SMg7-1
SOLUTIONS MANUAL: g
PayrollgAccountingg2024gLanding34thgEditiongbygBernardgJ.gBieggandgBridgetgStom
berg
Chapterg1-7
Chapterg1
WhichgLaw?
1.g g K
2.g g H
3.g g B
4.g g F
5.g g I
6.g g J
7.g g A
8.g g D
9.g g G
10.gC
11.gE
12.gL
WhichgPayrollgLaw?
1. D
2. A
3. F
4. C
5. G
6. J
7. B
8. I
9. E
10. H
What’sgEthical?
1. Answersgwillgvary.gSomegconcernsgincludegdatagprivacygandgintegritygingthegsoftwaregswi
tchover,gtaxgandgemployeegpaygintegritygongthegnewgsoftware,gandgemployeegpaygmethods.
©gMcGrawgHillgLLC.gAllgrightsgreserved.gNogreproductiongorgdistributiongwithoutgthegpriorgwrittengconsentgofgMcGrawg
HillgLLC.
.
, SMg7-2
2. Answersgwillgvary.gKarsyngcouldgchoosegtogignoreghergsororitygsister’sgrequest,gclaimin
ggConfidentiality.gShegcouldgalsogdiscontinuegactivegparticipationgingthegsorority.gInganygca
se,gKarsyngmustgnotgconsentgtoghergsororitygsister’sgrequestgforgconfidentialginformation.
ConfidentialgRecords
Asgthegpayrollgclerk,gyourgtaskgisgtogprotectgthegprivacygandgconfidentialitygofgtheginformationgyo
ugmaintaingforgthegcompany.gIfgagstudentggroup—
organygpersonnelgasidegfromgthegcompany’sgpayrollgemployeesgandgofficers—
wishesgtogreviewgconfidentialgrecords,gyougshouldgdenygtheirgrequest.gIfgneeded,gyougshouldgrefe
rgtheggroupgtogyourgdepartment’sgmanagergtogdiscussgthegmattergingmoregdepth.gTheglawsgthatgap
plygtogthisgsituationgaregthegPrivacygActgofg1974,gU.S.gDepartmentgofgHealthgandgHumangServic
esgPrivacygActg09-40-0006,gCommon-
LawgPrivacygAct,gComputergFraudgandgAbusegAct,gandgpotentiallygHIPAA.
Largegvs.gSmall
1. Largegcompaniesgfacegissuesgwithgmultiplegdepartments,gemployeegaccessgtogonlin
egpersonnelgportals,gemployeegdatagsecurity,gandgtimekeepinggaccuracy.
2. Forgsmallgcompanies,gpayrollgprocessinggwillginvolvegfewergemployeesgthangforglarge
rgcompanies.gSmallergcompaniesgcouldgmaintaingtheirgpayrollgneedsgusinggcompanygp
ersonnelgbecausegofgtheglowergvolumegofgtransactions.gLargergcompaniesgneedgtogcon
sidergtheirgavailablegtrainedgpayrollgaccountantsgandgothergstaffgtogdeterminegifgtheygc
angreliablyghandlegthegvolumegofgpayrollgneedsgingagtimelygandgaccurategmanner.
WhatgIsgthegDifference?
©gMcGrawgHillgLLC.gAllgrightsgreserved.gNogreproductiongorgdistributiongwithoutgthegpriorgwrittengconsentgofgMcGrawg
HillgLLC.
.
