SM 7-1
ky
SOLUTIONS MANUAL: k y
Payroll Accounting 2024 Landin 34th Edition byBernard J. Bieg and Bridget Stomberg
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Chapter 1-7 ky
Chapter 1 ky
Which Law? ky
1. K k y k y
2. H k y k y
3. B k y k y
4. F k y k y
5. I k y k y
6. J k y k y
7. A k y k y
8. D k y k y
9. G k y k y
10. C ky
11. E ky
12. L ky
Which Payroll Law? ky ky
1. D
2. A
3. F
4. C
5. G
6. J
7. B
8. I
9. E
10. H
What’s Ethical? ky
1. Answers will vary. Some concerns include data privacy and integrity in the software
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ky switchover, tax and employee payintegrityon the new software, and employee paymethods.
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©McGraw Hill LLC. All rights reserved. No reproduction or distribution without the prior written consent of McGraw Hill LLC.
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.
, SM 7-2 ky
2. Answers will vary. Karsyn could choose to ignore her sorority sister’s request, claiming
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ky Confidentiality. She could also discontinue active participation in the sorority. In any case, ky ky ky ky ky ky ky ky ky ky ky ky
ky Karsyn must not consent to her sorority sister’s request for confidential information.
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Confidential Records ky
As the payroll clerk, your task is to protect the privacyand confidentiality of the information you
ky ky ky ky ky ky ky ky ky ky ky ky ky ky ky ky
ky maintain for the company. If a student group—or any personnel aside from the company’s payroll
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ky employees and officers—wishes to review confidential records, you should deny their request. If
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needed, you should refer the group to your department’s manager to discuss the matter in more depth.
ky ky ky ky ky ky ky ky ky ky ky ky ky ky ky ky ky
ky The laws that apply to this situation are the Privacy Act of 1974, U.S. Department of Health and
ky ky ky ky ky ky ky ky ky ky ky ky ky ky ky ky ky
ky Human Services Privacy Act 09-40-0006, Common-Law Privacy Act, Computer Fraud and Abuse
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ky Act, and potentially HIPAA.
ky ky ky
Large vs. Small ky ky
1. Large companies face issues with multiple departments, employee access to online
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ky personnel portals, employee data security, and timekeeping accuracy. ky ky ky ky ky ky ky
2. For small companies, payroll processing will involve fewer employees than for larger
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ky companies. Smaller companies could maintain their payroll needs using company ky ky ky ky ky ky ky ky ky
ky personnel because of the lower volume of transactions. Larger companies need to ky ky ky ky ky ky ky ky ky ky ky
ky consider their available trained payroll accountants and otherstaff to determine if they can
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ky reliably handle the volume of payroll needs in a timely and accurate manner.
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What Is the Difference?
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©McGraw Hill LLC. All rights reserved. No reproduction or distribution without the prior written consent of McGraw Hill LLC.
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.
, SM 7-3ky
a. Manual payroll systems involve the use of paper and pencil record-keeping or a
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ky spreadsheet program, such as Microsoft Excel. This is most appropriate for verysmall
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ky firms.
b. Computerized payroll systems can be used by any company, regardless of size. Examples of ky ky ky ky ky ky ky ky ky ky ky ky ky
ky computerized systems include QuickBooks, Sage 100, and Microsoft Dynamics 365 GP. ky ky ky ky ky ky ky ky ky ky
ky These computer packages range in price, depending on the company size and operational
ky ky ky ky ky ky ky ky ky ky ky ky
ky scope.
c. Outsourced payroll involves the engagement of a third partyto manage a company’s ky ky ky ky ky ky ky ky ky ky ky ky
ky payroll data, issue employee compensation, and prepare tax forms.
