Contract Nursing! What is it?
Contract nursing is an line of professional health care that puts you, the nurse or alied health care professional, at the center of the business. Basically you are a business of your own and you tell the agency when you can and cannot work. The agency role is to scout opportunities and liase with the facilities to fill vacant shifts. The contractor’s role is to show up to facilities and work the vacant shifts that the contractor has agreed to fulfil. You are still obliged by the licensing standards of your profession and must adhere to the level of professionalism that is expected.
Compensation is higher because you can be placed in facilities with short notice and little in house training. In addition, no tax or contributions are deducted from your wages unless you request for deductions to be made on your behalf by the agency. However you will still be responsible for paying taxes at the end of the fiscal year when you do your business taxes. Talking to an accountant can help you set up your bank accounts to prepare for the taxes that will become due during the tax season. Because you work as an independent entity your wages are negotiated at a higher hourly wage to compensate for the expenses you need to make in order to run your business and balance the unknown factors of your role in the setting. What you will also notice is that you are not governed by a union that you pay dues to nov do you have extra deductions taken for things like education and medical benefits.
As a responsible contractor it is important to have insurance. There are options for RNs and RPNs within their repsective delegations to find and pay for this insurance. It is advisable to speak with a bookkeeper or accountant to understand what you can and cannot write off as a sole proprieter or corportaion (more on this in another blog).
There is flexibility within this role, however there is also some unpredictability as well. The advantages to being a contractor are that you have more control over your finances and the hours you work. You may also enjoy the freedom of working time slots that are the most comfortable for you. Personally, I am not much of a morning person and I tend to enjoy working 8 hour evening shifts. I have also met nurses that prefer only days or only nights. Contracting gives you the opportunity to work hours that you like instead of being caught with a fixed schedule doing shifts that you do not enjoy working. As a business you can take advantage of tax write offs that are not available to an individual. Also you may find that sometimes there are many shifts to work and at another time you may find that there are no available jobs. This is due to vacation submissions, holidays, hiring freezes or alternately new hires, back to school time, or just after the winter holidays.
Simply put, the individual (nurse or other healthcare professional) becomes a business entity and takes jobs that they feel are a good fit for them. The more you work the more you make. Your agency has your back and will always negotiate a contract that ensures if you work doubles that you will be paid time and a half no matter what. This is dependent on the contract outlined by the facility which can be discussed before you accept working overtime.
Nurses seeking to understand more about this role in nursing should review the CNO Practice Guideline for Independent Practice to find out more information about how your nursing license is used within the role. It is also important to seek guidance from an accountant to take full advantage of becoming a business and the write offs you can make some of which include; gas and milage on a vehilce for business purposes, a portion of your mortgage or rent for an office space, a portion of your internet if you use it for business, education advancements in your field and equipment. There are rules and important details that you should discuss further with a certified accountant to fully understand if this is a good fit for you.
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