Can a traveler have a taxable hourly rate of $15.00 ?

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Specializes in Tele, ICU, Staff Development.

Hi Beth,

I’m thinking about accepting a travel assignment. The total gross weekly pay is $1618.00. The average taxable hourly rate is $15.00. It is 48 hours. Does that mean I’m taking a major pay cut? 48x15.00=720.00. So if I’m correct that will only leave me with $898.00 weekly. Can you help me figure this out before I take the assignment. Thanks

Dear Thinking,

Travel pay can be complicated to breakdown and you can't compare hourly and weekly travel pay, which is blended wages and stipend, to hourly and weekly permanent pay, which is straight wages. It's apples and oranges.

Disclaimer-the real experts on this are experienced travel nurses, not me. I'll give you my best understanding, but if you post in the  Travel Nurse forum, you'll get additional feedback about pay and any other travel aspects you need to know before accepting an assignment.

Another great source is the The Gypsy Nurse website and facebook group. The best articles explaining travel pay are at https://blog.bluepipes.com/ by Kyle Schmidt. 

Here's one possible explanation based on the information you gave. They may be talking blended pay at a rate of $33.70 per hour ($1618.00 per week). You are only taxed on $15.00 per hour ($720.00 per week). You are not taxed on the remaining $18.70 per hour ($898.00 per week) because that sum represents non-taxable stipend pay.

So if your tax rate is 20% , you will take home $720.00 minus $144.00 plus $898.00, which is $1,474.00. 

This is just one possible explanation- make sure the agent explains all of this to your satisfaction before signing anything. The hourly taxable rate does sound too low, so I could be wrong. Again, make them explain it.

Considerations

Once you have confirmed your weekly take home pay, you have to put it into context by looking at your expenses and stipends. Are you getting housing or do you have to pay for housing? 

How about licensing reimbursement?

Be sure to factor in expenses you will incur from traveling. Will they pay your airline passage or gas for traveling to your assignment? You will most likely be provided a travel stipend, but you will have some out of pocket expenses incurred by travel. 

Keep copies of your own medical record, such as TB testing, physical exams, and CXR. This can save you money when you go from facility to facility.

You may need to purchase scrubs in a color you don't have.

In your contract, make sure the following is clearly laid out:

  • taxable hourly rate
  • non-taxable stipends (stipends usually are paid on hours worked)
  • start and end date
  • name and address of facility

Carry your own medical insurance if the agency does not provide it.

Be sure and gain a good understanding around the taxes. The distinction between taxable and non-taxable is very important.

Best wishes and good luck,

Nurse Beth

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