Employee Demands a Raise She Doesn’t Deserve

Hands tear money isolated on white backgroundHow to decide when to let people walk.

By Ed Mendlowitz
The CPA Trendlines Practice Doctor

QUESTION: I have a longtime employee who asked me for a 33 percent salary increase, or she said she would have to explore options. How do you suggest I handle this?

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Additional information: She works five-hour days every day and is paid by the hour. She gives me no added time during tax season. She also gets paid for an extra six days – which is for half of the firm’s allowed holidays – and for eight days for combined sick, vacation and personal days, and I pay her for half of her required CPE time (payment for 20 hours) and all the registration costs.