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d. Certified payroll pertains to companies withemployees who work on federal government
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ky contracts. Certified payroll ensures that a company reports payroll expenditures of
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ky contractually allocated money. ky ky
ANSWERSTOEND-OF-CHAPTERMATERIALS y
k y
k y
k
ky REVIEW QUESTIONS ky
1. What is the purpose of a payroll system?
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a. Provide for internal and external reporting of employee wages and associated taxes,
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ky payment of employee compensation, and monitoringof benefits to employees. It also
ky ky ky ky ky ky ky ky ky ky ky
ky serves as a means of tracking labor costs that managers use for decision-making,
ky ky ky ky ky ky ky ky ky ky ky ky
ky budgeting, and planning. ky ky
2. What are two differences between large- and small-companypayroll practices?
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a. Small companies would havefewer employees and reportingrequirements and would be
ky ky ky ky ky ky ky ky ky ky ky
ky less likely to be required to have automated payroll systems.
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©McGraw Hill LLC. All rights reserved. No reproduction or distribution without the prior written consent of McGraw Hill LLC.
ky ky ky ky ky ky ky ky ky ky ky ky ky ky ky ky ky ky ky
.
, SM 7-4 ky
b. Large companies have more employees and greater departmentalization. This increase in
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ky employees leads to a higher level of complexity in payroll accounting, disbursements, ky ky ky ky ky ky ky ky ky ky ky
ky and reporting. Larger companies mayalso provide Intranet portals for employee self-
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service options. Additionally, larger companies may need additional accuracy checks.
ky ky ky ky ky ky ky ky ky
3. What is certified payroll? Which companies must use it?
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a. Certified payroll is a reporting requirement for companies that work with federal ky ky ky ky ky ky ky ky ky ky ky
ky contracts that are subject to Davis-Bacon wages. Only those companies that have ky ky ky ky ky ky ky ky ky ky ky
ky these types of employees would be required to complete a certified payroll.
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4. Whymight it be a good idea to let employees manage their payroll records? What are some of the
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ky pitfalls?
a. An advantage of allowingindividuals to self-manage their payroll records would be the
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ky employee would be able to answer some simple questions on their own without having ky ky ky ky ky ky ky ky ky ky ky ky ky
ky to come to the payroll accountant for answers. If employees have access to their payroll
ky ky ky ky ky ky ky ky ky ky ky ky ky ky
ky records, there would be the need to allow multiple access points to the confidential
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ky information. These open channels would require security settings to ensure the ky ky ky ky ky ky ky ky ky ky
ky requirements of confidentiality are maintained. ky ky ky ky
5. What are two ways a payroll system mayprotect a companyin the event of a visit from a
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ky government auditor? ky
Answers may vary, but should contain: ky ky ky ky ky
a. The establishment and maintenance of an accurate payroll system. Timely and
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ky accuratelyreporting wages and withholdings. Adherence to the legal framework of ky ky ky ky ky ky ky ky ky ky
ky payroll.
©McGraw Hill LLC. All rights reserved. No reproduction or distribution without the prior written consent of McGraw Hill LLC.
ky ky ky ky ky ky ky ky ky ky ky ky ky ky ky ky ky ky ky
.
ky
SOLUTIONS MANUAL: k y
Payroll Accounting 2024 Landin 34th Edition byBernard J. Bieg and Bridget Stomberg
ky ky ky ky ky ky ky ky ky ky ky ky
Chapter 1-7 ky
Chapter 1 ky
Which Law? ky
1. K k y k y
2. H k y k y
3. B k y k y
4. F k y k y
5. I k y k y
6. J k y k y
7. A k y k y
8. D k y k y
9. G k y k y
10. C ky
11. E ky
12. L ky
Which Payroll Law? ky ky
1. D
2. A
3. F
4. C
5. G
6. J
7. B
8. I
9. E
10. H
What’s Ethical? ky
1. Answers will vary. Some concerns include data privacy and integrity in the software
ky ky ky ky ky ky ky ky ky ky ky ky
ky switchover, tax and employee payintegrityon the new software, and employee paymethods.
ky ky ky ky ky ky ky ky ky ky ky ky ky
©McGraw Hill LLC. All rights reserved. No reproduction or distribution without the prior written consent of McGraw Hill LLC.
ky ky ky ky ky ky ky ky ky ky ky ky ky ky ky ky ky ky ky
.
