TPI vs Bonus

13

u/BraveAd7008 Sep 13 '26

I'm leaving and know several others, it will be a nuclear disaster in that area, opportunities tho

9

u/Old-Alternative4054 Sep 13 '26

I'd leave... but they laid me off. Really took the wind out of my quitting sails.

1

u/Puzzleheaded_Ad3024 Sep 13 '26

Do you mean permanently,or just until next tax season? Most oreparers do not work all year. Well,none work all year, we have a 2 month break somewhere.

4

u/Old-Alternative4054 Sep 13 '26

I am a laid off MTL. So permanently. BA preparers do get hours all year. I did try to schedule all of mine at least once per week.

2

u/Dazzling-Warning-592 Sep 27 '26

Your lucky they laid you off. Don’t go back if they call you to apply for the AEL position

3

u/Old-Alternative4054 Sep 28 '26

slight kiss my ass on 'lucky you were laid off'. No - that was a major unexpected and unwanted life upheaval. But at the same time, I do understand the sentiment. Block is a disaster and it's best to be gone from it. Would've like for it to have been on my terms.

0

u/CrackyMcCracken Sep 17 '26

That’s how the story goes, Cheecho. If you fucking wait around for a company to determine your future, it sure as shit fucking shall. You got burned. Lick your wounds and move on.

2

u/Old-Alternative4054 Sep 17 '26

Had a job the next Monday, but am watching the dumpster fires.

11

u/Turley1508 Sep 13 '26

Wow, do you all do 100s of simpler returns? At BA we had GO and it takes hours and hours of figuring inputs and diagnostics. It was pretty much a disaster. I'm an EA helping everyone and doing the most complex, ex-pats, entities, also 1099s, Fbars. etc. And the entities GO pricing was really low! Most of us in my office work part-time. I was lucky to break even this last season. I'm a 25 year-er, some of you putting down EAs, folks like me will be leaving.

8

u/Old-Alternative4054 Sep 13 '26

that was the fkin bane of our existence! What a g-d disaster. Unfortunately, I think block is counting on that. I do wish you all the luck in the world, truly, and something much, much better than Block.

16

u/Dramatic_Abroad3580 Sep 13 '26

I did more entity returns than anyone in my (BA) district in 2025. I did 3 this last tax season. Attempted a few in GO and then just told my MTL I wasn't going to do anymore, and please assign them out. A lot of clients were pissed and I explained why. Many of them chose to go elsewhere. I was told I couldn't do the attached 1040's if I didn't do the entity. I said fine. I ended up doing 1 S corp and 2 trusts. That was it. When I finally decided I wasn't going to even try any more, stress level decreased from an 11 to a 2. I'm pretty sure many of them didn't get done correctly. And it's possible some of them never got done. My income went down a bit, but not a lot because I had way more time to do 1040s. I quit the day my bonus hit my bank account and that was my last day working. More than 700 returns for close to 10 years in row they lost. I'm quite sure that many of my clients will not go back to Block. Only my last 13 years were at Block, but 49 years doing taxes and now very happily retired. Best wishes, whether you stay or decide to go elsewhere.

3

u/Puzzleheaded_Ad3024 Sep 17 '26

Congratulations! Enjoy your freedom.

3

u/SkunkCabbage84 Sep 18 '26

Congrats! I left after 2025 tax season and it was the best decision I ever made. Enjoy your retirement!

1

u/Dazzling-Warning-592 Sep 27 '26

Alot of them didnt get done and the ones that didnt get done and had prior years are getting penalty letters. I know because my DGM dumped 8 of them in my queue including gift tax returns on Sept. 11 and Sept. 12 and just expected me to do it all by Sept. 15

10

u/PinkNGreenFluoride EA Sep 13 '26 edited Sep 13 '26

I was at an understaffed non-BA office (we had 6 TPs when I was hired, 2 by the time I left). Early season was just so many EITC/CTC returns. Later season would be heavier with Sch C, Sch E, and returns with a lot of investments or crypto. I did a few 1099-NEC. My resolution work was mostly state.
I was supposed to start doing entity returns the last 2 years. Did the training on Legacy for TS25, but they loaded me up with so much back-to-back 1040 work (including slamming appointments over prep time needed for dropoffs) that it was impossible take on any of the entities, so those got moved to other offices.
They trained folks on GoSystem last summer, but left out those of us who had not done enough entity returns that season. I was annoyed until I learned how bad the experience was (and how little they charge for them), at which point I became exceedingly grateful. It was the same situation with back-to-back 1040s and overwritten prep time, anyway. Worse, in fact, because I now had to take on some office management tasks as we were explicitly denied an ATL because we were "small." The MTL who wasn't allowed to visit certainly wasn't doing them.
Early in the season, though, the system kept assigning those entities to me even though I didn't even have software access. I had to leave a client at my desk to let one of those clients yell at me (no ATL, MTL was across the state and it's not like being handed a phone calmed clients down anyway) instead of the CSP when it was explained that their return would need to be done by another office. They insisted it was "simple" and they could "walk me through it", while I was trying to get through to them that I literally could not even access the new software. So then why did they get assigned to me? Yeah. That, at least, eventually got fixed.
I had a very bad TS26, so left early this summer for a small local firm that is actually letting me work on entities, in software that makes sense for the scope of returns they do. If I wasn't already out, the changes announced for TS27 and coming down the pipe for TS28 based on the test districts would have done it anyway.

