Bonuses

Hi Pros, I wanted to see what you all are doing for bonuses. Are they based on returns, hours worked, company profit, etc. Thank you.

I looked at how the company did and came up with a ballpark for total bonuses I wanted to pay out. I pulled the total revenue each employee brought in (returns interviewed & prepared, returns just prepared, returns reviewed, entity returns). Then, I worked with percentages of revenue for each category until the bonuses came out in that ballpark. There were a few adjustments (adjusting one employee's bonus down the equivalent of a dollar an hour because their hourly rate had been unusually high, and adding a fractional percentage of the whole office's revenue to bonus our workflow manager extraordinaire). It wasn't a simple thing, but it felt like everyone was bonused fairly.

Any ideas on how to "bonus" an office manager?

I have a great office manager that I believe helped bring in and retain business. She doesn't prepare returns except for some baisc data entry, but she is really good on the phone, setting appointments and keeping the office running.

Most folks like cash

TaxCut, isn't this an opportunity cost question? If you didn't have her, what would that do to your preparers' output? Compare that to her salary and bonus the difference.

Then again, what do I know? I have never employed anyone in my life.

Pay out enough to avoid a Mutiny.
You don't want them leaving and taking your lunch with them.

Any ideas on how to "bonus" an office manager?

I have a great office manager that I believe helped bring in and retain business. She doesn't prepare returns except for some baisc data entry, but she is really good on the phone, setting appointments and keeping the office running.

Usually a bonus with a comma in it tends to be nice. What % of pay do your preparers earn for bonuses?

If this office manager brought in business, she should get some portion of the revenues attributable to what she brought in. She's the first person your customers see or hear. It sounds like she's more of an asset to your business than an expense. Keep her happy.

Another option: consider a couple days bonus PTO.