Question
Week 7 Discussion Board Week 7 Discussion Please note that this discussion board will require a minimum of three posts. These consist of your initial
Week 7 Discussion Board
Week 7 Discussion
Please note that this discussion board will require a minimum of three posts. These consist of your initial post, your response to comments that I post to your thread, and at least one response to a classmate. If you post late in the week, it's possible that I may not be able to provide a comment to you. In that case, please be sure to provide response posts to at least two classmates.
Chapter 8: Employees and Payroll
Additionally, please refer to Chapter 11 in your Cengage Accounting eText, accessible from the eText link in the Course Navigation Panel to the left of your screen.
Requirement
Tonya Latirno is a staff accountant for Cannally and Kennedy, a local CPA firm. For the past 10 years, the firm has given employees a year-end bonus equal to two weeks' salary. On November 15, the firm's management team announced that there would be no annual bonus this year. Because of the firm's long history of giving a year-end bonus, Tonya and her coworkers had come to expect the bonus and believed that Cannally and Kennedy had breached an implicit agreement by discontinuing the bonus. As a result, Tonya decided that she would make up for the lost bonus by working an extra six hours of overtime per week for the rest of the year. Cannally and Kennedy's policy is to pay overtime at 150% of straight time.
Tonya's supervisor was surprised to see overtime being reported, because there is generally very little additional or unusual client service demands at the end of the calendar year. However, the overtime was not questioned, because employees are on the honor system in reporting their work
Is Cannally and Kennedy acting in an ethical manner by eliminating the bonus? Explain your answer.
Is Tonya behaving ethically by making up the bonus with unnecessary overtime? Why or why not?
Responses to Classmates:
Please explain to your classmates why deductions from employees' earnings are classified as liabilities for the employer.
Response to Instructor:
Please check your thread for questions or comments from me and be sure to provide a comprehensive response, as requested.
Writing:
Please make sure that your initial post contains a properly cited reference. Please use APA style. You should cite your text as a minimum. Additionally, check your spelling and proofread your post before you hit the submit button.
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