When someone says an average first-year anesthesiologist makes 275k a year, does this factor in malpractice? What would be the expected take-home on such a salary post federal and average state taxes?
Are quoted physician salaries pre or post malpractice?
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I would probably guess that doesn't include malpractice unless your malpractice insurance is included in your benefits (I'm not sure how that works).
As far as estimating paychecks or take home pay, there are lots of state- and federal-specific calculators on the interwebz
As far as estimating paychecks or take home pay, there are lots of state- and federal-specific calculators on the interwebz
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Malpractice insurance premiums come out of your overhead expenses, not from the reported take-home pay.
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Salaries or take home pay is 99.999% of the time reported the amount you actually report to the IRS as your income, which is post malpractice, rent for your office, pay for your MAs, etc. That overhead generally averages out to about 50% of the revenue you bring in.
What that above means is that an average family physician might (for example) bring in $400k worth of revenue. He'd spend $200k on things like rent, supplies, ancillary staff, malpractice insurance, and benefits. The other $200k is what he pays himself and reports to the IRS. Probably (counting SS, medicare, federal, state taxes) approximately a third ends up going to the feds. The remaining ~11k/month is his net, take home, after tax pay.
The exact numbers will vary from practice environment to practice environment, but no one pays their own malpractice out of after-tax income. That's a business expense paid by your employer, your partnership, or your personal corporation which owns your practice.
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