Really need your advice! what is an appropriate hourly rate for part-time tax?

CPA Exam Review Forum » CPA Exam Review » REG Forum

Really need your advice! what is an appropriate hourly rate for part-time tax?

23 posts from 11 voices

Started 1 year ago by CPA Someday
Latest reply from limey

Tags:

No tags yet.

CPA Someday

offline
Member
I JUST got a phone call for a part time position. I will be hired to do some audit work for the firm and tax preparation. I will start in Jan. Hopefully I will hear by the end of this year that I have passed all of the CPA exam. In addition, I have an MBA degree. Currently, I am a staff accountant at a corporation and have the ability to work 4-10 hour days (M,T,TH,F). Therefore I would have my only day off during the week, evenings and Saturdays to work part time at the firm.

The firm said they would like to start me at $18/hour. I was in shock.. really? They don't even have to offer me benefits. I set up a date to come in starting in January, but didn't want to be rude and conern myself with the pay at the time. I think I should have told them that was too low and I should have asked if they were planning on 1099ing me. 1099 would be even worse! Is $18 bad or good? Should I not concern myself with this? They did say they wanted to see how efficient I am with my work. Which I pride myself on my multitasking abilities and work, so I would imagine it would increase.. I'm thinking starting should be $25-$30? What do you think?

Thanks for any help.. I'm so confused and almost offended..? 18???? Ah!

REG 81; BEC 79; FAR 81!!; AUD 71, 92
Ethics 98

Illinois DOES post on Saturdays!!!
Share this on Facebook
Tweet This!
Posted 1 year ago #
WI_11

offline
Member

I think for a part-time gig $18 an hour sound pretty fair. They dont know anything about you and you are just doing extra work and they will see if they like you or not. I would'nt be to concerned about that and worry more about learning and impressing them. Salary is always negotiabe down the road if they want to make it more full time.

AUD 89
BEC 84
FAR 87
REG 94!! ALL DONE

Posted 1 year ago #
CPA Someday

offline
Member

Thank you. Ok.. you are right.. but I just spent the last 6 months of my life on hold for the CPA exam.. and I was looking forward to the CPA making me some money if I was going to consider putting mylife on hold again for the next 4 months. I would have to give up my 1 day off of work, all saturdays and some evenings devoted over the next 4 months for way less than $5k (assuming I'm NOT 1099).. my family is close to disowning me because of how much time I put towards the CPA.. it may not be worth $18/hour.

I hope to get some opinoins on hourly rates with this economy. And I heard you have to have a CPA or EA or a test completed to even prepare taxes in 2011... so hmm... HR Block might be looking better...

REG 81; BEC 79; FAR 81!!; AUD 71, 92
Ethics 98

Illinois DOES post on Saturdays!!!

Posted 1 year ago #
WI_11

offline
Member

I would be greatly suprised to find out HR block pay there seasonal tax preparers more than $18 per hour. I would guess more like $12-16.

The CPA exam will pay off, just not overnight. This is a journey, not a sprint. I paid out of pocket for all my exam materials and exam fees,so I know it can be pricy. But it sounds like you have a good job and your work ethic will pay off, but just because you earned your CPA dosent mean anybody owes "us" anything. We need to earn it.

AUD 89
BEC 84
FAR 87
REG 94!! ALL DONE

Posted 1 year ago #
CPA Someday

offline
Member

True True I've paid most out of my pocket too.. I just keep getting told "if you do this, then you'll make good money", like..

"If you have a bachelors, you'll make more money than people who didn't go to school"
"if you have your MBA, you'll make really good money"
"if you have your CPA, you'll make REALLY good money"

I have near 5 years of direct accounting experience, good college degrees and now (hopefully) the CPA.. I'm lucky to make $45k.. I'm horrible at barganing. But some of my coworkers make more than me with less experience, no bachelors degree and it is all because they can bargain. I book our payroll entries so I know what everyone makes in the entire company.. it is so frustrating :( I take what I can get because I feel blessed, but somewhere someday I have to put my foot down. My school loans are almost as much as my mortgage payment!

Soon.. I'll get married and start having babies.. then my salary will be down to zero! what a waste!

REG 81; BEC 79; FAR 81!!; AUD 71, 92
Ethics 98

Illinois DOES post on Saturdays!!!

Posted 1 year ago #
Celeste

offline
Member

I know what you mean. It's definitely not a waste, though! You never know what your future holds. Having my accounting degree/experience has helped me eventhough I'm a stay-at-home Mom now. I can work tax seasons if I choose, we save lots of money in my husbands' business since we don't have to pay accounting fees, I get to teach my children these skills when they get older, I been a volunteer board member/Treasurer for a non-profit organization...Who knows how all of your accomplishments will pay off in the future! We'll see if a CPA license is in my future...I think I've decided to take the parts in this order: FAR, AUD, REG, BEC. Any suggestions on when to take them (spacing)?

FAR - 88 (04/02/11) Wisconsin
AUD - 72 (05/28/11)
REG - 54 (10/01/11) Ouch, even worse than my guess of 57!
BEC - ?? (11/26/11)

Posted 1 year ago #
CPA Someday

offline
Member

I took them as REG, BEC, FAR & AUD. I wanted to get REG out of the way in order to not confuse the GAAP rules in FAR. The way Becker presents this material was perfect in this order! I did it in 6 months. I started studying in May. REG exam was 7/13, BEC was 8/18, FAR was 10/18 and AUD was 11/24. It worked great! I took two test per testing window. You can do it!!

REG 81; BEC 79; FAR 81!!; AUD 71, 92
Ethics 98

Illinois DOES post on Saturdays!!!

Posted 1 year ago #
tulip

offline
Member

CPA someday - I think your instincts are right on. Personally, I feel $18/hour is much too low for your experience. To me, part-time means that the rate should be higher than the hourly rate on your full-time job, and 1099 means that is should be 25-30% higher than that. A company should pay a higher rate when they are not making the commitment to the burden of a full-time employee.

However, given that this is supplemental income, the relevant question is whether you believe your time is worth $18/hour. If it's not, set your rate to something that you believe is worth your extra time, and always ask for that rate (or ask for higher if you feel you'll be negotiating).

Good luck to you!

BEC - 10/18/2010 - 79
FAR - 10/28/2010 - 82
AUD - 11/04/2010 - 73; 02/18/2011 - 86 - IT'S OVER!!!!!!
REG - 11/21/2010 - 83

Posted 1 year ago #
CPA Someday

offline
Member

thanks tulip. I was thinking the same as you, about the non commitment to part time employee. If they didn't like me or my work, then they tell me not to return and no true risk to them. I have always seen part time people get paid more per hour than full time.

REG 81; BEC 79; FAR 81!!; AUD 71, 92
Ethics 98

Illinois DOES post on Saturdays!!!

Posted 1 year ago #
whitesoxfancpa

offline
Member

tulip,

You said this:

"To me, part-time means that the rate should be higher than the hourly rate on your full-time job"

That doesn't make any sense. A part-time job typically pays at a lower rate than a full-time job. I know you're thinking that there are less benefits, etc. but it typically doesn't matter. Usually a part-time job pays less per hour, year, or whatever.

AUD 96 FAR 95 REG 94 BEC 88

Posted 1 year ago #
WI_11

offline
Member

cpa someday_

How do you have your ethics score before finishing your exams? On the WI website it reads to me that you have to complete your exams first? Please let me know..

AUD 89
BEC 84
FAR 87
REG 94!! ALL DONE

Posted 1 year ago #
CPA Someday

offline
Member

I'm from IL.. from my understanding in IL you can complete the exam anytime. Just order the supplies from the AICPA website... but Wisconsin might be different.. you know that state :) It took me under 2 hours to do it.. so there is no rush to get it done...

whitesoxfan.. I agree that part time employees will get paid more PER HOUR, maybe not per year, because of course they are part time. There is less risk with a part-timer, if you don't like their work you can fire them without having to worry about unemployment. You don't have to pay them benefits: paid time off, insurance (huge saver), no guarantee of hours, no holidays, etc.

