Employment Agreement for Accounting Staff

What a good one includes

• A detailed description of daily responsibilities, reporting lines, and required active credentials such as a CPA license or active PTIN.
• A comprehensive non-disclosure clause covering sensitive client financial data, proprietary tax strategies, and internal firm software.
• A clear, legally enforceable non-solicitation clause preventing the employee from taking firm clients or competing during and after their employment.
• Specific details on base salary, overtime eligibility for non-exempt staff, and performance-based bonuses tied to utilization or billing targets.
• Provisions clarifying whether the firm's errors and omissions insurance covers the employee's work or if individual coverage is expected.
• Guidelines outlining who covers the cost of mandatory continuing professional education hours and licensing renewals.

Common mistakes to avoid

• Many firms overlook explicitly stating that all client relationships, files, and records belong solely to the firm, leading to costly disputes when an employee leaves.
• Firms often misclassify junior accountants as exempt from overtime, resulting in severe wage-and-hour penalties during high-volume tax seasons.
• Drafting overly broad non-compete clauses that are legally unenforceable in the employee's specific jurisdiction can render the entire restrictive covenant useless.
• Neglecting to mandate strict compliance with IRS security guidelines and Written Information Security Plans can expose the firm to massive liability if a data breach occurs.

Frequently asked questions