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Question - Golden Bear Construction operates throughout California. The owner, Gaylan Beavers, employs 15 work crews. Construction supervisors report directly to Beavers, and the supervisors are trusted employees. The home office staff consist of an accountant and an office manager.
Because employee turnover is high in the construction industry, supervisors hire and fire their own crews. Supervisors notify the office of all personnel changes. Each Thursday, the supervisors submit weekly time sheets for their crews, and the accountant prepares the payroll. At noon on Friday, the supervisors come to the office to get the paychecks for distribution to the workers at 5 pm.
The company accountant prepares the payroll, including the paychecks Beavers signs all paychecks. To verify that each construction worker is a bonafide employee, the accountant matches the employee endorsement signature on the back of the cancelled paycheck with the signature given to him by the supervisors.
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