---
title: "What Is Payroll percentage? Dental Practice Glossary"
description: "Payroll percentage is team payroll divided by collections, shown as a percentage, and it shows how much of each collected dollar goes to pay the team."
url: https://joncopeland.multisites.ai/glossary/payroll-percentage
publisher: Copeland Consulting Services
email: drcopeland@joncopelanddds.com
contact: https://joncopeland.multisites.ai/contact
---

Finance and valuation

# Payroll percentage

Payroll percentage is team payroll divided by collections, shown as a percentage, and it shows how much of each collected dollar goes to pay the team.

Payroll is usually the largest line in a practice's costs, though this depends on the office. ADA News (March 2022) stated that variable costs, such as payroll, lab fees, dental supplies and office supplies, should run around 45 to 55 percent of practice income. That is one adviser's guide, not a rule, and it groups several lines together. Sources define payroll differently: some include owner dentist pay, benefits and payroll taxes, and some do not. Before comparing a [benchmark](https://joncopeland.multisites.ai/glossary/benchmark), check what is counted. Payroll percentage is one part of total [overhead percentage](https://joncopeland.multisites.ai/glossary/overhead-percentage). Employment questions about pay should go to an attorney or CPA.

[Next stepPractice consulting with Dr. Copeland](https://joncopeland.multisites.ai/contact?topic=consulting)

## Related terms

-   [Overhead percentage](https://joncopeland.multisites.ai/glossary/overhead-percentage)
-   [Benchmark](https://joncopeland.multisites.ai/glossary/benchmark)
-   [Lab fees](https://joncopeland.multisites.ai/glossary/lab-fees)
-   [Supply costs](https://joncopeland.multisites.ai/glossary/supply-costs)

## Sources

1.  [ADA News, Ask the Expert: Practical strategies to reduce dental practice expenses (March 2022)](https://adanews.ada.org/new-dentist/2022/march/ask-the-expert-practical-strategies-to-reduce-dental-practice-expenses/)

## Talk with Dr. Copeland

[Contact Dr. Copeland](https://joncopeland.multisites.ai/contact)[Email](mailto:drcopeland@joncopelanddds.com)