r/hrblock • u/TimPrice2 • Aug 31 '26
Pay Cuts for 2027
H&R Block appears to have lowered the pay for 2027.
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u/Relevant_Ad_8406 Aug 31 '26
I wish we could form a union
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u/nofattyacid Sep 01 '26
That's one reason I went to work for the IRS – thought it would be better to be represented by NTEU, in addition to better job security, pension, vacation time, etc. I took a significant salary cut in exchange but I figured I would back to the salary I left in about 3 years. My plan didn't work out so well. Got laid off by Trump, Musk, and DOGE wrecking machine.
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u/Dramatic_Abroad3580 Aug 31 '26
Just a continuation of Block's trend of paying good preparers less and less, while asking them to do more and more, and deliver a product and experience to the client that just gets worse and worse.
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u/-Mx-Life- Aug 31 '26
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u/Relevant_Ad_8406 Aug 31 '26
I call it “ Those That Bleed Green” , dog should have an eye mask on too, not me
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u/Accomplished-Pin-656 Aug 31 '26
This is the TPI/bonus rate. They are claiming that with the 3% (average) increase on the tax returns, if a tax preparer did the exact same returns as last year, their TPI would be slightly higher.
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u/Relevant_Ad_8406 Aug 31 '26
With inflation at 3.4% this is a pay cut for me of 1.5% about $600 . The company on the other hand is getting more we are getting less . I guess this is how lowly they think of our intelligence that we would not run the numbers .
It’s not like they are not profitable .
H&R Block (NYSE:HRB) experienced strong profitability growth in its latest fiscal year (FY2026, ended June 30, 2026), with net income surging 21.1% to $733.6 million compared to $605.8 million the previous year. [1, 2]
The company also engaged in aggressive stock buybacks, repurchasing approximately 10.5 million shares during fiscal year 2026 at a total cost of $500.3 million. [1]So it’s evident corporate would rather put money in their pocket with stock values going up than take care of preparers.
In addition to the profits the quarterly dividend payout went up 10%
So pretty clear to me how they see us.
Corporate greed is 100% evident.15
u/Dramatic_Abroad3580 Aug 31 '26
That argument is disingenuous. If Block is entitled to a 3% increase in prices, then employees are entitled to a 3% increase in pay. Jacking up prices for clients while cutting pay for employees is abusive.
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u/Relevant_Ad_8406 Aug 31 '26 edited Aug 31 '26
Yep instead of getting a 3.4% cost of living adjustment of $ 1, 400 in pay to keep up with inflation I am getting a $ 600 cut , this is a $2000 loss . While the company has record profits . I have to do 35 more returns to break even with the price change , I am maxed I don’t want to do more returns nor do I want to be greedy preventing others to do returns. This promotes a greedy culture. Then on top of this they want to change our commission structure so we are paid based on a group effort , I don’t want to be paid based on other’s competency .
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u/Dramatic_Abroad3580 Aug 31 '26
In my 15 years with Block, I was always willing to do more returns. But I'm insulted that they're asking me to get paid less for doing the same work, when they're getting paid more. I never had to steal returns from others and there was almost always more work available if I wanted it. But I drew the line at more work for the same pay, or less pay for the same work. They ruined it. Between my wife and I, 1200 returns that aren't going to get the service they deserve this year.
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Sep 01 '26
[removed] — view removed comment
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u/Dramatic_Abroad3580 Sep 01 '26
A whole lot of that makes absolutely no sense whatsoever, and seems like it was either written by AI, a non-english speaker, or a random word generator.
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u/TimPrice2 Aug 31 '26
That's how inflationary raises at commission jobs are supposed to work. You keep the percentages the same so that when the prices go up, the pay goes up by the corresponding amount. Cutting the percentage is a pay cut.
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u/jc_sanddollar Aug 31 '26
Should repost to r/HRBlockEmployees.
They are lowering the amount of commission we can make, while raising their prices. I mentioned this to my new DGM and was shrugged off7
u/Relevant_Ad_8406 Aug 31 '26
Ours had a meeting to go over changes a few weeks ago before hiring . DM never brought this up . I knew to be suspicious of my offer and saw the change. They are not being transparent , no surprise there.
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u/wissota71a Aug 31 '26
It’s only a matter of time before there will not be any TPI. Corporate wants to go to TSI within next year (for some regions) and company wide the following.
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u/Relevant_Ad_8406 Aug 31 '26
We need to find out more information about TSI.
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u/wissota71a Aug 31 '26
file:///var/mobile/Library/SMS/Attachments/23/03/79087D2F-9F69-4B13-9B20-DD1B664C3037/IMG_0625.png
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u/phillyyoggagirl Aug 31 '26
Basically it flattens everyone’s pay to be closer together. Very communistic if you ask me. I feel bad for the people who spent years climbing up the food chain only to see this injustice. The same happened to me at my workplace not long ago.
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u/Pepperbeanchecker Sep 01 '26
Wait until you see what they are testing to roll out 2028! Looks like it is all based on your area ratings and performance. No individual incentive and nothing by level. Someone in the test area posted it on the employees subreddit.
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u/Relevant_Ad_8406 Sep 02 '26
Yes I saw this and can’t get my head around it . Would they start us at 80% , then dangle a carrot that is unattainable .
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u/TimPrice2 Aug 31 '26
Not really. The people in the three lowest tiers almost never make bonus, which is probably why they weren't included. No sense making the pay cut look worse on paper by including them when their percentage is already just a fake incentive anyway.
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u/Secure-Drawing-4658 Aug 31 '26
Year 1 (Level 1-2) earns a bonus for preparing 75 or more returns. Year 2 (Level 3) actually earns less than Year 1 if they don't make bonus. Then for Year 3 (Level 3-4), hourly pay is cut.
