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A Practical Guide to Reducing Payroll Stress, Improving Clarity, and Protecting Profitability

Payroll shouldn't be the most stressful part of running your practice. But for many optometrists, it is. Not because the math is complex, but because the systems behind payroll often lack clarity and consistency. This guide outlines four actionable steps to reduce payroll stress, improve team clarity, and protect profitability based on Williams Group's experience processing payroll for hundreds of optometric clients.

Payroll quickly becomes a headache and your labor costs quietly rise when:

  • Job roles are unclear 
  • Time tracking varies by person or shift 
  • Staffing levels aren’t aligned to patient flow 
  • And payroll information has to be manually re-entered into accounting 

The good news? These challenges are solvable with structure. 

The Root of Payroll Problems in Optometry Practices

Most payroll issues start with role confusion. This confusion leads to inconsistent productivity, which shows up as payroll inefficiency. When employees aren’t sure which tasks are theirs, practice owners often see: 

  • Inefficient labor: work being duplicated 
  • Unhappy patients: tasks being skipped 
  • Managerial burnout: staff asking for direction rather than acting
Step 1: Clarify Job Roles with Measurable Responsibilities

Clear job descriptions are more than lists of tasks and should spell out: 

Role  Responsibilities  Measurable Indicators 
Optician  Frame styling, lens consulting, adjustments, retail optical sales  Capture rate %, average optical sale, remakes 
Technician  Pre-testing, case history, special testing  Patients pre-tested per hour, accuracy of charting 
Patient Care Coordinator Scheduling, check-in/out, insurance verification  Scheduling conversion rate, wait time management 


When responsibilities connect to metrics, expectations become easier to manage and coach. 

Step 2: Align Staffing to Patient Flow

Overstaffing during slow periods and understaffing during busy periods is one of the biggest and most expensive payroll inefficiencies in eye care. Use historical patient volume reports, optical sales trends, daily/seasonal appointment patterns. 

To build staffing systems like: 

  • Split shift coverage during peak hours 
  • Cross-training to flex coverage where needed 
  • Scheduled “admin blocks” during slow periods so paid time is still productive 

By having better alignment there will be less waste and improved patient experiences.

Step 3: Use Time Tracking That Is Consistent, Transparent, and Enforced

If time is recorded differently depending on the day, person, or mood, payroll will always feel chaotic. 

Look for time tracking tools that: 

  • Require clock-in/out at the same station (not from phones) 
  • Track breaks and OT automatically 
  • Sync with scheduling software 
  • Export directly into payroll systems 

Consistency protects both the practice and the employee.

Step 4: Use Payroll Software That Integrates Directly with Accounting 

If someone has to manually re-enter payroll into QuickBooks, Xero, or your accounting platform: 

  • Errors creep in 
  • Reporting takes longer 
  • Month-end feels painful 
  • Labor costs are harder to analyze 

Payroll systems that sync with accounting provide: 

  • Instant labor cost visibility 
  • Cleaner bookkeeping 
  • Less time spent fixing errors 

Look for software that integrates payroll, scheduling, and time tracking so information flows automatically. 

The Result: Predictable Payroll and Less Stress

When job roles are clear, staffing aligns with demand, and payroll software does the heavy lifting: 

- Payroll becomes more predictable
- Labor costs stay under control
- Team accountability improves
- Managers spend less time correcting errors
- You get a clearer picture of practice profitability 

This is how practices reduce stress and cost creep  without burnout or micromanaging. 

Payroll problems rarely mean someone is doing something wrong. They usually mean the system needs more structure. And structure is something you can build — sustainably. 

If payroll has become a recurring pain point in your practice, you don’t have to figure it out alone. 

Williams Group helps optometrists: 

  • Clarify job roles 
  • Optimize staffing levels 
  • Implement integrated payroll + accounting systems 
  • Build predictable, efficient financial operations 
  • Process payroll wages and tax payments for direct deposit

Schedule a consultation to evaluate your current payroll workflow. 

Get optometry-specific payroll support by scheduling a call with Archie Keebler, CPA or learn more about our accounting services, specific for ODs, on our website.  

Archie Keebler

Tax Manager
Email Archie

 

 

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The Optometry Trap: When a "Write-Off" Isn't the Win You Think

You know the moment. You're at an optometry conference, you demo the new toy (I mean equipment), and suddenly your brain starts doing that thing where it turns a capital purchase into a personality trait. Or maybe it's the end of the year and you don't like the tax number Archie or Ryan (Williams Group Accountants) said you might owe next year.
Then someone says the magic words: "It's a write-off."

If you've ever caught yourself thinking, "well if it's a write-off, it's basically free," we need to talk.

Meet Sue (an optometrist and her very persuasive equipment rep)

Sue owns a growing optometry practice. Her schedule is full, optical sales are strong, and her staff is doing that heroic thing where they keep the day moving even when everything's on fire behind the scenes.

