Hey Texans!!! ripoff in san antonio?

jmb410s · Aug 14, 2008

:banghead:I need some advice about traveling to the san antonio, Tx area.
this is from a preliminary discussion with a recruiter. does this sound right? when my wife and i did the math with her carrying my insurance and all the other expenses i already pay here in oklahoma, tack on costs for staying in a tent trailer, i have to eat and do laundry etc... I assume the numbers are based on 36hrs/week.
the saddest part to me is I make a hair less at my full time job than the 23/hr she quoted and if i find a perdiem job here at home it would be approx. 37/hr, thats above my take home now with benefits, vacation and all the trimmings of a full time job. i was hoping to make a lot more by working more hours but i can get that just working O.T. at home.
i think she only took out like 20% in taxes...any nurses out there that get taxed at that wonderful rate without owing a million at the end of the year? ????here is what the recruiter and I discussed....
any suggestions welcomed.....

Dude if that is what you are getting that is a sweet deal:eek:

$23 and hour

Weekly stipend of $784 = $21.77 and hour

$3000 completion bonus = $2.13 an hour

Total = $46.91 an hour to be exact

That is great for texas:cool:

huntfishrn · Aug 14, 2008

well that makes me feel better was not sure what to expect cause this is my first assignment. any ideas to help me keep more of the stipend? we looked at hotel monthly rates rather than messing with the travel trailer. i would be open to fellow travelers to bunk with in san antonio. may start in next 2 weeks if i can get all the paperwork finished

travelcrazyRN · Aug 17, 2008

your 3000.00 end bonus will be taxed at 39-40%. No way around it. If you can get that 3000 divided up into your hourly wage you will come off better. OR Take your mileage (round trip) and multiple it by 48 cents (last time a traveled this was ~govt max for tax free mileage travel reimbursement). If it is greater than 400.00 your travel company can change your contract to make the tax free travel reimbursement higher and reduce some of your 39% taxed bonus. I'm not sure where in OK you are coming from but I bet 400 miles each way is about what you will be traveling so it might not make a difference. This comes off better if you are traveling long distances. Basically all the contract money is in one big pot and with some negotiating you can move it around to suit your needs. Some people like the big bonus at the end, some (like me) want it all within the first week or in a higher base pay.

I'm not sure how you ended up with some of your wage taxed and while the other isn't. Basically if they don't tax you on what should be taxed you are responsible in the end. Don't get me wrong, a lot of people get away with cheating the IRS (IMO most of it is ignorance with all the tax laws) but it is a red flag to the IRS if you are only being taxed on 12/hr while other RN's in the area are being taxed on 20-25/hr. It is a big red flag if your recruiter is telling you what your take home pay is... The recruiter is using "net pay" to lure your in. I seriously doubt you have filled in your tax forms yet and she knows what the state taxes of TX is. So how would she truly know this?? Make sure your contract list exactly what hourly wage and any bonuses you will get and then do the math yourself. Talk to different companies (and travelers if available) and see what they are offering/making. This will tell you if you are getting a fair deal. I'm no expert but I have taken a few siminars on travel and taxes and the last person I know to take advise from is the recruiter.

loricatus · Aug 17, 2008

I'm not sure how you ended up with some of your wage taxed and while the other isn't. Basically if they don't tax you on what should be taxed you are responsible in the end. Don't get me wrong, a lot of people get away with cheating the IRS (IMO most of it is ignorance with all the tax laws) but it is a red flag to the IRS if you are only being taxed on 12/hr while other RN's in the area are being taxed on 20-25/hr. It is a big red flag if your recruiter is telling you what your take home pay is... The recruiter is using "net pay" to lure your in. I seriously doubt you have filled in your tax forms yet and she knows what the state taxes of TX is. So how would she truly know this?? .

The untaxed wages are considered a per diem allowed by IRS rules for those that leave their primary tax residence to work elsewhere-the term used for it (for travelers) is tax advantage. The IRS has a chart, based on location, for this per diem maximum rate (Meals, Incidentals and Housing). If the untaxed rate is within the allowed limit by that IRS table, then the taxed portion mentioned would be OK. What I hear is that anything less than $20.00 per hour taxed would be a red flag issue to the IRS; but, a red flag does not mean that it isn't legal, it just means that the compensation would be scrutinized to see if it follows the law.

It isn't a red flag for a recruiter to know what the take home pay would be because http://www.paycheckcity.com can tell anyone what their take home pay would be under various conditions. BTW, Texas has no State income tax, so only federal gets deducted-makes it much easier for any recruiter to give a more accurate net quote. The real issue may be State taxes havin to be paid to the OP's tax home state.

I do agree that the recruiter is using net pay to make the deal sound better; however, there does not seem to be anything illegal with the offer is the OP is maintaining a primary residence elsewhere while traveling.

travelcrazyRN · Aug 17, 2008

After I thought about it awhile, I realized where the tax-free wage would come from (meals, etc). I'm used to it being a set amount that is added to my paychecks. I didn't mean to imply that what the recruiter said was actually illegal but I do want the new traveler to be aware that it is not unheard of a recruiter using ploys like "net pay" and "tax free" to attract clients that may not qualify and I would want to know if something I did might send a redflag to the IRS because I want to avoid the hassle of being scrutinized even though I'm not doing anything wrong. My point was that tax law is complicated and a recruiter isn't (usually) the best person to get non biosed tax information from.

suzanne4, RN · Aug 17, 2008

you do not get the stipend and the tax-free part of the hourly pay.

the per-diem is about $50 per day just for good measure and making it easy to calculate with.

stipend of almost $800 per week to pay for housing and lodging would be over $3000 per month and that is definitely not the going rate in that area, so a red flag would also go up concerning that. it is supposed to be the customary rate in that area. and you are not speaking of the bay area either.

one major issue is that they do not calculate the hours on your check as being taxable and non-taxable. when you work overtime, they are going to usually base things on the taxable amount per hour and that would be just in the $13/ hour range.

also the bonus at the end is taxed quite high so you will only see about 1/2 of it. you never want to take a bonus like that, but have it calculated into your hourly pay.

somehow the numbers are looking too good to be true. please be very careful with this type of contract. suggest that you contact the tax person that you use to get their take on it. i see too many red flags.

huntfishrn · Aug 17, 2008

thanks y'all for your input i will definitely talk to my accountant before agreeing to this contract. you guys are the best this blog totally rocks!!!!!!

huntfishrn · Aug 20, 2008

somehow the numbers are looking too good to be true. please be very careful with this type of contract. suggest that you contact the tax person that you use to get their take on it. i see too many red flags.

i spoke with a tax accountant and the allowable daily stipend is like 120 so long as i keep receipts he said i would be fine, but you are right about the bonus i am trying to negotiate it into the hourly thanks for all y'alls help

loricatus · Aug 30, 2008

i spoke with a tax accountant and the allowable DAILY stipend is like 120 so long as i keep receipts he said i would be fine, but you are right about the bonus i am trying to negotiate it into the hourly thanks for all y'alls help

:offtopic: huntfishrn,

You have the best avatar I have ever seen. Where did you find it?

huntfishrn · Aug 30, 2008

:offtopic: huntfishrn,
You have the best avatar I have ever seen. Where did you find it?

thanks,

found it looking for free avatars on the web:smokin: