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Travel Nursing2019-01-25T15:39:25-07:00

Travel Nursing

Tax Advantage FAQs

What is the tax advantage program?2019-01-22T14:21:40-07:00

Our tax advantage program provides a way for you to keep more of the money you earn. While other nurse staffing companies have started offering similar programs, Haven HHC has been offering these valuable tax advantages for years!

What type of facilities will I work at as a travel nurse?2019-01-22T14:22:12-07:00

For your travel nursing needs Haven HHC has a variety of opportunities—large to small hospitals, major metro areas to rural communities—and of course, access to the nation’s top teaching facilities. With travel nursing, choosing a fast-paced lifestyle or a quiet, peaceful environment is as simple as discussing your preferences with your Haven HHC recruiter.

Will I need more than one license as a travel nurse?2019-01-22T14:24:40-07:00

You must have a current nursing license in the state of your assignment. Haven HHC reimburses the full amount of the licensing application fee.

How are the hourly rates for each travel nursing assignment determined?2019-01-22T14:25:09-07:00

Rates vary with the cost of living for the area. You’ll often find travel nurse hourly rates are higher than staff nurse rates due to shift differential, weekend differential, charge pay and other factors.

Are travel nursing assignments always 13 weeks in length?2019-01-22T14:26:14-07:00

Thirteen weeks is the travel nursing industry standard, but with RN Network you can often choose 4- to 26-week assignments. Occasionally, 52-week assignments are available.

How do your benefits compare to other travel nursing staffing companies?2019-01-22T14:27:05-07:00

We are proud to bring you the most comprehensive and customized benefits package in the travel nursing staffing industry. We offer day-one PPO coverage, with a ZERO premium option. In addition to top pay, we offer a large list of additional benefits and bonuses for your travel nursing career. See our Travel Nursing benefits section for details.

Travel Tax Rules FAQs

What are the requirements for receiving travel benefits (meal per diem, housing and transportation)?2019-01-22T14:27:48-07:00

In order to receive travel benefits, we must expect that the travel nurse will incur travel costs and that his or her work assignment must not be within commuting distance the tax home.

What are the requirements to qualify for tax-free travel benefits?2019-01-22T14:28:18-07:00

There are three main tax rules that must be met for these travel benefits to be nontaxable compensation. 1) The travel nurse must have a permanent tax home. 2) The assignment must not be within commuting distance of the permanent tax home. 3) The assignment including extensions may not extend beyond one year. The first rule is complex and can be quite subjective depending on the travel nurse nurse’s facts and circumstances. More detailed information for all three rules is available in the Assignment Contract Package and on rnnetwork.com.

What are the consequences if one or more of these rules are not met?2019-01-22T14:29:43-07:00

If the travel nurse fails to meet the first rule, all travel benefits must be treated as taxable compensation from the beginning of the assignment. The taxable compensation would include all meal per diems, housing allowances or company paid housing costs, and mileage reimbursements. This compensation would be subject to applicable payroll tax withholding. If the travel nurse maintains a permanent tax home and the assignment is within commuting distance of that tax home, no travel benefits will be paid because it is not reasonable to believe those costs will be incurred. If the one-year limit rule is failed, all of the travel benefits must be treated as taxable compensation as soon as it becomes known that the one-year limit will be exceeded. Generally, it is considered known at the time of the signing of the assignment extension that will make the total length of the assignment (plus extensions) beyond one year. The taxable benefit treatment goes into effect on such signing date and would continue through the remainder of the extended assignment.

When must the Tax Home Representation form be completed?2019-01-22T14:30:39-07:00

The Tax Home Representation form must be completed prior to commencement of the travel nurse’s first assignment, upon the extension of the assignment, and whenever the travel nurse executes a new Professional Services Agreement. The form should also be completed whenever there is a change in the travel nurse’s tax home status. The travel nurse should retain the Tax Home Determination worksheet.

Who makes the final determination on whether the travel nurse has a permanent tax home?2019-01-22T14:33:15-07:00

Because the determination of the tax home status is sensitive to the facts and circumstances of the travel nurse and can be highly subjective, the travel nurse (in consultation with his/her tax advisor) must make the final determination and does so with the execution of the Tax Home Representation Form.

Who monitors the commuting and one-year limit rules?2019-01-22T14:33:46-07:00

The recruiter with the consultation of the Payroll and Tax Departments should monitor both of these rules and inform the travel nurse of the status since the tax treatment may be a critical factor in determining whether the travel nurse accepts the assignment or assignment extension. The one-year limit can easily be evaluated prior to each assignment extension, and the time and distance criteria for commuting can be determined from Internet mapping sites such as MapQuest.

Why is the Housing Allowance Representation Form required?2019-01-22T14:34:17-07:00

In order to pay a tax-free housing per diem, not only do the requirements listed above need to be met, but the company must also have a “reasonable belief” that temporary lodging expenses are actually incurred by the travel nurse while away from their tax home on assignment. This form provides “reasonable belief”.

