California group-practice economics · browser only
Will the group practice create profit—or only more work?
Put your own panel, pay, overhead and owner-time assumptions into one operating statement. The result separates cash cost from the value of the clinical capacity you give up to run the group.
Build the model →The decision this answers
If I add clinicians, does the practice become economically stronger after compensation, employer costs, overhead and my own management time?
The values shown first are an illustrative scenario, not a benchmark. Replace every field with your own supported number before making a decision.
Build one operating year
Collections in. Every modeled cost out.
The calculator uses completed sessions, not scheduled visits, and collected amount, not a sticker price. No client, clinician or practice identity is requested.
Read the result in layers
Contribution is not owner take-home pay.
A small utilization change repeats across every clinician and working week. Use a trailing practice average, then run a lower case.
This operating statement prices clinician labor and owner capacity. It does not calculate the owner’s entity-level tax or personal tax return.
The break-even figure is the offered weekly volume per clinician needed to cover the costs entered, at the same completion rate and collected amount.
A group can show positive cash margin while producing weak value after supervision and administration displace the owner’s clinical hours.
California worker status
“1099” is not a financial election.
The contractor column does not decide whether anyone is a contractor.
California generally starts with employee status and requires the hiring entity to establish all parts of the applicable test. A contract label or Form 1099 does not settle classification. Use the comparison only to expose which employer-cost assumptions change, then obtain qualified employment advice for the actual relationship.
Before relying on either scenario
- Review the California Labor Commissioner’s independent-contractor guidance and ABC test.
- Confirm the actual employer unemployment-insurance rate in the EDD notice; the calculator uses the published 3.4% new-employer rate only for its illustrative W-2 arithmetic.
- Add workers’ compensation, paid leave, benefits and payroll-service costs through the editable fields rather than assuming the tax lines are the full employer burden.
- Have payroll, tax and employment advisers review the relationship and entity-specific treatment before implementation.
Where every figure came from
Sources.
Federal payroll assumptions
California payroll assumptions
Classification boundary
Sources checked 28 August 2026. The tool does not model federal or state income tax, owner payroll, overtime, leave rules, workers’ compensation classifications, retirement contributions, debt, reserves or every employment obligation. It is planning arithmetic, not legal, tax, accounting or financial advice.
