In this episode of Drilling It Down, Mario and Tyler discuss the Employee Retention Credit (ERC) and provide important updates and warnings regarding its application. They highlight the recent guidance from the IRS and caution listeners about fraudulent submissions and contingent fees charged by some CPAs. The hosts stress the need for understanding the qualifying factors for the ERC and the potential for having to repay credits if audited. They also address the creative tactics used by promoters to meet the government order test and mention that clearer guidance from the IRS is forthcoming.

The conversation then shifts to tax planning before the end of the year. The hosts discuss the Augusta Rule as a significant tax planning item, emphasizing the need to take advantage of it and explaining its three main aspects: business events, renting out a house for 14 days or less, and a reasonable rental rate. Documentation is emphasized as crucial in utilizing the Augusta rule. Staff compensation and renting out homes are also touched upon, with a caution against blind purchases for tax write-offs unless necessary. Profit sharing is recommended as another important tax planning item.

Turning to investments, the hosts stress the importance of understanding fees and seeking advice from financial advisors with fiduciary duty. They also mention the need to follow rules when transferring funds from a 401k to an IRA. The conversation delves into the topic of doctors being sold products not beneficial to them, and the hosts emphasize the importance of finding a Certified Financial Planner™ operating under a fiduciary duty. Transparency in fees is crucial, as is investing in low-cost products.

The conversation further explores improving patient satisfaction at practices, highlighting the challenges of payment collection and the need for improved processes and technology-based payment solutions. Automating payments, integrating with dental software, and storing credit cards on file are suggested as methods to streamline processes and improve the patient experience. The hosts mention how positive feedback from patients can set practices apart from the competition. By outsourcing tasks and investing in technology, dental practices can enhance efficiency, reduce costs, and improve overall operations.

The episode then touches on optimizing profitability through patient experience and staff compensation. The hosts recommend aiming for a 10 rating and considering inflation when giving raises. Merit-based raises and bonuses are advised for high-performing employees, along with tax-advantaged benefits such as dependent care reimbursement. The importance of staff compensation in line with industry standards and providing clear communication of benefits is emphasized.

To learn more about these topics, please visit mcgilladvisory.com.