travel per diem rates

Published

I have a question about per diem rates AKA tax free stipends or whatever other term is used. I have been told that whatever city you are traveling to, you go to the GSA.gov website, type in the city and state, and it will give you your daily allowances, which then you multiply by 7 to get your weekly tax free stipend. Let's say Nashville, TN for example. The weekly stipend there is around 1400$ a week. Some companies such as Trustaff are willing to offer me nearly all, if not all, of the full 1400$ weekly and just make my taxable rate a little lower such as 18-20$ per hour. So basically, trustaff offers 18$ hourly taxed, then 1400$ per week untaxed.

But, my question is here. Some companies (such as American Mobile and Aureus) will offer me about half that tax free amount, maybe a little over half, with a hourly rate around 23-26$ hourly. I would much rather have my higher stipend and lower hourly, but they claim this is a "red flag". I have talked to multiple tax consultants and every one of them have said as long as you don't go over the GSA maximum amount that you're fine. And, in the case you do get audited, all you would have to show is your contract which provides proof you were in that city for that amount of time. But, for some reason these recruiters at Aureus and American Mobile are saying too much tax free money is a red flag even though the GSA.gov website has a lot higher amount.

So, finally, the question is, are Aureus and American Mobile trying to lowball me while Trustaff is givig me the most money possible? Or are all of these tax consultants wrong and the travel recruiters correct in saying this will cause me to get audited and have to pay a lot of money in fines, etc? It is hard to believe the tax consultants would be wrong and the recruiters be correct? I just want to know if anyone knows what to believe or has questioned this before. I obviously would like to get the most money possible and would much rather get it tax free if possible. Thanks ahead of time. Just wanted to be sure before I accepted any contract.

Up Vote Up Vote ×

If you have a valid tax home that you are traveling away from temporarily on business (the contract), you have nothing to fear from an audit (even in the unlikely event an agency exceeds the GSA rate). As far as your audit risk goes, the amount of unreported reimbursements does not affect it directly. The amount of audits, especially in our income bracket, are exceedingly low. But don't think you can get away with murder. If you don't have a tax home, you are not eligible for tax free reimbursements at all. While you won't be audited for that reason, if you are audited for any other reason, your cost of paying back taxes, penalties, and interest may put you into debt.

On the agency side, there are risks related to large reimbursements relative to taxable pay. It is a bit complicated to explain, but it involves possible recharacterization of taxable pay. The larger the agency, the larger the risk. Thus a large agency is less likely to max out the GSA reimbursements, especially when their own internal data shows the true cost of housing. The risk is all on the agency side, virtually none on the employee side.

So they are all telling the "truth", at least from their perspective, and they are all doing what their accountant or tax lawyer or consultant tells them to do. The truth depends on which lawyer you talk to. None of them are trying to lowball you as their costs are exactly the same. The only difference is the tax burden on you.

Be warned about overtime. Low base rates may mean low overtime rates. Negotiate as necessary for a good overtime rate of at least $50 an hour, but don't bother if no overtime is available or you don't care to work overtime.

Personally, I would not recommend any of these agencies for you. Two have bad historical reputations, and it is unlikely you will squeeze top pay from AM on your first assignment (stipends aside). On the other hand, top money is not really what you should be looking for on a first assignment - you want a successful one. Then chase the money. You are more likely have results there with smaller agencies. Smaller agencies have fewer assignments, so you need to sign up with more of them.

Up Vote Up Vote ×

Ahh I see. So if they say red flag for me then they are lying, as I have virtually no risk. But, for them they have risk but it's just hard for you to explain? I assume I got all that correctly.

Also, you say Aureus and AM have bad reps, so name some travel companies with good reputations? And we can agree to disagree here, but I am definitely chasing the most money. I obviously would never tell a facility that, but just being honest with you. Trustaff seems good, but who knows. Send me a couple of known good ones if you don't mind.

thanks

Up Vote Up Vote ×
Specializes in Peri-Op.

A company is only as good as your relationship with the Recruiter. I have had good luck with AMN as have thousands of others. Bigger companies will have more people complaining, it's just a numbers game.

I like to have my hourly taxable in the mid 20s to 30s. If my cpa can work out my perdiems better at the end of the year that's great. If you ever want to finance anything like a home in the future you will have issues the lower you go. I also would rather not poke the irs nest dropping from 55/hr to 15/hr, seems way more unrealistic than dropping to 28/hr.

Up Vote Up Vote ×
Ahh I see. So if they say red flag for me then they are lying, as I have virtually no risk. But, for them they have risk but it's just hard for you to explain? I assume I got all that correctly.

