If your S-Corp earns $500,000 as a 1099 physician, someone will tell you to pay yourself $80,000 and take the rest in distributions. The IRS disagrees. Your salary must be reasonable. So what should it actually be, and can you defend it in an audit?

In this episode, CPA and certified private wealth advisor Stephen Lee walks through a real-world case study of a 1099 radiologist making $500,000. He explains why percentage rules of thumb don't work for physicians, who personally generate nearly every dollar of revenue. You'll learn the five core criteria for setting a defensible salary: specialty, hours worked, scope of duties, geography, and business, and how to use W2 replacement cost as a practical benchmark instead of guessing.

Stephen also breaks down the actual math at different salary levels ($100K, $250K, and $350K), showing how each affects your distributions, payroll tax savings, and audit risk. He shares a five-step playbook for documenting your salary and warns against common mistakes like picking an arbitrary number in December or blindly copying a colleague's setup. The episode closes with the radiologist's real result, a defensible $250,000 salary backed by market data, and how reasonable compensation impacts your solo 401(k), cash balance plan, and pass-through entity tax strategy.

Resources & Links:

• 📅 Book a complimentary 15-minute discovery call with Stephen Lee: https://thelocumcpa.com/book-appointment/?utm_source=podcast
• 📗 The CPA's Guide to Locum Tenens: https://thelocumcpa.com/cpas-guide-to-locum-tenens/?utm_source=podcast

Someone told you that as a 1099 physician, you need an S-Corp — but is that actually true? In this episode, Stephen Lee, CPA and Certified Private Wealth Advisor at The Locum CPA, breaks down a real-world case study with Dr. Swanson, an anesthesiologist transitioning to full-time locums work, to reveal the exact income threshold where an S-Corp election actually starts making financial sense.

You'll learn why revenue isn't the metric that matters (net profit is), how "reasonable compensation" rules limit your payroll tax savings, the hidden costs of running an S-Corp that can wipe out your gains, and the five key questions to ask before making the switch — including how a W-2/1099 hybrid income situation changes the math entirely.

Whether you're a full-time locums physician or juggling a W-2 job with side 1099 work, this episode will help you evaluate your entity structure with real numbers instead of generic advice.

📅 Book a complimentary discovery call: https://thelocumcpa.com/book-appointment/?utm_source=podcast

📖 Read the CPA's Guide to Locum Tenens: https://thelocumcpa.com/cpas-guide-to-locum-tenens/?utm_source=podcast

If you're a physician earning 1099 income, your tax strategy involves much more than finding deductions.

In this episode, Stephen Lee, CPA and Certified Private Wealth Advisor, breaks down The 1099 Physician Tax Playbook—a six-part framework for building a coordinated tax strategy around your income, business structure, tax payments, deductions, retirement, and year-round planning.

You'll learn:

• How your level and type of 1099 income drives your tax decisions
• The difference between an LLC and an S corporation—and when an S corp may or may not make sense
• How to build a tax reserve and quarterly payment system
• Which legitimate business expenses 1099 physicians may be able to deduct
• How retirement plan design can become a major part of your tax strategy
• Why tax planning needs to happen before the end of the year—not after it
• How W-2 income, multiple states, business changes, and major life events can affect your overall strategy

The goal isn't to chase obscure tax loopholes. It's to build a system where your entity structure, payroll, retirement contributions, estimated taxes, state taxes, deductions, and wealth strategy work together.

If you're earning $350,000, $500,000, or more in 1099 income, having a coordinated strategy becomes increasingly important.

Learn more about strategic tax planning for 1099 physicians at thelocumcpa.com or apply for a complimentary 15-minute discovery call at thelocumcpa.com/book-appointment/.

You can also get the free CPA's Guide to Locum Tenens here: The CPA's Guide to Locum Tenens

Disclaimer: This podcast is for educational purposes only and does not constitute tax, legal, or financial advice. Your individual tax situation may differ.

If you're a 1099 physician earning $500,000 or more, you've probably heard plenty of aggressive advice about tax write-offs: write off your car, your house, every meal, or just put it on the business credit card.

