They say that in life, there are only two things that are certain: death (yuck) and taxes (even more yuck). But if you happen to be a traveling healthcare professional, there is a third certainty in your lifetime, and that third certainty is that your paycheck is guaranteed to confuse at least one person when you show it to them.
This is the case because for traveling healthcare professionals, the job is extremely complex, and with that comes an even more complex pay. And then Tax Day? It can feel incredibly daunting to think about.
Especially if this is your first ever year at being a traveling nurse, we want your dreaded Tax Day to be as pain free as possible. The secret weapon for this painless dream is to be able to actually understand how you are getting paid. Once you can wrap your head around that, it goes from being very, very confusing to remembering why you became a traveling healthcare professional, and why being a travel nurse is absolutely worth your while.
Breaking Down a Travel Nurses’ Income
Here is the most important thing to know right up front: travel nurses do not usually get a straight paycheck like most staff RNs. A staff nurse works 36 hours and then proceeds to get paid for said 36 hours. For them, it is pretty simple really. However, that is most definitely not the case for travel nurses. Contrastingly to most staff nurses, travel nurses get paid in portions. Some of these portions are taxable, some are not. This means that overall, you end up getting more take-home pay overall. That is why it is so important. A straight paycheck is 100% taxable, but when portions of it are non-taxable, it means that you are then able to keep more of it for yourself (which is always a good thing).
Travel Nurse Base Pay
Travel nurses do earn an hourly wage. This can vary based on your location and your wage may also be affected by what stipends and non-taxable compensation you receive.
Non-Taxable Compensation
As a traveling nurse, you have some expenses that a usual staff nurse does not. For example, you need a place to sleep that is not just your parents’ creepy basement. You also need some food to live off of that is not just vending machine granola bars. You also, of course, actually had to travel all the way to your assignment, which can sometimes be making your way all the way across the country.
For example, let’s say you earn a base pay of $30 per hour. This is not the only financial compensation you will receive as a healthcare traveler. There are various per diem allowances and reimbursements that will apply to added expenses, like your weekly meals, monthly lodging expenses, and a one-time travel reimbursement.
These extras aren’t usually taxable, but they will factor into what is known as a healthcare traveler’s “blended pay,” which is their rate per hour once all those forms of compensation have been taken into account.
Calculating Blended Pay
Let’s just take that example base pay rate of $30 per hour and see how it would be affected by bringing non-taxable reimbursements into the picture over the course of a 13-week assignment:
- Base Pay = $30 per hour
- Per Diem = $200 per week for 13 weeks—$2,600
- Lodging = $500 per week for 13 weeks—$6,500
- Travel Reimbursement = $500
Altogether, those non-taxable factors total $9,600. Over the course of that 13-week assignment, let’s say you work an average of 40 hours a week. You would be earning an additional $18.46 per hour. When combined with that base pay, the blended rate for your assignment would be $48.46.
Additional Considerations
What we just covered above was just one theoretical example of the many possibilities of how the numbers might break down in real life. It is important for you to note that healthcare travel agencies can differ in terms of how they will pay their employees.
- You will need to gain a clear understanding of how much their reimbursements are structured and how they factor into your blended pay.
- Remember that the blended pay rate is often what you will see advertised by healthcare travel agencies.
- You should also consider that some agencies offer flexible pay packages, which means you can select particular benefits of your choice that factor in your total compensation.
Though it may seem like there are grey areas, there are actually clear-cut rules in qualifying for tax-free deductions and stipends, such as maintaining a “regular abode,” (your permanent residence) vs. your short-term housing. You can learn more about the specifics by reading BluePipes, which is a free networking and career management platform built for healthcare professionals, including travel healthcare professionals.
The many variables that factor into how you are compensated as a healthcare traveler can be extremely confusing at first and may even feel overwhelming. Base pay, per diem, lodging, blended rate, it is all a lot to try and wrap your head around. However, once it clicks, you will realize that this is exactly who being a travel nurse is such a rewarding job. You are getting paid to cover the cost of living in a new and exciting city, with the freedom to explore and immerse yourself in a new environment. You are able to adventure into places you’ve never been before and try things you never knew existed. It is an amazing opportunity to travel to places and find hidden gems you may never have found otherwise, rather than being stuck on one until forever. The amazing guidance that you’ll receive at Triage is part of the reason why so many choose us. Be sure to check out our job search page to see what’s available and consider joining our team.