June 20, 2024

How To Efficiently Pay Traveling Nurses

The healthcare industry often faces the challenge of paying traveling nurses promptly and accurately. With the advent of technological solutions like API, automated payroll, and no-code platforms, the process has been streamlined to manage workforce payments effectively. Traveling nurses form an essential part of the gig economy within the healthcare sector, often moving from one assignment to the next. Ensuring their payroll is handled competently is vital for maintaining staffing levels and overall nurse satisfaction.

1. Determine Payment Rates and Schedules

The first step in paying traveling nurses is to establish clear payment rates and schedules. This involves determining hourly rates, per diem allowances, and any other compensation for special duties or overtime. A detailed payment agreement, preferably automated within payroll software, can prevent misunderstandings and ensure transparency.

  • Consider the local cost of living adjustments for each assignment location.
  • Account for special qualifications or skills that may affect rates.
  • Set clear terms for overtime and on-call hours.

2. Choose the Right Payroll Software

Selecting appropriate payroll software that supports API integration can hugely benefit the payroll process. Look for a solution that offers no-code options, automatic tax calculations, and seamless integration with existing workforce management systems. This can reduce administrative burdens and allow for real-time payment processing.

  • Ensure the software complies with federal and state regulations.
  • Look for a system that offers mobile access for traveling nurses.
  • Consider cloud-based options for easy scalability.

3. Integrate Time Tracking with Payroll

Integrating time tracking directly with your payroll system ensures accuracy in hours worked and facilitates automatic payroll updates. This step eliminates the need for manual timesheet entries, reducing the potential for human error and simplifying the payment process for traveling nurses who work various shifts and at different locations.

  • Implement electronic timesheets that nurses can update on-the-go.
  • Use GPS-enabled apps to verify work location and hours.
  • Allow for automated approval workflows to expedite the payment process.

4. Streamline Tax Compliance

Given that traveling nurses may work across different states, tax compliance becomes a complex aspect of payroll. Utilize payroll software that automatically calculates state and federal taxes based on the nurse's working location. This not only saves time but also ensures accuracy in withholdings and reduces the risk of penalties.

  • Automate tax form distribution and submission for efficiency.
  • Confirm that the payroll system updates tax rates and regulations.
  • Offer digital access to tax documents for traveling nurses.

5. Offer Multiple Payment Options

To accommodate the diverse preferences of traveling nurses, provide multiple payment options such as direct deposit, prepaid debit cards, or even mobile wallet payments. The flexibility of choosing their preferred payment method can lead to higher job satisfaction and loyalty.

  • Ensure swift payment through direct deposit arrangements.
  • Offer reloadable cards for immediate access to funds.
  • Consider the security features of each payment method.

6. Facilitate Clear Communication

Maintaining clear communication channels with traveling nurses regarding their payroll is crucial. Automated notifications for payday, tax updates, and any changes in payroll are necessary to keep the nurses informed and engaged. Providing an online portal or app where they can view their pay stubs, tax deductions, and other payroll-related information whenever they need builds trust and transparency.

  • Create an online self-service portal for payroll queries and updates.
  • Send automated alerts for important payroll events.
  • Ensure support is available to answer any payroll-related questions promptly.

7. Provide Continuous Support and Education

Finally, establish a support system for traveling nurses to help them understand the nuances of their payroll. Offer educational resources on how to manage their finances while working as gig workers, and provide training on using payroll and time tracking systems. This promotes financial literacy and equips them to handle their payroll affairs with confidence.

  • Set up webinars and workshops on financial management.
  • Provide concise guides on using payroll tools and apps.
  • Ensure payroll specialists are available to address individual needs.

Puzzl Group Inc. (Zeal) is a financial technology company, not an FDIC insured depository institution. Banking services provided by Bangor Savings Bank, Member FDIC. FDIC insurance coverage protects against the failure of an FDIC insured depository institution. Pass-through FDIC insurance coverage is subject to certain conditions.