Its all very new to me. Well, time is how revenue is generated. You’re very welcome and thank you! This is the best thing I have read about my profession since I started travel nursing! For example, if your travel nursing pay is $60 per hour and fully taxed- you can deduct 20-25% of the rate for taxes (varies based on your annual income, dependents, and state of employment). We actually have a free eBook on negotiating. You would take home $594 of your taxable income, in addition to the $1368 per week in stipends. Claiming a permanent tax home means that you are telling the IRS that you have duplicate expenses. For example, in this scenario if your rate is $60 per hour, you will most likely only be taxed on $17-$23 per hour, depending on the state and facility. However, agencies may also offer rental cars, 401ks, tickets to the Giants game, and many other offerings. They incorporate many variables that are not common in traditional compensation packages. Strike-break nurses can bring in pay at or above $75 per hour. Here is … As we’ve discussed previously, the travel nursing pay package is like a pie. Now we’re left with the tax-free reimbursements and benefits that the agency can potentially provide. Keep up the good work. When travel nursing companies advertise pay rates, they will often tell you a blended rate. That’s the $15 gross profit divided by the $70 bill rate. This means, you will take home $45-$48 per hour on the example $60/hour rate. If you divide $1368 (stipends) by 36 (the number of hours you are working), the result is $38 per hour worked. As a result, they’ll be better able to spot good deals versus bad and ultimately end up making more money!! Yes, the $22 an hour seems low for nursing pay, but that’s ok for a travel nurse. Again- you will only be taxed on the $22/hour “base rate”. I think it’s best to view it like any other job. Verify this in advance and negotiate for more if you feel it is appropriate for the assignment. You can ask for the bill rate. Different agencies classify costs in different ways and account for them in different ways. These costs are commonly referred to as “Burdens”. Travel nurses can use this information to inform their negotiations. If it’s in the contract, then the fee is typically 2%-3% of the bill rate, sometimes less. We’ve also provided details on how best to compare travel nursing pay packages. Therefore, their gross profit margin would be 22.09%. However, we will be accounting for all costs so our calculations will ultimately end up in the same place. . The contracts typically require both Professional and General liability insurance. Visit PayScale to research travel nurse (rn) hourly pay by city, experience, skill, employer and more. I’m glad to hear the article is useful! April 16, 2020 by Claire. I grew up in the northeast but enjoy every corner of the country. In the mean time, here are some links that might be of use (you may have seen them already, but just in case). They incorporate many variables that are not common in traditional compensation packages. If you are taking tax-free allowances, your OT rate may only be 1.5x your hourly taxable rate (that low number you saw above that makes all first time travel nurses cringe- until they understand the stipend system). We’re glad to hear the information is useful. Remember, agencies bill hospitals by the hour. Travel nursing agencies typically strive to obtain gross profit margins between 20% and 25%. A travel nurse can only receive tax-free stipends if they are responsible for costs while traveling, and are also contributing a ‘fare market value’ towards cost of living in their home state. Thanks, Elizabeth. If you use the 25% tax rate, that means $198 will be deducted from your base pay. Congratulations on your first assignment, Michelle. Last modified April 16, 2020. I see many travelers these days saying you shouldn’t work for less than $1500 net (not including free housing) outside of California and $2000 net in California for a 36 hour/week contract. Tweet.