SMV7-1
SOLUTIONSV MANUAL:
PayrollVAccountingV2024VLandinV34thVEditionVbyVBernardVJ.VBiegVandVBridgetV
Stomberg
ChapterV1-7
ChapterV1
WhichVLaw?
1.V V K
2.V V H
3.V V B
4.V V F
5.V V I
6.V V J
7.V V A
8.V V D
9.V V G
10.VC
11.VE
12.VL
WhichVPayrollVLaw?
1. D
2. A
3. F
4. C
5. G
6. J
7. B
8. I
9. E
10. H
What’sVEthical?
1. AnswersVwillVvary.VSomeVconcernsVincludeVdataVprivacyVandVintegrityVinVtheVsoftwa
reVswitchover,VtaxVandVemployeeVpayVintegrityVonVtheVnewVsoftware,VandVemployeeVpa
yVmethods.
©VMcGrawVHillVLLC.VAllVrightsVreserved.VNoVreproductionVorVdistributionVwithoutVtheVpriorVwrittenVconsentVofVMc
GrawVHillVLLC.
.
, SMV7-2
2. AnswersVwillVvary.VKarsynVcouldVchooseVtoVignoreVherVsororityVsister’sVrequest,Vcl
aimingVConfidentiality.VSheVcouldValsoVdiscontinueVactiveVparticipationVinVtheVsorority
.VInVanyVcase,VKarsynVmustVnotVconsentVtoVherVsororityVsister’sVrequestVforVconfident
ialVinformation.
ConfidentialVRecords
AsVtheVpayrollVclerk,VyourVtaskVisVtoVprotectVtheVprivacyVandVconfidentialityVofVtheVinforma
tionVyouVmaintainVforVtheVcompany.VIfVaVstudentVgroup—
orVanyVpersonnelVasideVfromVtheVcompany’sVpayrollVemployeesVandVofficers—
wishesVtoVreviewVconfidentialVrecords,VyouVshouldVdenyVtheirVrequest.VIfVneeded,VyouVshoul
dVreferVtheVgroupVtoVyourVdepartment’sVmanagerVtoVdiscussVtheVmatterVinVmoreVdepth.VThe
VlawsVthatVapplyVtoVthisVsituationVareVtheVPrivacyVActVofV1974,VU.S.VDepartmentVofVHealth
VandVHumanVServicesVPrivacyVActV09-40-0006,VCommon-
LawVPrivacyVAct,VComputerVFraudVandVAbuseVAct,VandVpotentiallyVHIPAA.
LargeVvs.VSmall
1. LargeVcompaniesVfaceVissuesVwithVmultipleVdepartments,VemployeeVaccessVtoV
onlineVpersonnelVportals,VemployeeVdataVsecurity,VandVtimekeepingVaccuracy.
2. ForVsmallVcompanies,VpayrollVprocessingVwillVinvolveVfewerVemployeesVthanVforV
largerVcompanies.VSmallerVcompaniesVcouldVmaintainVtheirVpayrollVneedsVusingVc
ompanyVpersonnelVbecauseVofVtheVlowerVvolumeVofVtransactions.VLargerVcompani
esVneedVtoVconsiderVtheirVavailableVtrainedVpayrollVaccountantsVandVotherVstaffVto
VdetermineVifVtheyVcanVreliablyVhandleVtheVvolumeVofVpayrollVneedsVinVaVtimely
VandVaccurateVmanner.
©VMcGrawVHillVLLC.VAllVrightsVreserved.VNoVreproductionVorVdistributionVwithoutVtheVpriorVwrittenVconsentVofVMc
GrawVHillVLLC.
.
, SMV7-3
WhatVIsVtheVDifference?
©VMcGrawVHillVLLC.VAllVrightsVreserved.VNoVreproductionVorVdistributionVwithoutVtheVpriorVwrittenVconsentVofVMc
GrawVHillVLLC.
.