But being 1099 doesn't make everything deductible.

In this episode of The Locum CPA, Stephen Lee, CPA and Certified Private Wealth Advisor, breaks down the most important deductions 1099 physicians should understand, including professional expenses, technology, home office, mileage, locums travel, business meals, health insurance, and retirement planning.

You'll also learn why business and personal expenses need to be separated, why documentation matters, and why bigger planning opportunities can matter far more than chasing small deductions.

For cleaner bookkeeping and better visibility into your business finances, check out Xero.

If you'd like help applying these strategies to your own 1099 situation, you can book an appointment with The Locum CPA.

And if you're a CPA working with locum tenens physicians, get the free CPA's Guide to Locum Tenens.

If you're a 1099 or locum tenens physician working in more than one state, your home state's tax rules may not be the whole story.

In this episode, CPA and Certified Private Wealth Advisor Stephen Lee explains one of the most overlooked tax issues facing locums physicians: multi-state taxation. You'll learn why living in a no-income-tax state doesn't necessarily make your locums income tax-free, how nonresident state tax returns work, why estimated tax payments can end up in the wrong state, and how poor planning can lead to penalties, cash flow problems, and unnecessary stress at tax time.

Whether you're taking your first out-of-state locums assignment or regularly working across multiple states, understanding these rules can help you avoid costly mistakes and stay compliant.

📘 Download the FREE CPA's Guide to Locum Tenens:
https://stephenleecpa.com/cpas-guide-to-locum-tenens/?utm_source=podcast

📅 Apply for a complimentary 15-minute discovery call:
https://stephenleecpa.com/book-appointment/?utm_source=podcast

If you found this episode helpful, follow the podcast and share it with another physician working locums across state lines.

W-2 income doesn't exist in a vacuum, and neither does your 1099 income. If you're a physician earning both, your tax strategy is more connected than many people realize.

In this episode, Stephen Lee, CPA, explains five tax rules that physicians with both W-2 and 1099 income frequently get wrong. Learn how your hospital salary can affect self-employment tax, why an S corporation isn't always the best answer, how retirement contribution limits work across multiple plans, and why withholding from your W-2 paycheck may still leave you with a large tax bill.

Whether you're working locums, moonlighting, consulting, or transitioning into more 1099 work, this episode will help you understand how these income sources interact so you can make more informed tax planning decisions.

Free CPA's Guide to Locum Tenens:
https://stephenleecpa.com/cpas-guide-to-locum-tenens/?utm_source=spotify

Book a complimentary 15-minute discovery call:
https://stephenleecpa.com/book-appointment/?utm_source=spotify

If you found this episode helpful, follow the podcast and share it with another physician earning both W-2 and 1099 income.

If you're a 1099 physician, one of the biggest financial mistakes you can make is treating every dollar that hits your bank account as money you can spend. Unlike W-2 employees, no one is withholding taxes for you, which means a surprise tax bill can quickly turn a great income into financial stress.

In this episode, CPA and Certified Private Wealth Advisor Stephen Lee explains a practical tax reserve system for 1099 physicians. You'll learn:

• Why your tax reserve should be based on net profit, not gross income
• The practical 30–45% tax reserve rule
• Why self-employment taxes catch so many physicians off guard
• How to use a separate tax savings account to stay ahead
• How S corporations and retirement contributions affect your tax reserve
• A simple 7-step framework to estimate, save, and pay your taxes with confidence

Whether you're new to locum tenens or have been working as an independent contractor for years, this episode will help you build a tax system that replaces guesswork with clarity and keeps you prepared all year long.

📘 Download the FREE CPA's Guide to Locum Tenens:
https://stephenleecpa.com/cpas-guide-to-locum-tenens/?utm_source=podcast

📅 Book a Discovery Call:
https://stephenleecpa.com/book-appointment/?utm_source=podcast

📊 Try Xero Accounting Software (90% off for 6 months – terms apply):
https://referrals.xero.com/StephenLeeCPA_SCorp

Is an S corporation the right tax strategy for your 1099 physician income? The answer isn't based on gross income alone—it depends on your net profit, reasonable compensation, and whether the tax savings outweigh the added costs and compliance.