, SM 7-2 ky
2. Answers will vary. Karsyn could choose to ignore her sorority sister’s request, claiming
ky ky ky ky ky ky ky ky ky ky ky ky
ky Confidentiality. She could also discontinue active participation in the sorority. In any case, ky ky ky ky ky ky ky ky ky ky ky ky
ky Karsyn must not consent to her sorority sister’s request for confidential information.
ky ky ky ky ky ky ky ky ky ky ky
Confidential Records ky
As the payroll clerk, your task is to protect the privacyand confidentiality of the information you
ky ky ky ky ky ky ky ky ky ky ky ky ky ky ky ky
ky maintain for the company. If a student group—or any personnel aside from the company’s payroll
ky ky ky ky ky ky ky ky ky ky ky ky ky ky
ky employees and officers—wishes to review confidential records, you should deny their request. If
ky ky ky ky ky ky ky ky ky ky ky ky
needed, you should refer the group to your department’s manager to discuss the matter in more depth.
ky ky ky ky ky ky ky ky ky ky ky ky ky ky ky ky ky
ky The laws that apply to this situation are the Privacy Act of 1974, U.S. Department of Health and
ky ky ky ky ky ky ky ky ky ky ky ky ky ky ky ky ky
ky Human Services Privacy Act 09-40-0006, Common-Law Privacy Act, Computer Fraud and Abuse
ky ky ky ky ky ky ky ky ky ky ky
ky Act, and potentially HIPAA.
ky ky ky
Large vs. Small ky ky
1. Large companies face issues with multiple departments, employee access to online
ky ky ky ky ky ky ky ky ky ky
ky personnel portals, employee data security, and timekeeping accuracy. ky ky ky ky ky ky ky
2. For small companies, payroll processing will involve fewer employees than for larger
ky ky ky ky ky ky ky ky ky ky ky
ky companies. Smaller companies could maintain their payroll needs using company ky ky ky ky ky ky ky ky ky
ky personnel because of the lower volume of transactions. Larger companies need to ky ky ky ky ky ky ky ky ky ky ky
ky consider their available trained payroll accountants and otherstaff to determine if they can
ky ky ky ky ky ky ky ky ky ky ky ky ky
ky reliably handle the volume of payroll needs in a timely and accurate manner.
ky ky ky ky ky ky ky ky ky ky ky ky
What Is the Difference?
ky ky ky
©McGraw Hill LLC. All rights reserved. No reproduction or distribution without the prior written consent of McGraw Hill LLC.
ky ky ky ky ky ky ky ky ky ky ky ky ky ky ky ky ky ky ky
.
, SM 7-3ky
a. Manual payroll systems involve the use of paper and pencil record-keeping or a
ky ky ky ky ky ky ky ky ky ky ky ky
ky spreadsheet program, such as Microsoft Excel. This is most appropriate for verysmall
ky ky ky ky ky ky ky ky ky ky ky ky
ky firms.
b. Computerized payroll systems can be used by any company, regardless of size. Examples of ky ky ky ky ky ky ky ky ky ky ky ky ky
ky computerized systems include QuickBooks, Sage 100, and Microsoft Dynamics 365 GP. ky ky ky ky ky ky ky ky ky ky
ky These computer packages range in price, depending on the company size and operational
ky ky ky ky ky ky ky ky ky ky ky ky
ky scope.
c. Outsourced payroll involves the engagement of a third partyto manage a company’s ky ky ky ky ky ky ky ky ky ky ky ky
ky payroll data, issue employee compensation, and prepare tax forms.
