I don't charge enough

[Roberts]

New client - he said the previous preparer made mental errors like sending him emails meant for someone else and including a copy of someone else's tax form in his information. 

Three W2's

Child Tax Credit - no daycare

1 div, 1 int

1 capital gain entry

 

They charged $520.

Including generating a new client entry and running through itemizing, it took me an hour.

[Yardley CPA]

I guess I'm undercharging as well.  I would be nowhere near that charge for that return. 

[Lion EA]

I try to bring in all new clients at $500 minimum. That doesn't always work. But, I'm in pricey Fairfield County, CT so it does work sometimes. Even when I charge less, I print the full price and then a discount. And, I have long time clients at a fraction of that price. And, families with deep discounts or free for kids or.... I get more complaints when I raise prices than I do when I start high with a new client.

[FDNY]

Me too, you’ve got to be fair, it will pay off in the long run.

[Elrod]

All you folk's work is very valuable ...... 

 

 

                                                                                                                       

[GLJEANNE]

My minimum is $150, and that sounds like what I would charged your client.  I had a new client yesterday, after I finished going through the mountain of pages from last year's HRB return, I found their bill for $529.  Well no wonder they give the client so many useless worksheets and statements, they have to justify that ridiculous price!  I'm thinking mine will be around $300.

[schirallicpa]

I have a minimum of 165 that is state and federal.  for very basic return.  When there are kids involved and that damned 8867 comes into play I took the advise of another professional and added an hour's billing of $135 for IRS due diligence reporting.  (the form states an hour to 90 minutes to prepare this form)  So this return would be a $350 bill for me.

[ILLMAS]

I don't charge enough

Let's talk about payroll processing companies, 1 employee (and being a seasonal worker) = $1,300   

 

[Lion EA]

I keep reminding myself that I don't charge enough. Ask me how many times I stick to my $500 minimum. I haul that out for price shoppers. I seldom get the chance to use it on actual referred clients.

[Gail in Virginia]

13 hours ago, ILLMAS said:

I don't charge enough

Let's talk about payroll processing companies, 1 employee (and being a seasonal worker) = $1,300   

 

Actually, one employee, or two or three. there isn't much difference in how much trouble the payroll is.  If $1300 is their per pay period cost that is outrageous.  On the other hand, if it is a weekly payroll 52 weeks per year, that is about what I would charge just to do the payrolls - $25 each, plus an additional charge at the end of the quarter for the VEC and 941 reports.  And I don't think that my charges are high.  

[ILLMAS]

2 hours ago, Gail in Virginia said:

Actually, one employee, or two or three. there isn't much difference in how much trouble the payroll is.  If $1300 is their per pay period cost that is outrageous.  On the other hand, if it is a weekly payroll 52 weeks per year, that is about what I would charge just to do the payrolls - $25 each, plus an additional charge at the end of the quarter for the VEC and 941 reports.  And I don't think that my charges are high.  

This particular TP gets paid monthly and operates the same season as a landscaper except they don't so snow removal.  The payroll processing still charges a monthly fee, Yikes

[Medlin Software, Dennis]

Like tax prep, payroll providers are often asked (appropriately or not) for advice and to share expertise, not just bang on a keyboard and produce paper.  If I were still processing for others for pay, I would have some sort of flat rate per month, rather than a fee per sheet of paper/check.  Helps cover those 8pm calls about firing someone (which in our state, requires instant payment), or their power's out, how can I get people paid, etc.

I would charge monthly, even if seasonal, as reports, inquiries, worker's comp audits, etc., do not take the winter off.

[Lion EA]

And, 4Q PLUS annual reports in January, even for seasonal landscapers. In my state, you owe reports every quarter, even if zeros. Not to mention the deadlines and the huge penalties for missing a deadline.

[ILLMAS]

This goes back to we don't charge enough, we are at the same level or above as these payroll companies if they can charge that, so can we.  

[BLACK BART]

On 2/25/2020 at 12:10 PM, Roberts said:

...the previous preparer made mental errors...

Yeah, I'm prone to those too (so my wife says), but anyway, who can tell what's right to charge.  Everybody varies and the determining factors are all over the board.  It may depend on who it is - what's included in the "short form" they claim it is and it ain't - do/are they: coughing in my face, wearing enough perfume to burn my eyes, poor-mouthing while I know they have enough cash to burn a wet mule, likable, affable, cheerful, have body odor that would drop an ox, be poor, pitiful, or pretty.  Sometimes I gouge and sometimes I practically give it away.  I had a fit the other day and charged a client $800 for a quoted $400 maddening job and then made a grand gesture of slashing it in half in front of him when he complained.  Kept the client but I'm still P.O.ed about it.  What next?  Oh well, such is life the old man used to say.  RANT OVER!

I charge $75 for one W-2 and a state.  $95 for two W-2s, $110 if they have an HSA or other stray form, $150 to $300 and up for C or E, etc.  The more complicated it gets runs it up to $500 or possibly $900.  Course, this is pore boy country so it probably won't fit the Yankee prices.  Meanwhile, I'm playing it by ear (and nose).