I don't think anyone is deliberately lying here. Recruiters are not tax specialists, they get fed the company line from above. Technically, there is a smidge of increased risk from maximal stipends in that if the IRS audits the agency, they may audit the downstream travelers (usually this is done in advance of the IRS audit as information gathering). But you haven't done anything wrong (as long as you have a valid tax home) so there is no harm done. Except that an audit is never fun even if they absolve you completely.

Also, you say Aureus and AM have bad reps, so name some travel companies with good reputations? And we can agree to disagree here, but I am definitely chasing the most money. I obviously would never tell a facility that, but just being honest with you. Trustaff seems good, but who knows. Send me a couple of known good ones if you don't mind.

Trustaff has a very bad reputation, and Aureus is in my opinion the worst agency there is. You may read about a lot of AM complaints, but the larger the agency, the more the complaints. Human nature. I think they are a good agency, especially for new traveler to get that all important first assignment on their work history.

I agree completely with Argo that your recruiter is much more important than the agency brand. So if you like your recruiter with Aureus, give them a try. But watch them like a hawk. In my experience, the only happy long term travelers with Aureus are allied health travelers (Aureus started in radiology). They treat nurses really really badly. Google Aureus nurse agency reviews.

So for chasing the money (after your first assignment), you really need to be signed up with multiple agencies, all with honest recruiters that you can talk frankly with. Call lots of agencies, then pick the best five. Then you will know what competitive pay is for you in any given location and you won't make the mistake of using the wrong agency (or at least use the info to negotiate with the agency you like best).

Up Vote Up Vote ×

I appreciate all the advice, but I'm still waiting for you to name some companies you've had good experiences with. I get the recruiter thing, but even recruiters can fool you up front.. I want to hear from people on this thread who has a good track record and known for their good/fair pay, good stipends, reimbursements, etc ... Just name a couple please. Whether it's you who has experienced the company or a company a friend has told you good things about, I just want to know who I should give a chance first based off reputation alone. Thanks again.

Up Vote Up Vote ×

Also, reply to this as well if you don't care. I do have a tax home, so I'm good there. But, is there something I would need to show I'm spending every dime of my stipends? For example if I get 1000$ weekly for meals and housing, do I have to save every little grocery store receipt showing I spent the full 1000$ or around a 1000$ or do they get this specific? Just curious what I have to provide in the slim chance I was audited. Thanks again. Sorry for all the questions.

Up Vote Up Vote ×

You don't have to spend all of your stipend. Traveltax says you need some proof that you spent something on housing (related to truckdrivers sleeping in their cab not being eligible), so I would save a lease agreement or something. Your reimbursements are not reported to the IRS so there is nothing to prove one way or the other.

Sorry, I don't recommend agencies unless there is a specific need (like for dialysis or psych). I've not had any issues with any I've used, but then again I'm an seasoned traveler. It is a business relationship, which I would treat just like any other supplier. But the quality and trust in the relationship with your recruiters is key. You should be able to learn that with extensive conversations, but ultimately you will only learn their true value when things go bad. Then it is too late.

I don't have a problem steering travelers away from agencies with longstanding higher rates of problems than most. You hit two of the worst. I don't know how you are finding these agencies, but if it was through marketing, consider what agencies with expensive marketing have left to pay travelers. Especially agencies with churn and burn business models like Aureus. I would simply Google travel nurse agencies, start on page two and start calling. If you call 15, you should find some you like. What others like is almost irrelevant (in my opinion). Every single agency has fans and detractors. Their experience and recruiter is unlikely to be yours.

Up Vote Up Vote ×

Ok thanks a lot for all your advice and help. I'm traveling in psych by the way.

Up Vote Up Vote ×

Well, in that case, I do have some recommendations for you. Any agency will occasionally get some psych orders, but large agencies such as Cross Country and American Mobile will be your best bet (although the stipends may not be as good). I would also check out Supplemental (also now a very large agency) as they started as psych only and still have a special interest in it. Also Worldwide as they were started by ex-Supplemental staffers. If you don't like the recruiters you talk to at these agencies, I think they are potentially valuable enough in your specialty to be worth the trouble of asking to switch recruiters. So there are four agencies to get you started!

Up Vote Up Vote ×

THANKS A TON!!

Up Vote Up Vote ×

Lmao, He finally got a list of agencies out of you Ned. He was persistent.

If you're truly about the money then look at Fastaff. I've used them a few times and usually have good results. As far as financially I always have a good result from them. Although the hospital may be very understaffed, lacking a manager, tyrannical doctor chasing off staff etc. Many of their contracts are 48hrs a week but you can find some that are 36, which I recommend for your first assignment. Some of these facilities may be so understaffed they may ask you to work another OT day a week, I regularly got begged into doing 60hrs a week one contract.

Up Vote Up Vote ×
+ Join the Discussion