Is Your Dental Practice Paying Proper Sales Tax?
Nov 20, 2014
As a provider of personal services, a dentist’s services are exempt from sales tax. However, if your practice sells to patients items such as mouthwash, whiteners and toothbrushes, sales tax must be collected on these items.
In addition, dentists can be consumers of tangible personal property and services as well. Your practice is responsible for paying sales tax on purchases of supplies and equipment, including items that are consumed when rendering your services. For example, crowns, braces, brackets and implants. If the vendor you purchased these items from did not charge sales tax, you must pay use tax to the Ohio Department of Taxation. One of the most common trends we see are orders from out-of-state dental labs or equipment companies which are not properly charging sales tax.
The opposite of a sales tax is a use tax which is imposed when you purchase a taxable item, but don’t pay sales tax on it. As a result of the rapidly rising deficits, state taxing authorities are looking closely at dental practices for unpaid use tax for items purchased from vendors that have not charged sales tax.
Experience has shown us that many dental practices have no idea that they are at risk of exposure to this tax. If you have never filed sales or use tax returns, the state can audit your practice all the way back to the date it started business. The magnitude of unpaid sales and use taxes, plus interest and penalties, could be enormous. If you haven’t addressed sales and use tax in your practice, now is the time to do so!
Visit our website, www.wvco.com or contact our dental accounting team if you have questions about these taxes (419) 891-1040.
Categories: Healthcare & Dentistry
How to Hire The Right Dental Office Receptionist
Oct 22, 2014
Having a good receptionist at a dental office is vital to the patient experience. Not only do they provide the link from the outside world to the office via telephone, but they are also the first one visited when a patient enters the office. First impressions are critical and with the large amount of patient traffic coming in and out of a dental office daily, you should expect your receptionist to appear professional with a welcoming manner to make patients feel comfortable.
Employers often make the mistake of relying too heavily on credentials when considering candidates for their receptionist position. Judging a person’s conduct can be just as important when interviewing for this role at your practice.Finding good help for your front desk can be tough, but here are a few important skills that you can look for when hiring.
Personality One tip commonly given to receptionists is to smile while on the phone. This gives off a more friendly voice. Observe whether the candidate is smiling while speaking during an interview. If so, try to give a more challenging question and see if they keep the same disposition. This may provide you with some insight of how they will act when encountering a difficult patient either on the phone or in person.
In addition, a good dental receptionist can instantly spot (or hear on the phone) the personality type of a patient and then know exactly how to deal with the patient’s needs. In some instances, the receptionist may be a center of calm for nervous patients waiting to go in for treatment. If and when problems arise, they are the first person the patient will seek out.
Organization Skills Detailed notes and to-do lists are some of the best practices used by top receptionists. Observe in an interview whether the candidate brought notes or takes written notes during the interview.
Thoroughness Many great receptionists consistently repeat information to guarantee mutual understanding. Repeating names, telephone numbers and dates back to the caller is a positive sign that an individual is thorough and recognizes the importance of details. When a candidate schedules their interview, observe if they repeat and verify information. At the conclusion of the interview, making sure no questions have been skipped over or left unanswered. This will test the candidates ability to be proactive.
When you do think you have the right fit, give them time to adjust. Even the most adaptable receptionist will take some time to be comfortable in a new environment. An assessment after six weeks is an appropriate time frame to assess if your initial observations have carried over to the job. Most importantly, don’t settle. Hiring the right candidate is essential. Remember, this person will serve as a reflection of the practice itself. It may take time to find the right fit, but having the right person is an essential component of a successful dental practice.
Categories: Healthcare & Dentistry
Tips For Financial Planning Before Year-End
Oct 09, 2014
Now that the fall season is upon us, what a great time to review your finances before year-end, in order to be well-prepared when 2015 begins.
Develop a budget for now and for next year. Perhaps you have some financial goals you would like to achieve in 2015. Think about what changes you need to make in order to achieve those goals.
Review your health insurance. Open enrollment for health benefits is provided in October and November by many employers. It is important to review your health benefits information since your employer may have made changes due to health care reform regulations.
Increase your retirement contributions. If you’re not already saving for retirement, start now! If you are saving, determine if you need to save more and, increase your contribution to your investment accounts.