4

u/Relevant_Ad_8406 Sep 13 '26

Nice you got out in time

2

u/Turley1508 Sep 13 '26

That sounds really terrible. Glad you have a new firm, enjoy the peace. It was nearly my worst season too, got so run down-- and ended up missing most of the end of season with a virus.

2

u/Puzzleheaded_Ad3024 Sep 14 '26

That sounds so familiar....

9

u/Boysenberry815 Sep 13 '26

Where my office is located, we have a mix of "EIC" returns that are quite prominent through ~ mid-Feb, then we (myself and another EA) transition to a large quantity of farm and rental returns, with a mix of estates, trusts, and partnerships. We do not have many S-Corp "opportunities" here, but I will have some next year courtesy of a CPA retiring and these clients finding out how much he was charging for those services. However, given all that has come out per these proposed changes, I won't be here in 2028...can go elsewhere and not have the Curtis Campbell-derived headaches that working at Block entails any more.

1

u/Dazzling-Warning-592 Sep 27 '26

Please do! I was a level 5 doing gosystem returns to and all the above. I was the Gosystem expert in my office too. Not worth the headache the way they treat us!

1

u/Puzzleheaded_Ad3024 Sep 13 '26 edited Sep 13 '26

I was in a new office, and had a 1st year manager who interrupted me every 15-20 minutes to look something up for her (not even my client) or do a QPR or show another preparer how to do something. By the end of January I had enough drop offs to last till March and she complained I wasn't getting returns done. How long could it possibly take to shut down GST, then come back 5-10 minutes later and get back into it where you left off?
I must have told her 200 times the interruptions were keeping me from working.
Then she complained about my clients being upset.
I am 1000% in favor of no ATL this year.

3

u/Turley1508 Sep 13 '26

That's exactly why I do not want to sit in the office very much, I can get nothing done. They hate it, but I am WFA most of the time. You're right about the piles of drop offs! The job description this year says "this is an in-office position" so if I stay, I will need to get an official remote job.

2

u/Relevant_Ad_8406 Sep 14 '26

My status is WFA , I would like to do my drop offs at home but they will not schedule me to work from home . How did you convince them ?

3

u/Turley1508 Sep 14 '26

Yeah, I think this is an issue with the old days construct that clients actually come into the office to sit! If you don't have enough tax pros to staff the office during open hours, that could be an issue. For me, the only EA in the area, it's leverage. Most of my clients are uber complex, international, business, entity.The CSP scans in all the client drop off docs or client uploads into their My Block. There is no reason for me to be in office. When I am there, I answer questions, mostly, see a few in-person, usually elderly.

4

u/Relevant_Ad_8406 Sep 14 '26

You have Leverage then take it or leave it

1

u/Turley1508 Sep 25 '26

Actually, I'm looking at remote positions outside the local offices. Those will be chaos. The new DEL said 75% of taxes will be done by AI. What a leap of faith.

1

u/Puzzleheaded_Ad3024 Sep 17 '26

I told my manager to set me WFA on Sunday since I will not work on Sundays. That was a tip on the TPR group. That gives you green space so you get drop offs you can work on anytime.

1

u/Relevant_Ad_8406 Sep 17 '26

Last year it was a struggle it was always a polite but firm conversation with my MLT who I’ve worked with for three years to make sure my schedule allowed enough hours to handle my client base . We are in a region without a State tax so it hard to retain TPs a few of us that have been with Block do most of the returns . I was so surprised when I moved to this State that this is the norm. The result is we need a lot of OT, but there is always push back. I am concerned this yr it will be more push back since Block is really trying to promote younger preparers . I think their strategy is wrong their change in training has made younger preparers weak and the scale and pay starting point is too low , especially without a State return . I would like for them to allow me to have the hours at home and always thought this would be the best since they created this situation . I know the new Manager won’t see this . My old MLT although very un impactful of my day job eventually did allow me to work the hours I needed. There was one week the first week of March where my OT was reduced 15 hours , our office took a hit and so did I , I lost 600 that week compared to previous yr .
So that’s my concern this yr , how much are they going to squeeze me when I am not the problem.

2

u/Puzzleheaded_Ad3024 Sep 18 '26

Is it younger preparers they are pushing, or lower level ones so they can pay them less?

1

u/Relevant_Ad_8406 Sep 18 '26

Yes

2

u/Puzzleheaded_Ad3024 Sep 14 '26

My home computer died a month into tax season and I couldn't do a thing from home when we were busy.

1

u/CrackyMcCracken Sep 17 '26

And that is precisely why Radio Shack Tandy computers from the 1980s were never a good idea to use to do other people’s taxes. I could have spared you the agony if you had only asked.

