The Real Deal on Pay Packages and Pay Checks
Learning to research various pay packages that are quoted for CNA travelers is going to be vital knowledge to have in order to be a happy traveler! When having packages quoted to you it can be difficult to keep the different numbers straight or to even understand the quote in terms of what you are really making. Travelers should be doing proper research on locations and pay packages and housing cost, etc. If not, when they get their first check on their assignment they will be very disappointed. I have tried to provide them with the resources to do the research, but they are either not listening, or they are getting caught up in the travel part. Hopefully this will educate them.
Calculating your weekly pay, true hourly pay or contract length earnings can seem daunting. I have provided the link to the best resource that works for running the calculations, but it is still not being used. Some travelers do not understand "Bill Rates" and that agencies are truly not "getting rich off of travelers". Trust me when I say that Bill Rates are such a grossly misunderstood topic.
Agencies, Bill Rates and Contracts
Many times, we have tried our best to explain that there is so much that goes into running an agency. Agencies are running a business. We should be aware of and remember that your agency literally has zero control over the Bill Rate. Those are set by the facility, or VMS.
Agencies do, in fact, have a profit margin that they set for a portion of those bill rates. Out of that profit margin they must pay things such as liability and malpractice insurances, as well as the employer portion of payroll taxes and things such as license reimbursement. *Did you know that we may be paid every Friday, however, the agencies are not? (It can take up to 60 days (sometimes less, sometimes more) for them to get the money that they have already paid out to you. Those things are not always known by travelers.
Pay Package Breakdown- Numbers do not lie
Travelers that signed a contract to make, for example, $6-8 per hour taxed and $200.00 per week in tax free stipend and have also asked that travel, housing and car rental be included as part of their pay package in order to accept the contract - they are doing themselves such a misjustice when that first paycheck gets deposited and its just under $500.00 if they have not taken into consideration that they (the traveler) are actually paying for those inclusions. They may not realize they are paying for those, and perhaps some recruiters are not explaining it that way. If you are asking for everything under the sun, the sun is not free. Your housing is provided? That's great. Your car is provided? That's great! It really is. For some eliminating the hassle of having to find housing, for example, just makes being a traveler less stressful. Just remember that each thing you are asking for is really something you are paying for.
Seeing the True Pay Package Breakdown
Let's do some visual breakdowns. (These numbers are for example only). These numbers are as entered into the Travelers Calculator on PanTravelers.org. This is the calculator that 99% of travelers use, and I use it for every pay package that is quoted to me. It is highly recommended to use this calculator each time you are quoted a pay package. Doing so really does give a better perspective of what you are going to be making each week.
The top section is a pay package example of the agency coordinating your housing, car rental and travel. The bottom section is a pay package calculation of you receiving tax free stipends for things such as housing and travel.
Numbers do not lie. The comparison shows that there is a HUGE difference when you are requiring that the agency provides everything vs. you getting the tax free stipends and finding your own housing, and using your own car. Essentially, you are still paying for everything. The agency is using your money to do so. If you take stipends and do research, you end up with more money in your pocket because if you work within the budget of your stipends then you keep the difference. It is against the tax laws to receive both company coordinated housing (for example) and to also give you a housing stipend, even if the housing cost is less than the total eligible stipend for finding your own housing.
Housing
If you receive $450.00 per week for housing, using 4 weeks per month that is $1800.00 per month TAX FREE total. You know the city and state where the assignment is. Research what is available in that area, your budget is $1800.00 per month. Finding housing on your own (though it requires you to research) can be done almost everywhere for a lot less than $1800.00 per month, including paying your utilities or even staying at an extended stay. If you find a place for $650.00 a month plus lets say $120.00 per month for utilities, you are pocketing $1030.00 per month of that tax free stipend. That is nice sum of money.
Bill Rates
If the example we used above has a bill rate of $35.00 per hour and you have asked for nothing and you are getting stipends and actual hourly combined pay (taxed hourly and tax free stipends) is $29.00 (rounding up) the agency is running their business on $6.00 per hour.
This is the best way to explain it that is easily understood, by using the Travelers Calculator. The agencies actually do not make a bundle off of you as a traveler. They run their business and have multiple travelers. Some they have higher bill rates, some have lower. The amount they make per traveler is not what some think. However, by agencies having multiple travelers working for them that is how they are making their money. It literally does take an army of travelers to create a good profitibility margin.
Let us all become better educated on what the numbers truly are. By doing so then perhaps we will be able to understand the numbers. By doing so we all will be happier travelers. The only way to cry foul on an agency is if your check does not match the contract that you knowingly and willingly signed. We certainly do understand becoming upset if something like that happens. And if it does, then your first point of contact should be your recruiter, so that it can be rectified as soon as possible. The agencies truly do want us all to be happy travelers.
