Solution Manual for Payroll Accounting 2025, 35th Edition by Bernard J. Bieg, Bridget Stomberg, Chapters 1 - 7, Complete Verified Newest Version

SM 7-1
m




SOLUTIONSMANUAL: m




PayrollAccounting 2024 Landin34th Edition by BernardJ. Bieg and Bridget Stomberg
m m m m m m m m m m m m




Chapter1-7 m




Chapter1 m




Which Law? m




1. K
m m




2. H
m m




3. B
m m




4. F
m m




5. I
m m




6. J
m m




7. A
m m




8. D
m m




9. G
m m




10. C m




11. E m




12. L m




Which Payroll Law?
m m




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

What’sEthical? m




© McGraw Hill LLC. All rights reserved. No reproduction or distribution without the prior written consent of McGraw Hill LLC. .
m m m m m m m m m m m m m m m m m m m m

, SM 7-2 m




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




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




m methods.

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




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




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




Confidential Records m




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




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




m employees and officers—wishes to review confidential records, you should deny their request. If
m m m m m m m m m m m m




needed, you should refer the group to your department’s manager to discuss the matter in more depth.
m m m m m m m m m m m m m m m m m




The laws that apply to this situation are the PrivacyAct of 1974, U.S. Department of Health and Human
m m m m m m m m m m m m m m m m m m m




m Services Privacy Act 09-40-0006, Common-Law Privacy Act, Computer Fraud and Abuse Act, and
m m m m m m m m m m m m




m potentially HIPAA. m




Large vs. Small m m




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




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




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




m companies. Smaller companies could maintain their payroll needs using company m m m m m m m m m




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




m their available trained payroll accountants and other staff to determine if they can reliably
m m m m m m m m m m m m m




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




© McGraw Hill LLC. All rights reserved. No reproduction or distribution without the prior written consent of McGraw Hill LLC. .
m m m m m m m m m m m m m m m m m m m m

, SM 7-3 m




What Is the Difference?
m m m




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




mspreadsheet program, such as Microsoft Excel. This is most appropriate for very small
m m m m m m m m m m m m




mfirms.

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




mcomputerized systems include QuickBooks, Sage 100, and Microsoft Dynamics 365 GP. m m m m m m m m m m




mThese computer packages range in price, depending on the company size and operational
m m m m m m m m m m m m




mscope.

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




mpayroll data, issue employee compensation, and prepare tax forms.
m m m m m m m m




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




mcontracts. Certified payroll ensures that a company reports payroll expenditures of
m m m m m m m m m m




mcontractually allocated money. m m




ANSWERSTO END-OF-CHAPTER MATERIALS REVIEWQUESTIONS
m m m m m




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




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




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




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




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




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




a. Small companies would havefewer employees and reporting requirements and
m m m m m m m m m




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




© McGraw Hill LLC. All rights reserved. No reproduction or distribution without the prior written consent of McGraw Hill LLC. .
m m m m m m m m m m m m m m m m m m m m

, SM 7-4 m




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




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




disbursements, and reporting. Larger companies may also provide Intranetportals for
m m m m m m m m m m m




employeeself-serviceoptions.Additionally, larger companies may need additional
m m m m m m m m m




accuracy checks.
m m




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




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




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




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




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




mof the pitfalls?
m m




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




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




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




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




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




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




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




mgovernment auditor? m




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




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




accurately reporting wages and withholdings.Adherence to thelegal framework of
m m m m m m m m m m m




payroll.
m




© McGraw Hill LLC. All rights reserved. No reproduction or distribution without the prior written consent of McGraw Hill LLC. .
m m m m m m m m m m m m m m m m m m m m