Minimum or Maximum Preparer Fee



How do I set up a Minimum or Maximum Preparer Fee? Does this affect per form pricing? 

Setup

You can set a minimum and a maximum global preparer fee at Setup > Pricing, using lines 0255 Minimum and 0256 Maximum. You may set the min/max for each return type. The same line entries are used in all but the 990 (which uses lines 0247 and 0248).

Any Per Form entries for line 0255 Minimum and 0256 Maximum become the lower and upper limits for the total preparer fee on the bill for form preparation as follows (the actual bill display dependent on options selected on the Billing tab at Setup > Options):

The limits work against the total cost per form, per item, or for the time you are charging to prepare forms, depending on what billing and pricing options you have selected.

The limitation is not stated on the bill. Whether you bill per form or by time, the forms or time and the associated charges display if that option is set, but if their sum crosses the max/min limit, the limit is shown on the bill as Revised Charge.

Bank product fees are not affected. If you bill by form, bank product fees are shown on the bill separately from the form fees. If you bill by time, bank product fees are not shown on the bill at all. Either way, bank product fees remain as they were on the bank info sheet.

Per Form Pricing Difference 

When you have a pricing entry for line 255 Minimum Preparer Fee or 256 Maximum Fee applied to the bill, these items limit the total preparer charges to that amount, and the limitation is stated on the bill as "Revised Charge." As a result, the fees for preparing the forms (per form, per item or time) are displayed on the bill, but if their sum is less than or exceeds the min/max limit, the limit is shown on the bill as the revised charge. In the following example, the actual total for preparing the forms will be neither less than $50 nor more than $100:

As you can see, the form pricing total exceeds $100, so item 256 Maximum Fee is applied to a bill to show the Forms total of $616.19 adjusted to the Revised Charge of $100.00: