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    #1

    Paying our employees

    I did a search through the board and can't find prior discussions regarding how to pay our employees.
    My situation is this:
    I hired a tax preparer last tax season (he is a CPA) for an hourly rate plus 20% of each tax return prep. fees. He was hired as a seasonal employee, not a full time year round employee.

    He did not have as much experience as he led me to believe. He was paid as an experienced tax preparer when in reality this was his first year. Lots of learning and redoes. This was my fault for not testing in a more aggressive manner. In essence he was overpaid.

    I hired him as a salaried full time, full year employee at the end of tax season. His hourly rate of pay is less than what he made during season. With tax season approaching I have to figure out how to pay him for the extra hours and how to "bonus" him at the end of the tax season.

    Does anyone have any suggestions or experience with this same type of situation? Do you pay different rates at different times of the year? I am stuck as to a solution that will work for both of us.
    Noel
    "Some cause happiness wherever they go; others, whenever they go."- Oscar Wilde
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    #2
    My daughter worked for a CPA firm in NYC several years ago and they just paid an annual salary and gave her extra time off during the off season, mainly summertime when things were slower, like long weekends (Fri through Mon...., she loved it.
    Last edited by BOB W; 11-13-2007, 12:55 PM.
    This post is for discussion purposes only and should be verified with other sources before actual use.

    Many times I post additional info on the post, Click on "message board" for updated content.

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      #3
      Originally posted by Acownt4it View Post

      I hired a tax preparer last tax season (he is a CPA) for an hourly rate plus 20% of each tax return prep. fees...as a seasonal employee...He did not have as much experience as he led me to believe. He was paid as an experienced tax preparer when in reality...his first year...lts of learning and redoes...This was my fault...In essence he was overpaid.
      First, I don't agree that it was your fault. The guy misrepresented his expertise; in effect, lying about it. I'd want to get some payback.

      I hired him as a salaried full time, full year employee at the end of tax season. His hourly rate of pay is less than what he made during season. With tax season approaching I have to figure out how to pay him for the extra hours and how to "bonus" him at the end of the tax season...any suggestions?...different rates at different times?...
      Depends. If you need him badly, then I guess you'll have to give him overtime rates, but if he's replaceable, then I think I'd tell him "Look; you weren't straight up with me last season -- you didn't have the experience you claimed and you were overpaid. Work here again and I'll pay a 20% bonus at the end, but for now your hourly pay remains at the off-season rate (salary divided by 40? hours). We'll evaluate your performance at end of season and if all goes well, we'll figure you a new salary at a higher hourly rate." He'll know what you're talking about.
      Last edited by Black Bart; 11-14-2007, 04:33 PM.

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        #4
        Great thoughts. Thank you. I have been up front with him about the issue of misrepresenting himself last year. He did not deny it, which ticked me off. But he has been here almost a year and I do need him and hate the thought of all the time and training that goes into a new employee. So, I think I will use your suggestion and see how that goes. I know he doesn't want to look for another job.
        Noel
        "Some cause happiness wherever they go; others, whenever they go."- Oscar Wilde

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          #5
          New guys

          Originally posted by Acownt4it View Post
          ...I do need him and hate the thought of all the time and training that goes into a new employee...I know he doesn't want to look for another job.
          I know what you mean. Training and getting used to a new and unknown person is kind of like having to change tax software -- I'll do almost anything to avoid it. I guess the only bargaining chip you have is that he probably feels the same way about breaking in on a new job.

          Maybe try a compromise -- halfway between old and new rates.

          ...The undiscovered country...makes us rather bear those ills we have, than fly to others that we know not of... -- Hamlet (soliloquy).

          Comment

            #6
            Originally posted by Black Bart View Post
            ...The undiscovered country...makes us rather bear those ills we have, than fly to others that we know not of... -- Hamlet (soliloquy).
            "Awfully toney for a message board. No, the die's cast, we're growing, be as big as The Other Book in a few years. And just as sophisticated."

            borrowed from you know where

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              #7
              Employee Paid

              Hi,

              I thought I wanted to mention my situation.

              We are paid annual salary and the time we accumulate during tax season is used as oncation time. I love it since I take time off during non-tax season for medical reasons.

              Not sure why you still keep him when he did not perform well. Our company would let him go in your situation. In fact, they let go a few people already, although my boss is a very nice guy.

              In regarding to the pay rate, my best friend, who worked with me a year ago, just got a raise. So she is much higher pay then me after this raise, depite I have 2 more years of experience. The old lady at our company felt she was not experienced, making a bit not positive comments about her performance. So I am just confused is my company has higher expectations then other company???

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