SMm7-1
SOLUTIONS MANUAL: m
Payroll Accounting 2024 Landin 34th Edition by Bernard J. Bieg and Bridget Sto
m m m m m m m m m m m m
mberg
Chapter m1-7
Chapterm1
WhichmLaw?
1.m m K
2.m m H
3.m m B
4.m m F
5.m m I
6.m m J
7.m m A
8.m m D
9.m m G
10.mC
11.mE
12.mL
WhichmPayrollmLaw?
1. D
2. A
3. F
4. C
5. G
6. J
7. B
8. I
9. E
10. H
What’smEthical?
1. Answersmwillmvary.mSomemconcernsmincludemdatamprivacymand mintegrityminmthemsoftwarems
witchover,mtaxmand memployeempaymintegritymonmthemnew msoftware,mand memployeempaymmethod
s.
©m McGrawm Hill mLLC.mAllmrightsmreserved.mNomreproductionmormdistributionmwithoutmthempriormwrittenmconsent mofm McGra
wm Hill m LLC.
.
, SMm7-2
2. Answersmwillmvary.mKarsynmcould mchoosemtomignoremhermsororitymsister’smrequest,mclaimi
ngmConfidentiality.mShemcould malsomdiscontinuemactivemparticipationm inmthemsorority.mInmany
case,mKarsynmmust mnot mconsent mtomhermsororitymsister’smrequest mformconfidentialminformati
m
on.
ConfidentialmRecords
Asmthempayrollmclerk,myourmtaskmismtomprotect mthemprivacymand mconfidentialitymof mtheminformationmy
oummaintainmformthemcompany.mIf mamstudent mgroup—
ormanympersonnelmasidemfrommthemcompany’smpayrollmemployeesmand mofficers—
wishesmtomreview mconfidentialmrecords,myoumshould mdenymtheirmrequest.mIf mneeded,myoumshould mref
ermthemgroupmtomyourmdepartment’smmanagermtomdiscussmthemmatterminmmoremdepth.mThemlawsmthat m
applymtomthismsituationmaremthemPrivacymAct mof m1974,mU.S.mDepartment mof mHealthmand mHumanmSer
vicesmPrivacymAct m09-40-0006,mCommon-
Law mPrivacymAct,mComputermFraud mand mAbusemAct,mand mpotentiallymHIPAA.
Largemvs.mSmall
1. Largemcompaniesmfacemissuesmwithmmultiplemdepartments,memployeemaccessmtomonli
nempersonnelmportals,memployeemdatamsecurity,mand mtimekeepingmaccuracy.
2. Formsmallmcompanies,mpayrollmprocessingmwillm involvemfewermemployees mthanmformlarg
ermcompanies.mSmallermcompaniesmcould mmaintainmtheirmpayrollmneedsmusingm company
mpersonnelmbecausemof mthemlowermvolumemof mtransactions.mLargermcompaniesmneed mtomc
onsidermtheirmavailablemtrained mpayrollmaccountantsmand mothermstaff mtomdeterminemif mthe
ymcanmreliablymhandlemthemvolumemof mpayrollmneedsminmamtimelymand maccuratemmanner.
WhatmIsmthemDifference?
©m McGrawm Hill mLLC.mAllmrightsmreserved.mNomreproductionmormdistributionmwithoutmthempriormwrittenmconsent mofm McGra
wm Hill m LLC.
.
, SMm7-3
a. Manualmpayrollmsystemsminvolvemthemusemof mpapermand mpencilmrecord-
keepingmormamspreadsheet mprogram,msuchmasmMicrosoft mExcel.mThismism most mappropriat
emformverymsmallmfirms.
b. Computerized mpayrollmsystemsmcanmbemused mbymanymcompany,mregardlessmof msize.mExampl
esmof mcomputerized msystemsmincludemQuickBooks,mSagem100,mand mMicrosoft mDynamicsm3
65mGP.mThesemcomputermpackagesmrangeminmprice,mdependingmonmthemcompanymsizemand mo
perationalmscope.
c. Outsourced mpayrollminvolvesmthemengagement mof mamthird mpartymtommanagemamcompany
’smpayrollmdata,missuememployeemcompensation,mand mpreparemtaxmforms.
d. Certified mpayrollmpertainsmtomcompaniesmwithmemployeesmwhomworkmonmfederalmgovernme
nt mcontracts.mCertified mpayrollmensuresmthat mamcompanymreportsmpayrollmexpendituresmof mc
ontractuallymallocated mmoney.
ANSWERSmTOmEND-OF-
CHAPTER mMATERIALSmREVIEWmQUESTIONS
1. What mismthempurposemof mampayrollmsystem?
a. Providemforminternalmand mexternalmreportingmof memployeemwagesmand massociated mtaxes
,mpayment mof memployeemcompensation,mand mmonitoringmof mbenefitsmtomemployees.mIt m
alsomservesmasmammeansmof mtrackingmlabormcostsmthat mmanagersmusemformdecision-
making,mbudgeting,mand mplanning.