, SMg7-3
a. Manualgpayrollgsystemsginvolvegthegusegofgpapergandgpencilgrecord-
keepinggorgagspreadsheetgprogram,gsuchgasgMicrosoftgExcel.gThisgisgmostgappropriateg
forgverygsmallgfirms.
b. Computerizedgpayrollgsystemsgcangbegusedgbyganygcompany,gregardlessgofgsize.gExample
sgofgcomputerizedgsystemsgincludegQuickBooks,gSageg100,gandgMicrosoftgDynamicsg36
5gGP.gThesegcomputergpackagesgrangegingprice,gdependinggongthegcompanygsizegandgope
rationalgscope.
c. Outsourcedgpayrollginvolvesgthegengagementgofgagthirdgpartygtogmanagegagcompany’
sgpayrollgdata,gissuegemployeegcompensation,gandgpreparegtaxgforms.
d. Certifiedgpayrollgpertainsgtogcompaniesgwithgemployeesgwhogworkgongfederalggovernmen
tgcontracts.gCertifiedgpayrollgensuresgthatgagcompanygreportsgpayrollgexpendituresgofgcon
tractuallygallocatedgmoney.
ANSWERSgTOgEND-OF-
CHAPTERgMATERIALSgREVIEWgQUESTIONS
1. Whatgisgthegpurposegofgagpayrollgsystem?
a. Providegforginternalgandgexternalgreportinggofgemployeegwagesgandgassociatedgtaxes,
gpaymentgofgemployeegcompensation,gandgmonitoringgofgbenefitsgtogemployees.gItgal
sogservesgasgagmeansgofgtrackingglaborgcostsgthatgmanagersgusegforgdecision-
making,gbudgeting,gandgplanning.
2. Whatgaregtwogdifferencesgbetweenglarge-gandgsmall-companygpayrollgpractices?
a. Smallgcompaniesgwouldghavegfewergemployeesgandgreportinggrequirementsgandgwoul
dgbeglessglikelygtogbegrequiredgtoghavegautomatedgpayrollgsystems.
©gMcGrawgHillgLLC.gAllgrightsgreserved.gNogreproductiongorgdistributiongwithoutgthegpriorgwrittengconsentgofgMcGrawg
HillgLLC.
.
, SMg7-4
b. Largegcompaniesghavegmoregemployeesgandggreatergdepartmentalization.gThisgincrea
segingemployeesgleadsgtogaghigherglevelgofgcomplexitygingpayrollgaccounting,gdisburs
ements,gandgreporting.gLargergcompaniesgmaygalsogprovidegIntranetgportalsgforgempl
oyeegself-
servicegoptions.gAdditionally,glargergcompaniesgmaygneedgadditionalgaccuracygcheck
s.
3. Whatgisgcertifiedgpayroll?gWhichgcompaniesgmustgusegit?
a. Certifiedgpayrollgisgagreportinggrequirementgforgcompaniesgthatgworkgwithgfedera
lgcontractsgthatgaregsubjectgtogDavis-
Bacongwages.gOnlygthosegcompaniesgthatghavegthesegtypesgofgemployeesgwouldg
begrequiredgtogcompletegagcertifiedgpayroll.
4. Whygmightgitgbegaggoodgideagtogletgemployeesgmanagegtheirgpayrollgrecords?gWhatgaregso
megofgthegpitfalls?
a. Angadvantagegofgallowinggindividualsgtogself-
managegtheirgpayrollgrecordsgwouldgbegthegemployeegwouldgbegablegtoganswergsom
egsimplegquestionsgongtheirgowngwithoutghavinggtogcomegtogthegpayrollgaccountantg
forganswers.gIfgemployeesghavegaccessgtogtheirgpayrollgrecords,gtheregwouldgbegtheg
needgtogallowgmultiplegaccessgpointsgtogthegconfidentialginformation.gThesegopengc
hannelsgwouldgrequiregsecuritygsettingsgtogensuregthegrequirementsgofgconfidentialit
ygaregmaintained.
5. Whatgaregtwogwaysgagpayrollgsystemgmaygprotectgagcompanygingthegeventgofgagvisitgfrom
a governmentgauditor?
g g
Answersgmaygvary,gbutgshouldgcontain:
©gMcGrawgHillgLLC.gAllgrightsgreserved.gNogreproductiongorgdistributiongwithoutgthegpriorgwrittengconsentgofgMcGrawg
HillgLLC.
