Salary Question

[hallowmann]

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had a colleague tell me he got offered 1099 of 300 ish in midwest outpatient for 30 hours doing tele x 48 wks/yr but no bennies. I guess he wasn't lying then i thought it was a bit high for midwest geography and being tele.

Watch out for some of those offers. I've had friends go for them, but in the fine print that 30 hrs had to be direct patient time, so no admin, didn't count no-shows, cancellation, holes in the schedule, etc. Ultimately ended up meaning more like 35-40 hrs anticipated scheduled time. That initial pay of $208/hr becomes $155/hr real quick.

 

[finalpsychyear]

How many patients per hour? That’s a very important component

60 min intakes, 20 min follow up so 3/hr. also requires 1 mid level supervision btw. 27 clinical hours plus 4 hours paid lunch = 31 total hours.

 

[TexasPhysician]

I'm W2 for life. The benefits are quite extensive. I did the math. My employer pays $50 monthly for life insurance, $1050 monthly for health insurance (single plus one), $300 in Medicare taxes, $1290 in social security taxes, $3600 in pension and $1080 in 401k matching. I understand most places aren't going to get a pension, but hopefully you're getting better matching in your 401k. It's still a chunk of money, particularly since it's all either tax free or at least tax deferred to when I am in a much more favorable bracket.

I wouldn’t focus on W2 or 1099. You need to understand the total package you are getting. I have a 1099 contractor that I pay $400k/year. 60-90 min evals and 30 min follow-ups. This contractor utilizes tax deductions unavailable to W2. We are both happy with the arrangement.

That said, I could probably hire someone at $280k plus benefits and save myself about $50k+. If my contractor ever leaves, I’ll probably change to that.

 

[TerraceHouse]

I wouldn’t focus on W2 or 1099. You need to understand the total package you are getting. I have a 1099 contractor that I pay $400k/year. 60-90 min evals and 30 min follow-ups. This contractor utilizes tax deductions unavailable to W2. We are both happy with the arrangement.

That said, I could probably hire someone at $280k plus benefits and save myself about $50k+. If my contractor ever leaves, I’ll probably change to that.

Since you have experience, how do you pay an employee (whether 1099 or w2) at the beginning when the business hasn't generated any income yet? How do you provide/shop for benefits as a small private practice owner? Also.... starting out... would it be best to utilize those office share websites like humanly or get a longterm lease? Sorry so many ?s

 

[TexasPhysician]

Since you have experience, how do you pay an employee (whether 1099 or w2) at the beginning when the business hasn't generated any income yet? How do you provide/shop for benefits as a small private practice owner? Also.... starting out... would it be best to utilize those office share websites like humanly or get a longterm lease? Sorry so many ?s

You’ll need to take out loans, use savings, or subsidize their income with yours. This is no different than any other business or franchise. A business is a risk.

Some payroll companies offer ok group plans to practices with 2+ unrelated employees or use an insurance broker for best options.

This answer depends on your long-term plans. If you plan to be mostly tele and solo, a shared office like that may be fine. There are many options. My preferred option is buying real estate. You can rent-out unused space or try to grow faster. My last office in my preferred location cost me about $2.5k/month in mortgage/interest/insurance. Had I rented something close, it would have been $4k+/month. That’s $1500 profit/month after my down payment, not including appreciation, etc. assuming nothing breaks.

 

[wannabie]

had a colleague tell me he got offered 1099 of 300 ish in midwest outpatient for 30 hours doing tele x 48 wks/yr but no bennies. I guess he wasn't lying then i thought it was a bit high for midwest geography and being tele.

I work in the midwest doing telepsych from home. I work thirty five clinical hours and have five admin hours. I have sixty minute new patient visits and thirty minute follow-ups. I make 331k base. I had a 20k signing bonus the first year and a 15k bonus if I resign. They offer benefits but I don't take health insurance. I get thirty days of vacation.

 

[jbomba]

I work in the midwest doing telepsych from home. I work thirty five clinical hours and have five admin hours. I have sixty minute new patient visits and thirty minute follow-ups. I make 331k base. I had a 20k signing bonus the first year and a 15k bonus if I resign. They offer benefits but I don't take health insurance. I get thirty days of vacation.

Is this with a group?

 

[wannabie]

Is this with a group?

I work for a large non-profit. One psychiatrist working half time passed away and there's one therapist. I think they have part time neurologists and rheumatologists too.