2. What maremtwomdifferencesmbetweenmlarge-mand msmall-companympayrollmpractices?
a. Smallmcompaniesmwould mhavemfewermemployeesmand mreportingmrequirementsmand mwou
ld mbemlessmlikelymtombemrequired mtomhavemautomated mpayrollmsystems.
©m McGrawm Hill mLLC.mAllmrightsmreserved.mNomreproductionmormdistributionmwithoutmthempriormwrittenmconsent mofm McGra
wm Hill m LLC.
.
, SMm7-4
b. Largemcompaniesmhavemmorememployeesmand mgreatermdepartmentalization. mThism incre
aseminmemployeesmleadsmtomamhighermlevelmof mcomplexitymin mpayrollmaccounting,mdisbu
rsements,mand mreporting.mLargermcompaniesmmaymalsomprovidemIntranet mportalsmformem
ployeemself-
servicemoptions.mAdditionally,mlargermcompaniesmmaymneed madditionalmaccuracymchec
ks.
3. What mismcertified mpayroll?mWhichmcompaniesmmust musemit?
a. Certified mpayrollmismam reportingmrequirement mformcompaniesmthat mworkmwithmfeder
almcontractsmthat maremsubject mtomDavis-
Baconmwages.mOnlymthosemcompaniesmthat mhavemthesemtypesmof memployeesmwould
m bemrequired mtomcompletemamcertified mpayroll.
4. Whymmight mit mbemamgood mideamtomlet memployeesm managemtheirmpayrollmrecords?mWhat maremso
memof mthempitfalls?
a. Anmadvantagemof mallowingmindividualsmtomself-
managemtheirmpayrollmrecordsmwould mbemthememployeemwould mbemablemtomanswermso
memsimplemquestionsmonmtheirmownmwithout mhavingmtomcomemtomthempayrollmaccount
ant mformanswers.mIf memployeesmhavemaccessmtomtheirmpayrollmrecords,mtheremwould mb
emthemneed mtomallow mmultiplemaccessmpointsmtomthemconfidentialminformation.mThesem
openmchannelsmwould mrequiremsecuritymsettingsmtomensuremthemrequirementsmof mconfi
dentialitymaremmaintained.
5. What maremtwomwaysmampayrollmsystemmmaymprotect mamcompanyminmthemevent mof mamvisit mfro
mmamgovernment mauditor?
Answersmmaymvary,mbut mshould mcontain:
©m McGrawm Hill mLLC.mAllmrightsmreserved.mNomreproductionmormdistributionmwithoutmthempriormwrittenmconsent mofm McGra
wm Hill m LLC.
.
SOLUTIONS MANUAL: m
Payroll Accounting 2024 Landin 34th Edition by Bernard J. Bieg and Bridget Sto
m m m m m m m m m m m m
mberg
Chapter m1-7
Chapterm1
WhichmLaw?
1.m m K
2.m m H
3.m m B
4.m m F
5.m m I
6.m m J
7.m m A
8.m m D
9.m m G
10.mC
11.mE
12.mL
WhichmPayrollmLaw?
1. D
2. A
3. F
4. C
5. G
6. J
7. B
8. I
9. E
10. H
What’smEthical?
1. Answersmwillmvary.mSomemconcernsmincludemdatamprivacymand mintegrityminmthemsoftwarems
witchover,mtaxmand memployeempaymintegritymonmthemnew msoftware,mand memployeempaymmethod
s.
©m McGrawm Hill mLLC.mAllmrightsmreserved.mNomreproductionmormdistributionmwithoutmthempriormwrittenmconsent mofm McGra
wm Hill m LLC.
.
, SMm7-2
2. Answersmwillmvary.mKarsynmcould mchoosemtomignoremhermsororitymsister’smrequest,mclaimi
ngmConfidentiality.mShemcould malsomdiscontinuemactivemparticipationm inmthemsorority.mInmany
case,mKarsynmmust mnot mconsent mtomhermsororitymsister’smrequest mformconfidentialminformati
m
on.
ConfidentialmRecords
Asmthempayrollmclerk,myourmtaskmismtomprotect mthemprivacymand mconfidentialitymof mtheminformationmy
oummaintainmformthemcompany.mIf mamstudent mgroup—
ormanympersonnelmasidemfrommthemcompany’smpayrollmemployeesmand mofficers—
wishesmtomreview mconfidentialmrecords,myoumshould mdenymtheirmrequest.mIf mneeded,myoumshould mref
ermthemgroupmtomyourmdepartment’smmanagermtomdiscussmthemmatterminmmoremdepth.mThemlawsmthat m
applymtomthismsituationmaremthemPrivacymAct mof m1974,mU.S.mDepartment mof mHealthmand mHumanmSer
vicesmPrivacymAct m09-40-0006,mCommon-
Law mPrivacymAct,mComputermFraud mand mAbusemAct,mand mpotentiallymHIPAA.
Largemvs.mSmall
1. Largemcompaniesmfacemissuesmwithmmultiplemdepartments,memployeemaccessmtomonli
nempersonnelmportals,memployeemdatamsecurity,mand mtimekeepingmaccuracy.