REG 81; BEC 79; FAR 81!!; AUD 71, 92
Ethics 98

Illinois DOES post on Saturdays!!!

Posted 1 year ago #
annie

offline
Member

CPA SOmeday- YOu are all over the comments. Now I'd love to get learn more from you. What website did you look for part time job that work at weekends, doing audit and tax? I 'd like to do part time like yours. S18/hour is perfect for me!> Right now, I'm a staff accountant at a non profit. Pay really low, and have not much thing to do, it's just like entering cash receipts... things that i can't believe a staff accountant, esp. those with a CPA will accept to di. Probably I'm fast, so it always takes me half time to finish my job duties. . Still afraid to leave the job right now, coz I just have 1 year experience
Could you please share with me some information about those part time jobs that you come accross? Or if you refuse to accept it, or have a better job later on, can you recommend it to me?
Can I have your email? or here is my email: huongnhidp@yahoo.com. I'd appreciate your help. My networking is very weak. I have very few friends.
Whitesoxfan CPA- I still admire your super high scores? Are you from Illinois? I read almost all of your comments ( from ethics exam., to finishing 4 parts... Very impressive....)
Thanks a lot CPA SOmeday

Posted 1 year ago #
whitesoxfancpa

offline
Member

CPA Someday,

I said I would think that part-time employees would get paid LESS per hour, not more.

I could very well be wrong. It's happened before :)

AUD 96 FAR 95 REG 94 BEC 88

Posted 1 year ago #
whitesoxfancpa

offline
Member

annie,

Yep, I'm from IL.

You have one year of experience, but what's important is that you're gaining more experience every day and you have a job. So many people are out of work right now that I am happy just to have a job. CPA or no CPA, I'm happy to be employed!

AUD 96 FAR 95 REG 94 BEC 88

Posted 1 year ago #
75 CPA

offline
Member

Deloitte pays $55,000 per year right out of college. There is a $5,000 signing bonus and another bonus of $5,000 for passing the CPA exams. Deloitte also pays for Becker. However, you are on salary for $55,000 per year. Translation: You work overtime for free.

The going rate in my area for part-time tax work is $20 per hour. That works out to $41,600 per year. If you are proficient in Lacerte or another tax program, you are a steal at $20 per hour! However, I think that $25 per hour ($52,000 per year) is more reasonable. I have hear of a small firm paying $75 per hour ($156,000 per year) for people proficient in Lacerte. However, that is an exception! The bottom line is that the pay for public accountant work, especially in small towns, is very poor.

H & R Block pays very, very poorly! However, their tax training for individual taxation is very good.

Posted 1 year ago #
CPA Someday

offline
Member

I've got great ideas to get your foot in the door.. I'll email you!!

whitesoxfan.. I was agreeing with tulip. As always, beautiful scores!

75 CPA. good points.. when I googled the idea of part time tax work the internet was recommending $50-$125/per hour. I did notice some high hourly rates. I was thinking realistically $25ish. Thanks for your thoughts.

REG 81; BEC 79; FAR 81!!; AUD 71, 92
Ethics 98

Illinois DOES post on Saturdays!!!

Posted 1 year ago #
75 CPA

offline
Member

CPA Someday

Everything is negotiable! Tell the public accounting firm that you were thinking of $25 per hour, not $18 per hour.

You are operating from a position of strength, not weakness. They can hire someone in college for $18 an hour, if they wish. However, if they want a QUALITY EMPLOYEE, the WAGE is $25 per hour with NO UNPAID OVERTIME. If they tell you that they do not pay overtime and that everyone is on salary, move on. Unfortunately, all public accounting firms that I am aware of operate only in the salary mode, not in the wage mode.