Sue gets pitched a shiny piece of equipment when the rep uses all the right phrases like: "It'll change patient care," "it increase referrals," and "it will pay for itself."
Sue questions: "Will I be able to write it off?"
The rep smiles. Sue smiles. The IRS does not smile. The IRS has never smiled. Not once.

First, What a "Write-Off" Actually Does
Here's the thing: a deduction reduces your taxable income. It does not reduce your tax bill dollar for dollar.
Example - If you spend $50,000 on equipment and you get a $50,000 deduction, you did not "save $50,000." You reduced the income you pay tax on by $50,000.
The actual tax benefit depends on your situation, your marginal rate, and whether you can even use the deduction this year.
I like to describe it as a 25% off sale. It saves you some money, but it's not a slam dunk!
Also —and this is important— a deduction never fixes a bad business purchase. It just makes the bad purchase slightly less painful.

The Five Costs That Usually Get Ignored (Until They Show Up on Your Doorstep)
Most practices focus on the purchase price. The real cost is usually "purchase price plus the entourage."
 
What usually gets forgotten:
  • Maintenance contracts and software fees. Monthly subscriptions have a way of multiplying like rabbits.
  • Training time. If your lead tech is in training, they're not in clinic doing lead tech things.
  • Downtime and bottlenecks. New workflows are messy before they're magical.
  • Consumables and add-ons. The base unit is never the whole story.
  • Staffing and scheduling impacts. If it adds 6 minutes per patient and you don't have a plan, it may quietly shrink capacity.
None of these are reasons not to buy equipment. They're reasons to buy with your eyes wide open. Ask the salesman about these issues before you commit to purchase.

The IRS "Rules of the Road" for Equipment Purchases
When you buy equipment for the practice, the IRS generally wants you to treat it differently than everyday supplies. Pens, contact lens solution, and printer paper get used up quickly, so they're usually expensed right away. Equipment is different because it has a useful life that stretches beyond the current year, so the default rule is you capitalize it and recover the cost over time through depreciation.
There's a common shortcut many practices use called the $2,500 de minimis safe harbor. In plain English: if you have a consistent accounting policy and you attach the election to your return, you can usually expense items that cost $2,500 or less per invoice (or per item, if itemized) instead of capitalizing them. Anything above that amount is typically capitalized unless you use a specific tax provision that allows faster write-offs.
The result? "I bought it" is only step one. The next step is deciding whether it's a supply expense, a capital asset, or a capital asset you're choosing to expense faster.

The Tax Reality Checks That Keep You Out of Trouble
Reality Check #1: The Timing Is About "Placed in Service," Not When You Swipe the Card
For depreciation purposes, property is generally considered placed in service when it is ready and available for its specific use, even if you have not actually used it yet.
Translation: ordering it in December is not the same as having it installed, calibrated, and ready to use.
This is the trap that gets optometrists every year. The equipment is in a box. The contractor reschedules. Training is "next week." And suddenly your "year-end write-off" is actually next year.
 
A Quick Example (because this is exactly how it happens)
Sue buys an OCT in December. It arrives. Everyone cheers. The install gets pushed to January. Training happens mid-January. It's ready and available for use in January.
Sue still bought it in December, but the placed-in-service timing points to January. The tax deduction is shelved for next year. That's not the IRS being mean. That's just the IRS being the IRS.
If Sue had planned the timeline ahead of time, she would've known the likely tax year and could've decided whether the purchase still made sense.
 
Reality Check #2: "Immediate Write-Off" Is Not Guaranteed
Sometimes you can expense more up front, sometimes you depreciate over time, and sometimes you have choices. Section 179 is an election that lets you expense qualifying property up to certain limits, and it's tied to when the property is placed in service. There's also Bonus Depreciation we can use.
The rules and limits change over time, and the best choice depends on your tax picture. The point isn't "always expense everything." The point is "choose on purpose."
 
Reality Check #3: Losses Aren't Always as Useful as People Think
A big deduction is only a win if it offsets income you would otherwise be taxed on. If the purchase creates a loss, that loss might be limited or pushed into a future year depending on your setup and your broader return.
So if the clinic is already in a low-profit year, buying equipment purely for tax reasons can be like bringing a snowblower to Arizona. Technically, a tool. Practically, an odd choice.
 
Reality Check #4: Documentation Matters, and Vibes Don't Count
If you ever get questioned, you want a clean story: what it is, what it cost, when it became ready and available for use, and that it's used for business.
Helpful paperwork usually includes the invoice, delivery confirmation, install documents, training confirmation, and any "go-live" notes. The IRS is very into boring proof.

The "Buy It Like a Grown-Up" Playbook for 2026
Here's a simple framework Sue can use that keeps both the business and tax sides aligned.
1) Start with the Business Case
Before tax savings are considered, answer two questions: Will this increase capacity, improve medical revenue, reduce headaches, or improve patient experience in a measurable way? And do we have the people and workflow to actually use it?
If the honest answer is "it would be cool," that's fine. Just don't call it tax strategy.
 
