For example, if your travel nursing pay is $60 per hour and fully taxed- you can deduct 20-25% of the rate for taxes (varies based on your annual income, dependents, and state of employment). This is a very common bill rate in many parts of the country in the current job market (2018). A blended rate combines an hourly taxable wage such as $20 an hour with your non-taxable reimbursements and stipends to give you a higher hourly rate. Negotiating Travel Nursing Pay Free eBook, https://blog.bluepipes.com/wp-content/uploads/2013/08/2018-travel-nursing-pay-package-breakdown.png, https://blog.bluepipes.com/wp-content/uploads/2013/12/bluepipes-logo-blog-7g7.png, Sample Breakdown of a Travel Nursing Pay Package. As a result, they’ll be better able to spot good deals versus bad and ultimately end up making more money!! A travel nurse can only receive tax-free stipends if they are responsible for costs while traveling, and are also contributing a ‘fare market value’ towards cost of living in their home state. Specifically, we need to look at the number of contracted hours per week and the number of weeks in the contract. So the burdens we use in our example may not be used by all agencies. The easiest way to manage your travel nursing career. Different agencies classify costs in different ways and account for them in different ways. However, we will be accounting for all costs so our calculations will ultimately end up in the same place. Almost every agency/hospital contract has a clause that requires the agency to have liability insurance. Use the search option in the navbar. Congratulations on your first assignment, Michelle. You can always ask if there are opportunities for overtime in your interview with the facility and try to negotiate the OT rate before signing. When travel nursing companies advertise pay rates, they will often tell you a blended rate. If you opt to take agency provided housing you will NOT get any sort of housing stipend, and still have a very low taxable hourly wage. For example, if you want more money allocated for travel or licensure reimbursement, they may offer a lower weekly meals and incidentals rate. They’re free on BluePipes. Remember, agencies bill hospitals by the hour. However, I don’t believe in negotiating with bottom lines. As such, I will not be eligible for most Tax Advantage Plans, which typically include meals and incidental expenses. You would take home $594 of your taxable income, in addition to the $1368 per week in stipends. These are costs incurred by the agency that are directly related to the contract and pay package. We hope that travel nurses can use this information to help them negotiate better pay packages. We actually have a free eBook on negotiating. Now, everyone has probably heard the term “profit margin” or “gross profit margin”. Some companies consider the entire bill rate to be their revenue. Hey Kyle, Many agencies establish a set dollar amount to take out of each contract in order to cover the licensing, credentialing, background check and medical record costs they incur as a result of getting their files in compliance with a hospital’s standards. So … . The important thing to understand for this article is that paying higher taxable base rates increases the payroll costs that the agency incurs. One of the biggest benefits of travel nursing is being able to move around freely and explore the country, often making significantly more money than you would as a staff nurse. Travel nursing allows me to meet amazing people and satisfy my wanderlust. How do I obtain housing, do I drive my own car? One benefit for travel nurses that is real is the housing. Research salaries in your cities of interest with NurseFly in order to have realistic and accurate facts when comparing pay with your recruiter. Last modified April 16, 2020. Yes, the $22 an hour seems low for nursing pay, but that’s ok for a travel nurse. In this example, we’ll use a bill rate of $70 per hour. This means that part of your wages are taxed, and part of your pay is in the form of tax-free stipends for housing and meals/incidentals. Thanks!! My passions are people and travel. Find resources to empower your healthcare career adventure. The bill rate is the hourly rate that an agency can charge the hospital for the travel nurse’s work. Some agencies are going to offer a low taxable base rate and higher stipends. By contrast, if an agency pays a taxable base rate of $20 per hour, then they incur $1.53 in FICA costs per hour. Travel nurses tend to out-earn their staff nurse counterparts. If you cannot claim a permanent tax home, your pay rate will still be higher than that of the average staff nurse, but you must pay taxes on the whole rate. Research salaries in your cities of interest with NurseFly. Other companies define their revenue as only what they actually