Using the agency for travel vs direct application

[jive turkey]

I'm currently on assignment with an agency. I've seen facilities post positions on their websites for travel positions. Has anyone ever taken a travel assignment applying directly to the facility offering one? What's the difference vs applying for positions with the agency? I'm curious if applying directly affords more financial benefit to the nurse considering the fact the middle man is eliminated....or is the facility just saving more money getting you to apply with them.

[NedRN]

The facility is definitely saving money while generally paying you more tan an agency. One downside is that they will deduct taxes as ordinary income on provided housing or stipend. Not a downside if you don't have a tax home of course. If you do have a tax home, it is a real drag. You can deduct receipted housing costs and per diems as a business expense on your tax return but filing thresholds make the benefit from doing so relatively small.

You also dont have the agency as a buffer between you and the hospital. That is rarely needed but nice to have.

[jive turkey]

The facility is definitely saving money while generally paying you more tan an agency. One downside is that they will deduct taxes as ordinary income on provided housing or stipend. Not a downside if you don't have a tax home of course. If you do have a tax home, it is a real drag. You can deduct receipted housing costs and per diems as a business expense on your tax return but filing thresholds make the benefit from doing so relatively small.

You also dont have the agency as a buffer between you and the hospital. That is rarely needed but nice to have.

I figured it would work out something like that. So as a generic example it works out like this:

Agency pays 10 per hour, 7 of which is untaxed due to stipends and incidentals. However living expenses can't be deducted.

Facility pays 13 per hour but all 13 is taxable. You can turn around and deduct your expenses however.

In the end it's a math game as usual depending on the compensation offered, and the tax limits based on the area. Generally speaking using the agency works out better. Your comment about having that buffer may be as valuable as you mentioned considering it usually protects you from getting LCD'd, not sure if a direct hire travel position offers that protection.