If, like many providers, you’re intrigued by the idea of enhancing your earnings, you’re in the right place. In this installment of our Locum FAQ series, dive into the reasons locum tenens typically commands higher pay rates – and how you can embark on this financially rewarding career adventure.

<p><strong>Wait! Locum tenens work pays more?</strong> Absolutely! Locum tenens 
providers can earn more on an hour-for-hour basis compared to their salaried counterparts. 
But why is that? 
</p>

<p> If, like many providers, you’re intrigued by the idea of enhancing your earnings, 
  you’re in the right place. In this installment of our Locum FAQ series, dive into 
  the reasons locum tenens typically commands higher pay rates – and how you can 
  embark on this financially rewarding career adventure.
</p>

<h2>Your Top Questions About Locums Pay, Answered</h2> 
<h3>Can locum doctors and advanced practitioners really earn more? Why is locum tenens pay higher? </h3>
<p> Yes! Hourly, locum providers often out-earn their salaried peers. Several factors contribute to this:</p>
<ol style="margin-left:30px;">
  <li><strong>Urgent needs:</strong> Locum tenens fulfill immediate needs for healthcare 
  facilities, whether covering for absent physicians, filling long-term vacancies, 
  responding to patient surges, or providing specialized skills that are in high 
  demand.
  </li>
  <li><strong>Flexibility and availability:</strong> Locums are willing to trade the 
  security and benefits of a permanent position to help hospitals and healthcare 
  organizations manage care continuity effectively.
  </li>
  <li> <strong>Mobility and versatility:</strong> Being open to travel or work 
  unconventional hours or in high-demand settings makes locums invaluable, especially 
  in remote or underserved areas.
  </li>
  <li><strong>Higher costs for locums:</strong> Because locums are self-employed, they 
  must handle their own health insurance, set up their own retirement plans, and pay 
  self-employment tax directly to the IRS.
  </li>
  <li><strong>Lower costs for facilities:</strong> Because locums cost health facilities 
   less in benefits, facilities are willing to pay locums more. 
  </li>
</ol>

<h3>How can I maximize my earnings as a locum tenens? </h3>
<p>You can earn even more as a locum by being willing to travel to remote or 
  rural areas that need providers. You can also earn more by working nights, 
  weekends, extended shifts or holidays. If you specialize in an area that is 
  particularly difficult to fill or have a unique skill set, you may also be 
  in greater demand. Take a look at our <a href="https://www.crosscountry.com/jobs/results?term=&&xTerm=&&jobType=["Locums","Locum Tenens"]&&profession=&&specialty=&&msp=&&shiftTypes=&&shiftLengths=&&durations=&&salaryMax=&&tags=noTags&&sort=relevant&&view=list&&offset=1&&size=9&&companyId=&&location=&&geoLocationRadius=100&&industry=Healthcare&&schedule=&&page=locums" target="_blank">current locum tenens jobs</a> 
  to get an idea of what locations, roles, and schedules pay the most.
</p>

<h3>Are locum tenens self-employed or employees? </h3>
<p>Locum tenens providers are self-employed. They are typically considered <a href="https://www.irs.gov/businesses/small-businesses-self-employed/independent-contractor-defined" target="_blank">
1099 independent contractors</a> and must pay self-employment tax (social security and 
  Medicare taxes) in addition to income tax. (This is in contrast to permanent 
  providers are considered <a href="https://www.irs.gov/forms-pubs/about-form-w-2" target="_blank">W-2 employees</a>. 
  Employees do not pay self-employment 
  tax, and their taxes are withheld and paid to the IRS by their employers). 
  Locum tenens clinicians also must provide their own health insurance and 
  retirement plans, while employees typically receive these benefits through 
  their employers. 
</p>


<h3>Which specialties and states offer the highest locum tenens pay? </h3>
<p> High-paying specialties often include radiation oncology, anesthesiology, and 
  cardiology (<a href="https://www.ziprecruiter.com/Salaries/Locum-Tenens-Physician-Salary" target="_blank">ZipRecruiter</a>). 
  States that offer top compensation for locum tenens 
  include Mississippi, South Dakota, Kansas, Vermont, and Nebraska, though this 
  can vary (<a href="https://careers.jamanetwork.com/article/the-top-10-highest-paying-states-for-locum-tenens-physicians-in-2022" target="_blank">JAMA</a>). 
</p>

<h3>Do locums get to take tax deductions? </h3>
<p>Yes. Locum tenens providers can reduce taxable income and maximize earnings by 
  <a href="https://www.crosscountry.com/blog/2024-tax-guide-for-locum-tenens-providers?" target="_blank">
  deducting certain business expenses.</a> Deductions can include travel expenses, 
  licensing fees, and supplies and equipment used for work, like laptops, phones, 
  scrubs, or stethoscopes. 
</p>

<h3>Can locum tenens negotiate their pay? </h3>
<p>Definitely! Leverage your specialization, experience, skillset, education, 
  and flexibility to negotiate better rates. And if you work with a trusted, 
  experienced locum tenens agency, your <a href="https://www.crosscountry.com/blog/navigating-your-locums-journey-how-to-connect-with-a-locum-tenens-recruiter" target="_blank">recruiter</a> 
  can <a href="https://www.crosscountry.com/blog/locum-life-made-easy-getting-placed-on-a-locum-assignment?" target="_blank">negotiate</a> on your behalf. 
</p>

<h3>Can locum tenens negotiate their pay? </h3>
<p>Definitely! Leverage your specialization, experience, skillset, education, and flexibility to negotiate better rates. And if you work with a trusted, experienced locum tenens agency, your recruiter can negotiate on your behalf. </p>

<h3>How can locum pay contribute to financial growth? </h3>
<p>Many physicians and APPs use the high earnings they make from locum tenens work to pay down their med school loans or save up to open a private practice, build a home, buy a vehicle, pay for kids’ tuition, or invest money for retirement.</p>

<h3>How are locums paid? </h3>
<p>Typically, providers who work locums earn an hourly or daily rate, paid through direct deposit by their locums agency or healthcare facility. At Cross Country Locums, locums receive professional liability coverage, travel and lodging stipends, and bonuses (as assignments permit).</p>

<h3>Can you build a successful career through locum tenens? </h3>
<p> Absolutely! Tens of thousands of providers, including physicians, physician assistants, 
  nurse practitioners, nurse anesthetists, and nurse midwives, have built their careers 
  through locums. Historically, locum tenens jobs were designed for retired doctors so 
  they could continue working part-time. But now, providers are working locum tenens 
  jobs right out of residency. Many doctors and APPs take on locum work to supplement 
  their permanent jobs, but increasing numbers of providers are building lucrative 
  careers solely through locum assignments. 
</p>

<h2>Is Locum Tenens Meant for You?</h2>
<p>The locum tenens arrangement might be just right for you if you want to travel, 
  experience diverse practice settings, build a network, and enjoy the autonomy of 
  being self-employed. It’s also ideal for testing different locations or roles before 
  making a permanent decision. And it will definitely work for you if you want to 
  boost your earning potential significantly! 
</p>

<p><strong>Ready to Get Started?</strong> Find your ideal 
<a href="https://www.crosscountry.com/locums" target="_blank">locum tenens job</a> 
now and begin your adventure in maximizing both your professional and financial success!
</p>


Locum FAQs: Why Does Locum Tenens Pay More?