[SOLVED] Susan Sharp is a certified public accountant (CPA) and staff accountant for Jones & Jones, a local CPA firm. It had been the policy of the firm to provide a holiday bonus equal to two weeks’ salary to – Accounting

by | Jul 12, 2022 | Accounting

Susan Sharp is a certified public accountant (CPA) and staff accountant for Jones & Jones, a local CPA firm. It had been the policy of the firm to provide a holiday bonus equal to two weeks’ salary to all employees. The firm’s new management team announced on November 15 that a bonus equal to only one week’s salary would be made available to the employees this year. Susan thought that this policy was unfair because she and her coworkers planned on the full two-week bonus. The two week bonus had been given for 10 consecutive years, so it seemed as though the firm had breached an implied commitment. Susan decided that she would make up the lost bonus week by working an extra six hours of overtime per week over the next five weeks until the end of the year. Jones & Jones’ policy is to pay overtime at 150% of straight time. Susan’s supervisor was surprised to see overtime being reported, since there is generally very little additional or unusual client service demands at the end of the calendar year. However, the overtime was not questioned, since firm employees are on the “honor system” in reporting their overtim



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