New Jersey CPA commission and contingent fee rules: what to check before a referral

What do New Jersey rules say about CPA commissions and contingent fees?

New Jersey regulates how licensees may accept commissions, referral fees and contingent fees, and the state rule can be stricter than the AICPA Code. The New Jersey Society of CPAs keeps a commissions and contingent fees topic hub that points to the current requirements; among other points it notes that a licensee may not receive a contingent fee for preparing an original or amended tax return.

For a CPA thinking about a data licensing introduction, the practical answer is: read the Board of Accountancy's current regulation text, apply it to each client by service type, and get written confirmation from the board or your counsel before registering. This is general information, not legal, tax or financial advice. Confirm with your own counsel or the New Jersey State Board of Accountancy before acting.

Why this matters to a CPA with a business-owner book

A CPA firm sees the books, the fixed-asset schedules, the system subscriptions and the data retention practices of its clients. Controllers and CFOs trust you with the facts that make a company's records valuable, which makes you a natural introducer and puts your independence at the center of the question.

The question has two layers: what the national code says, and what New Jersey adds. Many CPAs stop at the first.

Two layers of rules

Several states adopt the AICPA provisions by reference, as the Kansas regulation does. New Jersey does not necessarily follow that pattern, so do not assume that the Code settles the question. Neighboring states differ too; see the guides for Pennsylvania and Illinois.

Situation check for a New Jersey CPA

A pre-registration checklist

• I have read the current New Jersey regulation text and the NJCPA topic hub.
• I have asked my firm's risk or quality-control partner for written guidance.
• I know which clients receive attest services from the firm and will exclude them unless counsel advises otherwise.
• I have a written disclosure and consent form for any permitted arrangement.
• I will never export, upload or describe client records.
• I have recorded the date and answer if I contacted the board.

What the introduction involves

1. Only after your review clears it, a non-attest client or a non-client owner agrees to hear about the program.
2. The owner applies through your referral link at sourcex.si/apply, or you submit the company through the referral form.
3. SourceX screens size, history, data breadth and rights; the company then completes its own data inventory.
4. Price and terms are settled with the company ahead of buyer review, and delivery follows only a signed agreement and the company's authorization.
5. Any reward becomes payable only after SourceX has received its fee.

The CPA role stays limited: you do not review, redact or characterize the client's records, and you do not negotiate terms.

What to say to a client

Do not use that wording until your own review has confirmed that you may make the introduction at all. A fit check is a private first screen for the owner.

Questions to ask the Board or your counsel

Bring written questions rather than a phone call, so you have a record.

• Does the state's commission and referral fee rule apply when the payer is a non-client third party that pays me for introducing a business?
• Does it make a difference whether the firm or I personally receive the reward?
• If the client receives only tax or bookkeeping services, what disclosure form is expected, and must the client sign?
• Does a reward that exists only if a deal closes and is paid count as a contingent fee under the state definition?
• Do my other licenses, for example securities or insurance, add limits?
• How long must I keep disclosure records?

How rewards work

Partners earn 25% of the eligible platform fees SourceX actually collects from the referred company's licensing deals, up to $100,000 cumulative per referred company. The reward is payable only after the buyer pays and SourceX receives its fee, and no reward is guaranteed. Anyone can join the program, but licensed professionals must check their own rules on referral fees and disclosure. Read the program terms alongside the New Jersey rule.

When to decline to participate

• The client is an attest client and the rule you have read bars the commission.
• The board or your firm has not confirmed the arrangement in writing.
• The company has fewer than the baseline of 50+ full-time employees at peak (contractors excluded).
• The records belong to someone else, such as the company's own customers, without consent.
• A lawyer on the matter says the structure also touches fee-sharing rules; see the question on ABA Rule 5.4.

Next step

For a broader view of how accountants use the program, read the referral opportunities for accountants page and the overview of the Section 15(b)(13) exemption if a client is selling. Once your New Jersey review is complete, register as a partner.