Complete Solution Manual for Payroll
Accounting 2024, 34th Edition by
Bernard J. Bieg & Judith A. Toland
Step-by-Step Solutions for All Payroll
Concepts and Calculations
1 Introduction
This manual provides concise, step-by-step solutions to payroll accounting problems
from the 2024, 34th Edition by Bieg and Toland. It focuses on practical calculations for
gross pay, deductions, taxes, and reporting, organized by chapter. Over 350 questions
are answered, including 100 new questions to ensure comprehensive coverage. All
solutions are clear, with minimal jargon, and include calculations where applicable.
2 Chapter 1: The Need for Payroll Records and Related
Laws
2.1 Focus: Basic payroll documents, laws, and compliance
1. Question: Under federal law, does new-hire reporting apply to newly hired inde-
pendent contractors?
Answer: No. Only employees are reported.
2. Question: Under the Family and Medical Leave Act, can an employer substitute
an employee’s earned paid leave for any part of the 12-week family leave?
Answer: Yes. Substitution is allowed if agreed.
3. Question: Do all states impose state unemployment taxes on employers?
Answer: Yes. Every state requires SUTA.
4. Question: Is the hiring notice a written record sent to Payroll to add a new
employee?
Answer: Yes. It triggers payroll setup.
5. Question: Is the payroll register used to record payroll entries in the journal?
Answer: Yes. It summarizes pay data.
1
, 6. Question: Can employers terminate for false info on applications after hire?
Answer: Yes, if discovered.
7. Question: Does ERISA require each employer to establish a pension plan?
Answer: No. It’s optional.
8. Question: Which item does not always appear on both payroll register and earn-
ings record?
Answer: Cumulative earnings (varies by period).
9. Question: Is photocopying I-9 documents required under IRCA?
Answer: No. Optional.
10. Question: Do some states allow limited drug testing?
Answer: Yes. For safety roles.
11. Question: Does the Age Discrimination Act cover employers with 20+ workers?
Answer: Yes. Includes agencies and unions.
12. Question: Are most employers subject to federal and state unemployment taxes?
Answer: Yes. FUTA and SUTA apply.
13. Question: Which discrimination basis is not covered by Title VII?
Answer: Age (covered by ADEA).
14. Question: Does FLSA require weekly pay?
Answer: No. Flexible periods allowed.
15. Question: Do employers get FUTA credit for SUTA payments?
Answer: Yes. Up to 5.4%.
16. Question: What is the Employees Earnings Record?
Answer: Record for W-2 preparation.
17. Question: What is the Payroll Register?
Answer: Form summarizing pay data per period.
18. Question: What are Executive Orders in payroll?
Answer: Antidiscrimination rules for federal contractors.
19. Question: What is another name for FLSA?
Answer: Wage-Hour Law.
20. Question: What does IRCA require for new hires?
Answer: Form I-9 completion.
21. Question: Calculate net pay for an employee with $500 gross, $30 FICA, $20
federal tax.
Answer: Step 1: Gross $500. Step 2: Subtract FICA $30 = $470. Step 3:
Subtract federal $20 = $450 net.
22. Question: Is overtime required under FLSA for all hours over 40?
Answer: Yes, at 1.5x rate.
23. Question: What form verifies employment eligibility?
Answer: I-9.
2
, 24. Question: How long to keep payroll records?
Answer: 3 years.
25. Question: Does ACA require health coverage reporting?
Answer: Yes, via 1095 forms.
26. Question: What is the minimum wage in 2024?
Answer: $7.25 federal.
27. Question: Can tips count toward minimum wage?
Answer: Yes, with tip credit.
28. Question: What is vesting in pensions?
Answer: Employee right to funds.
29. Question: Does Title VII prohibit race discrimination?
Answer: Yes.
30. Question: What is workers’ comp for?
Answer: Injury protection.
3 Chapter 2: Determining Gross Earnings and Net Pay
3.1 Focus: Pay periods, overtime, tipped employees
31. Question: Does FLSA require double time on holidays?
Answer: No. Only 1.5x overtime.
32. Question: Does biweekly pay mean 24 checks/year?
Answer: No. 26 checks.
33. Question: Are part-time workers (<20 hrs/week) covered by minimum wage?
Answer: Yes.
34. Question: Do some states have higher minimum wage than federal?
Answer: Yes.
35. Question: Must overtime be paid if unauthorized?
Answer: Yes.
36. Question: Must sick time be paid?
Answer: No, unless state law.
37. Question: Are small stores excluded from FLSA?
Answer: If under $500K sales.
38. Question: Is a 30-min rest paid under FLSA?
Answer: No.
39. Question: Can full-time students get 85% minimum wage?
Answer: Yes, in retail.
40. Question: Is $100K sales threshold for FLSA coverage?
Answer: Yes.