2. Formsmallmcompanies,mpayrollmprocessingmwillm involvemfewermemployees mthanmformlarg
ermcompanies.mSmallermcompaniesmcould mmaintainmtheirmpayrollmneedsmusingm company
mpersonnelmbecausemof mthemlowermvolumemof mtransactions.mLargermcompaniesmneed mtomc
onsidermtheirmavailablemtrained mpayrollmaccountantsmand mothermstaff mtomdeterminemif mthe
ymcanmreliablymhandlemthemvolumemof mpayrollmneedsminmamtimelymand maccuratemmanner.
WhatmIsmthemDifference?
©m McGrawm Hill mLLC.mAllmrightsmreserved.mNomreproductionmormdistributionmwithoutmthempriormwrittenmconsent mofm McGra
wm Hill m LLC.
.
, SMm7-3
a. Manualmpayrollmsystemsminvolvemthemusemof mpapermand mpencilmrecord-
keepingmormamspreadsheet mprogram,msuchmasmMicrosoft mExcel.mThismism most mappropriat
emformverymsmallmfirms.
b. Computerized mpayrollmsystemsmcanmbemused mbymanymcompany,mregardlessmof msize.mExampl
esmof mcomputerized msystemsmincludemQuickBooks,mSagem100,mand mMicrosoft mDynamicsm3
65mGP.mThesemcomputermpackagesmrangeminmprice,mdependingmonmthemcompanymsizemand mo
perationalmscope.
c. Outsourced mpayrollminvolvesmthemengagement mof mamthird mpartymtommanagemamcompany
’smpayrollmdata,missuememployeemcompensation,mand mpreparemtaxmforms.
d. Certified mpayrollmpertainsmtomcompaniesmwithmemployeesmwhomworkmonmfederalmgovernme
nt mcontracts.mCertified mpayrollmensuresmthat mamcompanymreportsmpayrollmexpendituresmof mc
ontractuallymallocated mmoney.
ANSWERSmTOmEND-OF-
CHAPTER mMATERIALSmREVIEWmQUESTIONS
1. What mismthempurposemof mampayrollmsystem?
a. Providemforminternalmand mexternalmreportingmof memployeemwagesmand massociated mtaxes
,mpayment mof memployeemcompensation,mand mmonitoringmof mbenefitsmtomemployees.mIt m
alsomservesmasmammeansmof mtrackingmlabormcostsmthat mmanagersmusemformdecision-
making,mbudgeting,mand mplanning.
2. What maremtwomdifferencesmbetweenmlarge-mand msmall-companympayrollmpractices?
a. Smallmcompaniesmwould mhavemfewermemployeesmand mreportingmrequirementsmand mwou
ld mbemlessmlikelymtombemrequired mtomhavemautomated mpayrollmsystems.
©m McGrawm Hill mLLC.mAllmrightsmreserved.mNomreproductionmormdistributionmwithoutmthempriormwrittenmconsent mofm McGra
wm Hill m LLC.
.
, SMm7-4
b. Largemcompaniesmhavemmorememployeesmand mgreatermdepartmentalization. mThism incre
aseminmemployeesmleadsmtomamhighermlevelmof mcomplexitymin mpayrollmaccounting,mdisbu
rsements,mand mreporting.mLargermcompaniesmmaymalsomprovidemIntranet mportalsmformem
ployeemself-
servicemoptions.mAdditionally,mlargermcompaniesmmaymneed madditionalmaccuracymchec
ks.
3. What mismcertified mpayroll?mWhichmcompaniesmmust musemit?
a. Certified mpayrollmismam reportingmrequirement mformcompaniesmthat mworkmwithmfeder
almcontractsmthat maremsubject mtomDavis-
Baconmwages.mOnlymthosemcompaniesmthat mhavemthesemtypesmof memployeesmwould
m bemrequired mtomcompletemamcertified mpayroll.
4. Whymmight mit mbemamgood mideamtomlet memployeesm managemtheirmpayrollmrecords?mWhat maremso
memof mthempitfalls?
a. Anmadvantagemof mallowingmindividualsmtomself-
managemtheirmpayrollmrecordsmwould mbemthememployeemwould mbemablemtomanswermso
memsimplemquestionsmonmtheirmownmwithout mhavingmtomcomemtomthempayrollmaccount
ant mformanswers.mIf memployeesmhavemaccessmtomtheirmpayrollmrecords,mtheremwould mb
emthemneed mtomallow mmultiplemaccessmpointsmtomthemconfidentialminformation.mThesem
openmchannelsmwould mrequiremsecuritymsettingsmtomensuremthemrequirementsmof mconfi
dentialitymaremmaintained.
5. What maremtwomwaysmampayrollmsystemmmaymprotect mamcompanyminmthemevent mof mamvisit mfro
mmamgovernment mauditor?
Answersmmaymvary,mbut mshould mcontain:
©m McGrawm Hill mLLC.mAllmrightsmreserved.mNomreproductionmormdistributionmwithoutmthempriormwrittenmconsent mofm McGra
wm Hill m LLC.
.