2) Match the Purchase to Your Profit Year
Equipment strategy works best when it's paired with a year where the practice has real taxable income. Depreciation is cost recovery, not a magic trick.
If you're unsure what your year looks like, grab our most recent Cash Flow or Tax Planning document and see how we've predicted your year to turn out. Double check sales—if Doctor Days made sales take a plummet, we might need to reconsider the profit for that year.
 
3) Plan the Calendar, Not Just the Purchase
If you care which tax year the deduction lands in, you need a timeline that includes delivery, install, calibration, training, and being ready for clinical use. That's what "placed in service" is getting at.
This is especially important late in the year, when vendors and contractors are booked and delays are normal.
 
4) Decide How You Want to Take the Deduction
At a high level, your options often include depreciating over time or electing faster methods like Section 179 when available and appropriate.
This is where planning matters. Sometimes you want the bigger deduction now. Sometimes you want to spread it out to stabilize taxes across years. Sometimes you want to preserve deductions for a higher-income year. Book some time with Archie or Ryan to discuss which would be better for your specific case.
 
5) Build the Total Cost Into Your Budget
If you buy equipment and then get surprised by maintenance fees, software, and staffing needs, that's not a tax problem. That's a planning problem.
A clean rule: if the ongoing costs make you flinch, you're not ready to buy it yet.
The Bottom Line
If you want to buy equipment because it improves care and strengthens your optometry practice, great. That's the best reason.
If you want to buy equipment because "it's a write-off," pause. A deduction is a nice side effect, not the main event. The main event is whether the purchase makes your practice better and whether it fits your profit, cash flow, and execution plan.

Thinking About a Purchase (or Already Committed to One?)
If you want support on planning your next purchase, reach out to your Williams Group accountant with your 2026 wish list and your expected go-live dates. We'll help you sort the purchases into three buckets:
  1.  smart now
  2.  smart later
  3.  cool but let's not pretend it's strategy
Not a Williams Group client and feeling unsure about a purchase or want a real equipment strategy for 2026, not "buy stuff in December and hope," schedule time with Archie Keebler, CPA, one of Williams Group's premier optometry-specifc CPAs. We’ll review your profit trends, cash flow, and timelines, then map out what to buy, when to buy it, and how to document it so the tax outcome actually matches the plan.

Archie Keebler

Tax Manager
Email Archie

 

 

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Is An Associate OD an Employee or a 1099 Contractor?

Bringing on an associate OD is a major decision for your optometry practice. But classifying that associate incorrectly could expose you to a pile of IRS penalties, payroll tax issues, and even legal troubles at the state level.

The employee vs. independent contractor question isn’t just about taxes, it’s about how your practice functions day to day, and whether the associate is truly independent or a core part of your team.

This practical guide, built specifically for optometry practice owners, will walk you through how to structure the relationship correctly, what the IRS really looks for, and how to protect your practice from costly missteps.

How the IRS Defines the Relationship: 3 Key Factors

Contrary to popular belief, you don’t get to choose whether an associate OD is a contractor or employee. The IRS looks at the facts and circumstances, not what you write on the contract or how you pay them. Here are the three main categories the IRS uses to assess worker classification:

1. Behavioral Control

If the practice controls how the associate OD performs their work, they’re typically an employee.

Examples in an optometry practice:

  • Practice sets their clinic hours
  • Practice assigns patients to their schedule
  • Associate uses practice's staff (techs, front desk, billing)
  • Associate follows office protocols for exams, documentation, and billing
  • Owner reviews the associate's clinical performance

Bottom line? If the associate OD is following the practice's directive, they’re most certainly an employee.

2. Financial Control

This part gets overlooked, but it matters. Indicators of an independent contractor include the ability to operate their own business. In an optometry setting, this rarely applies. 1099 contractor characteristics would typically include:

  • Investing in their own tools or equipment
  • Covering their own CE, licensing, and malpractice
  • Setting their own fees
  • Invoices you for services
  • Realizes a potential to earn a profit or take a loss

Most optometry practices fail these tests because the clinic controls financial aspects of care delivery.

3. Type of Relationship

This one zooms out and looks at the overall working relationship.

Here’s what the IRS checks:

  • Is there a formal written employment agreement?
  • Is the practice providing benefits like PTO, health insurance, or a 401(k)?
  • Is this a long-term relationship that’s integral to the business?
  • Do you represent the associate publicly (e.g., on your website)?

In almost every full-time associate scenarios where associates provide core services that are essential to the practice, these questions point straight to employee status.

Can an Associate OD Ever Be a True Contractor?

Yes, but it's rare and requires some very specific structuring. Here are the cases where a 1099 contractor may be possible:

  • The OD operates through their own entity (LLC or S-corp)
  • The OD sets their own schedule with no control from the practice
  • The OD uses their own equipment, staff, and provides services independently
  • The OD invoices you instead of receiving a paycheck
  • The OD is brought in for specialty or limited work, such as:
    • Fill-in or vacation coverage
    • Low-vision specialist seeing patients periodically
    • Mobile OD services contracting with the practice

But here’s the catch: If the associate OD works only for you, follow your protocols, and see your patients; they’re your employee.

