WELCOME TO SEMINAR 6- YOU WILL NEED YOUR BOOK TONIGHT Basic Benefits Medical insurance Disability income insurance Term life insurance Pension/profit sharing plans

BET YOU DIDN’T KNOW THAT ….. Employee benefits, DO NOT provide tax benefits to a practice…. WHY? Retirement plans are the most commonly offered benefit in a physician practice. Most employees get 5 days sick leave. (page 244) Basic coverage of health insurance: Hospital expenses, Physician expenses, Surgical expenses. Not dental NO

W HAT IS A C AFETERIA PLAN Will have open enrollment time, Only sign up during this time unless special life changes. Employer offers benefits 100% match or 2% PRE tax dollars for employee Lowers tax rate for employee When employee tax rate is lower, employER saves money they put into social security. Can include a FSA- put so many $$ out of each check into acct, use that for medical bills. Don’t use all? Lose it.

O RDINARY PLAN EXAMPLE: Employee- married with 2 kids GROSS pay per month ALL is subject to tax. FED:$ FICA: $ 114 STATE: $37 NET amount after taxes: $ Health plan taken out $ Left with 1022.

C AFETERIA 125- PREMIUM ONLY Same employee. GROSS pay $1500. Employee says, take out my health benefit premium first = 1300 SO now, employee is paying taxes on 1300 not Fed taxes go down to $97 from 127 FICA – 99 down from 114 State- 27 instead of 37 Take hpome pay ends up being $ MORE $1077.

Publication 15 (2011), (Circular E), Employer's Tax Guide. IRS.gov Have employee fill out a W-4. This says how many allowances/. Pay is weekly, bi weekly, monthly. Calculating by %. Percentage Method—2011 Amount for One Withholding Allowance

THIS IS 2011 CURRENT IRS GUIDES Payroll Period One Withholding Allowance Weekly $71.15 Biweekly Semimonthly Monthly Quarterly Semiannually 1, Annually 3, Daily or miscellaneous (each day of the payroll period) 14.23

An unmarried employee is paid $600 weekly. This employee has in effect a Form W-4 claiming two withholding allowances. Using the percentage method, figure the income tax to withhold as follows: 1. Total wage payment $ One allowance $ Allowances claimed on Form W Multiply line 2 by line 3 $ Amount subject to withholding (subtract line 4 from line 1) $ Tax to be withheld on $ from Table 1—single person, page 36 $54.46 Irs.GOV

TABLE 1—WEEKLY Payroll Period (a) SINGLE person (including head of household)— (b) MARRIED person— If the amount of wages (after subtracting withholding allowances) is: The amount of income tax to withhold is: If the amount of wages (after subtracting withholding allowances) is: The amount of income tax to withhold is: Not over $40 $0 Not over $152 $0 Over— But not over— of excess over— $40 —$204 $0.00 plus 10% —$40 $152 —$479 $0.00 plus 10% —$152 $204 —$704 $16.40 plus 15% —$204 $479 —$1,479 $32.70 plus 15% — $479 $704 —$1,648 $91.40 plus 25% —$704 $1,479 —$2,832 $ plus 25% —$1,479 $1,648 —$3,394 $ plus 28% —$1,648 $2,832 —$4,235 $ plus 28% —$2,832 $3,394 —$7,332 $ plus 33% —$3,394 $4,235 —$7,443 $ plus 33% —$4,235 $7,332 $2, plus 35% —$7,332 $7,443 $1, plus 35% — $7,443

PAGE 242 IN TEXT BOOK Cafeteria plans include: Dental insurance, Vacation time, Tuition reimbursement Allows employees to choose which benefits will best suit them based on their current life needs.

VIDEOS: ALSO UNDER ANNOUNCEMENTS VIDEOS: &feature=related Please write a BRIEF summary and turn into the drop box under seminar 6.

M EDICAL O FFICE M ANAGERS Types of Office Managers Problem manager Novice manager Wimp Task master Phantom Intimidator

MAKE EMPLOYEES HAPPY! MANAGERS NEED TO KNOW: Clinical procedures Financial procedures Psychological foundations

M ANAGEMENT S TYLES Directing Coaching Supporting Delegating Coaching- management style most effective with employees who are still learning their job. Coaching- provides feedback to employees.