Guide to Travel Nurse Stipends

What Do You Need to Know About Travel Nurse Stipends?

Do you have any questions about the idea of travel nurse stipends? This is your one-stop resource for learning about stipends for traveling nurses and their employers. It includes:

• How do they work?

• How much are they for 2023?

• Which is better: stipend or agency-provided housing?

• Do they cover housing on the days nurses don't work?

Although the idea of a stipend is not new, it can be unclear at times. Here is our comprehensive guide to travel nurse stipends for traveling nurses and their employers, to help you better understand it and how it operates.

How Do Travel Nurse Stipends Work?

Nurses typically get stipends from their staffing agency when they travel for work, unless their employer covers the cost of their accommodation outright. Nurses are frequently offered an option between the two.

In addition to money for housing, stipends can also cover the cost of food and other incidentals. (While some staffing companies repay these expenses later, others pay for meals and incidentals up front.)

Housing fees are paid weekly, bimonthly, or monthly, depending on the agency, but they are never paid in installments. Additionally, stipends are classified as non-taxable income if the travel nurse maintains a "tax home" abroad as part of the complete remuneration package for travel nurses. The nurse's principal house or location of employment may be considered their "tax home."

Were you aware?

Many individuals think that you have to work at least fifty miles from your current residence in order to qualify for a tax-free stipend. It's a myth. For travel nurse stipends, the IRS does not impose a mileage cap or stipulate a minimum mileage requirement.

A larger stipend and a lower taxable wage or a greater taxable wage and a smaller stipend are options that many agencies give nurses. If travel nurses choose to forego the higher stipend in favor of the lower wage, their tax obligations will be reduced.

Reducing taxable wages can also help an agency's bottom line, but any salaries given must adhere to IRS guidelines for fair wages. For the agency and the nurse, this can work out well as long as IRS regulations are followed.

What is the Travel Nurse Stipend for 2023?

There is no set amount for the housing stipend for travel nurses; instead, it varies by state and city. Staffing companies set their own rates for stipends, typically using the following criteria:

• The bill rate that the hospital agrees to pay

• IRS guidelines

• GSA rates established by the General Services Administration

All of the costs incurred by the agency to hire a travel nurse are included in the bill fee. This includes the wages, benefits, employee payroll taxes, stipends, and expenses related to obtaining the necessary credentials for a traveling nursing job. The profit of the agency is also included.

The federal government determines the GSA per diem rates, which represent the "reasonable" cost of housing in a specific location. Rates are subject to vary annually and are determined by a number of criteria, including the cost of living and current housing expenditures.

The following provides an overview of the regional variations in permissible housing expenses, with amounts stated per night:

• New York, New York:  $220

• Los Angeles, California:  $182

• Richmond, Virginia:  $145

• Orlando, Florida:  $129

• Bismarck, North Dakota:  $98

Despite these guidelines, most agency stipends pay less than the maximum amount allowed by GSA rates.

Which is Better: A Housing Stipend or Agency-Provided Housing?

There are several advantages for nurses who select a housing stipend over living in accommodation supplied by the organization.

First, although they are not required to use all of their stipend, nurses must use it for housing. Many nurses cut costs while renting short-term lodging, such an extended-stay hotel, and save the difference or use it to pay for other living expenses. Only if the agency has no restrictions on doing so is this feasible.

The ability for nurses to select their own housing alternatives and place of residence is another advantage of the stipend. Since they won't be forced to live alongside coworkers if they so choose, this gives them greater privacy options.

Agencies stand to gain from both paid housing and stipend offerings.

One advantage of the stipend for agencies is that it allows nurses to reside wherever they like. It also removes the requirement for the agency to make housing arrangements.

An additional advantage of the stipend is that in the event that the nurse cancels the contract with good reason, the nurse will be responsible for covering any rent that they signed or committed to pay with their stipend. The agency won't be held accountable in this case.

The primary advantage of providing accommodation through an agency is that the agency may be able to make less weekly expenditures than the weekly stipend permits. This is a major factor in why some staffing companies favor this choice since it can boost the agency's bottom line.

Do Travel Nurse Stipends Cover Housing on the Days Nurses Don’t Work?

Yes, is the succinct response.

If a nursing post has a stipend, it covers living expenses for each day of the contract, whether or not the nurse takes time off for weekends or vacations to visit family or other destinations.

Remember that nurses may not get paid for days when they are not compensated if they skip or cancel shifts. Stipends are broken down into hourly rates by agencies, and the nurse's bill rate includes that amount of remuneration.

If the nurse decides to take unpaid absence, there is no billing rate. Nonetheless, the stipend will still be paid in the event that the hospital cancels a shift and the nurse is not at fault.

Frequently Asked Questions

How Do Travel Nurse Stipends Work?

Travel nurses who work for staffing agencies frequently get stipends to help with lodging, food, and other incidentals. The total amount of housing charges, which varies depending on the agency, city, and state, is paid all at once.

How Much is the Travel Nurse Stipend for 2023?

The travel nurse stipend in 2023 will have no set amount. Staffing companies set the stipend based on GSA rates, IRS requirements, and the bill rate that was agreed upon with the hospital. The GSA has defined a range of acceptable housing prices, which for Bismarck, North Dakota, is $98 per night, and for New York City, it is $220.

Do Travel Nurse Stipends Cover Housing on the Days Nurses Don’t Work?

Yes, travel nurse stipends usually cover housing costs for every day of the contract, regardless of whether or not the nurse has days off or takes time off. However, nurses may not receive a stipend for missed or canceled shifts, as stipends are based on an hourly rate that is taken from the bill rate.

Conclusion

In conclusion, non-taxable reimbursement for housing costs incurred while on assignment is offered by travel nurse stipends. They can include extra payments for incidentals like meals, and they vary based on the agency and the region.

Stipends provide nurses with financial security, privacy, and flexibility. They simplify housing arrangements for agencies and may even increase profitability.