Take home pay

[Volkmann]

I was wondering if anyone knew what the take home pay is of a PGY-1 resident earning $57000 annually in Connecticut?? Thanks.

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[Raryn]

Somewhere around $3500 depending on your personal circumstances (more if your program is FICA exempt or you have kids, etc), but there's a million calculators online if you want to get an exact number. For example:

https://www.paycheckcity.com/calculator/salary/

 

[Volkmann]

Somewhere around $3500 depending on your personal circumstances (more if your program is FICA exempt or you have kids, etc), but there's a million calculators online if you want to get an exact number. For example:

https://www.paycheckcity.com/calculator/salary/

Thanks a lot for the reply. I used the calculators online and they gave me a number similar to what you mentioned. However most of the doctors I know say it's much closer to $3000. I was wondering why that is.

 

[Raryn]

Thanks a lot for the reply. I used the calculators online and they gave me a number similar to what you mentioned. However most of the doctors I know say it's much closer to $3000. I was wondering why that is.

Most interns make less than $57k/year. The average is closer to $52k, which explains most of the difference.

In addition, from talking to my coresidents, most also set the allowances "incorrectly" on their W4 so they get a big tax refund (thus leading to their monthly paychecks being less, but the amount of $$ being the same in the long run). As a single person working one job, you are actually entitled to 2 allowances. Set it right, and you should get a $0 tax refund (other than intern year, when you only work 6 months of the first calendar year). This year, I owed the feds $1.

Some may also have voluntary withholding for retirement contributions. That makes their monthly paychecks less.

 

[Volkmann]

Most interns make less than $57k/year. The average is closer to $52k, which explains most of the difference.

In addition, from talking to my coresidents, most also set the allowances "incorrectly" on their W4 so they get a big tax refund (thus leading to their monthly paychecks being less, but the amount of $$ being the same in the long run). As a single person working one job, you are actually entitled to 2 allowances. Set it right, and you should get a $0 tax refund (other than intern year, when you only work 6 months of the first calendar year). This year, I owed the feds $1.

Some may also have voluntary withholding for retirement contributions. That makes their monthly paychecks less.

That makes sense. I'm married without kids. Would that qualify for more allowances?

 

[Raryn]

That makes sense. I'm married without kids. Would that qualify for more allowances?

Depends on whether your spouse works.

 

[Volkmann]

Depends on whether your spouse works.

She does not

 

[Raryn]

She does not

https://www.irs.gov/pub/irs-pdf/fw4.pdf is the worksheet. A typical married individual with a spouse who does not work qualifies for 3 allowances. Putting that information into the paycheck calculator linked above gets you an estimated take home pay of $3,781.41 monthly. YMMV.

 

[Volkmann]

https://www.irs.gov/pub/irs-pdf/fw4.pdf is the worksheet. A typical married individual with a spouse who does not work qualifies for 3 allowances. Putting that information into the paycheck calculator linked above gets you an estimated take home pay of $3,781.41 monthly. YMMV.

Thanks again. You've been super helpful.

 

[EMorIM]

Which type of institutions are FICA exempt? This link makes it sound like none are, post-2005.

https://www.irs.gov/Charities-&-Non...ers-about-Medical-Resident-FICA-Refund-Claims

 

[Raryn]

Which type of institutions are FICA exempt? This link makes it sound like none are, post-2005.

https://www.irs.gov/Charities-&-Non...ers-about-Medical-Resident-FICA-Refund-Claims

Different rule at play.

State governments have the option of making their employees FICA exempt. For example, residents at the various UC programs, as employees of the state of CA, don't pay any social security taxes (though still pay Medicare taxes). In lieu of that, a proportion of your salary is diverted into a 401(a), which can be rolled over to a 401(k) or IRA after you graduate. Or withdrawn with some tax penalties after you graduate.

 

[Siggy]

In addition, from talking to my coresidents, most also set the allowances "incorrectly" on their W4 so they get a big tax refund (thus leading to their monthly paychecks being less, but the amount of $$ being the same in the long run). As a single person working one job, you are actually entitled to 2 allowances. Set it right, and you should get a $0 tax refund (other than intern year, when you only work 6 months of the first calendar year). This year, I owed the feds $1.

The catch with that is if you owe more than $1000 in taxes, then you could also face a penalty for fail to pay taxes (taxes are considered to be continuous throughout the year and not a one time deadline of April 15th). Also, most people count on a refund. While, yes, the government is just returning money that is rightfully yours with a refund, there's a big difference between expecting money and having to pay money... money which most people are not budgeting for,