Review the balance in your flexible spending account (FSA). If you don’t use your FSA before the end of the year, you’ll lose out on the funds you have remaining. Now is the time to purchase new glasses, have dental work performed, or manage other qualified healthcare needs.
Make charitable contributions. Fall is also the time to clean out summer clothing you don’t need and donate it to charity. You may also want to clean out your basement and garage and take good condition items to your church or local charity. You will be helping others and also will get a tax deduction for 2014.
Review your home, auto, and life insurance coverage. In addition to your health insurance, now is the time to take a look at any changes you may need to make to your personal insurance coverage, which should be reviewed annually. If you have had any significant life changes or have any additional assets , you may need to purchase additional coverage.
Plan for vacations and holidays. It’s not too early to start saving for next year’s vacation. If you begin saving now, you will be able to put money away without having to come up with a large amount when the vacation comes. Now is also the perfect time to put a little extra away to cover the money you may want for your holiday spending.
Meet with your trusted financial advisors. This time of year is a great time to meet with our firm to prepare for year-end and to start tax planning for 2015. It’s also the perfect time to review your financial status and discuss strategies to achieve your financial success.
Categories: Healthcare & Dentistry
Employee Dishonesty Coverage
Oct 02, 2014
Most dental practices have insurance policies that cover their employees, but is it enough? Does your practice have employee dishonesty insurance? This insurance protects the employer from financial loss due to the fraudulent activities of an employee or group of employees. The loss can be the result of the employee’s theft of money, securities (which includes checks) or other property of the insured. Of course, policy coverage may differ between insurance companies. The employer, the named insured on the policy, is the main entity insured. The “who” of coverage may also include all current or former employees, partners, members, directors, volunteers, trustees, seasonal employees and temporary workers at your direction or control. Employee dishonesty coverage is really a fidelity bond. The normal form of coverage is a blanket policy which will cover fraud committed by any employee.
If the practice has access to other customer’s money, securities or property, the policy can be endorsed to include third party coverage. With the third party endorsement coverage is extended to a customer or client with whom you are under contract to perform services. As an example, employees often have access to patients credit card numbers. Does your insurance cover you if an employee steals that credit card information and uses it? Employee dishonesty coverage can typically be added to another insurance policy, such as the property or the fiduciary liability policy. The coverage may be extended to include forgery or alteration, funds transfer fraud, computer fraud, credit card fraud, money order and counterfeit fraud.
With fraud and identity theft at an all-time high, you may want to review your policies and make sure you are covered!
Categories: Healthcare & Dentistry
Deductions and Grants – Yours For The Taking!
Sep 08, 2014
You could be a manufacturer – at least in the sense of qualifying for the domestic production activities deduction (DPAD). DPAD is a deduction equal to 9% of the net income generated from eligible activities. To be eligible you have to manufacture, produce, grow, or extract property within the United States.
Activities of the dental office that could potentially qualify might include: on-site production of crowns, inlays, onlays, and other restorations using CEREC technology. Operation of in-house labs to produce retainers, study models, and appliances could also qualify.
That said you still avoid the medical device excise tax, since most domestically made dental devices avoid the tax because they are not required to be listed with the FDA. These items are not expected to be taxed: crowns, bridges, dentures, veneers, and orthodontic appliances (retainers etc). As you recall, the excise tax on medical device manufacturers is a 2.3% tax on taxable medical devices intended for humans.
On a separate note, you could also qualify for the Ohio Workers’ Compensation safety grants! The items available for the Safety Grant have changed – they now include items that would assist healthcare offices of all kinds in patient care. To be eligible, you must be current on your BWC premiums, demonstrate a need for a safety intervention, and have active BWC coverage with four past payroll reports for private employers. To get started, review the link on BWC’s website. Gather your information and schedule a visit by a BWC safety consultant before you complete the application. Refer to our blog post from March 25th.
There are significant changes coming to Ohio’s Workers’ Compensation program in 2015. William Vaughan Company will be hosting a free seminar part of our Client Knowledge Series called Modernizing the BWC to be held on September 23, 2014 at Stone Oak Country Club – sign up here!
Categories: Healthcare & Dentistry