more severe consequences down the line. Not only does this protect your practice’s finances, but it also maintains your credibility and trustworthiness as a business. Don’t wait until it’s too late – review your ERC claims and ensure your practice complies with IRS guidelines. If you need assistance, our team is ready to help.

Improving Dental Practice Profitability

In the latest episode of Beyond Bitewings, Ash is joined by Jessica Jones, the CEO and founder of Build Your Cash Medical Practice. Jessica shared her unique insights into the medical and dental industries, drawing from her extensive experience in helping struggling practices grow into successful, multi-location clinics. Her career began in the 90s within a national marketing company, which eventually led her to working closely with medical practices, helping them convert leads into enrolled patients. This laid the foundation for her later ventures in building and scaling practices.

Jessica emphasized the importance of adapting to changing business environments, a principle that resonates strongly with dental practice managers and dentists. She stressed that what worked in the past may not necessarily be effective today, particularly in a rapidly evolving field like healthcare. Jessica highlighted the necessity of staying attuned to external factors—whether they be regulatory changes, technological advancements, or shifts in patient demographics—that can significantly impact a practice’s success.

One of the key takeaways from the discussion was the importance of delegation and the need to step back from day-to-day operations to focus on strategic growth. Jessica pointed out that many practice owners get bogged down by the minutiae of running a practice, which can prevent them from seeing the bigger picture. By delegating tasks to the right team members and allowing them to take ownership of their roles, practice owners can free up valuable time to focus on business development and patient care. This, in turn, can lead to better patient experiences and overall growth for the practice.

Jessica also discussed the value of integrating cash-based services into dental practices. By offering services that are not covered by insurance, such as esthetic treatments or sleep apnea devices, dental practices can diversify their revenue streams and reduce reliance on insurance reimbursements. This approach not only boosts the financial health of a practice but also provides patients with more comprehensive care options.

Moreover, Jessica underscored the importance of cultivating strong relationships with patients. She advised that personalized care and attention to detail can significantly enhance patient satisfaction and loyalty. For instance, something as simple as remembering personal details about a patient can make them feel valued and increase the likelihood of them returning and recommending the practice to others.

In conclusion, Jessica’s insights provide valuable guidance for dental practice managers and dentists looking to optimize their operations, better engage with patients, and explore new avenues for growth. By focusing on both the quantitative aspects of practice management and the qualitative elements of patient care, dental practices can achieve sustainable success in an increasingly competitive field.

Noncompete Agreements Get Reprieve

Following the Federal Trade Commission’s (FTC) noncompete agreement ban has been quite a ride. In our last article on this issue, we discussed how dueling rulings were leading to confusion. Some of that confusion was cleared up yesterday, August 20, 2024, when U.S. District Judge in Dallas, Ada Brown, blocked the FTC’s proposed ban.

This ruling comes after the U.S. Chamber of Commerce and Ryan LLC challenged the FTC’s authority to enforce such a broad prohibition. Judge Brown stated that the FTC lacked the necessary evidence to justify a sweeping ban on noncompetes, deeming the rule as arbitrary and capricious. The ruling is seen as a victory for businesses that argue noncompetes are essential for protecting trade secrets and maintaining competitive balance. The FTC, which had aimed to implement the rule by September 4, is now considering an appeal, emphasizing that the decision does not prevent them from addressing noncompete issues on a case-by-case basis.

For dental practices, this ruling highlights the ongoing debate over noncompete agreements and their role in the workforce. As the situation evolves, it is crucial for dental practice managers to stay informed and consult with experts to understand how this might impact their hiring and employment practices. While the immediate threat of a blanket ban has been halted, the legal landscape surrounding noncompetes remains complex and could see further changes depending on future appeals or legislative actions.

In the meantime, dental practices should review their existing noncompete agreements to ensure they are fair, reasonable, and compliant with current laws, and consider the potential impacts on employee retention and competition in the industry.