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

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SOLUTIONS MANUAL: o ,




Payroll Accounting2024 Landin 34th Edition byBernardJ. Bieg and Bridget Stomberg
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Chapter 1-7 o,




Chapter 1 o,




Which Law? o,




1. K o , o ,




2. H o , o ,




3. B o , o ,




4. F o , o ,




5. I o , o ,




6. J o , o ,




7. A o , o ,




8. D o , o ,




9. G o , o ,




10. C o,




11. E o,




12. L o,




WhichPayrollLaw? o, o,




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

What’sEthical? o,




1. Answers will vary. Some concerns include data privacy and integrity in the software
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switchover, tax andemployeepayintegrityon the new software, and employeepaymethods.
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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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2. Answers will vary. Karsyn could choose to ignore her sorority sister’s request, claiming
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o, Confidentiality. She could also discontinue active participation in the sorority. In any case, o, o, o, o, o, o, o, o, o, o, o, o,




o, Karsyn must not consent to her sorority sister’s request for confidential information.
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Confidential Records o,




As the payroll clerk, your task is to protect the privacyand confidentialityof the information you
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o, maintain for the company. If a student group—or any personnel aside from the company’s payroll
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o, 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.
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o, The laws that applyto this situation are the PrivacyAct of 1974, U.S. Department of Health and Human
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o, Services Privacy Act 09-40-0006, Common-Law Privacy Act, Computer Fraud and Abuse Act, and
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o, potentially HIPAA. o,




Large vs. Small o, o,




1. Largecompaniesfaceissues with multipledepartments, employeeaccessto online o, o, o, o, o, o, o, o, o, o,




o, personnel portals, employee data security, and timekeeping accuracy. o, o, o, o, o, o, o,




2. For small companies, payroll processing will involve fewer employees than for larger
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o, companies. Smaller companies could maintain their payroll needs using company o, o, o, o, o, o, o, o, o,




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




theiravailabletrainedpayrollaccountants and otherstaff to determineifthey can reliably
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o, handle the volume of payroll needs in a timely and accurate manner.
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What Is the Difference?
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a. Manual payroll systems involve the use of paper and pencil record-keeping or a
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spreadsheetprogram,such asMicrosoftExcel.Thisismost appropriatefor verysmall firms.
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b. Computerizedpayroll systems can be used byanycompany,regardlessof size. Examples of o, o, o, o, o, o, o, o, o, o, o, o, o,




computerized systems include QuickBooks, Sage 100, and Microsoft Dynamics 365 GP.
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These computer packages range in price, depending on the company size and operational
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scope.
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c. Outsourced payroll involvesthe engagement of a third partyto manage a company’s o, o, o, o, o, o, o, o, o, o, o, o,




payroll data, issue employee compensation, and prepare tax forms.
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d. Certifiedpayrollpertainstocompanieswithemployeeswho workon federalgovernment
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contracts. Certified payroll ensures that a company reports payroll expenditures of
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contractually allocated money.
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ANSWERSTOEND-OF-CHAPTERMATERIALS o, o, o,




REVIEW QUESTIONS
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1. What is the purposeof a payroll system?
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a. Provide for internal and external reporting of employee wages and associated taxes, o, o, o, o, o, o, o, o, o, o, o,




paymentofemployee compensation,andmonitoringofbenefitstoemployees. Italso
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serves as a means of tracking labor costs that managers use for decision-making,
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budgeting, and planning.
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2. Whatare two differences between large- and small-companypayroll practices?
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a. Smallcompanies would havefeweremployees and reportingrequirements and would be
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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.
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b. Large companies have more employees and greater departmentalization. This increase in
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o, employees leads to a higher level of complexity in payroll accounting, disbursements,and
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reporting. Largercompanies mayalsoprovide Intranetportalsfor employee self-service
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o, options. Additionally, larger companies may need additional accuracy checks.
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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 o, o, o, o, o, o, o, o, o, o, o,




o, contracts that are subject to Davis-Bacon wages. Onlythose companies that have these
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o, types of employees would be required to complete a certified payroll.
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4. Why might it be a good idea to let employees manage their payroll records? What are some of the
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pitfalls?
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a. An advantageof allowingindividuals to self-managetheirpayroll recordswould be the
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o, employee would be able to answer some simple questions on their own without having to
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o, come to the payroll accountant for answers. If employees have access to their payroll
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o, records, there would be the need to allow multiple access points to the confidential
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o, information. These open channels would require security settings to ensure the o, o, o, o, o, o, o, o, o, o,




o, requirements of confidentiality are maintained. o, o, o, o,




5. What are two ways a payroll system mayprotect a companyin the event of a visit from a
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government auditor?
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Answers may vary, but should contain: o, o, o, o, o,




a. The establishment and maintenance of an accurate payroll system. Timely and
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o, accuratelyreportingwagesandwithholdings. Adherencetothelegalframework of o, o, o, o, o, o, o, o, o, o,




o, payroll.




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