How to Negotiate an Hourly Wage for Tax Preparation

Few states require licensing to become a tax preparer.

Tax preparation services are a popular option for people who dread the tedious and time-consuming task of preparing their own tax returns. Whether you want to work for an established tax preparer or work independently, your success as a professional tax preparer depends on your ability to negotiate a favorable wage. Follow several key steps when negotiating your salary to ensure that you receive the type of compensation that your services are worth.

Instructions

1. Survey the hourly compensation in your industry. As of May 2010, the Bureau of Labor Statistics reported that the average tax preparer earned $17.82 an hour, with half have of all those surveyed receiving more than $14.90 an hour. Your requested pay should at least start in this range. Find salary information at bls.gov.

2. List other types of compensation. Professional tax preparation services offer an hourly wage plus commission, based on the number of tax returns and their complexity. If you are starting your own service, this type of compensation is the best way to ensure that you are fairly compensated for doing more work.

3. Keep track of your accomplishments. It is easier to negotiate a favorable wage when you can justify why you deserve it. Notes from clients, awards, and positive work evaluations can work to support your request for a good wage.

4. Practice your negotiation strategy. Like any other skill, negotiation requires practice. Knowing what you are worth, and what you are willing to accept during the actual negotiation are both key to obtaining a successful outcome.

5. Negotiate your compensation. When negotiating with a professional service, keep in mind that your best option for negotiation could be your commission, since the hourly wage may fixed. If you are negotiating one on one with clients, compromise may be necessary to maintain a good relationship with your clients.

Tips & Warnings

• Tax preparation is a seasonal job that usually begins in January and lasts until the end of April.

• Make sure your demands are reasonable, so you do not come across as being greedy.

References

• Monster: Seasonal Tax-Preparation Jobs; Dona DeZube
• Bureau of Labor Statistics: Occupational Employment Statistics --Tax Preparers
• Efactor: Salary Negotiation--The Only Guide Your'll Ever Need; James Clear; March 2011