[Anonymous]

One of my professors in grad school said that, on avearage, someone with a CPA license can expect to earn about $1 million more than a non-CPA accountant over the course of a career. I was kind of blown away by that. Any thoughts on if this is really true??? Crazy.

[Anonymous]

you have to watch out for these type of stats.

What drives someone to do the cpa is what is going to lead to higher earnings. They already have that drive in them.

[fuzyfro89]

Kind of a silly stat, but it shouldn't really be all that impressive.

A non-CPA accountant is really limited to working as a senior accountant pretty much for life (in most companies). When I worked in Big 4 audit, I had a large client ($50B+ revenues) and a ton of the senior accountants/analysts were in their 40s (maybe older), but were going to basically be there for life as they weren't CPAs and were basically going to stay at that level.

Not every CPA wants to be controller/VP/CFO someday, but some do and they will easily outshine the earnings of a life-long senior accountant.

[kpb]

I have a question about how accounting firms get away with not paying overtime to their employees? when they require them to work minimum 55 hours per week during busy season.

Yes i know everyone is salary, but i thought salary maxed at at 40 hours. Anyone know the rules?

BEC - 81 4/08/14
FAR - 80 8/25/14 Thank you Jesus!
REG - 69 (Nov 14),80 1/08/15 Thank God!
AUD - 70 (May 14), xx 5/1/15

Becker Online & Becker Flashcards
I definitely wish I was one of those people who got all 4 exams done in 4 months, but unfortunately LIFE (being a newlywed, stress, adjusting to newlywed life and cpa exam study life, as well as starting a job with a Big4 which I am very happy about) got in the way, just happy that I am passing period!!

I can do all things through Christ who strengthens me!

[Anonymous]

That's the point of a salary, its a contract for your employer to compensate you for your services no matter how many hours get works.

[fuzyfro89]

Salary has no limit, but some people are disputing this and there are class action lawsuits from time to time.

I don't really think it makes much sense, since they aren't forcing you to stay.

Vote about your happiness with salary with your feet and walk out the door if you're unhappy.

WOuld you stay working at any company if you didn't like the way you were being treated? Why waste your time? If you really are worth more, then go get a better offer and tell the partners “peace out sucka!!”

[kpb]

I just don't understand how it's allowed. I've looked at the DOL website and even if you're salary, you're supposed to get paid overtime for hours over 40 and seeing as accounting firms are huge, you would think DOL would be on their butt about it. But i know there's something about exempt/nonexempt employees i'm not too clear on. Just wondering.

BEC - 81 4/08/14
FAR - 80 8/25/14 Thank you Jesus!
REG - 69 (Nov 14),80 1/08/15 Thank God!
AUD - 70 (May 14), xx 5/1/15

Becker Online & Becker Flashcards
I definitely wish I was one of those people who got all 4 exams done in 4 months, but unfortunately LIFE (being a newlywed, stress, adjusting to newlywed life and cpa exam study life, as well as starting a job with a Big4 which I am very happy about) got in the way, just happy that I am passing period!!

I can do all things through Christ who strengthens me!

[klink24]

Those paid on salary are Exempt from the DOL laws so they are deemed Exempt employees. Non-Exempt are hourly employees covered under those DOL laws.

FAR: 4/19/2014 - 85!
AUD: 5/27/2014 - 90!
REG: 7/18/2014 - 81!
BEC: 8/13/2014 - 84!

4 up, 4 down, in 4 months.

Licensed 9/22 in NC.

[Java230]

Yep' its the exempt. Which means no overtime and no minimal wage. Originally its intended for really high paying managers but now the exempt status is used on positions making near min wage. So companies can exploit white collar workers bynot paying over time.

Licensed WA CPA 2/2015
Government Auditor Since 2007

[taxman89]

1: you knew you would have long hours coming in

2: if you dont like said hour, leave.

3: even if (somehow) you didnt know about the long hours then see #2

AUD - 75
BEC - 77
FAR - 78
REG - 82

AUD: 61-67-75 (Thanks ninja aud)
BEC: 77
FAR: 78
REG:69-73-70-82

Aud-75 3x I knew i never liked you
Bec-77 1x being in the bubble is stressful
Reg-82 4x its not me its you...and no we cant be friends
Far-78 1x easiest section

[kpb]

thanks for the explanation nclynch and java230!

BEC - 81 4/08/14
FAR - 80 8/25/14 Thank you Jesus!
REG - 69 (Nov 14),80 1/08/15 Thank God!
AUD - 70 (May 14), xx 5/1/15

Becker Online & Becker Flashcards
I definitely wish I was one of those people who got all 4 exams done in 4 months, but unfortunately LIFE (being a newlywed, stress, adjusting to newlywed life and cpa exam study life, as well as starting a job with a Big4 which I am very happy about) got in the way, just happy that I am passing period!!

I can do all things through Christ who strengthens me!

[lude4life13]

The rule is that if the job is more than 50% judgmental, the employer can use the exempt status for their employees in those judgmental roles. Like someone mentioned above, this was created for executive/management positions. It's somewhat like the Big 4 (and other firms that do this) are using this rule as a loop hole for saving money.

I even have a senior manager who would tell me he doesn't understand how anyone can consider a staff or even a senior to be using judgement more than 50% of the time, since they are literally told what to do and do it for hours and hours. After all the failed class action lawsuits I highly doubt this will ever change.

[nicole2035]

@kpb it depends on how you look at it. Your employer technically can't tell you to stay over, if you work 40 hrs you did your job but they expect certain projects to be completed. If you knew it coming in, different story. I think anyone who works salary in accounting tend to overstretch themselves because that's the philosophy and culture taught. Most people don't have work/life balance because they put it in their head they MUST stay at work. Some stuff simply isn't gonna get done and tbh people who tend to get promotions are people who limit themselves. Due to that employers see them as more valuable and will only delegate more important things to them. I get working extra busy season but if you're doing that in off season too, it seems silly when most people in CPA firms are just gonna end up staff or senior accountant in private.

[lude4life13]

^^^ If you don't stay and work with the team, no one (in terms of other engagement teams) will pick up your time in the future, you will be left unassigned for a period of time, then you will not have chargeable hours and basically be asked to leave, not get promoted, or be fired.

[Author]

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