Traveling as an Independent Contractor?

suzanne4, RN · Jul 11, 2005

I do not recommend it all. By the time that you have to go into town to find an apt, get it furnished, pay all of the utility deposits, etc., you have wasted a good week or two. You really won't be coming out ahead..

If you use a good agency that provides everyhting, and I mean everything, you will come out much further ahead without any of the headaches.

I was independent when I was in my home state, but actually come out further ahead by working as a traveller thru another agency............much easier on the brain also.

lever5 · Jul 14, 2005

I have seen nurses work as independent contractors. I worked with a male nurse in Florida that does it and he had no problems, and has me thinking about trying it. I believe there are books that can help smooth the way. I think maybe if we all became independent contractors, every nurse in the nation, and then stated what conditions we would accept to work in, maybe we could do without the middle management and change nursing. I will have to think further on this. I know sometimes I would like to be in a certain area, but the company does not have hospitals where I want to be. When I get good and fed up with home tax forms, and proving I am a us citizen. Maybe things will change, or maybe I will retire.

LE

suzanne4, RN · Jul 14, 2005

Is that nurse working agency or as a traveller? Big difference in the two in terms of working. Way too much effort in doing the travle thing on your own. Not worth the extra time involved with everything to make it worthwhile.

I come out way ahead and with absolutely no headaches, but then again it depends on what the agency provides for you and who you are working for.

bpowers · Jul 14, 2005

My husband and I ran our own subcontracting business and were labled as independent contractors....but there is so much to it, even for nurses. First, there's insurance which can be up to $1000.00 per year. You can use some things for tax deductions, like gas, uniforms, etc...but for the most part you are representing and selling yourself. There can be extra expenses to pay for an accountant, or medical insurance....there's just alot to consider and alot of work outside of the nursing care that needs to be considered.

Is that nurse working agency or as a traveller? Big difference in the two in terms of working. Way too much effort in doing the travle thing on your own. Not worth the extra time involved with everything to make it worthwhile.
I come out way ahead and with absolutely no headaches, but then again it depends on what the agency provides for you and who you are working for.

suzanne4, RN · Jul 14, 2005

I actually owned an agency in MI, and was set up as an independent contractor. Believe me working for another company as a traveller is a blessing is disguise, but only if you have a really good company behind you.

With the independent contractor bit, as a traveller, you are going to be paying for so many fees up front that it just won't be worth it. By physically working in another state, even for your own company, you get into many holes as far as taxes are concerned, and corporation issues that it really isn't worth the aggravation................you want to be able to work as much as you want and not have the headaches.

lever5 · Jul 17, 2005

You contact the hospital, many have seasonal contracts, you get health insurance and all the perks of regular employment, especially in areas like Fl or Arizonia, any hospital will work out the problems for you. There are many ways to work as a nurse and not get caught in the politics. per diem, work three or 4 days a month, no benefits, provide your own health insurance. Wherever you are, there is some way to go without working as an employee of the establishment. I am now working with CCTC, I like them, but sometimes they do not have jobs in areas that I want to go to. This may become a problem with my next assignment. So I will contact a hospital in that area and ask about seasonal work. I consider this contracting for myself, not a lot of work. Maybe even an email will do it.

suzanne4, RN · Jul 17, 2005

A seasonal contract is still not a travel position, it is still staff at the facility.

Doin thirteen week contracts as an independent casues too much grief. Most seasonal contracts are about five months in length, can be even longer.

And you definitely do not get the same perks as a regular traveller.

CCTC does not offer much in the way of perks to begin with.

HarryHK · Jul 23, 2005

I have been doing direct independent travel contracts (13 weeks) for over two years now. And there are many others doing the same thing. And even more traveling as independents through an agency (Hospital Support is a good one).

Fees? The big one is Liability Insurance, about $300 a year. It also costs me $20 a year for a worker's comp certificate in my state. The only other "fees" that I can think of are for your nursing license. There is nothing else required unless you choose to incorporate for the benefits (I did after a year). Corporate costs run about $100 a year in most states. You do have to file and pay taxes, that will be a lot more work as an independent because your agency did that before.

I have been traveling for 10 years now and have found my own housing for the last 7. Yes, it is a hassle if you don't just go for corporate housing but well worth it if you don't want to dumped in a random place not to your liking (which is what happened for the first 3 years for me with mixed results). The reward is that you are happy with your housing and you get large financial rewards.

I am doing a 13 week contract in California right now. My bill rate is $68 an hours and my average weekly bill is around $3,500 a week. Almost half of that is deductible (tax free) but my only costs are around $1,000 a month for housing.

In addition, you can arrange your own benefits to your own liking depending on how you structure your business. I put well over $20,000 a year into my 401 (try doing that as an employee)! My medical insurance and all out of pocket expenses (co-pays, alternative health, etc.) are fully deductible (as a corporation).

Worth it to me! I am not an accountant or lawyer and have never consulted one. Not necessary. It is not that difficult. All "extra" expenses are those that the agency pays on your behalf. If you contract for yourself, your bill rate will cover all those plus you gain what was the agency profit margin.

suzanne4, RN · Jul 23, 2005

IRS rulings require that you incorporate or are under the structure of an LLP to meet their guideleines if you are independent. It is actually a requirement now right from the beginning. And this whether you are local in your own home state or travelling. Not later on for the perks.

HarryHK · Jul 24, 2005

IRS rulings require that you incorporate or are under the structure of an LLP to meet their guideleines if you are independent. It is actually a requirement now right from the beginning. And this whether you are local in your own home state or travelling. Not later on for the perks.

Please cite a reference. This will be rather large news to all the independents who are not incorporated. Also to the dozen or so agencies (that I know of personally) who use independents, most of them sole proprietors. Corporations including LLCs (LLPs are partnerships) are state sanctioned structures. The IRS has zero control over how you do business.

Hospitals have some good reasons for wanting their contractors to be incorporated but the IRS could care less. In fact, they will generally collect more taxes if companies are not incorporated. I don't know of any state or federal agencies that dictate company type for a nurse contracting with a hospital or agency. Kind of anti-American if you think about it.

suzanne4, RN · Jul 24, 2005

One of the major agencies in Michigan had a very large court case with the IRS a number of years ago. This was concerning the use of independent contractors under them. Per the ruling that came down from the IRS, there is a list of requirements that must be met to get around the employee ruling. Self-employed is not covered under this ruling, is actually prohibited, and you could end up with fines and quite a bit of back taxes.

Any of the hospitals that I contracted under for years required corporate status. If you set up as S-Corporation, then you are not paying any more in taxes, and you usually end up paying less. There are usually more items that you can deduct as a corporation, than as a sole proprietor.