As with many businesses, employee pay is a hot topic of discussion. Is it best to pay tax preparers a straight hourly wage, a wage plus a bonus, a wage as a draw against commission, or some other method?  We believe that a performance-based compensation plan is best to ensure that tax preparers are paid commensurate with their contributions.  We use a pay structure similar to Block’s, i.e., an hourly or salary rate as a draw against a percentage of the tax preparation revenue generated by the tax preparer.  The difference between commission earned and wages drawn is paid as a “bonus” in May.  We pay a higher commission for professional attainment, such as an EA (less for a CPA or Law Degree).