, SMV7-4
a. ManualVpayrollVsystemsVinvolveVtheVuseVofVpaperVandVpencilVrecord-
keepingVorVaVspreadsheetVprogram,VsuchVasVMicrosoftVExcel.VThisVisVmostVappro
priateVforVveryVsmallVfirms.
b. ComputerizedVpayrollVsystemsVcanVbeVusedVbyVanyVcompany,VregardlessVofVsize.VEx
amplesVofVcomputerizedVsystemsVincludeVQuickBooks,VSageV100,VandVMicrosoftVDy
namicsV365VGP.VTheseVcomputerVpackagesVrangeVinVprice,VdependingVonVtheVcompa
nyVsizeVandVoperationalVscope.
c. OutsourcedVpayrollVinvolvesVtheVengagementVofVaVthirdVpartyVtoVmanageVaVcom
pany’sVpayrollVdata,VissueVemployeeVcompensation,VandVprepareVtaxVforms.
d. CertifiedVpayrollVpertainsVtoVcompaniesVwithVemployeesVwhoVworkVonVfederalVgover
nmentVcontracts.VCertifiedVpayrollVensuresVthatVaVcompanyVreportsVpayrollVexpenditu
resVofVcontractuallyVallocatedVmoney.
ANSWERSVTOVEND-OF-
CHAPTERVMATERIALSVREVIEWVQUESTION
S
1. WhatVisVtheVpurposeVofVaVpayrollVsystem?
a. ProvideVforVinternalVandVexternalVreportingVofVemployeeVwagesVandVassociatedVt
axes,VpaymentVofVemployeeVcompensation,VandVmonitoringVofVbenefitsVtoVemplo
yees.VItValsoVservesVasVaVmeansVofVtrackingVlaborVcostsVthatVmanagersVuseVforV
decision-making,Vbudgeting,VandVplanning.
2. WhatVareVtwoVdifferencesVbetweenVlarge-VandVsmall-companyVpayrollVpractices?
a. SmallVcompaniesVwouldVhaveVfewerVemployeesVandVreportingVrequirementsVandV
wouldVbeVlessVlikelyVtoVbeVrequiredVtoVhaveVautomatedVpayrollVsystems.
©VMcGrawVHillVLLC.VAllVrightsVreserved.VNoVreproductionVorVdistributionVwithoutVtheVpriorVwrittenVconsentVofVMc
GrawVHillVLLC.
.
SOLUTIONSV MANUAL:
PayrollVAccountingV2024VLandinV34thVEditionVbyVBernardVJ.VBiegVandVBridgetV
Stomberg
ChapterV1-7
ChapterV1
WhichVLaw?
1.V V K
2.V V H
3.V V B
4.V V F
5.V V I
6.V V J
7.V V A
8.V V D
9.V V G
10.VC
11.VE
12.VL
WhichVPayrollVLaw?
1. D
2. A
3. F
4. C
5. G
6. J
7. B
8. I
9. E
10. H
What’sVEthical?
1. AnswersVwillVvary.VSomeVconcernsVincludeVdataVprivacyVandVintegrityVinVtheVsoftwa
reVswitchover,VtaxVandVemployeeVpayVintegrityVonVtheVnewVsoftware,VandVemployeeVpa
yVmethods.
©VMcGrawVHillVLLC.VAllVrightsVreserved.VNoVreproductionVorVdistributionVwithoutVtheVpriorVwrittenVconsentVofVMc
GrawVHillVLLC.
.
, SMV7-2
2. AnswersVwillVvary.VKarsynVcouldVchooseVtoVignoreVherVsororityVsister’sVrequest,Vcl
aimingVConfidentiality.VSheVcouldValsoVdiscontinueVactiveVparticipationVinVtheVsorority
.VInVanyVcase,VKarsynVmustVnotVconsentVtoVherVsororityVsister’sVrequestVforVconfident
ialVinformation.
ConfidentialVRecords
AsVtheVpayrollVclerk,VyourVtaskVisVtoVprotectVtheVprivacyVandVconfidentialityVofVtheVinforma
tionVyouVmaintainVforVtheVcompany.VIfVaVstudentVgroup—
orVanyVpersonnelVasideVfromVtheVcompany’sVpayrollVemployeesVandVofficers—
wishesVtoVreviewVconfidentialVrecords,VyouVshouldVdenyVtheirVrequest.VIfVneeded,VyouVshoul
dVreferVtheVgroupVtoVyourVdepartment’sVmanagerVtoVdiscussVtheVmatterVinVmoreVdepth.VThe
VlawsVthatVapplyVtoVthisVsituationVareVtheVPrivacyVActVofV1974,VU.S.VDepartmentVofVHealth
VandVHumanVServicesVPrivacyVActV09-40-0006,VCommon-
LawVPrivacyVAct,VComputerVFraudVandVAbuseVAct,VandVpotentiallyVHIPAA.