ky ky ky ky ky ky ky ky
d. Certified payroll pertains to companies withemployees who work on federal government
ky ky ky ky ky ky ky ky ky ky ky
ky contracts. Certified payroll ensures that a company reports payroll expenditures of
ky ky ky ky ky ky ky ky ky ky
ky contractually allocated money. ky ky
ANSWERSTOEND-OF-CHAPTERMATERIALS y
k y
k y
k
ky REVIEW QUESTIONS ky
1. What is the purpose of a payroll system?
ky ky ky ky ky ky ky
a. Provide for internal and external reporting of employee wages and associated taxes,
ky ky ky ky ky ky ky ky ky ky ky
ky payment of employee compensation, and monitoringof benefits to employees. It also
ky ky ky ky ky ky ky ky ky ky ky
ky serves as a means of tracking labor costs that managers use for decision-making,
ky ky ky ky ky ky ky ky ky ky ky ky
ky budgeting, and planning. ky ky
2. What are two differences between large- and small-companypayroll practices?
ky ky ky ky ky ky ky ky ky
a. Small companies would havefewer employees and reportingrequirements and would be
ky ky ky ky ky ky ky ky ky ky ky
ky less likely to be required to have automated payroll systems.
ky ky ky ky ky ky ky ky ky
©McGraw Hill LLC. All rights reserved. No reproduction or distribution without the prior written consent of McGraw Hill LLC.
ky ky ky ky ky ky ky ky ky ky ky ky ky ky ky ky ky ky ky
.
, SM 7-4 ky
b. Large companies have more employees and greater departmentalization. This increase in
ky ky ky ky ky ky ky ky ky ky
ky employees leads to a higher level of complexity in payroll accounting, disbursements, ky ky ky ky ky ky ky ky ky ky ky
ky and reporting. Larger companies mayalso provide Intranet portals for employee self-
ky ky ky ky ky ky ky ky ky ky ky
service options. Additionally, larger companies may need additional accuracy checks.
ky ky ky ky ky ky ky ky ky
3. What is certified payroll? Which companies must use it?
ky ky ky ky ky ky ky ky
a. Certified payroll is a reporting requirement for companies that work with federal ky ky ky ky ky ky ky ky ky ky ky
ky contracts that are subject to Davis-Bacon wages. Only those companies that have ky ky ky ky ky ky ky ky ky ky ky
ky these types of employees would be required to complete a certified payroll.
ky ky ky ky ky ky ky ky ky ky ky
4. Whymight it be a good idea to let employees manage their payroll records? What are some of the
ky ky ky ky ky ky ky ky ky ky ky ky ky ky ky ky ky ky
ky pitfalls?
a. An advantage of allowingindividuals to self-manage their payroll records would be the
ky ky ky ky ky ky ky ky ky ky ky ky
ky employee would be able to answer some simple questions on their own without having ky ky ky ky ky ky ky ky ky ky ky ky ky
ky to come to the payroll accountant for answers. If employees have access to their payroll
ky ky ky ky ky ky ky ky ky ky ky ky ky ky
ky records, there would be the need to allow multiple access points to the confidential
ky ky ky ky ky ky ky ky ky ky ky ky ky
ky information. These open channels would require security settings to ensure the ky ky ky ky ky ky ky ky ky ky
ky requirements of confidentiality are maintained. ky ky ky ky
5. What are two ways a payroll system mayprotect a companyin the event of a visit from a
ky ky ky ky ky ky ky ky ky ky ky ky ky ky ky ky ky ky
ky government auditor? ky
Answers may vary, but should contain: ky ky ky ky ky
a. The establishment and maintenance of an accurate payroll system. Timely and
ky ky ky ky ky ky ky ky ky ky
ky accuratelyreporting wages and withholdings. Adherence to the legal framework of ky ky ky ky ky ky ky ky ky ky
ky payroll.
©McGraw Hill LLC. All rights reserved. No reproduction or distribution without the prior written consent of McGraw Hill LLC.
ky ky ky ky ky ky ky ky ky ky ky ky ky ky ky ky ky ky ky
.
