What percentage of gross revenue should first-year tax preparers be paid?

[IRonMaN]

The same as their last year?  I’m not sure how relevant that question is because there can be a lot of difference between gross and net depending on how someone runs their practice.

[George4Tacks]

A few decades ago I started new preparers at 25% of what they produced. Over time that would increase. One of those people started by doing input with the then one CP/M computer and printing returns on a 4 part carbon paper pin printer in year 2 of Lacerte. She then became preparer and now almost 40 years later runs her own 800 return practice while I keep trying to retire. She spun off her practice 15 years ago when I sold my practice and started my meager attempt to step away from what I am still doing, cuz it's FUN!

Pay as much as you think you can handle. Good help is hard to find. 

[GeneMartinTaxService]

They don't have a last year with me.  We haven't had to hire anyone for 17years.  I am more wanting to know is what is a fair, going-rate for a first-year preparer fresh out of the tax course.  Things like hourly and/or commission? Thanks for your help.

[IRonMaN]

" what is a fair, going-rate for a first-year preparer fresh out of the tax course"

New York, New York or New York Mills, Minnesota?  Where you are at makes a difference.  Rates aren't a one size fits all for everyone.  Take whatever you paid your last guy or gal with the experience and reduce it by X% based on the difference in years of experience.  But then again, you can say you are going to pay them a certain amount and they may laugh at you.  I would start with "how much were you looking at for a pay rate" and see how that fits in with what you paid experienced people.

[BobKamman]

How many other occupations pay clerical and paraprofessional support based on gross revenue?  I can't think of many.  Just because it's a business model pioneered by two guys from Kansas City, doesn't mean it's a good idea. 

For many years I paid my tax-season employees an hourly rate, and then an April 15 bonus if they were still around.  That's when the bank balance was highest, unlike Christmas when it was depleted except for seed money needed for next season.