.
SOLUTIONS MANUAL: g
PayrollgAccountingg2024gLanding34thgEditiongbygBernardgJ.gBieggandgBridgetgStom
berg
Chapterg1-7
Chapterg1
WhichgLaw?
1.g g K
2.g g H
3.g g B
4.g g F
5.g g I
6.g g J
7.g g A
8.g g D
9.g g G
10.gC
11.gE
12.gL
WhichgPayrollgLaw?
1. D
2. A
3. F
4. C
5. G
6. J
7. B
8. I
9. E
10. H
What’sgEthical?
1. Answersgwillgvary.gSomegconcernsgincludegdatagprivacygandgintegritygingthegsoftwaregswi
tchover,gtaxgandgemployeegpaygintegritygongthegnewgsoftware,gandgemployeegpaygmethods.
©gMcGrawgHillgLLC.gAllgrightsgreserved.gNogreproductiongorgdistributiongwithoutgthegpriorgwrittengconsentgofgMcGrawg
HillgLLC.
.
, SMg7-2
2. Answersgwillgvary.gKarsyngcouldgchoosegtogignoreghergsororitygsister’sgrequest,gclaimin
ggConfidentiality.gShegcouldgalsogdiscontinuegactivegparticipationgingthegsorority.gInganygca
se,gKarsyngmustgnotgconsentgtoghergsororitygsister’sgrequestgforgconfidentialginformation.
ConfidentialgRecords
Asgthegpayrollgclerk,gyourgtaskgisgtogprotectgthegprivacygandgconfidentialitygofgtheginformationgyo
ugmaintaingforgthegcompany.gIfgagstudentggroup—
organygpersonnelgasidegfromgthegcompany’sgpayrollgemployeesgandgofficers—
wishesgtogreviewgconfidentialgrecords,gyougshouldgdenygtheirgrequest.gIfgneeded,gyougshouldgrefe
rgtheggroupgtogyourgdepartment’sgmanagergtogdiscussgthegmattergingmoregdepth.gTheglawsgthatgap
plygtogthisgsituationgaregthegPrivacygActgofg1974,gU.S.gDepartmentgofgHealthgandgHumangServic
esgPrivacygActg09-40-0006,gCommon-
LawgPrivacygAct,gComputergFraudgandgAbusegAct,gandgpotentiallygHIPAA.
Largegvs.gSmall
1. Largegcompaniesgfacegissuesgwithgmultiplegdepartments,gemployeegaccessgtogonlin
egpersonnelgportals,gemployeegdatagsecurity,gandgtimekeepinggaccuracy.
2. Forgsmallgcompanies,gpayrollgprocessinggwillginvolvegfewergemployeesgthangforglarge
rgcompanies.gSmallergcompaniesgcouldgmaintaingtheirgpayrollgneedsgusinggcompanygp
ersonnelgbecausegofgtheglowergvolumegofgtransactions.gLargergcompaniesgneedgtogcon
sidergtheirgavailablegtrainedgpayrollgaccountantsgandgothergstaffgtogdeterminegifgtheygc
angreliablyghandlegthegvolumegofgpayrollgneedsgingagtimelygandgaccurategmanner.
WhatgIsgthegDifference?
©gMcGrawgHillgLLC.gAllgrightsgreserved.gNogreproductiongorgdistributiongwithoutgthegpriorgwrittengconsentgofgMcGrawg
HillgLLC.
.