Optometry-Specific Classification Traps to Watch Out For

Optometry isn’t like other industries. Patient care is heavily regulated, and that adds extra complexity. Some high-risk areas to be mindful of:

Patient Scheduling

If your front desk is booking patients for the associate, that is employee behavior.

Billing & Medical Records

Using your EHR and billing systems shows you're in control of the clinical and financial side. That’s another employee signal.

Malpractice Insurance

If you're footing the bill for malpractice coverage, the IRS sees that as an employer responsibility.

Non-Competes & Non-Soliciation 

You generally can’t restrict the future practice of a true contractor this way. These kinds of enforceable clauses only hold water with employees.

How Compensation Structures Tip the Scale

W-2 Employee:

  • Paid hourly, daily, or salaried
  • Bonuses based on production (optional)
  • Eligible for benefits
  • Payroll taxes withheld
  • Licensing/CE covered by practice

Independent 1099 Contractor:

  • Paid per diem or per exam
  • No benefits
  • Handles their own taxes
  • Provides their own malpractice coverage
  • Invoices the practice directly

If the compensation structure looks like a traditional employee arrangement, the IRS will treat them as an employee, regardless of what the contract says.

Practical Examples

Example 1: Full-Time Associate OD in a Busy Practice
  • 40 hours a week
  • Practice sets hours
  • Uses practice staff
  • Standardized exam protocol

Employee

Example 2: Part-Time Saturday OD
  • Schedules vary based on OD availability
  • Paid per diem
  • Not integrated into staff meetings or internal procedures

Could be a contractor if structured properly

Example 3: Fill-In Associate OD for Vacations
  • Works occasionally
  • Provides invoice
  • No ongoing commitments

Contractor

Example 4: Mobile OD Providing Specialty Exams
  • Brings own equipment
  • Bils per patient

Contractor

Consequences of Misclassification

Misclassifying an associate OD isn’t just a paperwork issue, it can create a financial mess for your practice. Here’s what a misclassification can trigger:

  • Back payroll taxes (plus interest)
  • Employer’s share of Social Security & Medicare
  • Penalties for not withholding federal and state taxes
  • Wage claims at the state level
  • Workers’ comp exposure
  • Liability for benefits that should’ve been offered

And yes, the IRS can look back three years or more during an audit.

Best Practices for Staying Compliant

If Hiring as an Employee (W-2):

  • Use a formal employment agreement
  • Provide a clear compensation structure
  • Set and enforce consistent clinic protocols
  • Run payroll properly
  • Offer benefits as desired

If Hiring as a Contractor (1099):

  • Require that they operate as an LLC or PC
  • Ensure they set their own hours and patient load
  • Have them invoice you
  • Avoid offering benefits or training
  • Skip the non-compete (but a non-solicit might still work)

For most optometry practices, hiring an associate OD means hiring an employee, not a contractor. A contractor arrangement is only appropriate when the OD is genuienly independent, works for multiple practices, or provides speialty/occasional services. 

Correct classification protexts your practice, minimizes risk, and ensures compliance with IRS and state rules. If you’re unsure, don’t guess. Talk to a CPA who understands optometry and can guide you through the compliance maze.

At Williams Group, we specialize in accounting, payroll, and advisory services for optometrists. Whether you're bringing on your first associate OD or restructuring your current team, we’ll help you do it right and keep the IRS off your back. 

Get optometry-specific classification support by scheduling a call with Brad Rourke, CPA, ABV or learn more about our accounting and tax services specific for ODs on our website.  

Archie Keebler

Tax Manager
Email Archie

 

 

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A $30K Check Oops: Why Hand‑Written Tax Payments Are Bad for Your Vision (and Your Wallet)

Spoiler: the couple is fine, but their ulcer risk shot up—skip the antacids and read this instead.

What Happened

The digits in the number box were perfect: $3,360. But the spelled‑out line said “thirty‑three thousand + 60.” The bank followed the words, not the numbers. The IRS tried, twice, to pull $33,060. Both drafts bounced. The Hays couple then got slapped with a $661 "failure to pay on time" penalty and a month of IRS hold music.

Why This Matters to Practice Owners

Optometry clinics still cut paper checks for frame vendors, labs, maybe even quarterly taxes. One stray pen stroke can turn an easy task into a migraine. IRS automation isn't always your friend. If the spelled-out amount is wrong, the payment system might no cross-check it with your return and no one's proofreading in the mail room. So if the payment processing team never sees the tax return backup, errors slip straight through the system.

