Some Healthcare Staffing Agencies Now Requiring Attestation of Lodging Expenses

Recently, we have seen changes in the way some healthcare staffing agencies are now processing per diem payments. The agencies now require that the traveler certify that they incurred payments for lodging at the assignment location before the agency will pay the per diem for that payroll cycle.

What is going on?

Over the last 10 years, the healthcare staffing industry has been the focus of tax audits, class action wage suits, negative publicity and legislative attempts at capping pay for travelers. The negative media coverage and legislative focus grew out of the 2021 COVID contracts. Per diem practices were noted as well.

The agency is bolstering their compliance procedures by tracking the use of the lodging and meal per diems. Per diems for lodging and meals are a regular part of most traveler’s contracts, but the IRS requires the employer to ensure that the payments are used for their intended purpose before allowing them to be paid non-taxable.

We welcome any effort to bolster compliance in the industry and we may see more policy changes in the future from more agencies. What remains to be seen is whether any new policy is sustainable and how they impact the marketing of assignments.