PYA Tax Senior Manager Emily Smithson presented “Beyond Wages—Taxation and Reasonableness of Alternative Forms of Physician Compensation” during an on-demand webinar hosted by PYA in conjunction with the Florida Hospital Association.
Hospitals and health systems are looking for creative options in structuring physician compensation packages. While salaries can include much more than simply base wages, it is important to consider which items are taxable to the physician. In addition, hospitals should consider how outside-the-box payments affect reasonable compensation under regulatory rules and guidance. When entering into compensation contracts, both hospitals and physicians should be aware of which items are subject to tax and which are included in total fair market value physician compensation.
After this webinar, you will be able to:
- Understand the tax impact of physician remuneration aside from wages.
- Apply federal income tax rules to student loan repayments, housing allowances, employee meals, insurance, and more.
- Explain the difference between a sign-on bonus, forgivable loan, and retention bonus, and identify the proper income tax treatment for each.
- Describe the difference between an independent contractor and employee, and explain the reason why a physician cannot be both at the same time.
- Recognize which types of physician compensation must be accounted for when determining reasonable compensation under Stark and other regulations.
Download slide deck here.
If you would like more information about alternative forms of physician compensation, or assistance with any matter involving tax services, strategy and integration, or compliance, contact one of our PYA executives below at (800) 270-9629.