Key takeaways for doctors who would rather be seeing patients than seeing penalties
  • Ditch paper, go digital. Use IRS Direct Pay or EFTPS for estimates. The systems give you an immediate confirmation number and a clear audit trail.
  • Reconcile before you transmit. Whether you e‑pay or still insist on parchment, match the amount against your year‑to‑date QuickBooks file and make a PDF copy of anything you send.
  • Build a margin of safety. Keep at least one payroll cycle of cash in the tax account so a surprise draft, right or wrong, doesn’t choke your operating funds.
  • Know your escalation path. When the IRS phones ring forever, a practitioner’s best friend is a CPA with a Priority Practitioner line and a willingness to fax. Yes, still fax.
Practical steps you can adopt this quarter
  1. Flip the switch to electronic payments for federal and state estimates. We’ll walk your team through the EFTPS setup and store the credentials in a secure vault.
  2. Add a “two‑person review” rule for any manual checks over $5,000 including owner draws, so no one signs off half‑awake after a 12‑hour clinic day.
  3. Schedule an IRS account transcript pull every January. It confirms what the Service thinks you’ve paid and flags misapplied checks before interest starts compounding.
  4. Automate the cash sweep from operating to “Tax Alley” on each payroll run. You’ll never stare at a balance sheet on April 14 wondering where the money went.

The Williams Group Angle

We help optometrists stay profitable, generous, and out of the penalty box. Our bookkeeping platform matches deposits, estimates cash tax exposure in real-time, and pushes alert emails when something looks off. No six‑hour hold music required.

If you want that kind of calm in your practice finances, schedule a 30‑minute call. Let’s tighten the blind spots in your payment workflow. Because blurry numbers are just as dangerous as blurry vision.

This information was inspired by a report originally published by Yahoo Finance, highlighting a real-life tax payment error and its costly consequences. While this article is written in our words for clarity and relevance to optometry practices, all technical details and reporting were sourced.

Get optometry-specific tax support by scheduling a call with Brad Rourke, CPA, ABV or learn more about our accounting and tax services specific for ODs on our website.  

Ryan Poirier

Certified Public Accountant
Email Ryan

 

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IRS Payment Processing Glitch: What It Means for Your Practice and Your Blood Pressure

The short version: The IRS admits it is running late logging some electronic tax payments. As a result, perfectly compliant taxpayers are getting CP14 “balance-due” letters that claim they never paid. The agency says penalties and interest will be wiped away once the payments post, but you need to keep your cool and your proof of payment, until the electronic dust settles.

What exactly broke?

On June 12, the IRS issued a public statement acknowledging “a delay in processing some electronic payments.” Payments left your bank, but they are sitting in limbo inside the IRS mainframe. A notice may have been generated before the payment hit your account or the payment landed with data errors that need manual fixing.

Real-world fallout

Taxpayers from South Dakota to Chicago have opened their mailboxes to find fresh bills for taxes they already paid. One couple told CBS News the experience triggered a near panic attack—and a two-hour phone hold that ended with a dial-tone goodbye. cbsnews.com

Who is most likely to see a bogus notice?

  • Anyone who used Direct Pay or EFTPS on or near the April 15 deadline.
  • Married-filing-joint taxpayers when the second spouse made the payment through an IRS Online Account (the system has a history of dropping these payments).
  • Trusts that recently received CP161 notices for missing estimated taxes. The IRS called this last one a “programmer error.”

What the IRS wants you to do

  1. Do not pay again. Check your online account first.
  2. Monitor your account until July 15. If the payment still has not posted ten days before your CP14 response deadline, call the number on the notice.
  3. Skip the phone queue until then; the IRS says no call is needed unless the payment remains missing after mid-July.

Smart moves for practice owners

  • Screenshot everything. Save the confirmation number from Direct Pay, your bank statement showing the debit, and the CP14 itself.
  • Set a calendar reminder for July 5 to check your IRS account again.
  • Keep cash handy. If the payment never posts, you may need to re-pay to stop interest from compounding.
  • Delegate the headache. Give your CPA (hi, that’s us) a power of attorney so we can chase the IRS for you while you stay focused on patients instead of phone menus.

The bigger picture

The Taxpayer Advocate Service notes that IRS backlogs and staffing gaps are fueling these glitches. In plain English: the system is straining, and you are the spare part. Knowing your rights and keeping impeccable payment records is the best defense until the agency catches up

While this IRS glitch is frustrating, it doesn’t have to derail your peace of mind or your practice. Stay calm, stay documented, and don’t go it alone. Whether it’s resolving notices, monitoring payment status, or preventing future tax headaches, having an optometry-specific CPA in your corner can make all the difference.

We’re here to advocate, investigate, and help you stay financially focused, even when the IRS can’t.

This information is based on official updates and public notices from IRS.gov and related media coverage as of June 2025. While this article is written in our own words for clarity and relevance to optometry practices, all technical details and reporting were sourced from trusted government communications.

Get optometry-specific tax support by scheduling a call with Brad Rourke, CPA, ABV or learn more about our accounting and tax services specific for ODs on our website.  

Ryan Poirier

Certified Public Accountant
Email Ryan

 

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Best Practices for Having Your Children on Your Payroll

As optometry practice owners, finding innovative ways to optimize operations and finances is always on the agenda. One effective strategy is incorporating your children into your business workforce. This approach not only provides potential tax benefits but also imparts valuable life skills to your children. In this guide, we will delve into the best practices for having your children on payroll, focusing on legal compliance, appropriate tasks, fair compensation, and essential record-keeping.