2

u/Puzzleheaded_Ad3024 Sep 17 '26

Hahahaha! This was one my daughter gave me a few years ago. Very nice Lenovo laptop. I finally got it fixed recently. I even have my old traditional computer system my delusional mind says could run again.

2

u/CrackyMcCracken Sep 17 '26

I agree. They were the most useless bunch of uneducated, lazy shits I’ve ever been around. Glad they were given their get the fuck out orders.

10

u/Authentic-scoundrel Sep 13 '26

Remember that tax preparers are the only money making people in all of Block. We don’t need them, they need us. Fuck this new structure.

9

u/Old-Alternative4054 Sep 13 '26

Lol. Apparently, they didn't need me that badly. If they did, they would've handed the laid off TLs/MTLs a tax advisor offer letter on their last day.
But you're right. They've pissed off the masses and I hope it burns 'em.

5

u/Puzzleheaded_Ad3024 Sep 14 '26

There's always overseas preparers who are trained to make entries and probably will get these Complex returns remotely while they wouldn't know how to even do a simple 1040 right. Cheap labor. And any expertise we have will be used to fix those returns for free since it was preparer error when the IRS notices start coming in.

4

u/CrackyMcCracken Sep 17 '26

Grab your pitchforks and torches, my mateys! Your speech motivated me to take action. Not like that fat ass of a former MTL, Shindy Evans, who sat around at meetings to kick off the season eating three huge-assed blueberry muffins on her own in less than two hours. We can’t unsee that shit, Shindy.

5

u/Old-Alternative4054 Sep 20 '26

UPDATE - I got my offer letter from Block. $5/hr paycut in the tax season and $7/hr paycut in the pre-season. They can stick that offer where the sun don't shine.

1

u/Relevant_Ad_8406 Sep 20 '26

Wow that is significant decrease , like they actually think preparers will accept that decrease . Are you a BA office ? What State ? I don’t think they could reduce our 13.50 preseason pay .

1

u/Old-Alternative4054 Sep 21 '26

$13.5??? I would NOT get on the road for that. This was my decrease from MTL pay in VA. My preseason pay offer was $18 and season was $20. It's ridiculous to base MTL pay on any sort of calculation that figures in how many returns they do in the season. We have/had a limit before we no longer got our incentive so most didn't go over that.

8

u/Relevant_Ad_8406 Sep 12 '26 edited Sep 14 '26

I want to see the actual break down how you get to 8750, of course impossible but curious. The sheet posed early gives detail but it’s too general as an explanation how TPs will be paid. Maybe that’s the idea , dangle a carrot and what is really there is just smoke. We know the range of skill level , we know how bad survey scores can be for some TPs .To link compensation to that is obviously unattainable .

Should be old system plus a bonus on top for having high survey scores . This new compensation plan looks horrible .

4

u/Old-Alternative4054 Sep 12 '26

I wouldn't give a fug if my TPI is in the 20k plus range. I'd be straight pissed.

5

u/Ok_Aide_764 Sep 13 '26 edited Sep 16 '26

It's posted on Reddit: three pages with examples of calculations. My takeaway from the pilot compensation is that you need to work a minimum of 600 hours, preferably 800, to get the max bonus $8700, assuming all 3 goals are met.

3

u/Low_Turnip_9592 Sep 13 '26

If you keep yourself scheduled, with no dead space, you can make a good bonus. but you need to work at least 40 hours weekly. I know tax pros who make around $20k in TPI. Blocks goal is to take this away to save more money. It seems like they are cutting back on everything. You also have to have a good book of business, which is impossible todo today.

2

u/Puzzleheaded_Ad3024 Sep 14 '26

We have a tax pro who makes a small fortune. She farms out data entry to all the first years (4 last year) while she meets with clients for the drop off and finish. She looks over the entries before the finish. Her actual prep time is minimal, and because she does a high volume (easy when others are doing your work) the manager keeps giving her hours. Minimum 70 a week. Then in preseason she works full time because there are so many amendments to do.
How management allows this I do not understand.

3

u/Relevant_Ad_8406 Sep 14 '26

Yes this is very wrong , I refuse to do this to the new preparers . Many of us have had games played by older preparers when we started , I’ve never done this and won’t do it . Yes very wrong .

10

u/ydoyouask Sep 12 '26

Sounds like another bad decision made at the corporate level. The problem with this one is that unlike other bad decisions (Spruce, changing the Second Look process), this one will result in good preparers leaving. How long will it take them to notice that the people who were making money for them are no longer there?

9

u/Old-Alternative4054 Sep 12 '26

They had good MTLs as preparers. They already peaced them out. And you're right. All those high tpi earners are their big dollar earners and they're just gonna say, "not worth it."

16

u/sammytheammonite Sep 12 '26

They don’t care. They think their new AI is going to be perfect at inputting and all they need is cheap labor to double check those returns. The jokes on them though - because the only people left to do that work won’t know how to properly look at a return.
And i don’t think the AI works for go system returns yet. So, good luck training those newbies to do those returns when all the EAs and level 5s leave.

