Support for Items for Which Client Will Not Engage

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#1
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I'm sure that most of us face this issue from time to time.

Our practice offers several levels of services for s corporations.

This client elects to engage for the cheapest one - which only includes 1120s plus state, 1040 plus state, and estimated tax planning.

Now the client emails me support/instruction on creating his unemployment insurance account.

I want to write, "Unfortunately, we can't provide support for items in which we are not engaged. For answers to questions regarding payroll taxes, please contact your payroll provider's support department".

Of course he is going to feel stiff armed. And I am stiff arming him indeed.

Client is a nice guy, but he already pushes beyond the limits of reasonable support time for the items that he does pay for.

Opinions? Advice? Flame me? Agree with me?
 

#2
AlexCPA  
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Why not draft an engagement letter to address that specific issue along with an estimate of the anticipated minimum fee?

I'm willing to do just about anything for my clients -- up to and including reading them a bedtime story -- as long as they are willing to sign an engagement letter and pay me my hourly rate. :D
Even more of my antics may be found on YouTube:
https://www.youtube.com/channel/UCXDitB ... sMwfO19h7A
 

#3
CathysTaxes  
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I'd respond with an estimate advising client that his request is not included in the package he purchased. I've had clients that wanted me to provide legal advice or help getting unemployment.
Cathy
CathysTaxes
 

#4
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If you're using engagement letters that clearly define and lay out scope of your engagements, this will be a lot easier (I think you are based on previous posts).

I'd call the client, not email him what you have in quotes. Sometimes even the best intentions in email can be misinterpreted. Your text in quotes comes off to me as curt and dismissive. Not the best light.

On the call, mention that you saw his email and ask him what's going on. Then, if you want to provide these services, you might have to give a (polite and professional) reminder that he does not have an existing payroll engagement with you, but that you're happy to send a ballpark estimate for his review, and if the estimate is agreeable, you'll send an engagement letter.
 

#5
novacpa  
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The "downside" of fixed fees, clients want it all for cheap. Tell em' we charge more ..for more stuff you want.
He'll respond, "why you nickel & dime me for every small thang"?
 

#6
ATSMAN  
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novacpa wrote:The "downside" of fixed fees, clients want it all for cheap. Tell em' we charge more ..for more stuff you want.
He'll respond, "why you nickel & dime me for every small thang"?


Been there :oops: If you have a clearly defined engagement agreement then it is easy to show them your scope of service. I have one cheap client that has his wife taking care of payroll etc. and once or twice a month she will call me especially after Cares Act and I had to finally tell her that I will have to bill them an hourly rate because it is beyond the scope of engagement that they hired me. After a bit of back and forth we agreed on an hourly rate to cover her calls just for payroll questions. I am not taking over as the payroll clerk.
 

#7
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novacpa wrote:The "downside" of fixed fees, clients want it all for cheap. Tell em' we charge more ..for more stuff you want.
He'll respond, "why you nickel & dime me for every small thang"?


It's the downside of not having a clearly defined scope that is very simple to refer back to. I often point out to clients that something is out-of-scope and requires an additional engagement and fee. None get bent out of shape because what IS included is clearly itemized in original engagement. It becomes very difficult for them to argue it should be or is included, that way.

Still, also depends on the client. Some are so profitable to me that I simply throw in certain extras, though I point out that it is not included but I'm feeling generous.
 

#8
novacpa  
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"Are fries included with the meal"?
Sorry - Side Orders are "Extra"
 

#9
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novacpa wrote:"Are fries included with the meal"?
Sorry - Side Orders are "Extra"


It is all parties understanding the situation at hand by making it very clear upfront. That is why I itemize in a bulleted format what is included for X fee, and I do not do it using general terms the client could then misinterpret or misapply.

If you go to a typical restaurant, you do not expect it all be a la carte and the menus describe exactly what IS included. If you go to Ruth's Chris or almost any other high end steakhouse, you know by the menu and prior experience that everything is typically a la carte and thus "extra" unless explicitly stated.
 

#10
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It's all about target market.

Ruth Chris and Capital Grill shouldn't be advertising to or entertaining the Golden Corral regulars.
 

#11
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Thanks all.

I agree that a phone call would be the best way to save the situation, but to be honest, I really don't care too much in this spot because the client is already an outlier when it comes to zapping time.

Not to be arrogant, but I'm definitely Ruth Chris, and if he wants to pay Golder Corral prices, there will always be stress between us and it's just as well if he is put off by my response.

Here's what I have for him:

Hi [client],

Right now we are engaged for income tax services, which as previously presented, include income tax preparation and filing, income tax planning, and estimated income tax support.

I'll be happy to provide support for payroll tax-related items, but if you don't wish to engage for payroll services too, there would be an hourly fee of $150/hour for that support.

Please understand that I must charge for my work in this manner because my overhead expenses are quite costly.

One cost-saving option for you might be to chat with the support of your payroll service provider.

Thanks and just let me know if you wish to proceed...
 

#12
JAD  
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Dear Client,

We would be happy to assist with your unemployment questions and issues. Do you prefer to expand the scope of the current engagement, which will cost $xxx per month, or shall we bill you by the hour? Our current hourly rates are $xxxx.

Sincerely,


I think your wording sounds irritated. You don't need to explain your overhead. Your fee is what it is, and you do not have to justify it.
 

#13
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JAD wrote:
I think your wording sounds irritated. You don't need to explain your overhead. Your fee is what it is, and you do not have to justify it.


Agree. Give them options and make it their choice.
~Captcook
 

#14
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^^ Yeah - OK - agreed, thanks.
 

#15
ATSMAN  
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Give them the example of what happens when you call a lawyer with legal questions? The clock starts to run as soon as they pick up the phone!
 


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