Understanding Age-Appropriate Work

Before assigning tasks to your children, ensure that these tasks are suitable for their age:

  • For Young Children (Ages 5-12): Simple office tasks like filing, shredding, or basic cleaning.
  • For Teenagers (Ages 13-17): More complex roles such as assisting with administrative duties, managing social media accounts, or participating in community outreach initiatives.

Always tailor tasks to align with both their capabilities and the needs of your practice.

Ensuring Fair Compensation

Paying your children a fair wage is crucial. Here’s how you can ensure compliance and fairness:

  • Market Rate Compensation: Pay rates should align with what you would pay an unrelated employee for the same job.
  • Consistent Paychecks: Regularly scheduled payments via check or direct deposit help formalize the employment relationship.

Maintaining Accurate Records

Record-keeping is not just a best practice; it's a necessity:

  • Detailed Logs: Keep a detailed record of hours worked and tasks performed.
  • Formal Documentation: Ensure all work is documented through timesheets or a digital tracking system.

This documentation is essential for tax purposes and validates the employment as a legitimate business arrangement.

Aligning Work with Business Operations

The work your children do should directly relate to your practice’s operations. Avoid assigning household chores as part of their job duties, and instead focus on tasks that contribute to your business goals.

Handling Employment Paperwork

Compliance with federal employment laws is non-negotiable:

  • W-4 and I-9 Forms: Complete these forms to document your child’s eligibility to work and handle tax withholdings correctly.
  • Setting Up a Bank Account: A bank account in your child’s name not only teaches financial responsibility but also aids in transparent financial practices.

Exploring the Benefits of Child Employment

Employing your child can lead to significant financial and educational benefits:

Tax Advantages:
  • Income Shifting: Transfer income from your higher tax bracket to your child’s lower one.
  • Tax Savings: Potentially reduce the amount of taxes owed by taking advantage of lower tax brackets.
Financial Education:
  • Early Financial Literacy: Introduce concepts of earning, saving, and responsible spending.
  • Roth IRA Contributions: Enable them to start a Roth IRA, fostering early habits of savings and investment.

Understanding Tax Implications

  • No Withholdings Necessary: If your child earns less than the standard deduction, you may not need to withhold taxes.
  • Exemption from Certain Taxes: If your practice is a family-owned partnership, your child’s earnings might be exempt from Social Security, Medicare, and FUTA taxes.

Integrating your children into your optometry practice is not just a financial decision but a strategic move that can benefit your family in multiple ways. From teaching valuable work ethics to securing tax benefits, the advantages are manifold. However, it’s essential to maintain a professional approach, ensuring all legal requirements are met. For tailored advice, always consult with a tax professional or accountant knowledgeable about optometry practices.

By following these guidelines, you can optimize your family’s financial situation while providing a practical learning experience for your children within your business.

Stay ahead of your tax planning by scheduling a call with Brad Rourke, CPA, ABV or learn more about optometry-specific accounting and tax on our website.  

Archie Keebler

Tax Manager
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Keeping You Updated on Tax Changes for 2025

At Williams Group, we’re committed to keeping you informed about key tax changes that can impact your financial planning and your optometry practice. As we look ahead to 2025, here are two important updates we’d like to highlight from the SECURE 2.0 Act of 2022 and the IRS mileage rate adjustment.

Enhanced Catch-Up Contributions: More Savings for Older Employees

Starting in 2025, employees aged 60 to 63 can take advantage of increased catch-up contributions for their 401(k) or 403(b) retirement plans. The maximum catch-up contribution for this group will rise to $11,250, compared to the current $7,500 limit. This adjustment acknowledges the critical need for individuals nearing retirement to bolster their savings during their highest earning years.

Additionally, here are the contribution limits for 2025 across various retirement accounts:

  • 401(k): $23,000, with an additional $11,250 catch-up contribution for those aged 60-63.
  • SIMPLE IRA: $17,000, with a catch-up contribution of $5,500 for participants aged 50 and older.
  • Traditional and Roth IRAs: $7,000, with a $1,000 catch-up contribution for participants aged 50 and older.
  • Health Savings Accounts (HSAs): $4,150 for individuals and $8,300 for families, with a $1,000 catch-up contribution for account holders aged 55 and older.

For employers, this presents an opportunity to reinforce employee loyalty and financial well-being. Highlighting these increased contribution limits during employee discussions or benefits meetings can foster a culture of financial security within your practice. Additionally, contributions made by employees not only enhance their retirement readiness but also allow for potential tax deferrals, benefiting both employees and the practice.

Automatic Enrollment: Setting Employees Up for Success

Another notable provision of SECURE 2.0 is the mandatory automatic enrollment requirement for new 401(k) and 403(b) plans established after December 29, 2022. Starting in the 2025 plan year, employers must automatically enroll eligible employees into their retirement plans unless the employee opts out. The initial deferral rate must be at least 3%, increasing annually by 1% until it reaches a minimum of 10%, but no more than 15%.

