Monthly Archives: May 2014

5 Ways Life Insurance Benefits Dental Practice Owners

The primary purpose of life insurance is to pay a death benefit – almost always tax free – when the insured dies. We’re all familiar with the need to insure the life of a breadwinner to protect a spouse and children from financial catastrophe. As a dental practice owner, we have some special needs to address, too, over and above their role as breadwinners for their families. Let’s take a closer look at the use of life insurance in a business context. Continue reading

5 Tax-Related Steps When Hiring Your First Employee

Be prepared for a mountain of paperwork, much of it related to income taxes. Continue reading

Severance Pay is Taxable

When dental practices lay off employees, severance pay is often a part of the deal. According to the United States Department of Labor, this pay is not required under any circumstances. However, many dental employers choose to offer severance pay in order to ease the transition into unemployment or a new job.

Unfortunately, even though severance pay is not a typical wage, the Supreme Court says it is still subject to the same payroll taxes as any other payment made to employees. Continue reading