Helping a Dental Clinic Group Save $365,500 in Payroll Tax Audit

The Challenge: 
A dental clinic group in Victoria, operating multiple clinics and holding investments in other practices, faced a significant payroll tax assessment after an audit by the State Revenue Office (SRO). The assessment included grouping rules that aggregated payrolls, the inclusion of management fees for practitioners that should have been exempt, and a calculation error where payroll tax was incorrectly based on practitioner receipts instead of management fees. These issues created financial strain and unnecessary complexity for the client. 

Our Approach: 
We carefully assessed the client’s situation on a case-by-case, practitioner-by-practitioner basis to determine eligibility for exemptions and adjustments. By leveraging our in-depth tax knowledge, we successfully applied for 3 clinic exclusions from grouping rules, argued for practitioner fee exemptions, and secured regional payroll tax rates where applicable. We also identified and rectified the SRO’s calculation error using examples and guidelines from the SRO website. Additionally, we proactively negotiated an extension for the objection process, ensuring enough time to build a comprehensive case. 

Our team handled all communication with the SRO, relieving the client of stress while ensuring the best possible outcome. This level of effort required a detailed understanding of payroll tax laws, staying updated with changes, and a strategic approach to resolving complex issues. 

The Result: 
These efforts saved the client $365,500 in payroll tax liabilities and ensured their compliance with state regulations. By addressing each aspect of the case with precision, we provided the client with clarity, financial relief, and the confidence to focus on growing their business. 

Key Takeaways: 

• Case-by-Case Assessment is Crucial: Each practitioner and clinic must be carefully reviewed on a yearly basis to identify opportunities for exemptions and to ensure accurate reporting. 
• Expertise Matters: Success in complex payroll tax cases requires up-to-date tax knowledge, familiarity with state regulations, and a proactive problem-solving approach. 
• Stress-Free Resolution: With the right advisor, businesses can navigate audits and disputes without unnecessary stress or disruption to their operations. 

Interested in identifying potential payroll tax liabilities or exemptions available for your business? 
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