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Explain this "pay package" to me.



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Dec 09, 2008 09:57 PM

Explain this "pay package" to me.


L&D position in Richmond, Virginia. Recruiter tells me I'll get

$378 per week for "per diems"
$400 per week for housing stipend
$15/hour taxable rate

Which she says comes to $36.61 per hour.

Now, that comes to only $1318/week before taxes, and I have to find my own housing (I'm staying with my sister which is beside the point). This seems extremely low to me. I know central Virginia is not a high paying area, but I never knew the housing stipend was included when you were quoted an hourly rate. I would expect this kind of money IF they were paying for my housing too.

Can someone shed some light on this for me? If you think it's low, what CAN I expect for this area?


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8 Comments
No. 1
from jennjen512
Old Dec 10, 2008, 12:14 AM

Default Re: Explain this "pay package" to me.
pay rate and housing rate should be completely separate. they need to pay you a more reasonable hourly rate. if they refuse I would find another company. remember the agency is making money off of you and you have to look out for yourself. they are in it to make as much profit as possible.
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No. 2
Old Dec 10, 2008, 03:00 AM
Updated Dec 10, 2008 at 03:01 AM by highlandlass1592

Default Re: Explain this "pay package" to me.
Hmmm..did some quick calcs and assuming the pay is based upon a 36/week 13 week contract I came up with total hourly counting your "per diems" as tax advantage and including your housing to be around $27.85 gross pay, which isn't bad for an assignment in the south. Not sure where your agency is getting the rate they quoted you. Of course, this is also assuming you maintain a permanent tax residence while traveling, if you don't it will affect your pay scale (and you won't be eligible for "per diems", as you put it)

You could try to negotiate for a higher base rate but it's the tax advantage where you'll make out. I'm guessing if they eliminate the tax advantage you could get a higher hourly rate but you actually would make less due to taxes. And remember, everything comes out of the bill rate...so really, in essence housing is included in what you make. If you go to pantravelers.org, they have a calculator where you can input all the data you've got and it will calculate your base rate. It's pretty helpful to see if you are getting lowballed or not. Registration is free.
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No. 3
Old Dec 10, 2008, 03:02 AM
Updated Dec 10, 2008 at 03:03 AM by highlandlass1592

Default Re: Explain this "pay package" to me.
Originally Posted by jennjen512 View Post
pay rate and housing rate should be completely separate. they need to pay you a more reasonable hourly rate. if they refuse I would find another company. remember the agency is making money off of you and you have to look out for yourself. they are in it to make as much profit as possible.
I'll agree the hourly rate at first glance doesn't seem that much but you have to remember she's getting tax advantage as well (assuming that is what the "per diems" is for). That will be $378 a week tax free and that has to be added in to that pay rate. She's making a pretty good amount here if you look at housing for $1200/month and $1512/ month tax free as well.
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No. 4
from cosmicmama
Old Dec 10, 2008, 03:24 AM

Default Re: Explain this "pay package" to me.
Thanks for the pantravelers.org website, it looks to be very useful! I appreciate your input.
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No. 5
from lvnurs9
Old Dec 17, 2008, 03:00 AM

Default Re: Explain this "pay package" to me.
To give you another perspective... my company is making me switch to their tax adv program with my new contract.

Prior to it, I made $30/hr and $1550/mo housing.

Now I make $21 something/hr plus $1550/mo housing plus the per diem rate (can't remember what it is).

That is all fine and dandy UNLESS you plan to work overtime! Since your hourly rate is lower, so is your overtime rate. I told her I was going to switch companies unless my OT rate was $45 (based on the original hourly rate). She said they would do that...

I think that $27 something per hour is kinda low, but I don't know what rates run over there. I am in WA and I make a pretty low amount at this hospital...
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No. 6
from knowurjoe
Old Dec 17, 2008, 03:18 PM

Default Re: Explain this "pay package" to me.
I am not an expert on this tax advantage pay offered by so many travel nurse companies now, but I am very leary of it.
One company actually told me "only $11 of your hourly pay will be taxed".
What about my social security and workmans comp, it would come out at that $11 rate.
I have had them tell me it is FREE MONEY. I would never have to claim it. I did have to jump on that band wagon. No money is free.
You need receipts for everything unless IRS says otherwise.
It benefits the company so they don't have the payroll taxes and its more $ for their pockets. Once I tell them I am in no way interested in that package, they go on and on about how wonderful it is. I want to be a travel nurse , not an accountant.
I just can not bring myself to go the tax advantage way.
Be careful. Be very careful.
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No. 7
from OkieICU_RN
Old Dec 18, 2008, 03:10 AM

Default Re: Explain this "pay package" to me.
I would be incredibly concerned about taking a pay rate that low. A couple of things for you to check out.

www.traveltax.com This guy has some really useful tips for travelers and can tell you what's kosher with the IRS and what's not.

Whenever I add up my total compensation package, here's what I do. I take the hourly rate they give me and find out what my take home pay will be. To do that, I go to www.paycheckcity.com You can plug in the numbers, how many exemptions you take, etc. for taxes and get what your take home pay should be. After that, I add in the weekly per diems and/or housing and come up with a take home for the week.

I can easily compare the companies when I get quotes from multiple recruiters this way.






I have never attempted to travel where you are talking about, so I don't know what the usual pay is there. I can say that I have never taken a contract for anywhere close to that. I would seriously consider looking at another company or two or three. I realize the travel market isn't fantastic right now, but there are still some really good jobs to be had.
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No. 8
from OBRN63
Old Jun 18, 2009, 08:29 AM

Default Re: Explain this "pay package" to me.
I did an assignment in VA right outside of Richmond and made $31.00 an hour plus furnished housing which was a 2 bedroom/ 2 bathroom condo.
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