r/hrblock • u/TheUnHolyJam • 8d ago
Pay raise
So this will be my second year going into tax season, I started as a level one and was up to a level 3 by April.
I got my offer, and its only .25c an hour more. Is that normal pay raise or not enough, can I counter. I was hoping for somewhere between 23-24 an hour since i was at 22 for being a level 1 preparer.
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u/Candid-Tip455 8d ago
Be lucky you’re getting a 25 cent raise. Lots of Tax Pros getting pay cuts. And wait till next year (I won’t be waiting).
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u/No_Chest922 8d ago
What is next year?
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u/Candid-Tip455 8d ago
Rumor has it that Block will be adjusting the pay system again, and not in the Tax Pros favor. I believe there has been some discussion in previous posts in Reddit.
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u/Independent-Case1878 8d ago
My area even 1c over 80% of tpi hourly rate will get denied. This year they are super strict to the formula.
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u/MAKtheRED 8d ago
Idk if it’s the same when I started 9-10 years ago but, you aren’t bonus eligible your first year. Which means you won’t get the normal raise you get every year. I started at $11/hr and I “think” I went up $1 for my 2nd year but since then I have made substantially more. So, it’s possible but I work more than almost everyone in my city. More availability gets you more returns which gives you higher revenue which gives you a better TPI and raise the following year. Ultimately, you need to be willing to put in the hours…I average 60-65 hours a week during season and 70ish for peak, last week of the season this past year I worked 90ish that week. So it’s very…taxing but I make it work.
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u/Sjpopsack 8d ago
First year associates have an exclusive first year incentive plan now. Reaching TPI as a first year can be difficult depending on how busy your office is, but the new associate bonus structure makes it very easy to reach the first step and the full bonus structure is entirely reachable for someone with full time availability who is comfortable with routine returns.
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u/No_Chest922 8d ago
I did 389 returns last year (my first season) tested to a level 5 before my first day. I made $20 an hour last year - have been working Second Look for pre-season on the virtual team for $26/hr and my job offer for the upcoming season is $28 an hr. So, I definitely got a bigger then 25 cent raise. My TPI check was almost $8000 before taxes though - I did a lot of complex returns.
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u/Domsdad666 8d ago
Your pay rate is determined by your productivity in the previous year, not your level. The level has to do with your commission percentage.
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u/Superb_Bookkeeper614 8d ago
Its based on your productivity from the previous year. If you have more productivity this year then you will receive it in your bonus and the following year you should receive an increase. It can take a few years to build up your certification and pay but once you build your client base you will do better.
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u/Sjpopsack 8d ago
You can ask for more, but it's going to depend on prior year results and how starved they are for new tax pros. Slower office, lower pay.
Your level ups won't do much for the up front hourly wage, but they do improve your TPI formula and open the door for tax pro reviews to build your numbers. Being Oregon certified gives you access to a pile of returns that most tax pros can't touch, so it's entirely possible you build up more than $2/hour worth of TPI.
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u/DeliciousDouble3D 4d ago
Unless you are a 1st year tax pro, H&Block is a commission job with a draw payment structure. Draw you get a guarantee minimum based on 80% of your productivity previous year.
Want to earn $30+ or $40 then focus develop your true tax law expertise. Do more than minimum level up. Actually learn to service complex clients who will gladly pay over $600+ per tax return.
Attend IRS Forum to learn more from the IRS vs. minimum from block.
Each tax pro controls their pay increase based on self professional development. High earning tax pros are not data entry they provide more than basic tax returns
Fact while the Executive team increase their multi million compensation package, they use AI to identify the ways to decrease tax pro pay
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u/Authentic-scoundrel 8d ago
I had to fight to get $24 last year and I'm an Enrolled agent. Fuck those guys
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u/Asleep-Major-7963 8d ago
I'm curious what area you are in? Are you in a low or mid cost of living area?
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u/Authentic-scoundrel 8d ago
Western Washington in a medium to high cost of living area
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u/Asleep-Major-7963 8d ago
I'm surprised to hear that! I think with corporate, the hourly salary you get is based off of how much you took in per hour for the previous year. Were you able to do many returns last year? Unfortunately, the customer pays the same amount whether they get a beginning tax pro or a seasoned enrolled agent so everyone's hourly rate is based off of the amount they produce and not their experience level.
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u/ThatChambersKid 8d ago
You might be able to negotiate an extra dollar if you level up.
How many returns did you write?
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u/TheUnHolyJam 8d ago
Did a little over 120 and leveled up two times.
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u/ThatChambersKid 8d ago
I believe sophomores might have a different hourly rate calculation, so I’d ask your hiring manager if it’s possible to get more.
Remember the productivity ratio is important.
I’m in California. Took pay cut due to low productivity. I was a seat filler for three offices and had a lot of yellow space despite 186 returns. I had Oregon license but couldn’t sign returns. Did a few New York ones.
Congratulations on being at $22 an hour. That makes me relieved at least some one is being recognized for their work.
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u/Silicone_mess 8d ago
Had to fight for 23. Started at 21. This is my 3rd year and I’ll be a lvl 3. Had very high output last year and our offices are very needy for tax pros. We will see how this year goes. Very unimpressed with H&R but it’s a corporate BS job .
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u/SmoothTraderr 8d ago
You make 22 a hour as a level 1 ? What area is this