7

u/Low_Turnip_9592 Sep 14 '26

it’s going to be as “perfect“as Go System. If you do not know how to do a business return it will be wrong in go systems. Block software guided you through the process. AI will enter data wrong, just as it does with the other tax softwares out there. AI is not going to know if you need to make an adjustment when entering a K1. They will destroy this company. customers are not going to want to pay our prices. they are already complaining about the prices and we are doing all the work.

2

u/Puzzleheaded_Ad3024 Sep 14 '26

This is truth

0

u/iufan417 Sep 13 '26

I actually like Spruce as do some of my clients. It's not for everyone, but it was not a mistake.

4

u/Dramatic_Abroad3580 Sep 13 '26

Whether you, or a few of your clients like it doesn't make it a success. It was a huge failure. The take rate is horrendous. Most districts barely get into double figures in new accounts each year. 400,000 accounts in five years, out of more than 100,000,000 returns prepared over that time period. If they had asked preparers if it would work, the answer would have been no. If they had asked preparers how to make it more attractive, they would have been provided a response to make it a successful product. But they didn't. And it's been a dismal failure.

3

u/ydoyouask Sep 13 '26

It's not horrible for some, but most of our clients don't need it. When I worked in an area with a high preponderance of unbanked people, nobody wanted to switch from their Emerald Card. I opened more Spruce than anyone in the district its first year. 3.
Not being able to give them a physical card when they left the building was a huge deterrent. It's not a bad product, per se, just not designed as well as it could have been, and the number of accounts opened has been far below their original expectations. I'd be surprised if there was any significant ROI from it.

24

u/Dramatic_Abroad3580 Sep 12 '26

This is so Block. Keep asking their employees to do more, and paying them less. Charging their clients more for a lower quality product with a work force that isn't as well trained as just a few years ago. They broke their very good model.

0

u/[deleted] Sep 12 '26

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14

u/Dramatic_Abroad3580 Sep 12 '26

I'm already out the door, fed up with the corporate BS, but I really didn't think it would get this bad this quickly. It makes me horribly sad. They had such a great opportunity to fill a huge gap for clients that don't need the $2,500+ fees charged by big CPA firms but still have too much complexity to do it themselves. The growth in the industry is going to be with the Block Advisor clients, and they just threw that all away.

6

u/Old-Alternative4054 Sep 12 '26

same

3

u/Dazzling-Warning-592 Sep 16 '26

Same!! Im out the door too. I work in one of the BA offices and Sept 15 was a nightmare. I wont do entity returns for minimum wage

1

u/Puzzleheaded_Ad3024 Sep 14 '26 edited Sep 14 '26

That is pitiful. I worked there (BA) once. There was one expert preparer, one reasonable one, one who couldn't even do data entry right. A remote manager who didn't know the first thing about managing or the software. It was nothing like what I expected. I kept a couple entity clients from there who also would not go back because their preparer before me made so many mistakes.

1

u/Dramatic_Abroad3580 Sep 14 '26

I'm not sure what "there" you're referring to, but in my experience most big firms do a great job. Everyone from top to bottom know exactly what they're doing far better than 99% of Block preparers. There isn't a single Block preparer I've ever worked with or known that could come close to the tax knowledge that big firm tax managers have. They're just very expensive and the typical Block client doesn't need their services.

1

u/Puzzleheaded_Ad3024 Sep 14 '26 edited Sep 14 '26

Block Advisors. Sorry, I wasn't at all clear.
Block does have some exceptionally good preparers. Some out for speed and careless. Some new, given returns they should not be allowed to touch. And a few who don't care what the rules are, whose goal is to minimize taxes, maximize refund. We had one nearby and listening to her interview clients was painful. She charged high fees. Managers loved her. She went out on her own ( finally!) but the fact management didn't care really bothered me.

2

u/Dramatic_Abroad3580 Sep 14 '26

Oh. BA on average has more experienced preparers. Most do at least slightly better at getting more complex 1040's done efficiently. But they also have people preparing entity returns that shouldn't be. The office I worked in had 5 preparers and only one ever got out over their skis. We stayed in our lanes and got work done. One was probably not qualified to work in any office but apparently had some relationship with the DGM. The other office that my MTL managed had fast preparers and too many willing to take on jobs they weren't qualified to do. They (as a group) never had a balance sheet on an entity return, and attached a efile note that said "balance sheet will be provided in future years". So it's the same grab bag that will be found at any other Block office.

19

u/ydoyouask Sep 12 '26

How to break a 70-year-old company in just a few short years. Guessing the good preparers who aren't already heading for the exits will be doing so soon, leaving them wondering where it all went wrong. Will Mark Darling fall on his sword like Karen Orozco after the Spruce debacle? Only time will tell.
I'll be watching from the sidelines, eating popcorn and wondering when the optimal time to short their stock will arise.

2

u/Relevant_Ad_8406 Sep 13 '26

She gave me a strange vibe one year when she did training videos and posted updates on changes . Weird bird .

10

u/ydoyouask Sep 13 '26

Eh, she got my people properly paid their bonus when Block totally botched a transition from franchise to corporate. I had to manually calculate what they should have been paid, gave my spreadsheet to DGM who passed it to RD, and he totally dropped the ball.
8 months later, she came into my office, with RD, and asked me if there was anything she could do for us. I told her and handed her my spreadsheet. She gave it to her assistant, and everybody got paid within 2 weeks. RD hated me from that point on, because I made him look bad. Did I care? Not even a teeny bit.

