Dentaltown September 2014 - (Page 14)

professional courtesy column Employees Earn More Than They Realize I have discussed the pros and cons of employee reviews in past columns, and this month I would like to introduce another great opportunity for a one-on-one conversation. I call it the "compensation and beneﬁts statement" and it is something I had received in the past as an employee and I know there are others that recommend a similar form. Why prepare something like this? It's a great opportunity to have a conversation with your team about their total compensation and not just their hourly rate. Some employers fall into a trap where they have conditioned their employees to expect a raise every year. If you do not provide any beneﬁts to your team, this may be a simple way to go, but there are many complex tax implications of raising the hourly wage instead of providing a comprehensive package of beneﬁts. "We are delighted to share in the success of our practice through this compensation and beneﬁts package and we hope that the coming year will be even better! Thank you for your continued loyalty." Implementation is easy. A simple payroll report and information from your 401k will provide most of the numbers. If you are ambitious, do the last two years when you do this the ﬁrst time so your employees can see how their compensation has grown. Take some time to discuss what your practice needs to do to increase their numbers for proﬁt sharing, bonus or an increase in pay. I have provided an example of this form with some notes on the particular items for further explanation. I hope you ﬁnd this a useful tool for your practice. Please drop me a line at tom@dentaltown.com or post a comment on the digital version of this article on Dentaltown.com. I'm on Twitter @ddsTom. If you want to keep up with the news in our industry, watch Townie News Wire each week on the Dentaltown.com home page. ■ Compensation & Beneﬁts Statement Calendar Year Ending December 31, 2013 Prepared for Sally Superstar* Hourly Wages @ $17.75 per hr. $28,170.67 Comments: Paid Time Off $568.00 Holiday Pay $852.00 1. This is money paid to attend lectures, stay after hours for training or special productivity bonus. 1. Training, CE and Bonus $323.88 2. Total Gross Pay $29,914.55 3. Health Insurance paid by CDH $2,631.90 401k Match $897.77 4. 401k Proﬁt Sharing $1,292.43 5. FICA Matching (SS, Medicare, Unemployment) $2,315.01 6. Total Employer Taxes and Contributions $7,137.11 Total Compensation and Beneﬁts $37,051.66 Total Hours Worked 2. This top section includes all wages on annual W-2. 3. When you share the cost of health insurance, sometimes employees can lose sight of your contribution. 1,587.08 7. Total Compensation and Beneﬁts Per Hour $23.35 4. For some practices, this proﬁt sharing amount can be adjusted in lieu of having a bonus system. 5. Employees are often unaware of this beneﬁt. Employers pay a portion of their payroll taxes. 6. One important item I left out of this section is meals and entertainment. In our practice we spent approximately $550/employee for birthday & anniversary lunches as well as annual holiday party and other 'treats'. 7. For every hour worked in the practice, employee earns an additional 31% in pay & beneﬁts above their base hourly rate. *My team members are superstars but none are named Sally. by Thomas Giacobbi, DDS, FAGD, Editorial Director, Dentaltown Magazine 14 SEPTEMBER 2014 » dentaltown.com http://www.Dentaltown.com https://twitter.com/ddstom http://www.Dentaltown.com http://www.dentaltown.com

Table of Contents for the Digital Edition of Dentaltown September 2014

Dentaltown.com Highlights
Howard Speaks: How to Successfully Integrate CAD/CAM
Professional Courtesy: Your Employees Earn More than They Think They Earn
Continuing Education Update
Making a Smile Match a Lateral— Another KOR Believer
What’s the Latest in Digital Impressions in 2014?
Pinhole Surgical Technique— My First Case
OSHA Compliance for the Dental Office
DEBTrimental to Your Health
Continuing Education Gap Management Around Immediate Implants
How Gum Shortening Can Improve Your Aesthetic Restorative Results
You Should Know: Dental R.A.T.
Sub Gingival Class III and IVs: A Way to Overcome the Challenge
Practice Management
Gain Control over Broken Appointments
Patient Engagement by the Numbers
Product Profi le: DentalMarketing.net
4 Steps to a New Normal in Your Practice
7 Tips to Grow Your Practice Using Social Media
Product Profi le: Q-Optics
New Products
Industry News
Ad Index
Buy Your Own Equipment?
Perio Reports
Back to School Shopping
Dentally Incorrect

Dentaltown September 2014