Tax preparers can be paid hourly, but more often than not are paid a commission. Tax preparers are generally not paid set salaries, due to the fact that companies usually just employ people for tax season which is only four months out of the year. The bigger tax companies tend to pay their younger tenured employers hourly. Let’s take a look at those the as pects of taxpayers getting paid hourly versus them getting paid commission, and the pros and cons of both.
Hourly Pay for Tax Preparation
When you are getting paid hourly for preparing taxes, you are probably an employee of a bigger corporation, like H&R Block. These companies will often hire people straight from their in person sixty hour tax course, and then start them at a low hourly rate of around ten dollars an hour. This method can be beneficial to the beginning tax preparer, because it gives them a consistent daily amount. Getting paid hourly to do taxes can be comforting because tax season is up and down, and you unfortunately are not usually going to be swamped with clients when you are first starting out.
Getting Paid Commission to Prepare Taxes
Getting paid commission to do taxes is probably the most common way in which employees are compensated for their work. This payment method is the best for experienced and busy tax preparers, who have potent billing power along with a number of clients to use that power on. If you are
just starting out doing taxes, and are at a slow office, getting paid commission may be a bad thing. Commission is really the only way for a person to make a tremendous amount of money doing taxes. When you are getting an hourly rate you may have a false sense of security, because though you are getting a consistent pay rate, you are limited and a lucrative income is not possible.
Find a Tax Preparer Job
As previously noted, tax preparers can get hourly rate or commission, depending on where you work or are hired. We suggest looking for the right tax office fit for you wants and needs. If you prefer to start out working for an hourly rate, and your situation requires that you have regular, set, and consistent income, then go work for H&R Block. They are always hiring, believe me you. If you can afford to have slow days, and want to shoot up the monetary ladder and have huge paydays, then you can either go it on your own or find a company that pays great commission rates. There are plenty of companies out there that will pay you 20% or better to file tax returns for them.
Looking for a tax preparer job in Los Angeles? Take our 60 hour tax preparation course, and ask Pronto if you may be a good fit for us and we will consider you for employment with a long standing, family owned income tax office. Good luck and enjoy!