Understanding Travel Therapy Pay
Travel therapy pay is a unique way to earn extra income while seeing the world and helping new communities.
As a travel therapist, you can earn anywhere from $18 to $50an hour on a travel assignment.
This is in addition to the tax-free housing stipend and meal per diem paid out daily for meals and incidentals.
Pay for travel therapy assignments is affected by factors such as location, experience, position, and specialty.
What is the Average Pay for Travel Therapists?
Occupational, speech, and physical therapists can earn $18 to $50 an hour on a travel assignment.
OT and PT assistants typically earn $15 to $20 an hour on a travel assignment.
Pay is in addition to the tax-free housing stipend and per diem paid out daily for meals and incidentals.
How Travel Therapy Pay Works
Travel therapy pay is a combination of taxable pay and untaxed money (stipends for housing, meals, and incidentals).
Since part of the money is untaxed, this leads to significantly higher net pay for a travel therapist.
Examples of each scenario illustrate the pay differences between travel and permanent positions.
Breakdown of a Typical Pay Package
A typical pay package for a travel therapist includes hourly pay, meals and incidentals, and housing stipends.
The taxable hourly rate should be a reasonable amount for the job position to avoid “wage recharacterization.”
The IRS defines wage recharacterization as avoiding taxes by changing compensation from a taxable hourly wage to a nontaxed stipend.
How Stipends Work
The GSA determines the maximum allowable stipends for housing, meals, and incidentals in different areas throughout the country.
These numbers vary drastically depending on the area of the country due to variance in the cost of living.
Travel therapists should consult the GSA.gov website before accepting a job offer to ensure stipends are not above the maximum amounts.
Cost of Living and Housing Stipends
Cost of living is defined as the total amount of money needed to live in a particular area.
Expenses that factor into cost of living include housing affordability, transportation, food, and entertainment.
Cost of living varies from state to state and region to region.
Regional Cost of Living Differences
The cost of living in different regions can affect the amount of housing stipend you receive.
For example, the cost of living on the west coast is typically higher than on the east coast.
Travel therapists should research the cost of living in their assigned area to ensure they receive a fair housing stipend.
Factors Affecting Travel Therapy Pay
Location, discipline, setting and experience are factors that can affect travel therapy pay.
Travel therapists can earn more in certain locations, such as rural areas or areas with a high cost of living.
Discipline and experience also play a role in determining pay, with physical therapists typically earning more than OT and PT assistants.
Agency Support and Benefits
Staffing agencies like CompHealth for example have access to a large number of job openings and can find one that matches each therapist’s needs. There are over 400 travel agencies
Agencies may provide assistance with housing, insurance, paperwork, and more.
They can provide reimbursement for licensing, which is particularly beneficial for travel therapists.
What Agencies Pay For
Most travelers prefer to receive a stipend and coordinate their own housing, but agencies also have a housing department to help.
The agency pays for any necessary licensing, paperwork, lab tests and malpractice insurance.
Negotiating Your Pay Package
Travel therapists can negotiate their pay package to ensure they receive a fair deal.
Travel therapists should research the pay rates in their assigned area to ensure they receive a fair pay package.
Travel therapists should review pay packages carefully to ensure they understand all the components.
Tips for Travel Therapists
Travel therapists should understand the tax implications of their pay package.
The IRS requires a portion of income to be taxed, depending on discipline and status.
Travel therapists should consult with a tax professional to ensure they understand their tax obligations.
Reporting Stipends and Benefits on Your Taxes
Travel therapists should report stipends and benefits on their taxes.
The IRS requires a portion of income to be taxed, depending on discipline and status.
Travel therapists should consult with a tax professional to ensure they understand their tax obligations.
Conclusion
Travel therapists should research the pay rates in their assigned area to ensure they receive a fair pay package.
They should also consider factors such as location, discipline, and experience when negotiating their pay package.
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