, SMg7-3
a. Manualgpayrollgsystemsginvolvegthegusegofgpapergandgpencilgrecord-
keepinggorgagspreadsheetgprogram,gsuchgasgMicrosoftgExcel.gThisgisgmostgappropriateg
forgverygsmallgfirms.
b. Computerizedgpayrollgsystemsgcangbegusedgbyganygcompany,gregardlessgofgsize.gExample
sgofgcomputerizedgsystemsgincludegQuickBooks,gSageg100,gandgMicrosoftgDynamicsg36
5gGP.gThesegcomputergpackagesgrangegingprice,gdependinggongthegcompanygsizegandgope
rationalgscope.
c. Outsourcedgpayrollginvolvesgthegengagementgofgagthirdgpartygtogmanagegagcompany’
sgpayrollgdata,gissuegemployeegcompensation,gandgpreparegtaxgforms.
d. Certifiedgpayrollgpertainsgtogcompaniesgwithgemployeesgwhogworkgongfederalggovernmen
tgcontracts.gCertifiedgpayrollgensuresgthatgagcompanygreportsgpayrollgexpendituresgofgcon
tractuallygallocatedgmoney.
ANSWERSgTOgEND-OF-
CHAPTERgMATERIALSgREVIEWgQUESTIONS
1. Whatgisgthegpurposegofgagpayrollgsystem?
a. Providegforginternalgandgexternalgreportinggofgemployeegwagesgandgassociatedgtaxes,
gpaymentgofgemployeegcompensation,gandgmonitoringgofgbenefitsgtogemployees.gItgal
sogservesgasgagmeansgofgtrackingglaborgcostsgthatgmanagersgusegforgdecision-
making,gbudgeting,gandgplanning.
2. Whatgaregtwogdifferencesgbetweenglarge-gandgsmall-companygpayrollgpractices?
a. Smallgcompaniesgwouldghavegfewergemployeesgandgreportinggrequirementsgandgwoul
dgbeglessglikelygtogbegrequiredgtoghavegautomatedgpayrollgsystems.
©gMcGrawgHillgLLC.gAllgrightsgreserved.gNogreproductiongorgdistributiongwithoutgthegpriorgwrittengconsentgofgMcGrawg
HillgLLC.
.
, SMg7-4
b. Largegcompaniesghavegmoregemployeesgandggreatergdepartmentalization.gThisgincrea
segingemployeesgleadsgtogaghigherglevelgofgcomplexitygingpayrollgaccounting,gdisburs
ements,gandgreporting.gLargergcompaniesgmaygalsogprovidegIntranetgportalsgforgempl
oyeegself-
servicegoptions.gAdditionally,glargergcompaniesgmaygneedgadditionalgaccuracygcheck
s.
3. Whatgisgcertifiedgpayroll?gWhichgcompaniesgmustgusegit?
a. Certifiedgpayrollgisgagreportinggrequirementgforgcompaniesgthatgworkgwithgfedera
lgcontractsgthatgaregsubjectgtogDavis-
Bacongwages.gOnlygthosegcompaniesgthatghavegthesegtypesgofgemployeesgwouldg
begrequiredgtogcompletegagcertifiedgpayroll.
4. Whygmightgitgbegaggoodgideagtogletgemployeesgmanagegtheirgpayrollgrecords?gWhatgaregso
megofgthegpitfalls?
a. Angadvantagegofgallowinggindividualsgtogself-
managegtheirgpayrollgrecordsgwouldgbegthegemployeegwouldgbegablegtoganswergsom
egsimplegquestionsgongtheirgowngwithoutghavinggtogcomegtogthegpayrollgaccountantg
forganswers.gIfgemployeesghavegaccessgtogtheirgpayrollgrecords,gtheregwouldgbegtheg
needgtogallowgmultiplegaccessgpointsgtogthegconfidentialginformation.gThesegopengc
hannelsgwouldgrequiregsecuritygsettingsgtogensuregthegrequirementsgofgconfidentialit
ygaregmaintained.
5. Whatgaregtwogwaysgagpayrollgsystemgmaygprotectgagcompanygingthegeventgofgagvisitgfrom
a governmentgauditor?
g g
Answersgmaygvary,gbutgshouldgcontain:
©gMcGrawgHillgLLC.gAllgrightsgreserved.gNogreproductiongorgdistributiongwithoutgthegpriorgwrittengconsentgofgMcGrawg
HillgLLC.
.
