Actual paycheck

[jherbert]

Hey all,

First of all, this is a great forum, very informative.

I recently did an economics project (I'm a senior in high school) where we were given a hypothetical scenario (a job situation, family situation, city of residence, etc.), from which we had to basically make a monthly budget. Out of sheer curiosity, I've been considering doing something similar for a doctor. However, I've found that I know very little about the kinds of expenses doctors have (malpractice, health, medicare).

So, I was wondering if any of the attendings would mind divulging their pre-tax income, and how much of that amount remains after taxes and expenses pertinent to doctors.

Any help would be greatly appreciated!

---

Members don't see this ad.

 

[The White Coat Investor]

Hey all,

First of all, this is a great forum, very informative.

I recently did an economics project (I'm a senior in high school) where we were given a hypothetical scenario (a job situation, family situation, city of residence, etc.), from which we had to basically make a monthly budget. Out of sheer curiosity, I've been considering doing something similar for a doctor. However, I've found that I know very little about the kinds of expenses doctors have (malpractice, health, medicare).

So, I was wondering if any of the attendings would mind divulging their pre-tax income, and how much of that amount remains after taxes and expenses pertinent to doctors.

Any help would be greatly appreciated!

Most emergency docs are paid $110-$175/hour. They work 1200-2000 hours per year. Expenses like overhead, benefits, and malpractice are paid separately by the employer in the usual arrangement. You do the math. As far as taxes....there are too many variables to give you an average. Personally, I pay more in social security taxes than I do in income taxes.

 

[Bobblehead]

Most emergency docs are paid $110-$175/hour. They work 1200-2000 hours per year. Expenses like overhead, benefits, and malpractice are paid separately by the employer in the usual arrangement. You do the math. As far as taxes....there are too many variables to give you an average. Personally, I pay more in social security taxes than I do in income taxes.

Taking the low point of that range you're talking about $132,000 pre-tax income. That means you're paying the maximum for SS's 6.2% or $6045 for 2007, excluding of course the Medicare portion. You're sheltering enough income to bring your effective federal and state (assuming your state has a state income tax) tax rate below 6.2% for the year? That would be something to share with the board if you don't mind.

 

[Tenesma]

yes activeduty - please give us some insight on how to minimize your tax burden percentage wise!!!!

even generalities would be gladly accepted

 

[The White Coat Investor]

You're sheltering enough income to bring your effective federal and state (assuming your state has a state income tax) tax rate below 6.2% for the year? That would be something to share with the board if you don't mind.

If you notice my name...Active Duty refers to the military. A good portion of my compensation is tax-exempt, over half of it this year. It doesn't make up for the fact that I'm paid half of what my civilian counterparts make, but it does help. Tack on a few dependents, max out retirement accounts, and my marginal tax bracket this year is 15%, so my effective tax rate is somewhere less than 5% this year. This is partially because I spent a good portion of 2007 in the Middle East where nearly all of my pay is tax-exempt.

yes activeduty - please give us some insight on how to minimize your tax burden percentage wise!!!!

even generalities would be gladly accepted

The average doc can reduce his tax burden by maxing out every retirement account available to him and making sure he maximizes his deductions. Most would do well to have an accountant assist them with their taxes each year, or for the do it yourselfers, at least the first year after your tax situation changes significantly.

 

[jherbert]

Wait, emergency doctors only work about forty hours a week?

And also, if you have your own practice (even if you are affiliated with a hospital), do you have to pay your own malpractice? If so, how much?

 

[The White Coat Investor]

Wait, emergency doctors only work about forty hours a week?

40 hours including rotating shifts, nights, weekends, and holidays are not the same as working 8-5 M-F...but yes, on average, most emergency docs work less than 50 hours a week.

 

[jherbert]

Huh. Interesting. I've always heard stories of crazy 100+ hour weeks.

 

[TRAMD]

ER docs work fewer hours than pretty much every other specialty.

 

[southerndoc]

Huh. Interesting. I've always heard stories of crazy 100+ hour weeks.

By an emergency physician? HA! That has to be one of the funniest statements I've heard all year!