Self Funded Insurance Plans
On this week’s episode I sat down with Alan Conner, of Your Professional CFO. Alan is a tax and accounting expert who works with a wide range of companies and professionals, including physicians.
I met Alan a few weeks ago in the hall of our office building. After learning about how he helps physicians, I knew we needed to have him stop by to talk about it. In addition to providing basic accounting/payroll functions, Alan also helps physicians develop effective, legal tax strategies, including self funded insurance plans to reduce their tax burden and risk at the same time.
Alan shared the story of his older brother, an ER physician in Florida. He explained the fact that his brother, as do many physicians, work as 1099 contractors for the respective practice they serve. In this relationship, the doctor receives a gross paycheck with no tax withheld.
In this situation it is vital for the provider to plan for their tax obligation and pay it in a timely fashion (at least quarterly) or they face between 5-10% penalties, which can quickly add up to significant amounts, based on the numbers they’re working with.
Alan explained several options available to physicians that work as 1099 contractors, including self funded insurance plans, pension plans, SEP IRA’s, and others, that will help them preserve their hard-earned revenue for later while protecting them from risk such as loss of medical license should that occur.
It’s clear after speaking with him that it is advisable for our colleagues in the community to partner with experts such as Alan to develop a solid plan for managing their tax obligations as well as helping to secure their financial future.
Alan Conner, CEO, My Professional CFO
- MBA, Finance, Nova Southeastern University
- Previous Investment Banker, Orosey & Pepe Capital Markets
- Former Investment Manager, Arduus Asset Management