Solution Manual for Payroll Accounting 2024, 34th Edition by Bernard J. Bieg, Bridget Stomberg, Chapters 1 - 7, Complete Verified Newest Version

SM 7-1


SOLUTIONS MANUAL:
Payroll Accounting 2024 Landin 34th Edition by Bernard J. Bieg and Bridget
Stomberg

Chapter 1-7


Chapter 1

Which Law?

1. K
2. H
3. B
4. F
5. I
6. J
7. A
8. D
9. G
10. C
11. E
12. L

Which Payroll Law?

1. D
2. A
3. F
4. C
5. G
6. J
7. B
8. I
9. E
10. H

What’s Ethical?




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, SM 7-2


1. Answers will vary. Some concerns include data privacy and integrity in the software

switchover, tax and employee pay integrity on the new software, and employee pay

methods.

2. Answers will vary. Karsyn could choose to ignore her sorority sister’s request, claiming

Confidentiality. She could also discontinue active participation in the sorority. In any case,

Karsyn must not consent to her sorority sister’s request for confidential information.


Confidential Records

As the payroll clerk, your task is to protect the privacy and confidentiality of the information you

maintain for the company. If a student group—or any personnel aside from the company’s

payroll employees and officers—wishes to review confidential records, you should deny their

request. If needed, you should refer the group to your department’s manager to discuss the matter

in more depth. The laws that apply to this situation are the Privacy Act of 1974, U.S. Department

of Health and Human Services Privacy Act 09-40-0006, Common-Law Privacy Act, Computer

Fraud and Abuse Act, and potentially HIPAA.


Large vs. Small

1. Large companies face issues with multiple departments, employee access to online

personnel portals, employee data security, and timekeeping accuracy.

2. For small companies, payroll processing will involve fewer employees than for larger

companies. Smaller companies could maintain their payroll needs using company

personnel because of the lower volume of transactions. Larger companies need to

consider their available trained payroll accountants and other staff to determine if they

can reliably handle the volume of payroll needs in a timely and accurate manner.



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, SM 7-3


What Is the Difference?
N N N




a. Manual payroll systems involve the use of paper and pencil record-keeping or a
N N N N N N N N N N N N




Nspreadsheet program, such as Microsoft Excel. This is most appropriate for very small
N N N N N N N N N N N N




Nfirms.

b. Computerized payroll systems can be used by any company, regardless of size. Examples of
N N N N N N N N N N N N N




Ncomputerized systems include QuickBooks, Sage 100, and Microsoft Dynamics 365 GP.
N N N N N N N N N N




NThese computer packages range in price, depending on the company size and operational
N N N N N N N N N N N N




Nscope.

c. Outsourced payroll involves the engagement of a third party to manage a company’s
N N N N N N N N N N N N




Npayroll data, issue employee compensation, and prepare tax forms.
N N N N N N N N




d. Certified payroll pertains to companies with employees who work on federal government
N N N N N N N N N N N




Ncontracts. Certified payroll ensures that a company reports payroll expenditures of
N N N N N N N N N N




Ncontractually allocated money. N N




ANSWERS TO END-OF-CHAPTER MATERIALS REVIEW QUESTIONS
N N N N N




1. What is the purpose of a payroll system?
N N N N N N N




a. Provide for internal and external reporting of employee wages and associated
N N N N N N N N N N




N taxes, payment of employee compensation, and monitoring of benefits to
N N N N N N N N N




N employees. It also serves as a means of tracking labor costs that managers use for
N N N N N N N N N N N N N N




N decision-making, budgeting, and planning. N N N




2. What are two differences between large- and small-company payroll practices?
N N N N N N N N N




a. Small companies would have fewer employees and reporting requirements and
N N N N N N N N N




N would be less likely to be required to have automated payroll systems.
N N N N N N N N N N N




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, SM 7-4


b. Large companies have more employees and greater departmentalization. This
N N N N N N N N




N increase in employees leads to a higher level of complexity in payroll accounting,
N N N N N N N N N N N N




N disbursements, and reporting. Larger companies may also provide Intranet portalsN N N N N N N N N




N for employee self-service options. Additionally, larger companies may need
N N N N N N N N




N additional accuracy checks. N N




3. What is certified payroll? Which companies must use it?
N N N N N N N N




a. Certified payroll is a reporting requirement for companies that work with federal
N N N N N N N N N N N




N contracts that are subject to Davis-Bacon wages. Only those companies that have
N N N N N N N N N N N




N these types of employees would be required to complete a certified payroll.
N N N N N N N N N N N




4. Why might it be a good idea to let employees manage their payroll records? What are
N N N N N N N N N N N N N N N




Nsome of the pitfalls?
N N N




a. An advantage of allowing individuals to self-manage their payroll records would be
N N N N N N N N N N N




N the employee would be able to answer some simple questions on their own without
N N N N N N N N N N N N N




N having to come to the payroll accountant for answers. If employees have access to
N N N N N N N N N N N N N




N their payroll records, there would be the need to allow multiple access points to the
N N N N N N N N N N N N N N




N confidential information. These open channels would require security settings to
N N N N N N N N N




N ensure the requirements of confidentiality are maintained.
N N N N N N




5. What are two ways a payroll system may protect a company in the event of a visit from a
N N N N N N N N N N N N N N N N N N




Ngovernment auditor? N




Answers may vary, but should contain: N N N N N




a. The establishment and maintenance of an accurate payroll system. Timely and
N N N N N N N N N N




N accurately reporting wages and withholdings. Adherence to the legal framework of
N N N N N N N N N N




N payroll.



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