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Self-employed Issues
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Re: Choosing Locum Tenens Pay

It sounds like you have the option to take $180 per hour and then pay all your own expenses associated with the Locums position, or you can take $150 per hour and the Locums company will pay your travel and living expenses up to $30 per hour. Assuming it will cost you at least $30 per hour in total to travel back and forth to this location, pay rent while you are there, and pay for food based on the daily per diem rates (available at www.gsa.gov), you would end up in the same place tax-wise assuming you are being paid as a 1099 contractor.

That's because the $30 per hour that the company is paying as a stipend will reduce the expenses that you can claim against that income on your Schedule C. If they are paying you as a W-2 employee, you will most likely be better off taking the $150 per hour and the $30 per hour stipend for expenses due to the Alternative Minimum taxes and certain tax phase-outs.

I'm not sure if I answered your question, but I hope this brief answer helps.

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