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    Home > Management and Staff Glossary

    Bonus/Incentive

    The total dollar amount of any bonus or incentive payments received by each individual. The amount listed as a bonus/incentive is included in the "Total Compensation" amount.

    Hourly Rate Compensation

    The hourly compensation rate paid to the individual. This is not an annualized number.

    Overtime Compensation

    The annual overtime compensation accrual, this amount is included in the total annual compensation amount.

    Retirement Benefits

    All employer contributions to retirement plans including defined benefit and contribution plans, 401(k), 403(b), and Keogh Plans, and any non-qualified funded retirement plan.

    Not included:

    • Employer contributions to social security mandated by the Federal Insurance Contributions Act (FICA);
    • Voluntary employee contributions that are an allocation of salary to a 401(k), 403(b), or Keogh Plan; or
    • The dollar value of any other fringe benefits paid by the practice, such as life and health insurance or automobile allowances.

    Retirement Benefits as a Percent of Total Compensation

    All employer contributions to retirement plans including defined benefit and contribution plans, 401(k), 403(b), and Keogh Plans, and any non-qualified funded retirement plan divided by the total compensation amount paid annually.

    Not included:

    • Employer contributions to social security mandated by the Federal Insurance Contributions Act (FICA);
    • Voluntary employee contributions that are an allocation of salary to a 401(k), 403(b), or Keogh Plan; or
    • The dollar value of any other fringe benefits paid by the practice, such as life and health insurance or automobile allowance.

    Total Compensation

    Also referred to as: Total cash compensation (TCC), compensation, salary

    The amount reported as direct compensation on a W2, 1099, or K1 (for partnerships) plus all voluntary salary reductions such as 401(k), 403(b), Section 125 Tax Savings Plan, and Medical Savings Plan. The amount includes salary, bonus and/or incentive payments, research stipends, honoraria, and distribution of profits. However, it does not include the dollar value of expense reimbursements; fringe benefits paid by the medical practice such as retirement plan contributions; life and health insurance; automobile allowances; or any employer contributions to a 401(k), 403(b), or Keogh Plan.

    • For C corporations (under United States federal income tax law, this refers to any corporation that is taxed separately from its owners), the dollar amount reported as direct compensation in Box 5 (Medicare wages and tips) from the individual’s W-2.
      Included:
      • Total Medicare wages – this includes On-Call compensation;
      • On-Call compensation – included in total Medicare wages;
      • Employee contributions:
        • 401K/retirement;
        • Health insurance;
        • Life insurance; and
        • Other pre-taxed deductions.

      Not included:
      • Expense reimbursements;
      • Fringe benefits paid by the medical practice;
      • Flex spending accounts (FSA);
      • Employer contributions:
        • 401k/Retirement;
        • Health insurance;
        • Life insurance; or
        • Other employer contributions.
    • For partnerships (or LLCs that file as a partnership) the dollar amount reported as direct compensation in Box 1 plus Box 4 minus Box 12 minus Box 13 from the individual’s K-1 form 1065.
      Included:
      • In box 13: Codes A through W (this includes 401K)
    • For S corporations (or LLCs that file as an S corporation) the dollar amount reported as direct compensation in Box 5 (Medicare wages and tips) from the individual’s W-2 PLUS Box1 minus Box 11 minus Box 12 from the individual’s K-1 form 1120S (combine amounts from both forms).
      Included:
      • In box 12: Codes A through S (this includes 401K)

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