Paytax Tax Service: Statement of Work: Tax Preparer Commission and Responsibilities

Statement of Work: Tax Preparer Commission and Responsibilities

1. Introduction

Overview of the agreement between Tax Preparers and Payton Tax Service.

Clarification of employment status as Independent Contractors.

Explanation of tax responsibilities for Independent Contractors.

 

2. Commission Structure

Tax preparers receive a 50% commission for tax preparation fees charged to clients.

Commission details and calculations explained.

 

3. Payment Schedule

The 1st payment for the year will not be dispersed until the IRS is funding for mid and late-February returns.

Any following prep fee payment will be made the following Saturday via check or direct deposit to the account listed on file for the Tax preparer.

Any change to account information must be made one week before the next pay cycle date.

The last payment for contractors for the year will be made in the last week of November.

Any preparation fees released after 11/30 of the year will roll over to your invoice for the upcoming tax season.

 

4. Employment Status as Independent Contractors

All Tax Preparers contracted at Payton Tax Services are considered independent contractors, which means they are responsible for paying their taxes because they are not regarded as employees of the company they work for.

Payment made to an independent contractor of $600 or more for services rendered during the tax year is required to issue a Form 1099-NEC (Nonemployee Compensation).

 

5. Client Record Keeping

Tax preparers are responsible for maintaining records of the clients they service.

Are required to store a copy of all client folders at the main location: 5963 Summer Ave Suite 102, Memphis, TN 38134.

 

6. Loan Fee Deduction

Explanation of the loan fee deduction process.

A $75.00 loan fee will be deducted from the Tax Preparer's preparation fee for clients opting for a loan.

If the client's loan is denied, the $75.00 fee will not be deducted from the Tax Preparer's preparation fee.

 

7. Schedule C Fees

Clients using Schedule C will be charged a minimum fee of $500.00.

Tax preparers must adhere to the minimum fee requirement for Schedule C clients.

Responsibility of tax preparers to pay the difference if they charge less than the minimum fee for a Schedule C client.

 

8. PTIN Requirement

 

All Payton Tax Service Preparers must have an Active PTIN before the start of the upcoming tax season.

Failure to do so will result in being removed from the company tax software and any social media platform relating to Payton Tax Service.