[sacpa]

Please bear with me, it’s a long post.

Though my background in not in Accounting, I met the education requirements for the CPA exam & got qualified to take the exam. I have an A in all my Accounting courses. I have not passed any section yet.

I have worked as seasonal Tax Preparer in CPA firms from 2013 – 2017. As a W2 employee, I started with an hourly pay of $17/hr. Then $20, $25, $29.32 last year. Except for the last job which I got through Accountemps, the rest of them were from Craislist ads to which I directly responded & got selected. In 2013, I also worked for 3 months as an Account Executive while I handled A/R, A/P, bank reconciliations & used QuickBooks.

Currently, I have been offered a contract position in an Accounting firm for 6 months. One partner is a CPA & the other is not. During the tax season, I will be preparing taxes 15 – 22 hours per week & paid $25/hr. After tax season, it will be Financial Accounting & bookkeeping duties working for 10 – 15 hours per week & pay will be $22/hr. After 6 months, if all goes well & they are impressed, they may offer a job as a W2 employee, which off course is not guaranteed.

Pros:
1. The work hours would be ideal since I can balance both work & studying for the CPA exam.
2. The firm is about 10 minutes away from my home so no long commute. However, when I start the bookkeeping duties, I might need to commute to clients’ firms.
3. I will learn a lot while preparing taxes & especially bookkeeping which I love to learn & gain more experience.
4. I can claim expenses as a contractor in my tax return. I am covered by my husband’s health insurance, so that is not an issue.
5. I may be offered a job as a full time W2 employee, if the employer is impressed with me.

Cons:
1. Pay as contract tax preparer is lower than I made as a W2 employee. As a contractor, I need to pay employer’s share of 6.2% social security taxes (in CA), 1.45% of Medicare taxes in addition to the employee’s share.

Given the above situation, I would love to hear your thoughts & suggestions as to whether taking this contract position is a good idea. Any other valid points that I did not mention are very appreciated. Thanks in advance.

FAR - < than 75, 10/2013, 2/2015
BEC - < than 75, 10/2013
AUD - < than 75, 8/2015, 1/2016

~ Winners fail until they succeed. Losers quit when they fail. - Robert Kiyosaki
~ I survived because the fire inside burned brighter than the fire around me.
~ Something will grow from all you are going through. And it will be YOU.
~ Right now you may not be where you intend to be, but it's where you need to be in order to get where you want to go.

[Tim]

@sacpa

Hah, I don't think that's a legal clause. For instance, I can't have a contract with you stating that if I rob the bank you have to pay them back and pay any penalties that I receive.

edit: That clause should have sent you running for the hills.

[alloverit]

Technically that's not contract labor as they're controlling too much. They're just being lazy/greedy and sticking you with extra employment taxes.

[sacpa]

@Tim & alloverit: Very true. Yesterday, when I brought up the subject of tax preparer description in the contract, the partner said that the contents of the contract are not a big deal. I replied saying that the contract is there for a reason. Basically she is not following the terms of the contract she herself created (quote: I am an authority in creating contracts) & twisting the situation to her advantage.

Usually I am very careful & think out thoroughly before taking decisions. Like I said, I should have gone with my gut after reading the contract & not feeling comfortable with the whole idea of being a contractor itself since I have always worked as an employee even though I work only during tax seasons. Also, the partners & I are from the same country. It is a known fact that the employers do not treat their own countrymen who work for them properly. I missed all the red flags & paying the price. From all your responses, I can see that I am not overreacting or at fault, except for signing the contract with these sleazy people.

FAR - < than 75, 10/2013, 2/2015
BEC - < than 75, 10/2013
AUD - < than 75, 8/2015, 1/2016

~ Winners fail until they succeed. Losers quit when they fail. - Robert Kiyosaki
~ I survived because the fire inside burned brighter than the fire around me.
~ Something will grow from all you are going through. And it will be YOU.
~ Right now you may not be where you intend to be, but it's where you need to be in order to get where you want to go.

[Tncincy]

How did you get paid? w2 or 1099

It begins with a 75
Been here too long as a cheerleader....ready to pass

[sacpa]

@tncincy: I just started with them & yet to invoice them. I will be getting a 1099. I just gave them my timesheet & they freaked out saying that 2 hours is the most it should take to complete an ‘easy return' as they claim it, even though the client did not get their P&L statement in order leaving out expenses, did not present it in a user friendly format or itemize properly. They claim that they did it in one hour. While that is quite possible due to their experience, they started working on it having knowledge of the client's background & after having all the documents from the clients & doing it continuously at a stretch. I am new & had to ask the partners questions about the client & had to go back & forth working on that return because I had to get the updated documents with itemization & in the format we wanted.

FAR - < than 75, 10/2013, 2/2015
BEC - < than 75, 10/2013
AUD - < than 75, 8/2015, 1/2016

~ Winners fail until they succeed. Losers quit when they fail. - Robert Kiyosaki
~ I survived because the fire inside burned brighter than the fire around me.
~ Something will grow from all you are going through. And it will be YOU.
~ Right now you may not be where you intend to be, but it's where you need to be in order to get where you want to go.

[ultrarunner]

Are you saying they are charging $300 per a return? That's not a corporate return. I don't think you could learn anything from filing $300 corporate return. I would suggest to send out your resume while still working. They are also cheating on taxes by classifying you as a 1099 contractor. But there is nothing you could do about it. All the best.

