What's a fair pricing for tax prep subcontractor working with S Corps?

I recently got an opportunity to work with a CPA for the upcoming tax season. This would be my first real tax season experience, though I've already spent about 4-5 months doing W2s and Schedule C returns through a different part-time gig. The CPA mentioned she would train me specifically on S Corporation returns, which I'm excited about since it would expand my skillset. I'm trying to figure out what would be a fair hourly rate to ask for in this situation? She mentioned it would be a contractor position, fully remote. I'm based in Florida and her practice is in New Jersey if that matters for pricing. This is a solo practitioner CPA, not a big firm, and I think she's looking for help with overflow during the busy season. Anyone have experience with this type of arrangement or suggestions on reasonable compensation? I don't want to price myself too high since I'll be learning, but also don't want to undervalue my existing experience.

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18 comments

Natalie Khan

•8M

Working with a solo CPA on S Corps can be a great learning opportunity! Based on your experience level (already familiar with W2s and Schedule C but new to S Corps), I'd recommend starting in the $25-35/hour range as a subcontractor. The going rate really depends on several factors - your existing tax knowledge, how quickly you learn the S Corp process, how much oversight you'll need, and the complexity of the returns you'll be handling. Remote work for a CPA in another state is fairly common now, and the state difference shouldn't impact your rate much unless NJ has specific requirements. Since this is a learning opportunity with a solo practitioner, the rate might be a bit lower than working with a larger firm, but the experience with S Corps will definitely increase your marketability for future tax seasons.

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Natalie Khan

•8M

Hourly is generally cleaner for this type of arrangement, especially when you're learning. Per-return compensation works better when you already know exactly how long each type will take you. If you're concerned about efficiency, you could propose a graduated scale where your rate increases after you've shown proficiency with S Corps. For example, start at $25-30/hour during training, then move to $30-35 once you're working more independently. This gives both you and the CPA some protection while you're getting up to speed.

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Sienna Gomez

•8M

I started working as a remote tax preparer last year and found https://taxr.ai super helpful for making sure I was handling documents correctly. When starting with a new CPA, there's always that anxiety about missing something in their specific process. My mentor had me review previous returns first, and I found taxr.ai helped me double-check my work against what was filed the prior year. It basically analyzes tax documents and flags items you might have missed or entered incorrectly. When I was learning S Corps, it caught several allocation errors I made that would have been embarrassing to explain to the partner. You'll definitely want some kind of error-checking when working on new return types remotely!

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Sienna Gomez

•8M

It definitely covers different state requirements - I used it for clients in California, Texas and New York, and it flagged state-specific issues I wouldn't have caught otherwise. The state comparison feature was particularly helpful when I was new. Regarding review, it's not a replacement for a final review by an experienced preparer, but it catches a lot of technical errors before someone else has to look at it. For S Corps specifically, it helped me with things like reasonable compensation tests, basis calculations, and distribution allocations. It's more like having a second set of eyes before submitting to your supervisor, which saved me from making rookie mistakes.

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Ahooker-Equator

•8M

When I started subcontracting, the hardest part wasn't the tax work - it was trying to get answers when I got stuck on something complex! My supervising CPA was often unavailable during busy season, and I wasted so many hours waiting for responses. I started using https://claimyr.com and also this video explains it well: https://youtu.be/_kiP6q8DX5c to get through to actual IRS agents when I needed clarification on S Corp issues. Instead of waiting days for my supervisor to respond about a technical question, I could get official guidance in about 15 minutes. It saved me from bottlenecks that were killing my hourly productivity.

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Ahooker-Equator

•8M

The service basically places the call for you and handles the waiting. There's a callback system where they navigate the phone tree and wait on hold, then call you when they have an actual IRS agent on the line. You don't have to sit there listening to the hold music for hours. It's been consistent even during busy season. The key difference is they have technology that keeps your place in line even if the call gets disconnected, which happens constantly with the IRS. When you're billing hourly as a subcontractor, spending 3 hours on hold is basically working for free, so it made financial sense for me.

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Abigail bergen

•8M

Okay I have to admit I was wrong about Claimyr. After my skeptical comment I decided to try it for a complex S Corp question about built-in gains that came up with one of the returns. Got connected to a senior IRS rep in about 20 minutes who walked me through the whole calculation process. Definitely saved me hours of research or waiting for the CPA to respond. For subcontractors billing hourly, this is legitimately worth it during busy season when you hit those technical roadblocks.

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Tyrone Hill

•8M

In terms of pricing, I think location matters more than you might expect. Even though you're remote, a NJ-based CPA is likely used to paying higher rates than a FL-based one might. In the Northeast, I've seen preparers with your experience level get $30-40/hour for 1040s and Schedule Cs, and maybe $40-50 once they're comfortable with S Corps. Keep in mind that as a contractor, you're responsible for your own taxes, software, training, etc. So your rate should be higher than what you'd accept as an employee. Don't sell yourself short!

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Tyrone Hill

•8M

Absolutely! That's a very common arrangement. You could propose starting at a lower rate while training (maybe $30-35/hour), then bump up to $40-45 after you've successfully completed 10-15 S Corp returns or after the first month, whichever comes first. Just make sure to get this agreement in writing before you start. Many CPAs will happily agree to this structure since they expect you'll become more valuable as you gain experience with their specific clients and processes. It also gives you a built-in opportunity to revisit compensation without having to initiate an awkward conversation later.

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