Texas Fellow Salaries

[fellowknight]

---

Members do not see this ad.

I am moving to Texas this year and wanted some help from residents/fellows familiar to some of the programs there. Comparing BCM and Southwestern, there is a marked difference in salary. I thought Houston is as expensive as Dallas, then how come salaries are so different?

 

[trophyhusband]

I am moving to Texas this year and wanted some help from residents/fellows familiar to some of the programs there. Comparing BCM and Southwestern, there is a marked difference in salary. I thought Houston is as expensive as Dallas, then how come salaries are so different?

Not a resident or fellow but married to someone who will be applying to fellowship this year. The thing to keep in mind with UTSW is that they don't withhold your taxes (though they don't specify which ones on the website). If they don't withhold Medicare and SS taxes I believe you need to pay both the employer and employee portion. This would make the net pay you receive to be close to equal between the two I would think...

This is also not to mention that you'll probably need to pay a CPA or Enrolled Agent to do your taxes whereas if your taxes are withheld you could probably do your taxes on your own pretty easily.

This is one of the reasons my wife will not be applying to fellowship at UTSW (there are other reasons but those are program specific).

 

[colbgw02]

Not a resident or fellow but married to someone who will be applying to fellowship this year. The thing to keep in mind with UTSW is that they don't withhold your taxes (though they don't specify which ones on the website). If they don't withhold Medicare and SS taxes I believe you need to pay both the employer and employee portion. This would make the net pay you receive to be close to equal between the two I would think...

This is also not to mention that you'll probably need to pay a CPA or Enrolled Agent to do your taxes whereas if your taxes are withheld you could probably do your taxes on your own pretty easily.

This is one of the reasons my wife will not be applying to fellowship at UTSW (there are other reasons but those are program specific).

How is this even possible? If the fellow is an employee, then they have to withhold FICA as well as pay their share of payroll taxes. They can only not withhold taxes if the fellow is considered an independent contractor, right? How can they possibly justify classifying a fellow as an independent contractor?

 

[trophyhusband]

How is this even possible? If the fellow is an employee, then they have to withhold FICA as well as pay their share of payroll taxes. They can only not withhold taxes if the fellow is considered an independent contractor, right? How can they possibly justify classifying a fellow as an independent contractor?

http://www.utsouthwestern.edu/educa...ynecology/education-training/fellowships.html

"American Board of Obstetrics and Gynecology (ABOG) fellows are considered trainees, and their appointment to ABOG-fellowship programs are for purposes of training. There is no employer-employee relationship. In spite of the fact that stipends are considered taxable income to the recipient, the IRS has ruled that UT Southwestern may not withhold income taxes from non-employee, trainee stipends. Fellows are urged to read IRS publication 970, Tax Benefits for Education, and to contact a tax advisor."

I thought there was a court case out there that the IRS was fighting that said residents/fellows are NOT trainees and their taxes must be withheld (I think Mayo was one of the main places that was fighting for trainee not employee status). I thought the IRS had won that case as well but I'm not sure.

 

[colbgw02]

http://www.utsouthwestern.edu/educa...ynecology/education-training/fellowships.html

"American Board of Obstetrics and Gynecology (ABOG) fellows are considered trainees, and their appointment to ABOG-fellowship programs are for purposes of training. There is no employer-employee relationship. In spite of the fact that stipends are considered taxable income to the recipient, the IRS has ruled that UT Southwestern may not withhold income taxes from non-employee, trainee stipends. Fellows are urged to read IRS publication 970, Tax Benefits for Education, and to contact a tax advisor."

I thought there was a court case out there that the IRS was fighting that said residents/fellows are NOT trainees and their taxes must be withheld (I think Mayo was one of the main places that was fighting for trainee not employee status). I thought the IRS had won that case as well but I'm not sure.

I thought the same thing - that residents and fellows had been declared employees by the courts.

 

[McGillGrad]

Just as an aside, Houston is cheaper than Dallas. Noticeably so.