Advice on tax free vs. hourly wage

Dixielee, BSN, RN · Sep 30, 2004

I'm not sure this is relevent, but what state/city is the contract? If it is in a place where the apartment rent is sky high, then you might be better just letting them pay your housing. But if the housing cost is, low and you get to keep the money, it might be in your favor. I talked to Supplemental Staffing last year and that is the stuff they were trying to get me to buy into. I sort of felt that I was getting a con job and they were juggling the numbers just to confuse me.....and it worked! The company I am with now, pays a good hourly salary, $1000/month tax free stipend (in Tucson), and $400 travel. But they also tax the first 24 hours at a much lower rate than the rest to compensate for having a permanent tax home. So I may gross $5000 per month, but only get taxed on $3600 (example only). So it helps at the end of the year. If you are now as confused as I am, then you have a good grasp of the situation! :chuckle

chris_at_lucas_RN, RN · Sep 30, 2004

I'm curious to know how they would know what after taxes would be for you?

Also, I'd double check with the IRS and/or an accountant before I believed a recruiting or travel agency about what is taxable and what is not.

Now, if they said, we'll give you an apartment to live in, a car to drive, we'll give you a company gas card, we'll give you $39.11 per hour and we will take care of your tax bill, that's another matter! (yeah, right!)

Take care.... and good luck.

GirlArcher · Oct 1, 2004

Well, it's in Alaska...housing is paid, travel paid, and a car....but the numbers just don't add up to me. I prefer to be paid more hourly and still get the tax free per diem because I maintain a permanent house in Montana. I think I'll pass on this one and look for a better offer.

midnightdana · Oct 1, 2004

Recently offered a travel contract with a very low wage ($21/hr), free housing, transportation, rental car, and a $1633 monthly tax free stipend. They state it's $4148 take home after taxes and works out to be $39.11/hr. I've played with the numbers and just can't make it come out that way. Have any of you ran into this before? I've always been offered a good hourly with the other benefits too, and sometimes a tax free per diem check. This is a 13 week ER contract, 36 hours a week. What do you think?

i had a contract that paid just like that and it was great...stayed with them a long time.