Some public accounting firms will work their employees 68 hours a week (12 hours M-F and 8 hours on Saturday) during tax season with no overtime pay! Some public accounting firms will pay a bonus; however, I factor in the total hours that I worked to get a price per hour. Additionally, if the public accounting firm cannot tell me how they calculate the bonus, the bonus is a non-motivating factor.

Posted 1 year ago #
CPAsomeday19

offline
Member

In my opinion, $18 is low for your stated qualifications. Not to fuel the fire, but I made $25 as an intern at a medium sized firm. Even considering fluctuations due to geographic costs of living, I still think that you should shoot for about $25. The bargaining part is difficult if it's not your thing (definitely not my thing), however don't sell yourself short...you have worked very hard.

REG-Passed
BEC-Passed
AUD-
FAR-

Posted 1 year ago #
ChiGirl10

offline
Member

Location is a huge factor that seems to be overlooked. I live and work in Chicago, and I made $17/hour as a tax intern in 2005. My firm is small-medium sized. I was obviously still in school at this time. However, under the same circumstances in a smaller/less expensive metropolitan area, I would have expected to make less. If I were in New York City, San Francisco, or somewhere else like that, I would have expected to make more. $18 sounds fair if you live in a smaller/less expensive metropolitan area. And if you're googling rates, be sure that the job descriptions are similar - $125 is for someone with years of experience doing complex work.

FAR-7/26/10-81 BEC-8/30/10-81
REG-10/18/10-83 AUD-11/22/10-93
Ethics-98

Posted 1 year ago #
Ness

offline
Member

I guess I am getting under paid. I have worked at my firm for 2 years & am making $16/hr. It is a very small firm (we do both tax & audit). I have never had an evaluation, & a raise has never been offered. I am from OK anybody else working in OK, that can tell about their pay?

BEC 7/20/10 88 (90 hours)
AUD 8/27/10 73 (65 hours), retake 11/22/10 81 (75 hours)
FAR 10/28/10 80 (157 hours)
REG 1/7/10 extended to 1/17/10 78 (130 hours) I'M DONE!!!!!!!!!!!!!

Posted 1 year ago #
75 CPA

offline
Member

Ness

Your $17 per hour ($35,360 per year) was better than my $11 per hour ($23,600 per year) that I was getting paid. Additionally, I was expected to work overtime every week for free! Somewhere there was a bonus based on production. However, I did not have a clue as to how the bonus was calculated.

Let us face it. Public accounting just does not pay very well. Public accounting also expects everyone to work overtime for no additional pay.

Industry pays better than public accounting. Engineers get offers between $64,000 and $75,000 per year right out of college! That beats the $55,000 that Deloitte pays college graduates! Additionally, industry pays tax managers between $85,000 and $95,000 per year.

Posted 1 year ago #
limey

offline
Member

If you haven't signed anything yet, just ask - the worse that can happen is that the company says no. I used to be really hesitant about asking, and I realized that the worse that could happen is that they'd say no, or may offer something else, like an additional day of vacation or something.

The company usually has a range, i.e. $18-$25 or something along those lines. The company EXPECTS you to bargain, EXPECTS you to haggle, b/c you have leverage: they want you, and you already have a full-time position (so you can walk away and say no to them). This isn't a full-time position with a Big4 or medium-sized firm where salary is fairly fixed in a range, and this work is considered supplemental to you.

Definitely go for higher - they may come back with a # in the middle, i.e. you offer $24, they come back with $21.

An easy, comparative rule of thumb to calculate rate per hour vs. salary is this: rate per hour x 2,000 hours, or annual salary / 2,000 hours.
The 2,000 hours is a round number, approximated like this: 52 weeks per year, 2 weeks vacation, means 50 weeks of work per year.
50 weeks per year x 40 hr work week = 2,000 hours.
So if your annual salary is $45,000, that's about $22.50 per hour.

I really can't pass again!

Posted 1 year ago #

RSS feed for this topic

CPA Exam Review Forum » CPA Exam Review » REG Forum

Reply

You must log in to post.