Comp paid after EE termination

[Guest D Ledden]

Are receivables due an MD considered comp for calculation purposes, after MD has left the practice?

[actuarysmith]

Sounds like compensation for services provided while employed to me............

[E as in ERISA]

"Receivables" are an asset, not income. You need to look at the related income recognition. It might depend on whether he is on the cash or accrual basis -- i.e., whether he already recognized the income while with the business and is just waiting to get paid...or the income hasn't been recognized yet either.

[actuarysmith]

Katherine is correct.

I am assuming that the physicians are paid based upon personal production (i.e. % of revenue, etc.). I am also assuming that they are not paid until the patient accounts are settled.

Under these assumptions, the item you are calling a receivable is a "receivable" from the veiwpoint of the employer, but may "income" from the standpoint of the physician. It depends upon how the compensation formulas are constructed...............'