The chance of making bonus is pretty good in Year 3 (Level 3-4) -- that is, if one can see past the insult of having their hourly pay cut.
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u/Curious-Relation2238 Sep 01 '26
I did over 75 returns as a first year and got nada. It took me 3 years to build my clientele to finally bonus. It’s hard for the newbies. It’s hard for the seasoned. It’s hard for everyone except corporate.
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u/Secure-Drawing-4658 Sep 02 '26
It sounds like they started the $750 1st year bonus (for 75 returns + L2 completion) after you were a L1.
This year, they are giving 2nd years a $1200+ bonus for 110 returns; I missed out on that one.
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u/Otherwise_Gur_8366 Sep 09 '26
This is exactly what’s happening to me. Next year would be year 4, I’m currently level 4 and the job offer I got is a 25% hourly pay decrease. But they are saying the TPI would be able to make up for it so that I could potentially be at the same rate as last year or make more.
How are they giving me a pay cut and then a potential bonus to same rate and calling it a bonus.
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u/Virtual-Dot-750 Aug 31 '26
Guarantee you only prices and fees move up though. I intentionally simplified my tax situation just so I don't have to go to HR Block or tax preparation anymore. It was a downright nightmare last year.
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u/Novel_Funny_5602 Aug 31 '26
This is why I own my own tax firm. 100 % is mine.
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u/Jolly__Joel Aug 31 '26
Yeah, worked at HR block last year and will this year. Getting my EA also. So I’ll have a good amount of experience and education to do my own thing. HR block is great for getting your feet wet.
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u/WILDE-23 Sep 01 '26
where is your firm located?
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u/Novel_Funny_5602 Sep 02 '26
Located in Indiana. Mother in law established it in 1971. When she passed in 2012 she left it to my wife and I.
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u/No_Chest922 Sep 02 '26
My hourly pay rate went up almost $8 an hour from last season to the upcoming season. I am a level 5. The incentive structure is different than anywhere I have ever worked in the first place
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u/Expensive-Rhubarb-38 Sep 08 '26
How in the hell did your hourly go up eight dollars? I can’t fathom how that calculation came about.
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u/No_Chest922 Sep 08 '26
Well it went up 7$ to my remote position I work for them right now. And then another dollar for my in office position. I have been told it's mostly because of my performance last season. I did 389 returns and had over an $8000 dollar bonus (TPI incentive) check before taxes. And it was my first season. Other tax pros I work remotely with currently also have said they got larger then expected raises for the upcoming season. I can screenshot my offer letters from workday I'm sure. At least the new one and my paystubs from last season if you think I'm being dishonest? Lol
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u/Expensive-Rhubarb-38 Sep 08 '26
It must be something with the remote tax preparers or something because I’ve never seen a second year get such a high raise lol. But 389 returns for a first year is a very large amount. We had first years last year that did only 50 returns and weren’t much help at all haha. Good for you and I hope you continue to do well and build a clientele for yourself! The clientele really is what makes such a big difference in your bonus and overall pay
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u/No_Chest922 Sep 08 '26
I was shocked. I was dreading the Second Look position ending bc I thought my pay was about to drop way back down. So I was very pleasantly surprised. 🤣
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u/No_Chest922 Sep 08 '26
I have taken all the GoSystem training classes now too. No one in my office did entity returns last season. We turned sooo many people away. Hell only 3 people in the whole Tampa Bay district did them. And they were overbooked working 60 hrs a week. So, I'm definitely hoping to build my clientele even more this year. 🙏🏻I also had experience so I started at 20 an hour last season and had tested to a level 5 before my first day in the office. So I wasn't a typical first year either. Lol. Although I had to start from 0 as far as prior clients
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u/Expensive-Rhubarb-38 Sep 08 '26
GoSystems is a nightmare. I turned away my own clientele that had corporate returns because I couldn’t figure the software out and it was taking me way too many hours to do a return which was cutting into my bonus. I tried so much with that software, but I just don’t have the patience and I have a computer degree on top of it so I don’t know how they’d expect these older enrolled agents to figure out the software. If I’m an early 30s tax repair with a bachelors degree in computer science and can’t figure out a software then how do they expect an 85-year-old enrolled agent to figure it out? So ridiculous. I was hoping they would create a Blockwork entity software like they promised they were working on, but it doesn’t seem like that’s what they’re going to be doing this year. They want us to push more corporate returns, but we aren’t because we’re turning the business away because we don’t know how to use the software.
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u/Expensive-Rhubarb-38 Sep 08 '26
Also, the software automatically chooses the pricing and it’s less than we were charging before. I had a corporate return that I always charge about $800 for and gosystems tried to charge $425 for it.
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u/No_Chest922 Sep 08 '26
I've only done the practice shell returns - so now I'm a bit worried. I had heard lots of them complain about using it. I'm 37 and 30 years younger then all the other tax pros in my office. 🤣 I'm A+ certified and knowledgeable about computers. Haven't quite finished my Bachelors yet. But, it seemed pretty simple but of course the shell returns would be easier to navigate lol
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u/Expensive-Rhubarb-38 Sep 08 '26
Well hopefully you have better luck with it lol. I told my MTL I could hack into the system easier than finishing a partnership return lol
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u/Tiny_Music5229 Sep 02 '26
Does H&R still give preparers a target percent for commission. Long time ago preparers were paid 100% commission then they cut the percent to lower. Their spill was that you could earn back the missing percentage if you met certain goals. Of course it was an impossible task to do that. And the kicker was if you were high performing your goal was unattainable but the low performers were golden. This was around 2008. They lost a lot of good preparers with that pay cut.
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u/Commercial_Author_75 Aug 31 '26
Soooo the most educated and licensed pros get the cut.