This automatic enrollment provision is a game-changer for employee participation rates, ensuring that more individuals take proactive steps toward building their retirement savings. For practice owners, it simplifies plan administration and promotes a forward-thinking benefits package that can attract and retain top talent. While automatic enrollment may require some initial setup and communication, it ultimately helps employees achieve financial security with minimal effort on their part.

IRS Mileage Rate for 2025: Plan for Reimbursements

The IRS has announced that the standard mileage rate for 2025 will be 70 cents per mile. This represents an important update for businesses that reimburse employees for work-related travel. Properly tracking and reimbursing mileage at the correct rate not only keeps your practice compliant but also ensures fair compensation for your employees.

Key Takeaways for Practice Owners

These tax updates are more than just regulatory changes; they’re opportunities for your practice to:

  • Support Employee Financial Wellness: The enhanced catch-up contributions and automatic enrollment features ensure employees are set up for long-term success.
  • Boost Recruitment and Retention: Offering robust retirement plans makes your practice more competitive in the job market.
  • Maintain Compliance: Adhering to new rules, like the automatic enrollment mandate, safeguards your practice from potential penalties.
  • Optimize Tax Benefits: Retirement plan contributions, both from employees and employers, come with potential tax advantages that can reduce the overall tax burden.

Stay Ahead with Williams Group

Staying informed and proactive about tax and retirement plan changes is essential for navigating the evolving financial landscape. Whether you’re updating your mileage reimbursement policies or implementing new retirement plan features, working closely with our team can ensure you’re maximizing opportunities for your practice and employees. 

If you’re ready to discuss how these 2025 updates can impact your optometry practice, or if you need guidance on integrating these provisions into your financial strategy, contact Williams Group today. Together, we can build a stronger financial future for your practice and your team.

Stay ahead of your tax planning by scheduling a call with Brad Rourke, CPA, ABV or learn more about optometry-specific accounting and tax on our website.  

Archie Keebler

Tax Manager
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Ryan Poirier

Certified Public Accountant
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Tax laws are constantly evolving, and as an optometry practice owner, staying informed about potential changes is key to maintaining financial stability. The best tax strategies not only focus on today’s savings but also prepare for tomorrow’s challenges. In this final post of our tax planning series, we’ll explore how upcoming policy shifts could impact your practice and offer tips to keep you ahead of the curve.

Anticipating Policy Changes

The tax landscape is shaped by political, economic, and social factors, which means changes can happen quickly. From adjustments to corporate tax rates to shifts in small business incentives, staying proactive ensures you’re prepared to adapt.

For example, discussions around increasing corporate tax rates or phasing out certain deductions could affect your optometry practice’s profitability. On the other hand, new credits or incentives aimed at supporting small businesses could present valuable opportunities. Partnering with a CPA who tracks these changes can help you navigate them effectively.

Strategies to Stay Ahead

While it’s impossible to predict every change, there are strategies you can implement now to future-proof your optometry practice:

  • Build Financial Resilience: Maintain a cash reserve to help weather any unexpected tax increases or economic challenges.
  • Diversify Income Streams: Consider expanding into services or products that are less impacted by potential tax increases.
  • Stay Flexible: Ensure your practice’s structure allows for quick adjustments, such as changing your tax entity if needed.

Leveraging Professional Expertise

Navigating tax changes doesn’t have to be overwhelming. CPAs and financial advisors can provide insights tailored to your optometry practice. They can help you model the potential impacts of new policies, optimize your current strategies, and identify opportunities to save.

For instance, if new credits become available for hiring or equipment upgrades, a professional can guide you through the application process to maximize your benefits.

Conclusion

The tax landscape is ever-changing, but with the right strategies and a proactive approach, your optometry practice can thrive no matter what lies ahead. By staying informed, building financial resilience, and leveraging professional expertise, you can turn potential challenges into opportunities.

Thank you for joining us on this tax planning journey. If you have questions or would like personalized advice, our team is here to help. Let’s work together to secure a strong financial future for your practice.

For more advanced tax moves, start by scheduling a call with Brad Rourke, CPA, ABV or learn more about optometry-specific accounting and tax on our website.  

Ryan Poirier

Certified Public Accountant
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Tax planning isn’t just for the end of the year. For optometry practice owners looking to make the most of their financial strategy, advanced moves like capital loss harvesting, inventory management, and strategic contributions can provide ongoing benefits throughout the year. In this post, we’ll explore how to incorporate these powerful tools into your regular tax planning to maximize savings and maintain a healthy bottom line.

Capital Loss Harvesting: Turn Losses Into Gains

Capital loss harvesting isn’t limited to the end of the year. It’s a strategy that can be employed at any time to offset capital gains or even ordinary income.

For example, if you notice that certain investments—stocks, mutual funds, or even cryptocurrency—aren’t performing as expected, selling them can generate a capital loss that reduces your tax liability.

If your losses exceed your capital gains, you can deduct up to $3,000 of the losses against your ordinary income.