What is the purpose for the travel reimbursement form?2019-01-22T14:35:07-07:00

The form is designed to document the “business” mileage driven by the travel nurse so that the travel allowance paid can be treated as nontaxable compensation. “Business” miles include the miles to and from the tax home, to the assignment housing, and the workday round trip from the assignment lodging to the client’s worksite. As long as the form is completed in a timely manner and the travel nurse meets the three tax rules (1. has a tax home, 2. assignment, including extensions, is less than a year, 3. assignment is not within commuting distance) the reimbursement will be treated as a non-taxable reimbursement.

When and where should the travel reimbursement form be submitted?2019-01-22T14:35:42-07:00

The Travel Reimbursement form should be submitted shortly after completing the trip from the tax home to the assignment housing and shortly after returning home or driving directly to the next assignment. Nurses must submit the forms via fax to 866-55-HAVEN (42836)

When will the reimbursement payment be made?2019-01-22T14:36:46-07:00

The allowance will be paid with the next regular paycheck if received by the payroll department on the Friday morning prior to the travel nurse’s regular pay day.

What if the nurse does not return to their tax home after the assignment, but instead drives directly to a new assignment?2019-01-22T14:38:05-07:00

The travel nurse should submit the Travel Reimbursement form claiming the mileage driven from the ending assignment to the new assignment.

What is the purpose for the travel reimbursement form?2019-01-22T14:38:36-07:00

The form is designed to document the “business” mileage driven by the travel nurse so that the travel allowance paid can be treated as nontaxable compensation. “Business” miles include the miles to and from the tax home, to the assignment housing, and the workday round trip from the assignment lodging to the client’s worksite. As long as the form is completed in a timely manner and the travel nurse meets the three tax rules (1. has a tax home, 2. assignment, including extensions, is less than a year, 3. assignment is not within commuting distance) the reimbursement will be treated as a non-taxable reimbursement.

What is the maximum travel reimbursement amount?2019-01-22T14:39:05-07:00

The travel cap limit will be predetermined for each assignment.

Who can respond to the travel nurse’s travel reimbursement questions?2019-01-22T14:39:27-07:00

The recruiter or the Payroll department should be able to respond to all such questions.

Is state income tax withholding required for the worksite state(s) and/or my state of residence (home state)?2019-01-22T14:40:11-07:00

Most states subject travel nurses to taxation in the state where the work is performed regardless of the travel nurse’s state of residence. Generally, there is no minimum work period in terms of days or weeks to avoid the worksite state taxation. Worksite state withholding might not apply if the income is below the state’s minimum amounts, but this is unlikely for a travel nurse’s compensation level, even for just a week. Certain neighboring states do have reciprocity agreements where the states agree the worksite state will not require withholding of income tax from compensation paid to a nonresident. State withholding will be made for the worksite state unless your home state and worksite state have a reciprocity agreement. Where the worksite state has no income tax or has a tax rate lower than your home state, your home state may require withholding to the extent their tax rate is greater. Certain home states may require full income tax withholding regardless of the treatment or magnitude of the withholding in the worksite state; this amounts to double tax withholding. This double tax withholding should be partially or fully eliminated through tax credits claimed on the home state annual income tax return (see discussion below).

Am I required to file a state income tax return in the worksite state(s)?2019-01-22T14:41:11-07:00

Travel nurses will generally be required to file a state income tax return for the worksite state if it has a personal income tax. Assuming you are claiming an appropriate amount of exemptions on Form W-4, the required withholding on your compensation should approximate the return liability so that any payment or refund due on the return should be minimal. Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington, and Wyoming do not have an income tax on personal services (wages).

What income is taxed in my home state and the worksite state(s)?2019-01-22T14:41:38-07:00

Only the compensation a travel nurse earned from an assignment in the worksite state should be subject to tax in the worksite state. However, generally all income you earn (including out-of-state compensation) will be subject to tax in your home state. Your home state will generally provide you a full or partial credit for the taxes paid to the worksite state(s). The credit process on your home state tax return should partially or fully eliminate the double tax, except to the extent the worksite state has a higher tax rate than your home state.

Won’t my working in multiple states make my year-end income tax return filings more complex?2019-01-22T14:42:57-07:00

Yes, travel nurses may have state income tax filings in two or more states including their tax home state. If you are a tax savvy do-it-yourselfer, reasonably priced tax compliance software can expedite the process. Otherwise, we recommend you arrange for a tax professional to prepare these returns on your behalf. Each non-resident state filing might add from $25 to $150 to their fees.

Will my state of residence be challenged by the state taxing authorities?2019-01-22T14:43:48-07:00

Possibly. Although the state taxing authorities generally follow federal rules, it is possible a worksite state might contend they should be reported as the tax home state requiring you to file a “resident” income tax return (as compared to “non-resident” return) in their state. This might be particularly true if you work most of a year or more in a single state and you have substantial other income that would be subject to tax as a resident. Due to subjective facts and various residency rules for each of the states, this matter is beyond the scope of this brief discussion. You should consult with your tax advisor if you believe this issue might apply to you.

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