receive after the Vendor Management fee is taken out. Create your free Travel Nursing Resume on BluePipes! Now we’re ready to put everything together to see how this sample pay package breaks down. Travel nursing pay packages are quite complex. Discover why travel nurses are calling us their “secret weapon”. Now let’s take a look at some of the costs associated with travel nursing contracts that take place behind the scenes. They incorporate many variables that are not common in traditional compensation packages. The compensation variables are as follows: The compensation variables total $47.21 per hour. Agencies  have some flexibility in how the money you receive is distributed, but travel nursing pay is often compared to a cake or pie. The most common tax-free reimbursements and benefits are travel stipends, M&IE stipends, lodging stipends or company provided housing, and medical benefits. Many hospitals utilize Vendor Management Services. Visit PayScale to research travel nurse (rn) hourly pay by city, experience, skill, employer and more. If you are NOT claiming a permanent tax home, you will be taxed as you were a staff nurse. I love inspiring other nurses to travel and expand their practice. This video seems to be particularly useful to new travelers. In some cases, the contract between the hospital and the agency makes the bill rates confidential. Filed under For Career Seekers, For the Workforce, Return to the Workforce. This means that fixed costs, like a travel stipend, are more expensive per hour on a shorter contract than on a longer contract. It is more beneficial for the travel nurse in most locations to find their own housing. All travel nursing pay packages begin with the bill rate. They incorporate many variables that are not common in traditional compensation packages. I would say that evaluating and negotiating would be much the same. Let’s assume the cost to the agency for the medical benefits is $400 per month. You see, both employees and employers pay FICA taxes. This means your TOTAL pay rate is $60 per hour. I think it’s best to view it like any other job. Some contracts are 13 weeks while others are only 8 weeks. For some reason, there is a tendency for travelers to think that agencies are “making money off of them”. Always try to take the majority of your money as tax-free stipends. You’re very welcome and thank you! If you use the 25% tax rate, that means $198 will be deducted from your base pay. Keep up the good work. What I’m not getting is how do you know its a good offer vs a low ball without first knowing the bill rate? It takes some shuffling of pay rates and numerous negotiations, but I am confident you will settle on the travel nurse pay package that is right for you. That said, we should always negotiate to get the best deal. This is the taxable hourly rate the agency pays to the travel nurse. ($22+$38= $60). Travel nursing pay is often based on demand for nurses, and travel nurses need to decide if you are willing to be flexible with pay if your heart is set on specific locations. This means you would only be taxed on $792 per week ($22 x 36 hours). You would multiply the hourly rate after taxes by the number of hours worked each week to figure out your NET income as a travel nurse. Claiming a permanent tax home means that you are telling the IRS that you have duplicate expenses. If you’ve already joined then you can get it by logging in and going to bluepipes.com/ebook. You can view this article for information on how to approach hot travel nursing job markets. How To Never Complete Another Travel Nursing Job Application or Skills Chec... travel nursing contract’s “time variables”, Free: The Ultimate Agency Management System for Travel Nurses, Therapists and Techs, the travel nursing pay package is like a pie, a low taxable base rate and higher stipends, Travel nursing agencies typically strive to obtain gross profit margins, Travel Nursing Pay – Qualifying for Tax-Free Stipends and Tax Deductions: Part 2: Maintaining Temporary Status, 5 Reasons Travel Nursing Pay Quotes Can Be Wrong, You can get it by joining BluePipes through this link, Improve Travel Nurse Negotiating Strength, This video seems to be particularly useful. In this example, we’ll use a travel stipend of $700, an M&IE stipend of $300 per week, and a lodging stipend of $2000 per month. Travel Nurse Pay Breakdown. Understanding the pay package in this light is highly beneficial for travel nurses. The main difference is in how they treat “Revenue”. For example, in this scenario if your rate is $60 per hour, you will most likely only be taxed on $17-$23 per hour, depending on the state and facility. We’re glad to hear the information is useful. Thank you so much for the wealth of knowledge your site comprehensively provides.

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