fbpx
Menu

Financial

Pay Packages Explained

Understanding Pay Packages for Traveling Nurses 2021

,

 

Understanding Travel Nursing Pay Packages Taxed Wage, Variable Wage, Stipends... We're here to break it all down.

Updated July 21, 2021

Tax Free Stipends (Per Diem)

When you first start out on your traveling career, you may find yourself confused by the way travel nursing pay packages break down.

Taxed hourly, variable hourly, stipends, travel reimbursement…there are a lot of factors that come in to play when figuring out how much you will be paid weekly.

Sample Breakdown of a Travel Nursing Pay Package


What you hear: $47.92/hr variable.What your contract shows:
Taxable Hourly: $18/hr
Housing Per Diem: $770/wk
Meal Per Diem: $427/wk
Guaranteed: 40 hours a week

It’s easy to understand why there could be some confusion seeing $18/hr on your contract when you remember hearing $47.92/hr from a recruiter.  That’s where the variable rate comes in to play (taxed + untaxed hourly wage variable together.).  Here’s the formula to find your variable hourly rate.

Taxable Hourly * Guaranteed Hours = Taxed Weekly Income
Housing + Meal Per Diems = Untaxed Weekly Income

Now we have our Taxed Weekly Income and Untaxed Weekly Income, let’s add them together.

Taxed Income + Untaxed Income = Weekly Gross Income
Weekly Gross Income / Guaranteed Hours = Variable Hourly Rate.

To figure out your variable rate for the example contract above we would follow the same formula:
$18 * 40 hours = $720 Taxed Weekly Income
$770 + $427 = $1197 Untaxed Weekly Income
$1197 + $720 = $1917 Weekly Gross Income
$1197 / 40 hours = $47.92 Variable Hourly Rate.

So now you know how the contract breaks down, but why do the contracts work this way?

Taxable Wage - $18/hour

Let’s start with the basics, and something we’re all familiar with – Taxable Wage. This is your base pay, and is used in tandem with your tax free stipends to create your variable wage.  This is the only portion of your wages that you will be paying taxes on.  Typically this will be lower than what you are used to seeing from local/perm positions.

Tax Free Stipends (Per Diem)

Traveling medical professionals are provided with tax free monetary incentives in the form of housing, meals, and incidental stipends.  These stipends are not technically classified as income, but rather reimbursements, which means they are non-taxable.

Other Reimbursements

Stipends are just one of the multiple ways nurses and other medical professionals are incentivized to travel.  Other common incentives are travel reimbursement, sign on bonuses, referral bonuses, continuing education credits, and so much more. 

All of these factor in to how much you’ll make on your assignment, so they should all be taken in to consideration when looking for a good fit.  Be sure to check out cost of living in your area, decide if you’ll be flying or driving, and work with your recruiter to find the best contract for your situation.

Discover available travel nursing positions today!

Ready to connect with a recruiter?

Fill out our quick app and you’ll be on your way!
Get Started!

Want more excellent resources on Travel Nursing Pay Packages?

Here is a great sample with explanations on how pay packages work for travel nurses.

Learn how travel nurses’ taxes work and what you need to know when traveling.

marvelTraveler1

The Benefits Of Being A Marvel Traveler

, ,

Whether you are a new grad or a seasoned practitioner considering a change in scenery, Marvel Medical Staffing can help you start as a Marvel Traveler.

 

1) Quick and easy hiring process.

Over the years, more and more OT, PT, SLP, PTA, and COTA graduates continue to fill gaps in the job market.  Our team of expert staffers at Marvel are here to help you navigate your way through the entire hiring process.  From choosing a location, all the way until your first day, our Marvel agents will help guide you through the process and make it as easy and stress free as possible for you.  There are a lot of Medical Staffing Agencies out there.  We pride ourselves on the level of support we bring to our Marvel travelers.  It doesn’t matter if this is your first placement or your twentieth, we are proud of the 1 on 1 support we offer – when YOU need it most!  We can help with your application, housing, traveling, and anything else that may come up along the way.  With Marvel, you are never alone!

2) You have a whole team in your corner.

While you are on contract, you have a direct line to your Marvel agent to answer any questions you may have, and offer any assistance you may need.  Your agent will check in with you to make sure everything is running smoothly, you will have access to our social groups full of Marvel Travelers just like yourself, and you have a whole team to back you up when you need it.  Traveling to a new location and work environment can be difficult, and Marvel Medical Staffing is here to make it easier.  You are a Marvel. You change peoples lives for the better every single day. We handle the details to make sure you can focus on being YOU!

3) High turnover in the Medical Field

According to InvestingDoc, most new doctors do not last more than a few years at their first job.  40-70% of people will end up switching within 5 years of starting their first job, and the average professional ends up changing jobs every 2 1/2 to 3 years!  Hospital Medicine tends to have a very high job turnover rate when compared to other professions.

You may find yourself searching for new employment opportunities after spending a few years away from the job-hunt game, and not know where to begin.  Marvel Medical Staffing knows the current needs and trends within the medical industry.  Working with an agency can get you placed fast and where you are needed most!

So…why should you choose Marvel Medical Staffing as your agency?

We are HUMBLE.

We built our company upon the foundation on our main concepts of Be Humble, Be Driven, Be Smart. We’ve decided to do this so we can do it our way. The right way. Focusing on service, transparency and knowing the industry so we can do our absolute best and be a Marvel. Our definition of Marvel is “A wonderful astonishing person or thing”. The person we are referencing is everyone on our team. This includes you, the person on our website wondering if Marvel is the right fit for you.

We are DRIVEN.

Driven is a key factor that supports being humble. Humble AND Driven combined create an equation for success. It creates a formula that equals selfless movement. This insures we are working with determination and focus on everyone in our team. We are doing everything we can to create the best experience for everyone. There are so many moving parts for every contract and we are determined to master each and every task to insure it’s smooth and easy. You will find that your experience with Marvel is just that, “a wonderful astonishing person or thing.”

We are SMART.

We added smart for so many reasons. Being smart encompasses the ideals we need to be successful. Being smart means more than just having knowledge. For us, it also means being able to use that knowledge for the good of our team. With our industry there is a lot of moving parts. If we are smart we will handle each task with intelligence. Doing the right thing each time, every time. This also mean continuous improvement, and always striving to do things better. Become a Marvel traveler today!

 

Be a Marvel Traveler.  Follow the link below to get in touch with us today!

Start Your Adventure Today!
The Benefits Of Being A Marvel Traveler