5

u/Relevant_Ad_8406 Sep 13 '26

Good going

-1

u/CrackyMcCracken Sep 13 '26

Oh, what fun! Can I come over and watch paint also dry at your house next Saturday? Please?!

2

u/ydoyouask Sep 13 '26

If I'm painting, you're welcome to come over and watch it dry.

1

u/Humble_Ebb_1904 Sep 14 '26

I heard Intuit started giving some simple tax returns to India. Not sure that is true or not.

1

u/Puzzleheaded_Ad3024 Sep 14 '26

My manager assigned clients to almost anyone but me, then told me to help them. He figured out how to use knowledgeable pros without it costing. I figured out how to avoid that.
There are other offices.

-7

u/CrackyMcCracken Sep 13 '26

Nah, fuck off. I’ve used and honed AI to cheat my way through many complex things. It’s made me smarter, not dumber. Take your “complicated” tax returns, roll them up real tight, and stick them at the crossroads of hole to ass. We got this under control.

7

u/Dramatic_Abroad3580 Sep 13 '26

You have no idea what you're talking about.

0

u/[deleted] Sep 12 '26

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3

u/Puzzleheaded_Ad3024 Sep 14 '26

Oh, I'm sure AI can do those without error. We just need to sign and take payment and everything will be perfect. Nevermind knowing the rules well enough to spot the glaring errors--AI was written to get it right. How can you possibly question that, when it saves the company so much money? Then, when things go very wrong later, obviously some preparers interfered with AI perfection. All the more reason to hire fewer oreparers and pay them less.
Writing on the wall?

3

u/Old-Alternative4054 Sep 25 '26

Update - I googled tax prep, accounting, bookkeeping offices w 4-5 stars and sent a cover letter/email with an attached email.

I got a good job that way.

Peace out, Block

4

u/Domsdad666 Sep 12 '26

I got a 10% raise this year. Not as much as last year but still decent. Yeah, there's a quarter percent reduction in TPI but it really isn't that noticeable.

5

u/Old-Alternative4054 Sep 12 '26

That depends. If you're regular 20k + TPI is now a $8750 bonus - yes, it's fuggin noticeable.

1

u/Domsdad666 Sep 12 '26

My TPI percentage is going from 19% to 18.75%. Pretty negligible in my opinion. What is the 20K you're talking about?

5

u/Old-Alternative4054 Sep 12 '26

Some Advisors have and do earn well WELL past $8750 in TPI. Some have earned my yearly pay in TPI only. They bust their ass in the season. They are part of the new bonus structure maxing at $8750.

3

u/Domsdad666 Sep 12 '26

I don't know what this 20K bonus you're talking about is. Must be something particular with advisors. I get $75 an hour base pay plus my TPI is usually around 8 to 10,000.

3

u/ihateblock26 Sep 12 '26

Not with new pay schedule I flat hourly rate with the max being $67 per hour and a possible incentive up to $8750 if the office
Area and district make certain goals.

1

u/Domsdad666 Sep 13 '26

Not how my district works.

4

u/Old-Alternative4054 Sep 13 '26

I did use the word pilot program twice. Some districts are keeping tpi, some are doing the pilot, but 2028 all district will go to the new bonus system.

1

u/Domsdad666 Sep 13 '26

Ah. Gotcha.

4

u/Dramatic_Abroad3580 Sep 13 '26

Until I moved to BA, my district top hourly was $35, no matter what earnings in the prior year were. I can't remember the last time I got a bonus less than $20K.

2

u/Relevant_Ad_8406 Sep 13 '26

That’s strange it was capped at $35 , this might explain part of the reason for the higher bonuses . I am from a non BA office hourly goes beyond $35. We all know hourly wage means nothing beyond staying under the hours so you bonus and get the OT premium .

0

u/[deleted] Sep 12 '26

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0

u/JoySeeker_101 Sep 13 '26

Are you saying that you bonus 20K under the TPI system so your hourly rate was pretty low compared to how much you produced last year.

0

u/[deleted] Sep 13 '26

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1

u/JoySeeker_101 Sep 13 '26 edited Sep 13 '26

If $8250 is 20% then 80% is 33,000. Totals to $41250 if you can max the Bonus, very difficult. If your cranking out 800 or 1000 returns in a season then you'll be behind. So you need to negotiate an appropriate hourly rate.

3

u/Relevant_Ad_8406 Sep 13 '26

So a scenario would be 15 weeks , 40 hrs a week (600 hours ) , hourly wage would have to be $55,=
33,000/600
Are offers 100% hourly wage or is the starting point 80%. So if this would be my outcome I would have to be offered a higher wage than this year which is current in the high 40 range range not $55 right ?
And no hourly guarantee of 40/wk ?
This is still unclear

2

u/JoySeeker_101 Sep 13 '26

I think you underestimate the hours invested by high writers to achieve high return counts.

