Practice Management

Pay Yourself Interest on Shareholder Loans

The interest is exempt from the 3.8% Medicare tax.  It also helps ensure that this is a bona fide loan so that the repayment of principal is tax-free and not a taxable dividend.  Pay yourself interest at the high end of reasonable, perhaps 6.5% which is 2% higher than the prime rate  (as currently stated […]

IRS Notice 2017-67 Answers Questions on Qualified Small Employer Health Reimbursement Arrangements

Recall that QSEHRAs were added to the tax law in late 2016 and have become a popular way to offer employees a tax deductible health benefit when the practice no longer provides group insurance.  (The reimbursements are also tax-free to the employees).  The requirements for a QSEHRA have been covered in prior Newsletters and are […]

TAX CUTS AND JOBS ACT OF 2017 – PART 2

General:  The new tax law changes affecting corporations are the most dramatic.  The reduction in the corporate tax rate from 35% to 21% will be a boon for the economy, making the United States, from a tax standpoint, more competitive with the rest of the developed world.  Corporations, which since the 2008 financial crisis have […]

Practice Transitions – When the Status Quo is Working Well, Why Mess With Success?

Let’s say you’re a busy orthodontist in your mid-40s in a single doctor practice.  Your annual collections are $1,800,000, and new patient exams are booked six weeks out.  Yours is the only practice in town.  A young orthodontist about to graduate from his residency program contacts you about joining your practice as an associate with […]

How to Be Sure That Your Automobile Insurance Covers Both You and Your Practice Entity

Let’s say that you practice through a corporation that owns your car.  If there is an accident, you want to be sure that the corporation can get reimbursed for the property damage and that both you and the corporation are insured if you are sued.  If you are sued, the corporation will also be sued […]

Deducting Medicare Premiums

Far too many people miss this deduction.  Premiums for Part B, Part D and Medicare Supplemental (“Medigap”)  are deductible.  Just how to do it depends on whether you are still practicing or are retired — and if practicing, the type of entity you have is important. If you are retired, then you are starting out […]

Devoting Some of Your Advertising Budget to a Google Adwords Campaign

“Adwords” or “pay-per-click advertising” is a way for your practice to show up on an individual’s Google search.  If, for instance, you pay Google a small amount every time someone does a Google search that includes, say, “implant” and “Knoxville” your practice website will (or should) show up high on their list of search results.  […]

Paperwork to Keep in Each Employee’s File

We should be keeping back-up support for decisions to hire and fire employees, employees’ tax withholding, retirement plan documents and notices regarding fringe benefit programs.  Specifically, we should retain hiring documents such as employee applications and resumes.  Also keep any training documents and performance related documents, even if you don’t do performance reviews.  You should […]

Defending Yourself Against a Sexual Harassment Claim

Following the daily stream of allegations made against Harvey Weinstein, Kevin Spacey, etc., it wouldn’t surprise us if there is an uptick in claims brought against business owners.  Heck, four women recently accused 93-year-old-wheel-chair-bound George H.W. Bush of improper touching.  Here are two things that will be of tremendous value if ever a claim is […]

Motivating an Under-Producing Associate Who Wants to be Your Partner

Let’s say you have an associate who wants to be your partner. He is a terrific clinician and a wonderful person, but he does not produce at an acceptable level. If that is the only thing holding him back, we would set a reasonable standard he needs to meet. For example, it might be that […]