Contract tips

[suzanne4]

Thought that I would post a few tips that should be at the top of your list when looking for a travel company and what should be in the contract.

1. If it is not in writing, then it does not exist. It does not matter what your recruiter promises, they do not have the authority to make special offers to you. All contracts are signed off on by the head of the company or the official that can sign the contract to make it official. Anything else that is not written in that contract just does not exist.

2. Check out what the per diem pay is in the area that you are choosing. Your pay should be similar to that, not significantly lower, and should be in at least the same range when living expenses such as rent are added in. Anything significantly different and your agency is taking money that should be yours, not theirs. There are quite a few of them that hope that the nurse is not aware of this.

3. Housing deductions need to be compatible with that area. Not that you are getting $3000 for housing and the apt is only $600 per month.

erd flags go off and then you are responsible for the taxes on that other money.

4. Sharing an apt with another traveler does not get you the full deductions on expenses as they are being shared and that leaves you subject to taxes on what was not spent towards the housing by you.

5. Do your research on the agency, the facility, as well as the area. If it sounds too good to be true, it usually is.

These are a few of the prime issues that I am seeing pop in many of the threads that I have been reviewing today. I will be adding to this as the need arises or will make it more helpful for you.

I have also taken over as the new Super Moderator for this forum, as well as the Agency Forum, so feel free to post questions to me as needed. I have years of experience in both of these areas.

Regards,

Suzanne4

[suzanne4, RN]

I am arguing the big picture. Stipends that are completely out in left field can be checked by them and they are. Just as for the salaries that are no where near to what they should be.

I am speaking purely of reasonable amount in an area, and when I see nurses posting that they are getting a $3000 to $4000 stipend but only $12 or $13 in hourly pay, who is kidding who? The agency is happy with that as they have to pay less in taxes such as medicare portion or workmen's comp.,etc. Andf there are nurses that take their word for it that everything is just A okay. This is what I am trying to get them to stop accepting as being the right way to do things, and nothing more.

This thread was only started to give advice to new travel nurses what they should be aware of when getting a contract, and nothing more than that.

Rule One: if it sounds to good to be true, it usually is.

[suzanne4, RN]

Per Diems and mileage reimbursments are published by the IRS; housing stipends are not posted. And there are those companies that will try and take advantage of someone.

[CardiacNP01]

A quick example to support the advice of this excellent post. In Jan of 1999, I had accepted my 2nd travel assignment with a "heart institute" in Miami Beach. (I'd be happy to tell you the name of the nationally known hospital organization if that's permitted...the company has changed their name since then) I was a CVICU nurse but of course agreed to float to any ICU...yet, I did not have the organzational skills for the floor...thus I was assured that their needs were in the ICU. My second night at work I was pulled to the floor....I promise, the following is absolutely true. The hospital's floor staff (we were told) had "walked out" or something along those lines. Thus, we had 4 travel RNs to provide total care for 48 pts per shift. No LPNs, No PCAs, No unit secretaries.... No joke. It gets better... although we were contracted to work 3 12hr shifts/week, we had two options.

1.) Work four shifts per week (and of course be paid). Two 16hr alternating with 2 12hr shifts OR

2.) Work every other night..split shifts.

I couldn't do the latter because my girlfriend was in Lakeland, Fl then on a travel assignment, which was about 4hrs from Miami Beach....(I was too stupid then to figure out the distance between the two cities before accepting the contract). Furthermore, even my young body then couldn't adjust to an every other night schedule...uuhhhh..

Now....what about the person who, over the phone, agreed to not being pulled to the floors?? Well, she was no longer employed there once I arrived.

As she said...GET IT IN WRITING. That experience on that assignment is the sole reason I was enrolled in graduate school the next spring.... and I LOVE being an NP!!

P.S. Excellent advice on the housing as well!

[CardiacNP01]

Suzanne wrote:

"If you one does not have a tax home in another area, and they are getting the per diem, then it is not tax deductable and they will have to pay taxes on it as well as penalties and we are seeing more and more of this. Agencies promise anything and then people get caught in the middle. Also depends on how the agency sets up the housing payments as far as stipends."

You are sooooooooo right about this Suzsanne.... I have a friend who has become a traveling nurse in recent months...prior to that she lived with her mother. Correct me if I'm wrong, but a tax home is one that you are paying a mortgage on (vs. living with your mother in her home free of rent)....am I wrong? The agency recruiter assured her that since she is living "in a home" (with her mother cost free) then her per diem is tax deductable. The assignment is out of state. I told her that the recruiter is either grossly misinformed or is lying to get her to sign on.... am I wrong about that? I'll gladly stand corrected if I am, but I would hate to have my friend get stuck with huge penalties.

Thanks!

[suzanne4, RN]

A tax home is one that is where they list as having permanent residency, their driver's license is there, they are registered to vote with that address, etc. Banking is done with that address, etc. As long as the legal address is more than 50 miles from the work site and she is not commuting to the home at night, then she should be fine.

Many have homes that are already paid for, so a mortgage is not necessarily a requirement. Always best to check with a tax person.

The issue usually comes up when the nurse has purchased a home in one area and gets a travel job just a few miles away and the agency gives them the stipend for the housing, and states that it is tax free; that is where the bigger problems can occur and still see people believe all that is told to them.

