Travel PT Benefits: What a Package Includes and the Rules Behind It

What a travel PT package is made of

A package usually has a taxable part and a stipend part. The hourly wage is wages, and the IRS rule is plain: “All wages, salaries and tips you received for performing services as an employee of an employer must be included in your gross income.” (IRS Topic no. 401)

Stipends, the allowances for lodging and for meals and incidental expenses (M&IE), are treated differently. IRS Publication 463 says of an allowance under an accountable plan: “If your allowance is less than or equal to the federal rate, the allowance won’t be included in box 1 of your Form W-2.” “The regular federal per diem rate is the highest amount that the federal government will pay to its employees for lodging and M&IE (or M&IE only) while they are traveling away from home in a particular area.” The federal rate is the one GSA publishes. In GSA's words: “We establish the per diem rates that federal agencies use to reimburse their employees for lodging and meals and incidental expenses incurred while on official travel within the continental United States.” “A standard rate applies to most of CONUS.” For federal fiscal year 2027, GSA's daily lodging rate across the continental states runs from $113 to $499, and its daily M&IE rate from $68 to $92, depending on the location (GSA per diem rates).

Both depend on your tax home. Publication 463 defines it: “Generally, your tax home is your regular place of business or post of duty, regardless of where you maintain your family home. It includes the entire city or general area in which your business or work is located.” And on how long an assignment can last: “Generally, a temporary assignment in a single location is one that is realistically expected to last (and does in fact last) for 1 year or less.” “If your assignment is indefinite, you must include in your income any amounts you receive from your employer for living expenses, even if they are called “travel allowances” and you account to your employer for them.” That is the IRS's wording, quoted rather than paraphrased; a tax professional can apply it to your situation. The travel therapy tax guide and the Tax Home Checker go further.

Travel to and from an assignment is the third line of a package. Publication 463: “For tax purposes, travel expenses are the ordinary and necessary expenses of traveling away from home for your business, profession, or job.” When the travel is reimbursed: “If you meet the three rules for accountable plans, your employer shouldn’t include any reimbursements in your income in box 1 of your Form W-2.” (IRS Publication 463)

How the parts add up, and how to compare two offers, is in the guide to travel therapy pay packages. The Pay Index shows what travel PT packages pay by state and setting, and the pay calculator splits a package into its parts.

Health insurance between contracts

Some agencies offer a group health plan that starts on the first day of a contract; others offer none. Whether coverage continues between contracts depends on the plan and the agency. Two federal routes cover a gap. HealthCare.gov on the Special Enrollment Period: “You may qualify for a Special Enrollment Period if you or anyone in your household lost qualifying health coverage in the past 60 days OR expects to lose coverage in the next 60 days.” “For this Special Enrollment Period, you need to apply for Marketplace coverage within 60 days of losing your job-based coverage. Your coverage can start the first day of the month after you lose your job-based coverage.” (HealthCare.gov)

COBRA: “COBRA coverage lets you pay to stay on your job-based health insurance for a limited time after your job ends (usually 18 months). You usually pay the full premium yourself, plus a small administrative fee.” It applies to larger employers' plans; in the U.S. Department of Labor's words: “COBRA generally requires that group health plans sponsored by employers with 20 or more employees in the prior year offer employees and their families the opportunity for a temporary extension of health coverage” (DOL, COBRA). And a caution from HealthCare.gov: “If you choose to end COBRA coverage early, you’ll have to wait until next Open Enrollment to get Marketplace coverage” (HealthCare.gov, COBRA). Open Enrollment runs “November 1 - January 15 each year”.

The coverage options themselves are compared in the guide to health insurance for travel therapists and on the health insurance options page.

401(k) and vesting

Whether an agency offers a 401(k), matches contributions, and on what vesting schedule is set by each agency's plan document.

The IRS limit on employee elective deferrals is “$24,500 in 2026, subject to cost-of-living adjustments.” It is a limit per person, not per plan: “Generally, you aggregate all elective deferrals you made to all plans in which you participate to determine if you have exceeded these limits.” That matters if you change agencies during a year. And: “Your plan's terms may impose a lower limit on elective deferrals.”

Catch-up contributions: “If permitted by the 401(k) plan, participants age 50 or over at the end of the calendar year can also make catch-up contributions.” For traditional and safe harbor plans that is “$8,000 in 2026 to traditional and safe harbor 401(k) plans.” (IRS, 401(k) contribution limits)

Vesting is about the employer's money, not yours: “An employee's own contributions to the plan (for example, employee elective deferrals deducted from salary) are always 100% vested, or owned, by the employee.” “Qualified defined contribution plans (for example, profit-sharing or 401(k) plans) can offer a variety of different vesting schedules that are determined by the plan document.” “These can range from immediate vesting, to 100% vesting after 3 years of service (as defined by the plan, generally 1,000 hours worked over 12 months)” (IRS, Vesting). If an agency's plan has a vesting schedule, ask how it counts a year of service when you take time off between contracts.

Paid time off, sick time and gaps between contracts

No federal law requires paid vacation. In the U.S. Department of Labor's words: “The Fair Labor Standards Act (FLSA) does not require payment for time not worked, such as vacations, sick leave or federal or other holidays.” “These benefits are matters of agreement between an employer and an employee (or the employee's representative).” (DOL, Vacation Leave)

On sick leave: “Currently, there are no federal legal requirements for paid sick leave.” (DOL, Sick Leave) State and city sick-leave laws are not covered here; check with the labor department of the state you work in.

So pay stops between contracts unless your agreement says otherwise. How long contracts run, and what happens when one ends, is in travel PT contracts: length, extensions and time limits.

