Practices can determine the discount provided to their team member. Even though discounts are a popular benefit, practice management must follow Internal Revenue Service regulations or owners, managers and team members may face hefty fines.
Source: Veterinary Team Brief, May 2018. Link.
Veterinary team members have always considered discounts a substantial benefit, but they must understand IRS regulations and know that adhering to them protects everyone in the practice. Take Action notes:
- Know that although practices can set the amount for team member discounts, IRS regulations must be followed.
- Ensure team members understand that few or limited discounts do not mean they are being punished but rather that they are being protected from back taxes and fines the IRS will impose.
INSIGHTS: Animal health pros need to share this information routinely. While it will not be good news, making sure the regulations are implemented is a solid, proactive measure that to ensure proper bookkeeping protocols are followed.