[fizz2Nurse]

Per Diems and mileage reimbursments are published by the IRS; housing stipends are not posted. And there are those companies that will try and take advantage of someone.

Uh, then what is the column under LODGING mean in the IRS publication?

[fizz2Nurse]

It is also worth noting that there is no "50 mile rule". The IRS only bases the deductability of expenses based upon "reasonable".

For example, they may not allow you to deduct a lodging expense when you live in one Colorado city and commute on I-25 for 60 miles during the summer to work. It may be unreasonable to expect you to commute that distance if you're working 14 hour shifts back to back. When it comes to deductability there is only the test of reasnable; no absolute distance test.

The other thing to remember is that a permanent residence and a tax home are NOT alike. Permanent residence may be where you have a placeto stay and a drivers license but that doesn't make it a tax home.

For a tax home you must have ties to the community: you bank there, get health care there, have regular interaction with that community. Sometimes even the test of WORK there.

[HarryHK]

IRS is always looking for red flags to tip them off with, and they expect receipts to back them up.

Lower than usualy pay is one, and the other is not having receipts.

fizz2Nurse is completely correct in all her posts with tax rules. To add to her excellent posts about some specific statements like the ones above:

Assuming the traveler is working away from a legitimate tax home and follows the rules, none of the above is a factor in initiating an IRS audit, or needed for defense in an audit. It is true that for very high wage earners (or more often, high passive incomes), a large shift in taxable earnings is a factor in closer examination of taxes. For ordinary earners such as nurses this is not true. There is no expectation of some threshold of earnings that must be maintained. My own taxable wages swing $50,000 from year to year (a very large shift indeed on a percentage base) and I've never been audited.

Some think that making to little in hourly wages is a red flag. The IRS has no idea and no way to know how much you make per hour. They receive quarterly reports on total taxable wages, not wages broken down per hour or per week.

Saving receipts for expenses that you have been reimbursed for (such as lodging and M&IE) is completely unnecessary. The IRS doesn't require it, nor do they have any information about your reimbursements as it is not reported to them. Only income is reported to the IRS, not reimbursements.

Working 50 miles away from home is not a factor of a determination of a legitimate tax home. This is an urban legend among travelers that arises from two sources.

One is the IRS rules on moving expenses which requires a 50 mile distance to be deductible (travelers do not move).

The other is from agency based internal rules about whether reimbursements to travelers will be taxed or not. All companies are required to have minimum policies in place to determine if a traveler is eligible (by agency rules) to receive reimbursements tax free. 50 miles is a common determinant (although not the only one). An agency is not the tax police, they only have to show a reasonable effort to protect themselves. How they determine internal rules or actually pay the traveler has nothing to do with whether a traveler is actually eligible for tax free reimbursements.

This is a very important distinction that many travelers are confused about and their recruiter assists in this misinformation. The recruiter knows what the agency policy is but is not a trained tax professional.

[NYCRN6]

Hello Suzanne i am a new graduate going on my 7th month as a nurse. I have developed an interest in travel nursing. I would like to travel to Florida because I am sick of this new england weather! (been living here for 23 years) Here are some questions:

1) Housing stipends and tax free homes... can you briefly explain this?

2) How do you know what to expect for pay? Can you negotiate?

3) How does this work in time essence because I have a job now and how would i go about interviewing and looking for jobs and accepting a job position

4) the health insurance that the travel nursing companies offer; are those usually good to accept?

5) If you are ACLS certified or have any other certifications... does that allow you to make more money?

I may have more questions later but for now these are my questions! thanks

[HarryHK]

1. If you are working away temporarily from your permanent home, the expenses incurred such as housing are tax deductible. Alternatively, if the agency provides either housing or a stipend in lieu of, that is a tax free benefit - no receipts required.

2. Sign up with several agencies to gauge fair market prices. Yes, with most agencies you can negotiate. The larger agencies tend to be harder to negotiate with.

3. Your agencies will guide you through the whole process. Find agencies with a Google search, or journal ads.

4. Some agencies have better insurance than others, you will have to inquire. Generally your permanent employer will have superior insurance. If that is important to you, you can continue it for up to 18 months per COBRA regulations. You can also purchase your own private insurance through companies like Blue Cross Blue Shield, there are major advantages to doing so if you are relatively healthy.

5. No, the bill rate from the hospital is fixed. However, some hospitals may require ACLS, so having certifications may open up additional assignments to you.

It is worth your while to call a couple of agencies and you will start to get a feel for travel nursing. If possible, do not give them your contact information or resume until you are ready to go AND they have a suitable assignment with acceptable compensation.

[suzanne4, RN]

Most of the questions have been answered above, but be aware that the majority of the better agencies as well as facilities are going to want to see two years of work experience. You are expected to hit the floor running and without any orientation other than where things are or to the computer system, or things like that.

I would recommend a trial of agency nursing in your area first to see if it is something that you could handle. Easier to get your feet wet closer to home.

[curlygirl936]

Just joined = am considering travel nursing after floating for the past 7 year.....kids are out of high school and single mom is ready to go have some fun for me! Awesome thread! Grateful for the information Thanks:yeah: