Posted by Art_MD on 4/18/05 10:32am
Msg #32421
Figure your earning rate
Now that taxes are in for most of us, now is a good time to look at the year 2004. Using the info from your taxes:
+ gross sales (not income since dec 04 signings might have been paid in 2005) - total expenses as listed on tax forms = net income before taxes.
net income/(#of signings X ave time per signing) = average pay per hour (before taxes)
there probably will be a wide range in average depending on area, competition, etc.
Art
| Reply by Melody on 4/18/05 11:11am
Msg #32432
Discussion topic?
Hi, Art
Like you, I keep a tight watch on my NSA income and expenses. It's the only way to run a business.
Did you post because you wish to remind us to calculate our true pay so that more NSAs would realize their real profit and hourly rate?
So many notaries think they are earning more than they really are.
For example: most forget to consider the expense of car depreciation. Auto expense means more than just high gas prices. Many of us are adding thousands of miles of wear to our cars each year. This means we will have to shell out big bucks for a new car much sooner than non-NSAs.
Did you hope we would post our average pay per hour and thereby start a discussion?
I'm happy to play - I just need clarification on what you might want from other posters to raise the general standard of NSA business management.
| Reply by Art_MD on 4/18/05 12:02pm
Msg #32443
Re: Discussion topic?
I was hoping that people would do the math and see that the low rates some are charging is only netting them minimal wage.
I Have done my calcs and this is what I have:
Gross per hour - $49.08
expenses .49 of gross
net per hour before taxes $25.02
figure tax at 32% (11% for SE after adjusting for exempt fees + 17% fed +4% state) net income rate is $17.01
As a basis for this, my average fee was $121. (approx 45% e-docs)
Art
| Reply by Stephanie_CA on 4/18/05 12:23pm
Msg #32447
Re: Discussion topic?
So, take home - in your pocket is approx. 35,380.80/annually.
Not bad for part-time work; however for full-time in CA that would be a VERY big problem w/ the high cost of living.
| Reply by Art_MD on 4/18/05 12:41pm
Msg #32454
Re: Discussion topic?
Your calcs are right based on 2080 hrs/yr. (40hr/wk, 52 wk/yr). I wouldn't call that part time !!
Can't imagine what ratios are for people doing $50-$60 signings. Expense would be the same, gross would be 1/2, net would be 1/2. So, net would be $8.50/hr. What does McDonald's pay net ?
I'm also have a different situation in that a some my overhead (sattelite link, cell phone, printer, computer) are a expense for my other business.
Art
| Reply by Melody on 4/18/05 4:11pm
Msg #32498
Car depreciation usually overlooked
You are right, Art, when you say "see that the low rates some are charging is only netting them minimal wage."
So true!
I did my calculations and discovered my per-job overhead to be $26.
That does not include car depreciation.
NSAs often don't count their car depreciation because they already have a car.
If you used to get a new $10,000 car every 6 years and now as an NSA you must get a new car every 3 years, that is a LOT of money!
All these detailed expenses add up. That is why I will not accept any job under $100.
By the way, American Title called me 5 minutes ago and wanted to pay $60! They are a title company! Shame on them!
| Reply by fairlynewnsaWESTUSA on 4/19/05 11:32am
Msg #32625
not worked fulltime in 2004
I would be curious if any of you fulltimers, would care to share your income for last year. I might encourage or it might get us thinking this isn't for us. Usually when people talk about income they talk per signing not average income per year. I myself have only did about $8,000 last year, this is part time extra income with a lot of it being general notary work not loan docs.
Thanks for sharing.
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