Workers' compensation and liability insurance

For an injury on the job, the U.S. Department of Labor points to the states: “Individuals injured on the job while employed by private companies or state and local government agencies should contact their state workers' compensation board.” (DOL, Workers' Compensation)

Whether the agency's policy covers you, and whether you need your own professional liability policy, depends on the agency and the facility contract. Ask the agency for its certificate of insurance before your first day.

License, compact and continuing education costs

License, compact-privilege and score-transfer costs differ by state; whether an agency reimburses them, and which, is set by the agency.

A PT Compact privilege costs $45–$309 per state, the Commission's fee plus any state fee, per the PT Compact Commission (as of September 30, 2026); the PT Compact guide has every state's fee. Where you need a full license instead, FSBPT explains: “Most jurisdictions require a score be transferred by FSBPT to ensure that the score is authentic.” Its score transfer report costs $90 plus a processing fee, and “A fee applies each time you send your score to a new jurisdiction” (FSBPT score transfer). The guide to PT license by endorsement covers the rest of that process.

Continuing education rules are set by each state's board: FSBPT's Licensure Reference Guide lists, for every jurisdiction (FSBPT Licensure Reference Guide), the “Continuing education and continuing competence requirements for licensure renewal.” Each license you hold carries its own renewal requirement.

Questions to ask any agency

• Is the package itemised: hourly wage, guaranteed hours, and each stipend?
• When does the health plan start, and what happens to it between contracts?
• Is there a 401(k) match, and on what vesting schedule?
• Does paid time off accrue across contracts?
• Who pays for licenses, compact privileges and continuing education?
• Can I see the certificate of liability insurance?
• Who is the workers' compensation carrier in the assignment state?

More: questions to ask a staffing company.

Frequently asked questions

Do travel PTs get health insurance?

It depends on the agency. Some agencies offer a group health plan that starts on the first day of a contract; others offer none. Whether coverage continues between contracts depends on the plan and the agency. If you lose job-based coverage, HealthCare.gov says: “For this Special Enrollment Period, you need to apply for Marketplace coverage within 60 days of losing your job-based coverage. Your coverage can start the first day of the month after you lose your job-based coverage.”

What happens to my health insurance between travel contracts?

In HealthCare.gov's words: “You may qualify for a Special Enrollment Period if you or anyone in your household lost qualifying health coverage in the past 60 days OR expects to lose coverage in the next 60 days.” COBRA is the other route: “COBRA coverage lets you pay to stay on your job-based health insurance for a limited time after your job ends (usually 18 months). You usually pay the full premium yourself, plus a small administrative fee.”

More: health insurance for travel therapists and health insurance options.

Do travel PTs get a 401(k) match?

Whether an agency offers a 401(k), matches contributions, and on what vesting schedule is set by each agency's plan document. What you put in yourself is always yours, in the IRS's words: “An employee's own contributions to the plan (for example, employee elective deferrals deducted from salary) are always 100% vested, or owned, by the employee.” The IRS limit on employee elective deferrals is $24,500 in 2026, subject to cost-of-living adjustments.

Do travel PTs get paid time off?

Only if the agency's terms provide it. In the U.S. Department of Labor's words: “The Fair Labor Standards Act (FLSA) does not require payment for time not worked, such as vacations, sick leave or federal or other holidays.” “These benefits are matters of agreement between an employer and an employee (or the employee's representative).”

Is the time between travel contracts paid?

Not unless your agreement says so. In the U.S. Department of Labor's words: “The Fair Labor Standards Act (FLSA) does not require payment for time not worked, such as vacations, sick leave or federal or other holidays.”

More: travel PT contracts: length, extensions and time limits.

Who pays for license fees and CEUs?

License, compact-privilege and score-transfer costs differ by state; whether an agency reimburses them, and which, is set by the agency. Continuing education rules are set by each state's board; FSBPT's Licensure Reference Guide lists, for every jurisdiction, the “Continuing education and continuing competence requirements for licensure renewal.”

More: the PT Compact guide and PT license by endorsement.

Do I need my own malpractice insurance as a travel PT?

Whether the agency's policy covers you, and whether you need your own professional liability policy, depends on the agency and the facility contract. Ask the agency for its certificate of insurance before you start.

Sources

• IRS, Topic no. 401, Wages and salaries (checked October 1, 2026).
• IRS Publication 463 (2025), Travel, Gift, and Car Expenses (checked September 30, 2026).
• HealthCare.gov, If you lose job-based health insurance (checked October 1, 2026).
• HealthCare.gov, Special Enrollment Period (checked October 1, 2026).
• U.S. Department of Labor, Continuation of Health Coverage (COBRA) (read in a browser October 1, 2026).
• HealthCare.gov, COBRA coverage when you're unemployed (checked October 1, 2026).
• IRS, Retirement topics - 401(k) and profit-sharing plan contribution limits (checked October 1, 2026).
• IRS, Retirement topics - Vesting (checked October 1, 2026).
• U.S. Department of Labor, Vacation Leave (read in a browser October 1, 2026).
• U.S. Department of Labor, Sick Leave (read in a browser October 1, 2026).
• U.S. Department of Labor, Workers' Compensation (read in a browser October 1, 2026).
• FSBPT, Jurisdiction Licensure Reference Guide (checked October 1, 2026).
• GSA, Per diem rates (checked September 30, 2026; lodging and M&IE ranges from GSA's per diem API, fiscal year 2027, read 2026-09-20).
• FSBPT, Score Transfer Service (for Licensees) (checked October 1, 2026).
• PT Compact Commission privilege fees, via the PT Compact guide (verified September 30, 2026).