[Anonymous]

Ok, so I think I should be offended, but I just wanted to double check and maybe get some input from others, especially those in public accounting. Background- I have been in private accounting for 13 years, accounting manager for a very small company. I do some bookkeeping on the side for a small CPA firm and have for the past 5 years. I bill this CPA firm $30/hour (and have the entire 5 years we’ve had this arrangement) After passing the CPA exam, they reached out to me seeking me as an employee. long story short and multiple interviews later, they offer me a job : $28/hour to start. WTF?? Isn’t that insulting to be offered LESS than what I currently bill them for bookkeeping services? I know that if I go in-house they will be responsible for taxes and continuing ed, etc, but I did the math and it still shakes out to maybe $32/hour. I would like opinions on this if you have any and maybe share what you think the average public accounting firm offers. Thanks!

[Anonymous]

Question – are they going to provide you with health insurance, cell phone, per diems, etc on top of the $28/hour?

[jeff]

That's $58k a year @ 2080 hours.

You may get $30 an hour as a subcontractor, but you're not getting that full time. Also – you have to pay your own “match” via self-employment tax.

I don't think it's an insult, personally.

AUD - 79
BEC - 80
FAR - 76
REG - 92

Jeff Elliott, CPA (KS)
NINJA CPA | NINJA CMA | NINJA CPE | Another71

[Anonymous]

I think it makes sense for them to offer you a slightly lower salary, otherwise they could just continue to subcontract out to you for $30 an hour. If the $28 an hour is more than you are currently making at your other full-time job, then you could take the offer and continue to do bookeeping on the side. (or wouold that violate some kind of non-compete ethics requirement?)

[gomdolyi79]

I agree with Jeff. That's not bad if you also have some employee benefit.

BEC 2010 Q3 91
FAR 2010 Q4 88
REG 2011 Q1 90
AUD 2011 Q2 93

[Gina]

Do they offer year end bonuses (commission/fixed), employer contr. 401K and full medical? I used to work at a private CPA firm that had a decent base salary and after factoring in all those other benefits/perks the overall package was actually a great deal. If your current job has better benefits and pay, then it's probably not worth it.

REG 68,67,83(7/2010); FAR 43,71,80(8/2010); AUD 85(11/2010); BEC 74,79(2/2011)
NYS CPA 5/2011
EA 2/2011

[Anonymous]

Health insurance and no Self Employment Taxes…Doesn't sound all that bad to me. I think most of us would kill to be paid hourly. It looks like you're getting about the same pay while getting more employment security. Best of luck!!

[financeguy]

Mcdonalds just recently announced that they were hiring for 50K new jobs. They received 1 MILLION applications. They ended up hiring 62K new employees.

Obviously you are far beyond the work of Mcdonalds. You should really educate yourself on the current situation of this country and the global economy as a whole. There are probably millions of people who are qualified for that position and would work at half that pay rate.

It is always the bottom line for a business and as an accountant no one should know that more than you. You need to provide more to the company than the company provides to you. If you don't, then eventually the company will go bankrupt. That is just simple arithmetic.

You should be grateful they offered you a job, not insulted.

AUD - 81, BEC - 74, 80, FAR - 82, REG - 81
Done!

[jelly]

Depending on what state this involves, also consider that the company may absorb many risks for you in terms of claims for:

1) Workers' compensation

2) Disability

3) Professional liability

4) Unemployment and subsequent increases in insurance from claims – one of the biggest risks for small businesses right now. I've read that some companies are being charged interest for extended unemployment benefits; the feds charge entire states interest for additional funds, and the states pass it on to businesses.

5) CPE / Medical / dental / 401k / life that's been mentioned – can be a plus in your direction if the company pays part or all of it for you

Consider that fringe – most or all of the above – can be 25-35% of salary. The most basic additional expenses from hiring a W-2 would include FICA/Medicare, and the first 4 above.

Couldn't pass again!

[Anonymous]

Well Financeguy, here's the deal- I have a job. The contract work I do for them is on the side. They came to me after hearing a was taking the CPA exams, I didn't go to them searching for a job. Although I feel for the 38k McDonalds applicants that were not hired, I really do not see where that information is applicable to my situation. I told the company that I was appreciative, yet unable to accept that offer. They are in the process of countering. I know the economy is down, but the accounting profession as a whole is expected to grow 22% between 2008- 2011 according to CNN money and US News and World Report. It's also one of the 50 Best Careers for 2011. Neither you nor anyone on this bored should convince themselves that they should be grateful to receive a job offer, no matter how crappy it is. After passing the CPA exams you should know that you are worth more than you were before passing the exams.

On a different note, I think if I had been offered that by an outside firm with which I had no prior dealings I would be not be offended by any means. It was the simple fact that for 5 years I haven't raised my rates once (now tell me how many people would be appreciative of not having a raise for 5 years) and they still offered me less.

[Anonymous]

“board” guess I should proof before I post 🙂

[tulip]

Independent contractor work is usually 25% to 35% higher than salaried work because of the burden that moves from the employer to the contractor. I think $28 is reasonable by that logic.

Employers also pay more for contract work because of the lack of commitment involved.

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

[financeguy]

38K mcdonalds applicants who were not hired? Try 938K.

https://www.zerohedge.com/article/initial-claims-474k-bring-out-qe3

I don't care if you are a CPA, a lawyer, or a doctor, it is arguably the toughest job market in the history of this country. I have held a job throughout this entire recession, and I actually just got an offer for a new job, it will be best of my career. I am absolutely grateful, and even if I had not received this new job offer I would still be completely grateful to have a job.

Saying you are worth more simply because you have passed the exams is nothing but nonsense. You are worth whatever an employer is willing to pay you. Your real life examples clearly illustrates that fact.

I don't know how you figure that the accounting profession is supposed to grow by 22% from 08-11. You do realize how many companies have gone bankrupt, how many people have been laid off, and how many businesses have been shut down? Accounting is a derivative of other jobs – If Circuit City shuts down, then every single person involved in the accounting of that business is no longer needed, and this applies to every single business in the world. Accounting does not stand on its own…it must have something to Account For. The accounting industry is not growing and it will not grow until the global economy as a whole grows.

AUD - 81, BEC - 74, 80, FAR - 82, REG - 81
Done!

[Author]

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