Expense FAQ for Orthodontic Practice Managers

To simplify expense management, consider using orthodontic practices expense management software that can help streamline and organize your records. By staying up-to-date on tax laws and regulations, you can maintain compliance and make the most of your practice's financial resources.

Business Expense Mileage and Reimbursement

Keep accurate records of mileage, including the date, business purpose, and total miles driven, for at least three years from the tax return due date.

Keep a log or use a mileage tracking method that includes the following information:

• Date
• Business purpose
• Total miles driven

FICA Taxes and Employer Mandates

To calculate FICA taxes, you'll need to determine which employees are subject to FICA taxes and how much they earn in a year. Generally, all employees are subject to FICA taxes, but there may be some exceptions for certain types of workers, such as those who are exempt from Social Security or Medicare taxes.

Keep accurate records of FICA taxes paid and withheld, as well as health coverage information, to ensure compliance with FICA tax laws and employer mandates.

Per Diem and Travel Expenses

Alternatively, the incidental-expenses-only rate of $5 per day can be used.

When using the per diem method, keep receipts for meals and other expenses to support the per diem claim.

For travel expenses, keep records of the date, location, and purpose of the trip, as well as receipts for expenses such as lodging, meals, and transportation.

Health Coverage and ACA Employer Mandate

The Affordable Care Act (ACA) employer mandate requires applicable large employers (ALEs) to offer minimum essential coverage to full-time employees and their dependents. As of plan years beginning after December 31, 2025, ALEs with 50 or more full-time equivalent employees must comply with this mandate.

Consult with a qualified professional to determine the specific requirements for your practice and ensure accurate record-keeping.

Record-Keeping and Compliance

To maintain compliance and ensure accurate record-keeping, keep all expense records for at least three years in case of an audit. This includes mileage logs, receipts for business expenses, and records of health coverage for employees.

• Organize expense records in a logical and easily accessible manner, such as by date or category.
• Use a standardized system for documenting and tracking expenses, including a consistent naming convention for files and folders.
• Ensure that all expense records are accurate, complete, and legible.
• Consider implementing a digital system for tracking and storing expense records, such as a spreadsheet or cloud-based storage.

It's also essential to stay up-to-date on changing tax laws and regulations.

Additionally, keep accurate records of employee health coverage, including the number of employees enrolled, the type of coverage offered, and the premium costs. This information may be required for compliance with the Affordable Care Act (ACA) employer mandate.

Make sure to keep all records in a secure and confidential manner, and consider implementing a data backup system to protect against data loss.