FAR 72,67,79 (Roger+Wiley test bank)11/15
AUD 80 (Roger)10/15
BEC 80 (Roger)4/16
REG 63,78 (Roger+Ninja MCQs)5/16

[sacpa]

@ultrarunner: Why do you say that? $300 is the minimum charged, as far as I know. They charge more if it is a more complex return. It is a CPA firm not an ordinary tax firm.

FAR - < than 75, 10/2013, 2/2015
BEC - < than 75, 10/2013
AUD - < than 75, 8/2015, 1/2016

~ Winners fail until they succeed. Losers quit when they fail. - Robert Kiyosaki
~ I survived because the fire inside burned brighter than the fire around me.
~ Something will grow from all you are going through. And it will be YOU.
~ Right now you may not be where you intend to be, but it's where you need to be in order to get where you want to go.

[sacpa]

One day I was working from home & the non CPA partner texted me. Since I had kept the phone in another room, I did not see the text. After an hour or so, she called me & when I answered, she told me that she had texted earlier & I am supposed to keep my phone with me always. From her tone, it was clear that she was mad at me for not responding promptly.

I only work for about 2-3 hours a day & not a regular 8 hours. After all, I am just a independent contractor. Am I right to feel that I don't have to be available to her at any time?

FAR - < than 75, 10/2013, 2/2015
BEC - < than 75, 10/2013
AUD - < than 75, 8/2015, 1/2016

~ Winners fail until they succeed. Losers quit when they fail. - Robert Kiyosaki
~ I survived because the fire inside burned brighter than the fire around me.
~ Something will grow from all you are going through. And it will be YOU.
~ Right now you may not be where you intend to be, but it's where you need to be in order to get where you want to go.

[sacpa]

Typo in previous message: Am I right to feel that I don't have to be available to her at all times?

FAR - < than 75, 10/2013, 2/2015
BEC - < than 75, 10/2013
AUD - < than 75, 8/2015, 1/2016

~ Winners fail until they succeed. Losers quit when they fail. - Robert Kiyosaki
~ I survived because the fire inside burned brighter than the fire around me.
~ Something will grow from all you are going through. And it will be YOU.
~ Right now you may not be where you intend to be, but it's where you need to be in order to get where you want to go.

[Anonymous]

sacpa,

I'm not a fan of frivolous claims (however lucrative and legal), so I would just recoup the FICA and call it a day. But I can guarantee from experience that, should your employer ever get reported, that contract isn't worth the paper it's printed on, and the EDD can smell tax evasion from a mile away lol.

[Tncincy]

I agree with calvinus, recoup the FICA, but if they are depending upon you to service a client without background or previously filed return, then you might not be with the right company. It's not worth the stress.

It begins with a 75
Been here too long as a cheerleader....ready to pass

[aaronmo]

^^^It is far more nuanced and grey than that. The big determiners are work product, supervision, contract terms, and risk/liability.

I haven't read the thread in a while, but, from the earlier parts….I'd say the firm has exposure and the case can be made.

It IS possible for a tax preparer to be a 1099…CPA or not. If you want help, I'm pretty good and can tell you if you have a claim after I review the contract and go over the terms with you. I do have to charge for my time. Let me know.

If you are going to file as a 1099, remember to expense your income…take the health insurance against net profits…you get 1/2 self employment as a deduction…

I would not work under the conditions above if I had a choice…you can't even describe yourself as an employee on a resume.

As far as the phone/available question you asked…that depends on the relationship and whether you/they want to accept it. It would be ONE factor into the contractor/W-2 equation…but I can tell you that I won when we had that situation on the “employer” side.

[sacpa]

@calvinus, Tncincy, aaronmo: Thanks for your responses.

@Tncincy: They said that they started their firm 4 years back. I think that they are choosing their clients carefully. I don't think that is an issue, as far as I know. It's just that they are taking advantage of me of treating me as an employee but giving me independent contractor status.

@aaronmo: I remember you mentioning about your expertise in the area. Thanks for your offer, but not going to spend checking the contract. All the red flags are obvious, as it is.

So if working as contractor, I cannot put that on my resume? I did not think about that. Oh my, what did I get myself into? When I asked whether the CPA will sign for my hours for CPA license, she agreed.

More than what she told over the phone, the tone she used was like, how dare you not respond to me ASAP?

FAR - < than 75, 10/2013, 2/2015
BEC - < than 75, 10/2013
AUD - < than 75, 8/2015, 1/2016

~ Winners fail until they succeed. Losers quit when they fail. - Robert Kiyosaki
~ I survived because the fire inside burned brighter than the fire around me.
~ Something will grow from all you are going through. And it will be YOU.
~ Right now you may not be where you intend to be, but it's where you need to be in order to get where you want to go.

[Tncincy]

Get the hours and whatever experience you can and run.

It begins with a 75
Been here too long as a cheerleader....ready to pass

[sacpa]

@Tncincy: I am going to see how it goes & take a final decision. It's really not worth the toil it's taking on me. Never felt like this even when I started working. I would rather focus on studying for the CPA exam full time & get over with that.

During the performance review, they did not mention one thing positive about me. I am not here to blow my own trumpet but seriously they could not find one thing good about me?

FAR - < than 75, 10/2013, 2/2015
BEC - < than 75, 10/2013
AUD - < than 75, 8/2015, 1/2016

~ Winners fail until they succeed. Losers quit when they fail. - Robert Kiyosaki
~ I survived because the fire inside burned brighter than the fire around me.
~ Something will grow from all you are going through. And it will be YOU.
~ Right now you may not be where you intend to be, but it's where you need to be in order to get where you want to go.

[Author]

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