Fee for service GST deductions
Hi All,
As an employee of a private practice, I am trying to find out the common practice for getting paid per patient (fee for service). If for example you are getting paid fee for service and are getting paid at a 40% rate is it common to have the G.S.T value deducted from the monetary amount (patient payment) prior to calculating the 40% rate for the Physiotherapist employee?
Thank you
Re: Fee for service GST deductions
Sorry could you clarify what's GST? Are you working for clinic as a self employed Physio?
Re: Fee for service GST deductions
I agree as this does pose an interesting point. In the UK VAT (GST equivalent) is not added to physiotherapy treatment. However there is VAT on consulting. In the UK I think you can argue that you are charging the practice for physiotherapy treatment services which are exempt from tax and so it would not be added to your invoice.
If you are an employee on 40% it depends on your contract. if it is 40% of all billed treatments then if those treatments were GST exempt then you should get 40% of the gross.
I think the only real answer here is from an accountant and that said several accountants are likely to take a different view. If you did have to charge the clinic GST on your bill it would be the GST percent in addition (on top of) the 40% billable for the commission structure. The clinic can then claim that back or offset it against any GST it has paid during the same period.
Do let us know how you get on.