Extra Income Without More Work
Chris had been working as an employed doctor for his hospital for nearly 20 years but was interested in how SimpliMD might help him retain more of his income.
Chris completed Simpli’s feasibility evaluation and it affirmed that he would see significant retained income if he formed his own PC and converted his current job to an employment lite contract. With an innovative business structuring under our guidance, he was able to retain more than $150,000 in income annually. Using our enterprise model, he was able to incorporate his vacation home and wood-working hobby, as well as his wife’s knitting business into the total business structure.
Additionally, an evaluation of the fair market value of his compensation plan led to sizable raise in his earned income for his professional services through his PC.
By changing how Chris’s income flowed into his home through his PC rather than as an individual taxpayer and maximizing his supporting business structure, it became a home run for him. He now has a much more robust business structure that will provide him with many more options for maximizing his earnings while benefiting his household and growing his net worth more rapidly.
Chris is not a special case, his same experience is available to you as well. Doctors give up a lot of money, autonomy, and time by not forming their own PC and using it within an employment lite structure.
Keep More With Employment Lite
Enclosed is a summary of a case study of a doctor who considered converting from traditional employment to a PC-employment lite agreement with a SimpliMD business model wrapped around. Over the 10 years, this relatively simple contractual switch would lead to greater than $700,000 in retained income in his home.
On top of this when the team of professionals with SimpliMD evaluated his compensation plan, they discovered that he was being underpaid in his productivity plan. After correcting this to fair market value, his compensation increased by nearly $150,000 per year, bringing the total 10-year value of this transition to over $2 million!
Doctor as a W2 Employee
|Gross Pay to Doctor||
|Overhead and Expenses||$23,857|
|Health Care Provided by Employer||$30,143|
Doctor as PC Using the SimpliMD Model
|Gross Pay to Doctor & Spouse||
|Overhead and Expenses||$35,857|
|Health Care Provided by PC||$24,000|
All Federal, State, Social Security, Medicare, and Local Taxes have been stripped out here.
|After Tax(es) Net Paycheck Home Annually||
|Tax Deferred Retirement Plans||$35,500|
|Economic Benefit to Doctor Household||$249,500|
|Net Paycheck Home Annually||
|Tax Advantaged Income Home||$48,000|
|Tax Deferred Retirement Plans||$97,000|
|Economic Benefit to Doctor Household||$320,000|
Net Income Retained