LargeVvs.VSmall
1. LargeVcompaniesVfaceVissuesVwithVmultipleVdepartments,VemployeeVaccessVtoV
onlineVpersonnelVportals,VemployeeVdataVsecurity,VandVtimekeepingVaccuracy.
2. ForVsmallVcompanies,VpayrollVprocessingVwillVinvolveVfewerVemployeesVthanVforV
largerVcompanies.VSmallerVcompaniesVcouldVmaintainVtheirVpayrollVneedsVusingVc
ompanyVpersonnelVbecauseVofVtheVlowerVvolumeVofVtransactions.VLargerVcompani
esVneedVtoVconsiderVtheirVavailableVtrainedVpayrollVaccountantsVandVotherVstaffVto
VdetermineVifVtheyVcanVreliablyVhandleVtheVvolumeVofVpayrollVneedsVinVaVtimely
VandVaccurateVmanner.
©VMcGrawVHillVLLC.VAllVrightsVreserved.VNoVreproductionVorVdistributionVwithoutVtheVpriorVwrittenVconsentVofVMc
GrawVHillVLLC.
.
, SMV7-3
WhatVIsVtheVDifference?
©VMcGrawVHillVLLC.VAllVrightsVreserved.VNoVreproductionVorVdistributionVwithoutVtheVpriorVwrittenVconsentVofVMc
GrawVHillVLLC.
.
, SMV7-4
a. ManualVpayrollVsystemsVinvolveVtheVuseVofVpaperVandVpencilVrecord-
keepingVorVaVspreadsheetVprogram,VsuchVasVMicrosoftVExcel.VThisVisVmostVappro
priateVforVveryVsmallVfirms.
b. ComputerizedVpayrollVsystemsVcanVbeVusedVbyVanyVcompany,VregardlessVofVsize.VEx
amplesVofVcomputerizedVsystemsVincludeVQuickBooks,VSageV100,VandVMicrosoftVDy
namicsV365VGP.VTheseVcomputerVpackagesVrangeVinVprice,VdependingVonVtheVcompa
nyVsizeVandVoperationalVscope.
c. OutsourcedVpayrollVinvolvesVtheVengagementVofVaVthirdVpartyVtoVmanageVaVcom
pany’sVpayrollVdata,VissueVemployeeVcompensation,VandVprepareVtaxVforms.
d. CertifiedVpayrollVpertainsVtoVcompaniesVwithVemployeesVwhoVworkVonVfederalVgover
nmentVcontracts.VCertifiedVpayrollVensuresVthatVaVcompanyVreportsVpayrollVexpenditu
resVofVcontractuallyVallocatedVmoney.
ANSWERSVTOVEND-OF-
CHAPTERVMATERIALSVREVIEWVQUESTION
S
1. WhatVisVtheVpurposeVofVaVpayrollVsystem?
a. ProvideVforVinternalVandVexternalVreportingVofVemployeeVwagesVandVassociatedVt
axes,VpaymentVofVemployeeVcompensation,VandVmonitoringVofVbenefitsVtoVemplo
yees.VItValsoVservesVasVaVmeansVofVtrackingVlaborVcostsVthatVmanagersVuseVforV
decision-making,Vbudgeting,VandVplanning.
2. WhatVareVtwoVdifferencesVbetweenVlarge-VandVsmall-companyVpayrollVpractices?
a. SmallVcompaniesVwouldVhaveVfewerVemployeesVandVreportingVrequirementsVandV
wouldVbeVlessVlikelyVtoVbeVrequiredVtoVhaveVautomatedVpayrollVsystems.
©VMcGrawVHillVLLC.VAllVrightsVreserved.VNoVreproductionVorVdistributionVwithoutVtheVpriorVwrittenVconsentVofVMc
GrawVHillVLLC.
.