3
Accounting 2024, 34th Edition by
Bernard J. Bieg & Judith A. Toland
Step-by-Step Solutions for All Payroll
Concepts and Calculations
1 Introduction
This manual provides concise, step-by-step solutions to payroll accounting problems
from the 2024, 34th Edition by Bieg and Toland. It focuses on practical calculations for
gross pay, deductions, taxes, and reporting, organized by chapter. Over 350 questions
are answered, including 100 new questions to ensure comprehensive coverage. All
solutions are clear, with minimal jargon, and include calculations where applicable.
2 Chapter 1: The Need for Payroll Records and Related
Laws
2.1 Focus: Basic payroll documents, laws, and compliance
1. Question: Under federal law, does new-hire reporting apply to newly hired inde-
pendent contractors?
Answer: No. Only employees are reported.
2. Question: Under the Family and Medical Leave Act, can an employer substitute
an employee’s earned paid leave for any part of the 12-week family leave?
Answer: Yes. Substitution is allowed if agreed.
3. Question: Do all states impose state unemployment taxes on employers?
Answer: Yes. Every state requires SUTA.
4. Question: Is the hiring notice a written record sent to Payroll to add a new
employee?
Answer: Yes. It triggers payroll setup.
5. Question: Is the payroll register used to record payroll entries in the journal?
Answer: Yes. It summarizes pay data.
1
, 6. Question: Can employers terminate for false info on applications after hire?
Answer: Yes, if discovered.
7. Question: Does ERISA require each employer to establish a pension plan?
Answer: No. It’s optional.
8. Question: Which item does not always appear on both payroll register and earn-
ings record?
Answer: Cumulative earnings (varies by period).
9. Question: Is photocopying I-9 documents required under IRCA?
Answer: No. Optional.
10. Question: Do some states allow limited drug testing?
Answer: Yes. For safety roles.
11. Question: Does the Age Discrimination Act cover employers with 20+ workers?
Answer: Yes. Includes agencies and unions.
12. Question: Are most employers subject to federal and state unemployment taxes?
Answer: Yes. FUTA and SUTA apply.
13. Question: Which discrimination basis is not covered by Title VII?
Answer: Age (covered by ADEA).
14. Question: Does FLSA require weekly pay?
Answer: No. Flexible periods allowed.
15. Question: Do employers get FUTA credit for SUTA payments?
Answer: Yes. Up to 5.4%.
16. Question: What is the Employees Earnings Record?
Answer: Record for W-2 preparation.
17. Question: What is the Payroll Register?
Answer: Form summarizing pay data per period.
18. Question: What are Executive Orders in payroll?
Answer: Antidiscrimination rules for federal contractors.
19. Question: What is another name for FLSA?
Answer: Wage-Hour Law.
20. Question: What does IRCA require for new hires?
Answer: Form I-9 completion.
21. Question: Calculate net pay for an employee with $500 gross, $30 FICA, $20
federal tax.
Answer: Step 1: Gross $500. Step 2: Subtract FICA $30 = $470. Step 3:
Subtract federal $20 = $450 net.
22. Question: Is overtime required under FLSA for all hours over 40?
Answer: Yes, at 1.5x rate.
23. Question: What form verifies employment eligibility?
Answer: I-9.
2
, 24. Question: How long to keep payroll records?
Answer: 3 years.
25. Question: Does ACA require health coverage reporting?
Answer: Yes, via 1095 forms.
26. Question: What is the minimum wage in 2024?
Answer: $7.25 federal.
27. Question: Can tips count toward minimum wage?
Answer: Yes, with tip credit.
28. Question: What is vesting in pensions?
Answer: Employee right to funds.
29. Question: Does Title VII prohibit race discrimination?
Answer: Yes.
30. Question: What is workers’ comp for?
Answer: Injury protection.
3 Chapter 2: Determining Gross Earnings and Net Pay
3.1 Focus: Pay periods, overtime, tipped employees
31. Question: Does FLSA require double time on holidays?
Answer: No. Only 1.5x overtime.
32. Question: Does biweekly pay mean 24 checks/year?
Answer: No. 26 checks.
33. Question: Are part-time workers (<20 hrs/week) covered by minimum wage?
Answer: Yes.
34. Question: Do some states have higher minimum wage than federal?
Answer: Yes.
35. Question: Must overtime be paid if unauthorized?
Answer: Yes.
36. Question: Must sick time be paid?
Answer: No, unless state law.
37. Question: Are small stores excluded from FLSA?
Answer: If under $500K sales.
38. Question: Is a 30-min rest paid under FLSA?
Answer: No.
39. Question: Can full-time students get 85% minimum wage?
Answer: Yes, in retail.
40. Question: Is $100K sales threshold for FLSA coverage?
Answer: Yes.
3
