What would you pay a remote and trust worthy tax pro?

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#1
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If you had the option of hiring the following tax preparer:

Not EA or CPA rated, but smart, experienced, careful, great with emails, and good with clients.
Works 100% from home, but available by phone.
Does not require health benefits
Part time, 20 hours per week.
Capable of completing about 200 tax returns for a $350 average - including delivery, signature, billing, etc.
Exclusivity and no compete agreement

What would you pay this person? Would you pay straight commission? Combination of commission and hourly? How much?

Also, is there any argument for independent contractor here (I don't think so, but can't hurt to ask opinions)?
 

#2
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I don't think you can take a reasonable position that they're an IC when they're working with your clients, exclusive, and have a non-compete.

Talking some rough numbers, this person will do $70,000 in billings, let's assume that they do 75% of the work on a tax return on average so they have attributable revenues of $52,500. Taking the third-third-third model means total comp of $17,500. Backing out FICA and unemployment taxes puts us at a $16,000 W-2 target. How you get there is up to you. Maybe start at $30-$35 an hour W-2 with some sort of gross up bonus?
 

#3
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missingdonut wrote:I don't think you can take a reasonable position that they're an IC when they're working with your clients, exclusive, and have a non-compete.



I agree, by the way, and I wonder how some of the big Expat firms get away with it.
 

#4
smtcpa  
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Richmond, VA
I'd pay them 30-40% of the billings as an IC.

I don't see an issue with IC status if you pay based on percentage, although I would not have a non-compete (but I would have a non-solicitation agreement). If you pay on percentage, they supply their own equipment, set their hours, etc, sounds like and IC to me. I would also allow him/her to bring on their own clients and pay 80-90% of those billings to help cover technology end review if needed.

If you decide not to hire this person, can I have his/her contact info? I am looking for someone exactly like this.
 

#5
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So one vote for 25% and another for 30 to 40%. Thank you!

Can I humbly ask the group for more responses? Do we not see this situation too often?
 

#6
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FL
I'm an EA that does bookkeeping sub-work for a CPA. He pays my S-corp $45.00/hr so payroll is MY problem. We do not have a non-compete. I contact his clients directly with questions. I say that I work "with" him. Few of his clients ask, but if they do, I will tell them that I am a subcontractor. None of them have ever had a problem with that. I've never done taxes for him. Mainly because I HATE taxes. That said, if I did, it would be $45/hr on his software and he would have the final client meeting
 

#7
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midwest
At the previous firm I worked, I received 45% of the gross billing as an employee. I used all of their software. I also received a monthly stipend to handle phone calls and other non-billable items by me. The stipend was in addition to the 45%, it was not a draw or offset.
 


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