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Discussion

Overtime question

I have a question regarding an assignment in California. $50/hr. I can either take a stipend of $25/hr, then $25/hr as pay rate or take the $50/hr and enjoy the higher OT rate. If I work 12hrs of overtime, then I have 37.50/hrX12hrs= $450 with tax advantage. If I do straight pay, then I get $75/hrX12hrs=$900.

First off, with the tax advantage $37.50/hr OT rate, do I still get the $25/hr stipend(I dont think so) with the additional hours worked or does it end at my contracted 36 hours? Next, when the agency bills the hospital, are they billing at $50/hr regardless, bringing in $75/hr for OT I work? If I take the stipend with an OT rate of $37.50/hr and have them bring in $75/hr for my labor, then they are raking in an extra $37.50 profit. Can I take the stipend amount and ask for a bonus of $450 for every 12 hours of OT worked?

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If you intend to do regular overtime shifts, you would come out ahead to take the higher rate of pay even though more of it is taxed. If you don't plan on doing a lot of overtime, you would make more using the tax free stipends assuming you qualify for them.

Have the details of what exactly the overtime rate, & when it is paid worked out directly into your contract. If you have to make guesses now, the details were never explained and you could very easily find yourself being short changed. Your company should tell you, & put into the contract, exactly what will be the taxable and untaxable portion of the hourly rate (even when it comes to overtime).

Also, it is my understanding that most CA hospitals pay 1.5 OT rate for anytime over 8 hours. If your company is giving you one rate for a 12 hour shift, you better make sure that you aren't getting what is called a blended rate, which averages out a base hourly rate with the 1.5 for the 4 hours. If you are being quoted a blended rate & do additional shifts for OT, you may be in for a surprise when you see the lower base rate (than what you thought it was) being applied to the time and a half.

As the other poster said, take the highest hourly wage offered (broken down to base amount and time and a half amount) if you are planning on doing a lot of OT. If you choose the lower hourly rate, then work agency for the extra shifts-you probably would get a higher hourly rate with agency than with 1.5 time at the low taxable salary. Oh, another thing, make sure that the company doesn't consider only the taxable hourly as the basis for your OT amount.

While you do your calculation, remember that CA has a state tax on wages and you may also be owing your home state some taxes (depending on your home state)-this could change the formula to determine how much net you will be getting.

Honestly, traveling is not the way to be able to make big bucks, (unless you do strike nursing). The best way is to have a part time staff position that covers your benefits & do a lot of agency work (especially if you find an agency that will pay OT over 40 hours).

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