In this episode, CPA and Certified Private Wealth Advisor Stephen Lee breaks down a practical framework for evaluating an S corp election at three common income levels:

• $150,000 of net 1099 income – When an S corp may be too early.
• $300,000 of net income – When it's time to seriously run the numbers.
• $500,000+ of net income – Why an S corp often becomes a compelling strategy when implemented correctly.

Stephen also explains:

• Why net profit matters more than gross 1099 income.
• How reasonable compensation impacts S corp tax savings.
• The hidden costs of payroll, bookkeeping, tax filings, and compliance.
• Common mistakes physicians make when electing S corp status.
• Why proactive tax planning is essential before year-end.
• How clean bookkeeping supports better tax and financial decisions.

Whether you work locum tenens, telemedicine, moonlighting, or any other independent contractor role, this episode will help you understand when an S corp may—or may not—make sense for your practice.

Helpful Resources:

📘 Free CPA's Guide to Locum Tenens
https://stephenleecpa.com/cpas-guide-to-locum-tenens/

📅 Schedule a Discovery Call
https://stephenleecpa.com/book-appointment/?utm_source=spotify

📊 Try Xero Accounting Software (90% off for 6 months—terms apply)
https://referrals.xero.com/StephenLeeCPA_SCorp

Disclaimer: This episode is for educational purposes only and should not be considered tax, legal, or financial advice. Every physician's situation is unique. Consult a qualified tax professional before making tax or entity decisions.

If this is your first year as a 1099 physician, tax season can feel completely different. No automatic withholding, no employer payroll department, no simple W-2 return, and no clear roadmap for taxes, retirement planning, quarterly payments, or entity structure decisions.

In this episode, CPA and Certified Private Wealth Advisor Stephen Lee walks through the 7 essential steps every first-year 1099 physician should take before tax season. You'll learn how to set up a clean financial system, track income and expenses properly, plan for quarterly taxes, evaluate LLC and S corporation options, choose the right retirement plan, and avoid the costly mistakes that catch many physicians off guard.

Whether you're working locum tenens, moonlighting, transitioning from W-2 employment, or earning a combination of W-2 and 1099 income, this episode will help you build a stronger foundation for tax and financial success.

📘 Download the FREE CPA's Guide to Locum Tenens:
https://stephenleecpa.com/cpas-guide-to-locum-tenens/?utm_source=podcast

📅 Apply for a Complimentary Discovery Call:
https://stephenleecpa.com/book-appointment/?utm_source=podcast

Stephen Lee CPA specializes in helping 1099 physicians, locum tenens physicians, and high-income medical professionals implement proactive tax planning strategies designed to keep more of what they earn while building long-term wealth.

Are you a 1099 physician relying on random tax tips like forming an LLC, electing an S Corp, opening a SEP IRA, or saving 30% for taxes? In this episode, CPA and Certified Private Wealth Advisor Stephen Lee breaks down the complete 1099 physician tax system—a six-part framework designed to help independent physicians stop guessing and start planning.

You'll learn how to build a coordinated strategy around bookkeeping, entity structure, quarterly tax payments, retirement planning, deductions, and year-end tax planning. Whether you're a locum tenens physician or earning significant 1099 income, this episode will help you understand how all the pieces fit together so you can make better decisions, avoid costly mistakes, and keep more of what you earn.

In this episode:

• Why random tax tips are not a tax strategy
• The foundation of clean bookkeeping
• How to evaluate LLC vs. S Corp decisions
• Building an effective quarterly tax payment system
• Using retirement plans strategically
• Creating an audit-safe deduction process
• Why year-end planning is critical for tax savings

📘 Free Guide for 1099 Physicians:
https://stephenleecpa.com/cpas-guide-to-locum-tenens/

📅 Book a Complimentary Discovery Call:
https://stephenleecpa.com/book-appointment/

If you found this episode helpful, be sure to follow the podcast and share it with other physicians looking to build a smarter tax strategy around their 1099 income.