Additionally, any unused losses can be carried forward to future tax years, ensuring no opportunity is wasted. To effectively use this strategy, monitor your portfolio regularly and keep an eye on IRS rules, such as the 'wash sale' rule, which requires waiting 31 days before repurchasing the same asset.

Inventory Management: Stay Ahead of the Game

Effective inventory management isn’t just about what you purchase—it’s about ensuring your inventory aligns with your financial and business goals year-round. For optometry practices that hold inventory, such as eyeglass frames, regular reviews can help identify opportunities to optimize stock levels. Buying necessary supplies in advance can help reduce taxable income, but overstocking can tie up cash flow.

If your optometry practice qualifies as a 'small business' under IRS guidelines, you might also be eligible to deduct inventory costs as expenses rather than capitalizing them. This ongoing approach to inventory management keeps your finances flexible and your tax filings efficient.

P.S. Not sure what the magic number is for your store? We can help! Schedule an appointment with one of our experienced consultants who have worked across multiple practices to find the right stock levels for your business. Let’s make sure your inventory strategy works for you.

Retirement Contributions and Financial Planning

Contributing to retirement accounts isn’t just a smart move at tax time—it’s a foundational part of year-round financial planning. Whether you have a 401(k), SIMPLE IRA, or traditional IRA, making regular contributions throughout the year ensures you’re consistently reducing taxable income while building a secure future. For 2025, the 401(k) contribution limit is $23,000, with an additional $7,500 catch-up contribution if you’re 50 or older.

Additionally, consider other ways to smooth out expenses and deductions throughout the year. For example, planning employee bonuses, pre-paying certain expenses, or setting up regular contributions to Health Savings Accounts (HSAs) can all contribute to a well-balanced tax strategy.

Conclusion

Advanced tax strategies like capital loss harvesting, inventory management, and retirement contributions offer year-round opportunities to strengthen your practice’s financial health. By making these tools a regular part of your tax planning, you can maintain flexibility, reduce your tax burden, and keep your practice on a solid financial foundation. In the next and final post, we’ll explore how potential tax policy changes could impact your practice and how to stay ahead. Stay tuned!

For more advanced tax moves, start by scheduling a call with Brad Rourke, CPA, ABV or learn more about optometry-specific accounting and tax on our website.  

Ryan Poirier

Certified Public Accountant
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As an optometry practice owner, your financial decisions can have a significant impact on your bottom line. One area where you can make smart moves is by employing family members and taking advantage of available tax credits. These strategies not only reduce your tax liability but also provide opportunities to reinvest in your practice and support your loved ones.

Employing Family Members: A Win-Win Strategy

One of the most overlooked tax-saving strategies is employing your family members in your optometry practice. Under current tax laws, you can pay your children or other family members a reasonable wage for legitimate work they perform. This reduces your practice’s taxable income while also shifting income to family members who may be in lower tax brackets.

For example, you could hire your child to assist with tasks like filing, cleaning, or even managing your practice’s social media presence. As long as the wages are reasonable and the work is documented, the payments are deductible as a business expense. Plus, your child can use their standard deduction to avoid paying taxes on the income.

If you pay your child less than $15,000 in 2025, they are not required to file a tax return.

However, if you choose to file one, the income is considered 'earned income,' which makes them eligible to contribute to a Roth IRA. This is where the real power of this strategy comes into play. By contributing the maximum $7,000 annually to a Roth IRA for the next 10 years, your child’s retirement account can benefit from decades of compound growth.

Assuming an average annual growth rate of 7%, those contributions alone could grow to approximately **$1,549,635** by the time your child retires in 50 years. This sets them up for long-term financial independence while also teaching them valuable lessons about saving and investing.

Leveraging Tax Credits: Free Money for Your Practice

Tax credits are one of the most effective ways to reduce your tax liability because they directly reduce the amount of tax you owe, dollar for dollar. Here are two credits that can make a big difference for your optometry practice:

  • Work Opportunity Tax Credit (WOTC): This credit rewards businesses that hire individuals from certain target groups, such as veterans or long-term unemployed individuals. You can receive up to $9,600 per eligible employee, depending on the group.
  • Disabled Access Credit: If you make your optometry practice more accessible to individuals with disabilities, you may qualify for this credit. For instance, installing ramps or modifying restrooms could make you eligible for up to $5,000 in tax credits.

Combining Strategies for Maximum Impact

By employing family members and taking advantage of tax credits, you can create a comprehensive tax strategy that benefits your practice and your family.

For example, you could hire a family member to oversee accessibility improvements in your office, making your practice eligible for both the wage deduction and the Disabled Access Credit.

Conclusion

Employing family members and leveraging tax credits are practical ways to reduce your tax burden while investing in your optometry practice and your loved ones. These strategies require careful documentation and planning, but the rewards are well worth the effort. In the next post, we’ll explore advanced tax moves, including capital loss strategies and inventory deductions, to help you save even more. Stay tuned!

Maximize your tax savings by scheduling a call with Brad Rourke, CPA, ABV or learn more about optometry-specific accounting and tax on our website.  

Ryan Poirier

Certified Public Accountant
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