A Simpler Approach to Keeping Employees

BY DALE SCHWARTZENHAUER

In reading “ Meyners Pays for Performance ” ( JofA , Jul.03, page 41), I felt the firm engaged in overkill in transforming its compensation system.

Our firm has adopted a much simpler approach. It includes a 7% override of gross billable revenue (less $15 per tax return to cover overhead) and 50% of revenue generated from new services created by the CPA and adopted by the firm. This compensation is in addition to the usual complement of salary, overtime and benefits.

We find this system to be revenue-additive for the firm and competitive for the CPAs.

Dale Schwartzenhauer, CPA,
CMA, CFM
Jim Johnson & Co.
Walla Walla, Washington

SPONSORED REPORT

Why cybercriminals are targeting CPAs

This free report expands on the most commonly found scams, why education and specialized IT knowledge help to lessen security vulnerabilities, and why every firm should plan carefully for how it would respond to a breach.

PODCAST

How tax reform will impact individual taxpayers

Amy Wang, a CPA who is a senior technical manager for tax advocacy at the AICPA, answers to some of the most common questions on how the new tax reform law will impact individual taxpayers.