Nurses create the demand! Quit accepting low paying contracts

79Tango · Mar 4, 2011

Its already too late. The gov't has already stepped in. You will find that out if/when you get your first contract.

Nomad5150 · Mar 4, 2011

Meaning???

RNERHOUSESUPOR · Mar 5, 2011

Or letter from the IRS happily informing you that you are being audited. NEVER ACCEPT a low wage for tax free money. It sounds too good and it is really bad. Something like a bait and switch in my mind. They start rambling off numbers and saying that they always give their travelers the best deal, not everyone can do what I can do. Then you have tax preparers who accept that the companies must know what they are doing so, low wage pile on the deductions and you get a nice check at the end of the year from the IRS. BAM, SLAM, BONK. the computer see's an unusual pattern, Human (or sort of) must evaluate this. AUDIT time. It's not looking good. Guess who is stuck with the bill. YOU. Not the company who recommended, not the tax preparer who "just took your numbers and put them on the right papers". You. Have the company pay a reasonable wage. Pay your taxes and if at the end of the year you can have a refund great. If not, fine, just hope you don't have to pay too much. If I understand it correctly, it is a tax benefit for the company also. If they don't have to deduct taxes out of your portion of the salary, they don't have to pay taxes on that portion also. I didn't know that until recently and it makes more sense on why they pushed it so much. Lets them keep a lot more tax free money in their pockets and they have people who work 8 hours a day every day to make sure their taxes are correct. Not the 1 to 4 hours we get to have our taxes prepared each year.

WOW, that felt good. Glad someone asked and I was able to spill. Remember, this is my opinion and I am not an expert in anything but getting myself into trouble. I have not been paid for this information so you may use it freely at your own risk. No signature required.

Rod

Nomad5150 · Mar 5, 2011

Amen Rod! :yelclap:

Nomad5150 · Mar 6, 2011

Thanks again Rod, I thought this warranted being pasted in this thread as well..However sorry for your situation.

"I just posted a long reply in the topic regarding stop taking less per hour. Please read it and a lot of other information before accepting that contract. PM me if you like I am going through an IRS audit currently and I do not recommend it.

Rod"

Sorry recruiters! Time to step up and get real and stop taking advantage of hard working, loyal nurses for your $$$ gain!

I will soon be starting a blog to "out" any agencies that continue to play fradulant games, as well as to document our travel nursing experience. Seems like everyone tip toes around naming names. Not me:) Bring it...tiger blood...winning!

Kudos to the agencies that are above board in their dealings with nurses. Long term residual relationships are a much better business model than sticking it to a client once for quick $$$.

Jenfire, BSN, RN · Mar 7, 2011

Ok, so what agencies are above board. How are they above board? Can you recommend a logical -read understandable - place that I can go to get this information?

Thanks

Jen

RNERHOUSESUPOR · Mar 7, 2011

None of the Nursing agencies are above board unless pressured by the end user. Either the nurse or the hospital or the IRS. Rules are made for those who get caught is something I heard many a year ago. Seems to hold true today. Lot's of people think that because they got away with it, it's OK. In reality that is very far from the truth. Laws and rules are made for a reason. Usually because something happened to suggest a different way to do things. Usually because there was a very bad outcome from what had been done before. Unfortunately some don't accept that as the reason and try to bypass the rule. I don't mind pressing the issue but blatantly ignoring the rules usually results in a bad outcome.

This is my opinion, a non paid evaluation and yours to use as you please.

Rod

amy0123, BSN, RN · Mar 10, 2011

I've been with American Mobile for 3-4 years. It's really sad how since fall of 2010 they've changed into a "tax advantage" pay program. This means to me that the company gets to take advantage of Travel Nurses on the tax and hourly rate. I was offered a contract to work $15/h. My recruiter said "you are really getting $24 hour with the $35/day per diem meal rate."

I am looking forward to working for a company that is not lying or stealing for their own gain. What company does not follow this tax advantage program and honors a normal market pay rate?

So far I am looking into OnAssignment, Freedom Healthcare, Aureus and Fastaff. These companies do not have a "tax advantage" program and do not cheat Travelers with below market wage salaries.

It's great that American Mobile is such a large company with so many contracted hospitals under their umbrella. But it's sad that they've changed into this tax advantage wage with super low hourly rates. If I want to work in a specific location, American Mobile usually has it. Unlike other travel companies. That means for me that I may have to switch between companies to get the location wanted. More work for me. But the right thing to do.

Nomad5150 · Mar 11, 2011

congrats on speaking out amy0123! to publicly out these companies will be the best way to combat their greedy one sided strategy. remember these people are in sales!!! they have to produce revenue as part of their job description. you will find recruiter jobs under "sales" not social services. some may say you don't have to take what they offer, which is correct but the simple fact that they are even offering these ridiculous programs as a benefit to you makes me crazy...i mean crazier! i personally tie the word “tax advantage” to red flag. kudos to you.. :yeah:

79Tango · Mar 11, 2011

Are you guys LVNs? Amy-- I would be more ticked off at the rate $15/hr and $35day perdiem. The only "Red Flag" in that is a very low wage...

I have never worked for American Mobile but do know about the 4 you are now looking into... RUN! You named some of the worst of the worst! I almost threw up in my mouth when I read that list!

I will also say "tax advantage" is not a fraud! The Gov't is the one that set up the pay rates. It is nothing new. That is why people travel in the first place.

Nomad5150 · Mar 11, 2011

fraud: noun

deceit, trickery, sharp practice, or breach of confidence, perpetrated for profit or to gain some unfair or dishonest advantage. maybe not your definition??

this article below is not specific to the travel nursing industry but just know that the feds are on alert for this type of activity. i know the article refers to business owners. i promise, if the irs thinks that there is money left on the table they will eventually collect. if anything it would warrant a look into the books of some of the agencies playing with offerings of $10/hour with confusing stipends, which i've seen!

mr. watson, who had a graduate degree in tax and 20 years' experience, received only $24,000 of salary for each of those years, far less than the $40,000 a year earned by recent graduates in accounting with no experience, according to one expert for the irs.

the agency cried foul, saying his pay was far too low. why object? unlike profit distributions, all salary is subject to a 2.9% medicare tax and some is subject to a 12.4% social security, or fica, tax. (the fica income cap, $84,900 in 2002, is now $106,800.) by reporting low pay mr. watson didn't save any income taxes, but he did save nearly $20,000 in payroll taxes for the two years, the irs said, pegging mr. watson's true pay at $91,044 for each year.

http://online.wsj.com/article/sb10001424052748703951704576092371207903438.html

lower the gross pay the lower the employer's tax contribution:

http://biztaxlaw.about.com/od/settingupapayrollsystem/a/employerduties.htm