Psych NP new grad's pay

Jules A, MSN · Oct 4, 2016

What are other NPs in your area making? Your preceptors? NP friends? That's going to be the best barometer imo. When you say contract do you mean 1099 or employee with no health benefits? That makes a significant difference. Other than that, especially because I was under the impression Texas didn't may much, $156,000 a year as an employee for a new grad is a nice offer in my area.

PG2018 · Oct 4, 2016

I think it's a good offer for the South. As a contract worker, you should add another 7-10% to that and ask for this if negotiation is still an option. Notwithstanding the increase, it's not a bad income. Ask if you can participate in profit sharing or receive as a bonus a percentage of revenue in excess of your base salary.

As a contract worker, there are some mechanisms by which you can lower the self-employment tax burden although any revenue you pocket will be taxed as income which should be roughtly 28%. This means you'll file a 1099. Maybe by contact you mean that you sign an employment contract in which case it's a good job, take it.

Once you start shopping for your own health insurances you'll find that the lack of an employer match might be hurtful. You should get at least a grand in CME funding but don't squabble over paid licensure fees, etc. The only one of cost is DEA, and you can afford it if you're forced to pay it. No reason to break a deal down over 731 q3 yrs.

I make about the same in salary regardless of how many hours I work. On top of this I receive productivity bonuses which can be quite substantial if I jam pack my schedule with patients. I, for example, don't see anyone for longer than 15 minutes.

Woks · Oct 4, 2016

Thanks Jule, I had psychiatrist and an NP who has his own practice as preceptors. Not many psych NPs here to ask. It is 1099, thats why I am concerned.

Woks · Oct 4, 2016

Thank you so much PsychGuy,

am sorry i did not make it clear, it is 1099 and I have no idea how that might hurt. However, I wont be needing an additional health insurance coverage now.

PG2018 · Oct 4, 2016

Thank you so much PsychGuy,
am sorry i did not make it clear, it is 1099 and I have no idea how that might hurt. However, I wont be needing an additional health insurance coverage now.

Ok so, to offset the burden as much as possible you could ask for another 7-10%. The exact is 7.65% if memory serves right.

Additionally, before you sign anything, you might incorporate your own LLC which won't do you any immediate good. (Or you could get an S-corp) You can then elect the LLC to be taxed as a S-corp and write off anything business related as a business expense plus you can do two things. 1) You can pay yourself a salary (and your spouse if you want) a reasonable percentage of the LLC's revenue and then retain the rest to pay as a withholding. The salary will be taxed in your income tax bracket which you can look up. You will then pay 7.65% employment tax. On the withholdings that you later pay yourself you'll only have to pay the income tax. Otherwise, you'll be paying 15% of self-employment tax (Medicare and Social Security) on the whole lot. Now, regardless, you can deduct what would traditionally be the employer portion of self-employment tax if you go the traditional route.

The LLC won't do squat to deflect liability with respect to malpractice, etc. You can't hide from it in that respect, and unless your malpractice policy also covers your business (LLC) it's open to suit as well. The caveat is not keep any business assets, i.e. no property or savings in the name of the business although you'll clearly need a bank account in the name of Woks, LLC for your contract organization to pay you. Just don't leave anything of substance in it. Similarly, you can start using travel, communications, CME, etc as a business expense in the name of the LLC. The LLC can be owned by you, a trust, or even another LLC.

Woks · Oct 4, 2016

wow!!! what a lecture and great info, thanks so much. This is so helpful. I wish financial education is part of our curriculum in school to get us well informed about our options. Thanks again

PG2018 · Oct 5, 2016

wow!!! what a lecture and great info, thanks so much. This is so helpful. I wish financial education is part of our curriculum in school to get us well informed about our options. Thanks again

Anytime.

Btw, I was eating pizza while I typed that. I made an error. What you withhold and elect to pay yourself later will be called a dividend subject only to income tax. Sorry.