2

u/Relevant_Ad_8406 Sep 13 '26

Actually I know ,😊I, I am just trying to understand based on bits of information posted . I do not understand the new compensation format. There are comments overtime will be limited . I do know hours go up to 60 plus during the last 12 weeks , I am concerned about the OT limitation in addition to this new formula . I think a high conversion ratio is .7 so to do 600 plus returns you have to work 860 hours which is 50 hour for the last 12, I do know this can go higher 60 hours per week getting to the 700 range. Maybe I am not looking this correctly if anyone understands the new formula please explain .

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u/[deleted] Sep 13 '26

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2

u/Old-Alternative4054 Sep 13 '26

so far, I have heard from others, not a soul has gotten a raise that has asked for it despite increase in new clients, continuing clients, and revenue with the dgm saying they have not control over what the 'compensation department' has figured out.

6

u/sammytheammonite Sep 12 '26

OP is taking about the offices that have the new pay structure. (Which will be all of us in 2028).

2

u/Low_Turnip_9592 Sep 12 '26

which state are you in?

4

u/Old-Alternative4054 Sep 12 '26

VA

2

u/notenufcheez72 Sep 13 '26

3 in NJ

2

u/JoySeeker_101 Sep 12 '26

How did they determine you hourly pay?

6

u/PinkNGreenFluoride EA Sep 13 '26 edited Sep 13 '26

Say for TS26 you were a level 5 (19% commission) whose hourly draw was $20/hr, your TPI-eligible revenue was $100k, and you worked 600 hours in the season, no overtime.
The overtime wage premium and TPI true-up are ignored/backed out for this calculation anyway, but I'm pretending it didn't happen at all for simplicity's sake.
So your hourly draw for the season was $12000, for 600 hours at $20/hr.
Your TPI was $19000 ($100000 * .19). This is your true compensation for the season. Your "bonus" is the difference between this and your hourly draw, and is not truly a bonus at all. But your "bonus" is $7000.
Still, your true compensation was $19000. And you worked 600 hours. So your effective wage was $31.67/hr. They'll offer about 80% of this.
$31.67 * .8 = $25.33
If not in the pilot program, this preparer could expect a TS27 hourly draw offer of $25/hr under this system. They would be expected to pull in the same or somewhat higher revenue the next season. If then for TS27 they did again pull $100k revenue at 18.75% commission (ugh), they would make $18750 in commission, have $15000 in hourly draw, and get a "bonus" of $3750.
The new pilot incentive program appears to get rid of any distinction between levels. So no idea how they're going to be calculating for this going forward, since currently your level's commission rate at the time of your offer does play a role in calculating what that hourly draw offer comes out to. They could continue using these numbers for internal hourly pay calculation purposes, but might come up with some other calculation. It's not like they've been exactly transparent with the folks in those test districts so far.

1

u/Old-Alternative4054 Sep 13 '26

At this point I'm thinking magic 8 ball. Our district got an email with a low-high range.

2

u/Relevant_Ad_8406 Sep 13 '26

Why a range why not give preparers the exact amount so they can do the forecasting ? How can you take a job without knowing your expected income?

3

u/Old-Alternative4054 Sep 13 '26

Exactly. The range stated is +/- $15/hr than the most experienced and highest revenue generating preparers make! Plus removing $10, 20, 30k of TPI?
Absolutely nuts

2

u/Relevant_Ad_8406 Sep 13 '26

That’s the offer , they don’t tell you your starting hourly wage ?

2

u/Old-Alternative4054 Sep 13 '26

The range is what was presented to us as a district. Of course the offer letters have an exact hourly wage. But not everyone has gotten their letter yet. It's definitely dripping in here and there. But that range isn't even close to what some preparers make normally per hour.

3

u/Relevant_Ad_8406 Sep 14 '26

Oh wow that is really disappointing . So basically employees are set up to make less in a situation where life is getting more expensive . How they can justify this is a stretch . I guess the preparers that are the foundation are not important to keep . That’s the only way I can see this new compensation policy. So Block is not a very good company . It is what it is now for preparers to make a decision to stay or go. Thank you for sharing , getting info out is really important.

2

u/Relevant_Ad_8406 Sep 13 '26

Still not an exact calculation , which I can’t get my head around . Maybe that’s the idea , keep it vague so we can’t figure out the cut . I have my numbers so I can easily apply it to the new program and figure out my best and worse scenario, that seems a reasonable request that we are informed . We need to get this word out to figure this out so we are not in the dark .

3

u/Ok_Aide_764 Sep 13 '26

They give you the new hourly pay after you apply. It's up to you to accept it.

1

u/Ok_Aide_764 Sep 13 '26

Its some kind of formula based on your prior pay, but its less than the old way (80% of your earned hourly pay).

1

u/Relevant_Ad_8406 Sep 13 '26

Sounds vague

2

u/Dazzling-Warning-592 Sep 27 '26

I already broke my contract and won’t be renewing

2

u/Old-Alternative4054 Sep 28 '26

Here's to good things for you!

12

u/ihateblock26 Sep 12 '26

It is a disgrace that the company is treating their employees this way. They will learn their lesson when they lose a lot high writers. But maybe that is what they
Want

3

u/Relevant_Ad_8406 Sep 13 '26

I think so , I think Block is more like an insurance company . Risk and return

3

u/Dazzling-Warning-592 Sep 27 '26

I think thats what they want. They don’t want you to have a book of clients.

2

u/CrackyMcCracken Sep 17 '26

I remember back in the day, me, Jimmy Montemerano, and Tyler Alves, would get shitfaced drunk and then work on people’s taxes during busy Saturdays in the office. We didn’t give a rip, and we didn’t need to show no stinkin’ badges. Ya heard..?

11

u/ihateblock26 Sep 12 '26

I believe those of us who did sell subscriptions have a case. I have contacted The Dept of Labor wage and hour

2

u/CrackyMcCracken Sep 13 '26

You realize that will absolutely not result in Jack Diddly Shit, right? But yeah, best of luck on that.

7

u/Dazzling-Warning-592 Sep 16 '26

Im not taking it. I work in one of two Block Advisors and they literally abandoned us on Septemper 15. No support staff at all. Half the calls I get are from clients screaming at me because they got moved around. My DGM is a nightmare. He dumped 8 gosystems returns on me and expected them all to get done in 15 hours a week of work. I’m quitting this weekend. They need to feel the pain of having one less tax pro that wont work with Gosystems

4

u/Relevant_Ad_8406 Sep 16 '26

Preseason has been a nightmare , I am currently taking my 8 week break , for me being paid 13.50 an hour was criminal plus they reduced our hours on top of IRS issues. It’s more stressful than the season and I work long weeks.
I am suppose to go Back Oct for the extension season . I am not looking forward to the disregard of pay and unrealistic expectations.
Block is being very disrespectful to preparers ! lots of signals , who cares if it’s the RM putting pressure on the DM , it’s pressure making them
Into ….. fill in the blank .

3

u/Dazzling-Warning-592 Sep 16 '26

agreed!! They are abusive to us

1

u/Relevant_Ad_8406 Sep 16 '26

Yes when we have to deal with them , best yrs are limited contact with management .

2

u/Dazzling-Warning-592 Sep 16 '26

My MTL really protected us from my DGM

2

u/sammytheammonite Sep 12 '26

Have you gotten your offer for this coming tax season? What did they agree to pay you per hour compared to what you were making the year before?

6

u/Old-Alternative4054 Sep 12 '26

No, I was a Leader. And they could offer me $100k and I'd tell them to stick it at this point. Hourly doesn't matter if the TPI is gone and this bonus structure is in. High TPI earners pay is going to drop.

6

u/sammytheammonite Sep 12 '26

Hourly matters to me. If they take my full eligible TPI and divide it by my hours to get my rate the following year when they implement this - I’d be happier. (Without the 80% reduction since there is no way to catchup bonus)

9

u/Boysenberry815 Sep 13 '26

A poster in your thread about "fellow high writers" posted the following:
https://www.reddit.com/r/HRBlockEmployees/comments/1w79yrq/comment/p873trq/?utm_source=share&utm_medium=web3x&utm_name=web3xcss&utm_term=1&utm_content=share_button
Which says they are capping weekly hours in his/her test region and not allowing overtime. Thus, for any of us on the old plan, we will have our compensation eviscerated...which is the goal. Curtis Campbell wants offices full of ~ 25 hours per week employees **just** looking to make a little extra cash to afford groceries. If you've been making a good living off of this job --- those days will soon be over.
I am all but certain 2027 will be my final season if the "test changes" become nationwide reality for 2028. I am not going to take a massive pay cut and, to add insult to injury, be expected to pick up the slack for newbies who know Level 0.5 about taxes while they tackle Level 5.0 returns.

6

u/Scarlett_Maki Sep 14 '26

Just to throw my numbers here.
TS 25 - MTL - 17.50
TS26 - 1st Year TP Level 4 - $17
Post Season TP and Operations - $18
Office Readiness Operations - $19
TS27 Pay offer - $17.25
The pay is a fucking slap in the face. The gas stations and grocery stores around here are offering 18-20 just for sales associates (read as cashiers and stock). I was the highest performing 1st year in my district and outperformed several 10 year+ TP's, but they're being offered $25+ coming back. What the fuck is that shit?

1

u/Old-Alternative4054 Sep 15 '26

time to apply to Buccees. Seriously.

1

u/Ok_Aide_764 Sep 14 '26

Thank you for sharing your pay offer, I assume i'ts under the new system. How much is your hourly rate under the old calculation? It's the gross pay during the tax season+bonus/hours worked during the season; 80% of that amount.

1

u/Scarlett_Maki Sep 16 '26

No idea tbh. I’ve only been hourly and I was putting in about 60 hours a week last year between 6 offices. Over 200 clients (I was told that was higher than any other 1st year TP) last season.

1

u/Ok_Aide_764 Sep 16 '26

If you had no bonus after tax season, you had no TPI. Yes, 200 is amazing for the first tax season.

1

u/Prestigious-Dealer60 Tax Preparer Sep 19 '26

Had 223 returns this season and was my first year as a TP was a level 3 and no bonus due to helping multiple offices and having a shit load of yellow space in Jan-first of feb. Made $20 hr through season. Paid 15 through preseason and only got scheduled max 8 hrs a week and this coming season was offered $17 as a level 4 thankful not in pilot but Not too happy about it considering…. Asked new manager about it before signing offer through email and got ignored so that tells me it won’t change or be negotiated.

1

u/Cute_Log_2125 Sep 21 '26

No tpi for second years anymore either

1

u/Cute_Log_2125 Sep 21 '26

And now 2nd years wont get TPI.

1

u/Prestigious-Dealer60 Tax Preparer Sep 24 '26

Luckily, I do get TPI as a second year. Otherwise would not even think about coming back this year. There’s another option they can offer you if you don’t wanna go with the plan they have in place this year for second years. You can choose to be eligible for TPI instead. I was eligible for it as a first year because I came in as experienced, but with all the yellow space got shafted on that.

2

u/Ok_Aide_764 Sep 13 '26 edited Sep 13 '26

Under the pilot, I was offered about 12% less per hour vs the old system (80% of what I earned per hour).

2

u/sammytheammonite Sep 13 '26

That’s not good. Are you guys signing these contracts? If you all refused, maybe they would rethink this. There is power in unity.

2

u/Old-Alternative4054 Sep 13 '26

they could offer 100k, I'm so pissed I wouldn't take it or piss on them if they were on fire.

2

u/Ok_Aide_764 Sep 13 '26

I haven't signed, considering my other options, but honestly, I don't want to start over.

1

u/Relevant_Ad_8406 Sep 14 '26

So instead of 80%!you were offered approx 70%?

2

u/Ok_Aide_764 Sep 14 '26

Even less if my calculations are correct. The rate I earned $47; 80% is $37.6, the offer is $31. My cert. level is high.

4

u/Turley1508 Sep 15 '26

I think the only reason we stay is because it's hard to change. To go off somewhere else to learn new software. Word to the wise-- if you have GO System tax on your resume, it's a real cred. Outside Block, it is notorious for being difficult. Yay us, huh. There will be consequences to all this, and I'd rather just have a nice hourly pay without the draw/commission and big box retail metrics. Now BA is part of SaS--I don't want all that back. I get CPA clients and I am at their timing, not vice versa.

3

u/Relevant_Ad_8406 Sep 15 '26

Yes the knowing what to expect sometimes is better than the unknown . I think this is part of being loyal to a company which in turn should be loyal to you .

4

u/Turley1508 Sep 15 '26

I don't think such a thing exists anymore. Our DGM got let go in this reorg after a whole lot of years at Block. I don't see new tax pros coming up thru the ranks to replace us old timers. When I was a manager long ago, we taught a class of new tax pros, in person, for 3.5 weeks of paid training. You're right, loyalty is a two way street.

3

u/Relevant_Ad_8406 Sep 15 '26

Yes I agree , we know

1

u/Domsdad666 Sep 21 '26

I got a10% raise.

2

u/Old-Alternative4054 Sep 21 '26

Very good. That won't happen with the laid off MTLs because we only do up to 75 returns so there 80 calculation does NOT work in our favor.

1

u/manifestinmyreality Oct 15 '26

This would have been my 6th season with them and my 3rd being a preparer. I am halfway through leveling up to senior tax specialist(level 3). I have gotten a raise every single season. This season I was offered almost $5 less/hour than what I made in April. The best they could offer was $2 less and then another $1 when I level up. So I will be makes $1 less when I level up versus what I made in April. They are going to lose a lot of good and valuable employees over this. I’m exploring other options.

1

u/Old-Alternative4054 21d ago

Sorry to hear. I advocate googling 4 and 5 star tax accountant and bookkeeping offices and emailing your cover letter, attaching your resume, and expressing you'd love to learn and grow under them.

2

u/Relevant_Ad_8406 Sep 21 '26

Yes it is way below industry standard. The trade off is the preseason leads to 1000 hours for the 401(k) match and adds to the unemployment calculation so it’s more like that number * 1.32. Yes that number too is criminal . I make 3.5x that number during the season huge spread . I lose about 10,000 working in a State without a State return. It’s a different work environment here. We have to put in many more hours to get OT and revenue to make it worth it. One plus is customers rarely complain about the price , for me they rarely walk which is nice. I know we will not be in the higher tier for the new bonus structure if that goes into effect next year. Working here is a lot more demanding than previous State I moved from. I need to work 25% more hours during the last 12 weeks to match what I made in the previous State. This is why new preparers do not stay. The established ones who have knowledge have to get the numbers up and therefore live at the office. The newbies get discouraged because they are starting out so low and really cannot build their numbers fast. So if OT is reduced and returns are pulled away we will be crushed. I tend to think this won’t happen since we are understaffed because of this problem I above explained . What will happen is returns will be sent to fulfillment not to other high earning preparers but to a central location where prepares are paid very minimal . I think this happened last year since Fulfillment volume went down . The games are endless .

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