Managing Expenses Across Multiple Dental Locations

Managing expenses across multiple dental locations can be a complex task, but understanding federal and state regulations is key to ensuring compliance and maximizing tax benefits. As a small dental practice owner or office manager, you need to navigate expense management for dental practice, including travel, employee benefits, and operational costs, to optimize your financial resources. By doing so, you can ensure that your business is operating efficiently and effectively across all locations.

Managing Expenses Across Multiple Locations: Navigating Federal and State Regulations

Managing expenses across multiple dental locations requires a deep understanding of federal and state regulations. In recent years, several pieces of legislation have been filed in various states to address issues affecting dental practices. For instance, the Interstate Dental Licensure Compact has been filed in five states - Mississippi, Missouri, Pennsylvania, New Jersey, and Massachusetts - to create a pathway for dentists to practice in multiple states.

Additionally, over 100 dental insurance reform bills were introduced across 37 states in the 2026 legislative season, addressing issues like dental loss ratios, virtual credit card payments, and retroactive claim denials. As a result, it's essential for dental practice owners and office managers to stay up-to-date on these changes to ensure compliance and maximize tax benefits.

When it comes to employee benefits, dental practices must comply with federal regulations, such as the Family and Medical Leave Act (FMLA) and the Affordable Care Act (ACA). For plan years beginning in 2026, health coverage is considered affordable if the employee's required contribution does not exceed 9.96% of household income.

When navigating these regulations, it's essential to consult with a tax professional or accountant who has experience working with dental practices. They can help you understand the specific requirements and ensure that your practice is in compliance with all relevant laws and regulations.

For example, the ACA requires that dental practices provide certain information to employees, including a summary of benefits and coverage (SBC) and a notice of coverage. Dental practices must also provide employees with a notice of their rights under the ACA, including the right to purchase health insurance through a health exchange.

By staying informed and seeking professional advice, dental practice owners and office managers can ensure that their practice is in compliance with federal and state regulations, while also maximizing tax benefits and minimizing expenses.

For trips before July 1, 2026, the rate was 72.5 cents per mile. Keep accurate records of the miles driven for business, including the date, starting and ending point, and business purpose.

For high-cost localities, the rate is $329 per day, and for other localities, the rate is $230 per day, effective October 1, 2026. You can use these rates to calculate the daily allowance for meals and lodging.

You should also keep receipts for fuel, maintenance, and other expenses related to business use of your vehicle.

For example, if you drive 100 miles for business on July 10, 2026, you can claim 100 miles x 76 cents per mile = $76 in business use of your vehicle expenses.

Keep accurate and detailed records of your business travel expenses, including receipts and mileage logs, to ensure you can claim the maximum amount of expenses on your tax return.

Employee Benefits: Compliance with FMLA, Affordable Care Act, and Health Insurance

As a dental practice with multiple locations, it's essential to understand the regulations surrounding employee benefits, including the Family and Medical Leave Act (FMLA), Affordable Care Act (ACA), and health insurance.

• Employers are covered by FMLA if they employ 50 or more employees for at least 20 workweeks in the current or preceding calendar year, and these employees work within 75 miles of each other.
• Employees are eligible for FMLA leave if they have worked for the employer for at least 12 months, have worked at least 1,250 hours in the 12 months prior to leave, and work at a site with 50 or more employees within 75 miles.

To comply with FMLA regulations, ensure that you have a clear policy in place outlining the leave process, including notice requirements and documentation procedures. For ACA compliance, verify that your health insurance plan meets the affordability threshold, and provide required notices to employees.

When determining employee eligibility for FMLA leave, carefully review the employee's work history to ensure they meet the 12-month and 1,250-hour requirements. Keep accurate records of employee hours worked and ensure that employees working at multiple locations are accounted for in the overall employee count.

Operational costs, such as equipment purchases and software updates, can be significant expenses for multi-location dental practices.

• Keep accurate records of equipment purchases, including receipts and invoices.
• Consult with a tax professional to determine the best strategy for your practice.

Bonus depreciation can also provide significant tax benefits. This can be applied to new and used equipment, as well as improvements to existing property.

Streamlining Management: Best Practices for Multi-Location Dental Practices

To manage multiple dental locations efficiently, consider implementing the following best practices:

• Standardize procedures and policies across all locations to ensure consistency and compliance with regulations.
• Designate a central contact person for each location to handle administrative tasks and address employee concerns.
• Establish a system for tracking employee hours and benefits, including health insurance and FMLA leave, to ensure compliance with federal and state regulations.
• Consider outsourcing accounting and HR functions to free up staff to focus on patient care and practice growth.
• Stay informed about changing regulations