Are travel completion bonuses taxed

[hobogirl]

Hi! I just signed up for this forum and haven't really figured out how to get around in here yet.

I have a question and I am hoping some of you can answer it for me. I am taking a contract with a $2000 sign on bonus or completion bonus I guess is more accurate. But my recruiter mentions something to me about a "corporate tax" and after the corporate tax the bonus is $1600.

So I get my contract today and am looking over all the details and it states the completion bonus of $1600 dollars. I am confused! If it is taxed, the tax should come out of the $2000 and the contract should read $2000, not $1600, right? I mean my hourly pay is taxed as well, but my contract doesn't read an hourly rate with the taxes already taken out. Am I right here? Or does it work differently with bonuses?

I am hoping to get some quick answers because I don't trust my recruiter and I am supposed to start my job on Monday and I will need to sign the contract soon. I appreciate any input.

Thank you!

[bagladyrn, RN]

What you may be looking at here is a "pass through" bonus. The hospital offers the bonus (as opposed to the agency), the agency pays out a corporate tax on that $2000 amount leaving the 1600 to be passed on to you (which is also taxable income for you, btw).

Ask your recruiter to explain all money figures in detail to you again so that you understand it fully prior to signing.

[hobogirl]

Thank you for your reply. That actually makes sense to me! And my recruiter did say the hospital was offering the bonus. So I guess that is probably it. I will ask her about it tomorrow again though just to be sure. Thanks again for your reply!

[79Tango]

Listen to Baglady, she's a smart girl! I had forgotten about "pass through" bonus but that sounds correct. I had cringed at the title of this thread because in my mind there is no such thing as a Start/Completion bonus. The fact that its coming from the Hospital legitimizes the whole thing but it raises different flags.. Like "Whats the catch"?

[bagladyrn, RN]

I too am generally sceptical of completion bonuses. It makes me wonder why they have trouble keeping nurses for 13 weeks. There have also been incidences I have seen in the past where a hospital was known for offering hefty completion bonuses and then finding a reason to get rid of the traveler in the last several weeks of the contract!

I'd rather they just divide the bonus amount by the hours in the contract and give me that much more per hour. Sometimes they will agree to this.