Travel nursing is a great way to experience new cities and adventures. From top research hospitals to rural community centers, each assignment offers nurses new experiences that showcase their adaptability and build life skills that make them stronger nurses. However, it’s important to understand what makes travel nursing lucrative before pursuing a contract. This includes understanding what perks travel nurses enjoy in their pay packages.
Expenses
The travel nursing pay breakdown clearly illustrates the allocation of compensation, including hourly wages, stipends, and bonuses and depending on the state and area you are traveling to for your assignment, travel nurses often receive generous reimbursements or grants that can help cover the costs of meals, lodging, transportation and other miscellaneous expenses. As a travel nurse, it’s essential to carefully keep receipts of all your reimbursements and deductions to file accurately at tax time. Another way to save on living expenses as a travel nurse is to choose an area with a lower cost of living than your home base. Travel nurses who can find less expensive housing than their stipend can keep the extra money for leisure activities or savings. Many travel nurses also save on expenses by using the many local nurse discounts offered by restaurants, gyms and other businesses that recognize healthcare workers as a valuable asset to their company. Many travel nursing jobs offer shift differentials or additional hourly payments for night or holiday shifts. These other hourly rates can add up quickly and significantly increase your total income. When negotiating your contract, it is important to consider whether or not you will need to take these overtime hours into account when calculating your overall pay package. Using a time and a half calculator can give you a clearer picture of how those overtime hours will impact your total compensation.
Per Diem Allowances
If you’re considering travel nursing, a big part of your compensation package will be the per diem allowances you receive. This tax-free amount covers lodging fees and incidental expenses while on assignment.
The stipend amount will depend on the location of your contract and is usually set by the GSA (General Services Administration). This agency sets rates for federal employees who travel on government business.
Travel nurses often get confused when they hear the term “per diem” because it’s sometimes used differently, but when speaking of travel nurse pay packages, the GSA rates matter. The stipend is included in the bill rate, which the hospital agrees to pay the staffing agency for one hour of a travel nurse’s time. Most travel nursing agencies include a housing stipend with their contracts, but choosing an assignment that does not provide this service is possible. If you are on a project that does not offer a housing stipend, you’ll be expected to save receipts and request reimbursement through the agency. Many travel nurse jobs are per diem, meaning they do not have guaranteed shifts or hours. These positions are designed to fill in when hospitals have temporary shortages or surges in demand. This allows nurses to find work that fits their needs without committing to a full-time position.
Taxes
A clear understanding of travel nursing wages, benefits, and taxes is crucial for nurses to ensure they get the most out of their contracts. Knowing the ins and outs of pay rates, bonuses, tax-free stipends, and housing reimbursements can help nurses set themselves up for financial success on their assignments. As a travel nurse, you may be required to declare a tax home, depending on the location of your assignment. The IRS defines a tax home as “the place you maintain as your primary home, regardless of where you work.” This will be their permanent family home for most travelers, but for some, this could mean a different location. Determining a tax home is important because it determines if your housing stipends are taxable. Some travel nurse agencies will provide travel nurses with housing, whether a furnished apartment or a short-term rental. These are generally within walking distance of the hospital. Nurses should keep receipts and a log of expenses, as this can be used to prove they are living away from their tax home to claim nontaxable housing stipends.
Deciphering travel nurse pay structures and taxes can seem overwhelming, but many resources are available to help travel nurses navigate the ins and outs of their assignments. Travel nurses can also seek expert guidance from a tax advisor to ensure they file their taxes correctly.
Insurance
Travel nurses are usually given their assignments well in advance, giving them time to research the location and prepare for the upcoming contract. They can also request days off or work around family vacations and holidays.
Those looking to travel more frequently may want to find a travel nursing agency that offers premium health benefits. Some agencies even find nurses housing and pay for utilities. Some travel nurses stay in the same area for several contracts, while others take on shorter assignments with different locations throughout the year. As a travel nurse, you often work in unfamiliar environments and learn new skills at each assignment. This experience will show potential employers that you are adaptable and flexible, a valuable asset for any nurse seeking a permanent job. While the lifestyle of a travel nurse has many perks, it can be lonely for those who enjoy being close to friends and family. If you plan to travel, try to schedule contracts close to your hometown or consider finding a coworker to travel with. You should also arrange to visit family and friends between contracts. If you are a solo traveler, seek out other travelers and rent rooms together when possible. This will give you quality alone time and help prevent loneliness while on assignment.
