Posted by ikando on 2/21/13 5:04pm
Msg #456962

Something to consider regarding fees

Keeping in mind that we are independent contractors who set our own wages and benefits, I just completed a survey of escrow/title company wages. The results came from California, so that factor must be taken into consideration.

The results were that on average, the wages paid are $20/hour for a person with 2-4 years experience. That is before any benefits like insurance and vacation pay are added.

So, those who are trying to figure out what to charge or if they should take the fees offered, think about what you are providing to perform the services of completing the loan for the escrow/title companies that hire you. If the employees who contact you are making $20/hour, plus benefits, using materials and office space provided by the title company, not traveling, not dealing with strange and wonderful borrower situations, and leaving on average no later than 6:00 p.m. Monday through Friday, what should you be charging?

Reply by Jessica/FL on 2/21/13 5:05pm
Msg #456963

I would like to make a correction to the "on average no later than 6:00pm". It should be "staying much later than 6:00pm."

Reply by ikando on 2/21/13 11:02pm
Msg #457046

That may be true, Jessica, but I'd say some of the more dedicated notaries on this board have been known to close as late as 11:30 p.m. at EOM. Not too many title employees or even commissioned LOs are still working then. They've gone home, had dinner, relaxed, and MAY answer the phone if that NSA needs something.

Reply by HSH/WA on 2/21/13 5:37pm
Msg #456971

Re: After deducting .57 cents per mile for auto

expenses, cost of printer wear and tear plus paper and toner - and figuring in the actual time spent downloading/printing docs, keeping track of payments etc., I figure I am making $25 and hour.

Reply by ToniK on 2/21/13 5:49pm
Msg #456974

anything less than $44 an hour for me, I might as well go back to working for the Federal govt.

Reply by Marian_in_CA on 2/21/13 6:47pm
Msg #456979

One thing a LOT of people don't realize is that an employee's hourly wage is only part of the whole picure. It's not just benefits...but taxes, too. Employers pay a lot of taxes and insurance for each employee on top of the hourly rate that the employee never sees... and I'm NOT talking about the taxes withheld from their paycheck, either.

The exact number varies by the business and employee, but I've seen estimates that the true cost of an employee is anywhere from 1.2 - 2 times the hourly rate. I know of one company where are salaried employee who earns a gross of about $50,000 a year actually costs his employers nearly $80,000. That doesn't count the initial costs of recruitment and hiring, which also add to the cost.

When you're self-employed, you have to cover ALL of those taxes on your own and then some. My accountant friends tell me that 1/3-1/2 of every single job should be put aside to cover taxes (state and federal combined) - the exact amount varies per person of course... but they all tell me putting away half is always safe. That's JUST taxes. So, if I take a job for $150, $75 of it goes to my tax payment account. That leaves me $75 to pay the rest of my expenses and cover my profit margin.

So, if an employee is making $20 an hour.... a self employed person can command far, far more.

We are NOT employees. I cannot stress that enough. If these companies want employees, they need to HIRE you and put you on their payroll. And yet, far too many notaries let themselves be treated like employees anyway, taking the lower rates and allowing the babysitting. It's sad. The companies then get away with it because they aren't on the hook for the taxes, worker's comp, etc. It's an abuse of the independent contractor rules.

Reply by Jessica/FL on 2/21/13 7:29pm
Msg #456992

That is a great post about what to put aside for taxes.

Reply by Buddy Young on 2/21/13 8:17pm
Msg #457013

When I was managing a grocery store, employee benifits averaged 50% of wages. We were a union shop.