SMj7-1
SOLUTIONS MANUAL: j
PayrolljAccountingj2024jLandinj34thjEditionjbyjBernardjJ.jBiegjandjBridgetjStomber
g
Chapterj1-7
Chapterj1
WhichjLaw?
1.j j K
2.j j H
3.j j B
4.j j F
5.j j I
6.j j J
7.j j A
8.j j D
9.j j G
10.jC
11.jE
12.jL
WhichjPayrolljLaw?
1. D
2. A
3. F
4. C
5. G
6. J
7. B
8. I
9. E
10. H
What’sjEthical?
1. Answersjwilljvary.jSomejconcernsjincludejdatajprivacyjandjintegrityjinjthejsoftwarejswitcho
ver,jtaxjandjemployeejpayjintegrityjonjthejnewjsoftware,jandjemployeejpayjmethods.
©jMcGrawjHilljLLC.jAlljrightsjreserved.jNojreproductionjorjdistributionjwithoutjthejpriorjwrittenjconsentjofjMcGrawjHilljLLC.
.
, SMj7-2
2. Answersjwilljvary.jKarsynjcouldjchoosejtojignorejherjsororityjsister’sjrequest,jclaimingjC
onfidentiality.jShejcouldjalsojdiscontinuejactivejparticipationjinjthejsorority.jInjanyjcase,jKar
synjmustjnotjconsentjtojherjsororityjsister’sjrequestjforjconfidentialjinformation.
ConfidentialjRecords
Asjthejpayrolljclerk,jyourjtaskjisjtojprotectjthejprivacyjandjconfidentialityjofjthejinformationjyoujma
intainjforjthejcompany.jIfjajstudentjgroup—
orjanyjpersonneljasidejfromjthejcompany’sjpayrolljemployeesjandjofficers—
wishesjtojreviewjconfidentialjrecords,jyoujshouldjdenyjtheirjrequest.jIfjneeded,jyoujshouldjreferjthej
groupjtojyourjdepartment’sjmanagerjtojdiscussjthejmatterjinjmorejdepth.jThejlawsjthatjapplyjtojthisjs
ituationjarejthejPrivacyjActjofj1974,jU.S.jDepartmentjofjHealthjandjHumanjServicesjPrivacyjActj09
-40-0006,jCommon-LawjPrivacyjAct,jComputerjFraudjandjAbusejAct,jandjpotentiallyjHIPAA.
Largejvs.jSmall
1. Largejcompaniesjfacejissuesjwithjmultiplejdepartments,jemployeejaccessjtojonlinejp
ersonneljportals,jemployeejdatajsecurity,jandjtimekeepingjaccuracy.
2. Forjsmalljcompanies,jpayrolljprocessingjwilljinvolvejfewerjemployeesjthanjforjlargerjco
mpanies.jSmallerjcompaniesjcouldjmaintainjtheirjpayrolljneedsjusingjcompanyjpersonn
eljbecausejofjthejlowerjvolumejofjtransactions.jLargerjcompaniesjneedjtojconsiderjtheirj
availablejtrainedjpayrolljaccountantsjandjotherjstaffjtojdeterminejifjtheyjcanjreliablyjhan
dlejthejvolumejofjpayrolljneedsjinjajtimelyjandjaccuratejmanner.
WhatjIsjthejDifference?
©jMcGrawjHilljLLC.jAlljrightsjreserved.jNojreproductionjorjdistributionjwithoutjthejpriorjwrittenjconsentjofjMcGrawjHilljLLC.
.
, SMj7-3
a. Manualjpayrolljsystemsjinvolvejthejusejofjpaperjandjpenciljrecord-
keepingjorjajspreadsheetjprogram,jsuchjasjMicrosoftjExcel.jThisjisjmostjappropriatejforj
veryjsmalljfirms.
b. Computerizedjpayrolljsystemsjcanjbejusedjbyjanyjcompany,jregardlessjofjsize.jExamplesjofj
computerizedjsystemsjincludejQuickBooks,jSagej100,jandjMicrosoftjDynamicsj365jGP.jT
hesejcomputerjpackagesjrangejinjprice,jdependingjonjthejcompanyjsizejandjoperationaljsco
pe.
c. Outsourcedjpayrolljinvolvesjthejengagementjofjajthirdjpartyjtojmanagejajcompany’sjpa
yrolljdata,jissuejemployeejcompensation,jandjpreparejtaxjforms.
d. Certifiedjpayrolljpertainsjtojcompaniesjwithjemployeesjwhojworkjonjfederaljgovernmentjco
ntracts.jCertifiedjpayrolljensuresjthatjajcompanyjreportsjpayrolljexpendituresjofjcontractual
lyjallocatedjmoney.
ANSWERSjTOjEND-OF-
CHAPTERjMATERIALSjREVIEWjQUESTIONS
1. Whatjisjthejpurposejofjajpayrolljsystem?
a. Providejforjinternaljandjexternaljreportingjofjemployeejwagesjandjassociatedjtaxes,jpa
ymentjofjemployeejcompensation,jandjmonitoringjofjbenefitsjtojemployees.jItjalsojserv
esjasjajmeansjofjtrackingjlaborjcostsjthatjmanagersjusejforjdecision-
making,jbudgeting,jandjplanning.
2. Whatjarejtwojdifferencesjbetweenjlarge-jandjsmall-companyjpayrolljpractices?
a. Smalljcompaniesjwouldjhavejfewerjemployeesjandjreportingjrequirementsjandjwouldjb
ejlessjlikelyjtojbejrequiredjtojhavejautomatedjpayrolljsystems.
©jMcGrawjHilljLLC.jAlljrightsjreserved.jNojreproductionjorjdistributionjwithoutjthejpriorjwrittenjconsentjofjMcGrawjHilljLLC.
.
, SMj7-4
b. Largejcompaniesjhavejmorejemployeesjandjgreaterjdepartmentalization.jThisjincreasej
injemployeesjleadsjtojajhigherjleveljofjcomplexityjinjpayrolljaccounting,jdisbursements
,jandjreporting.jLargerjcompaniesjmayjalsojprovidejIntranetjportalsjforjemployeejself-
servicejoptions.jAdditionally,jlargerjcompaniesjmayjneedjadditionaljaccuracyjchecks.
3. Whatjisjcertifiedjpayroll?jWhichjcompaniesjmustjusejit?
a. Certifiedjpayrolljisjajreportingjrequirementjforjcompaniesjthatjworkjwithjfederaljco
ntractsjthatjarejsubjectjtojDavis-
Baconjwages.jOnlyjthosejcompaniesjthatjhavejthesejtypesjofjemployeesjwouldjbejr
equiredjtojcompletejajcertifiedjpayroll.
4. Whyjmightjitjbejajgoodjideajtojletjemployeesjmanagejtheirjpayrolljrecords?jWhatjarejsomejofjt
hejpitfalls?
a. Anjadvantagejofjallowingjindividualsjtojself-
managejtheirjpayrolljrecordsjwouldjbejthejemployeejwouldjbejablejtojanswerjsomejsi
mplejquestionsjonjtheirjownjwithoutjhavingjtojcomejtojthejpayrolljaccountantjforjans
wers.jIfjemployeesjhavejaccessjtojtheirjpayrolljrecords,jtherejwouldjbejthejneedjtojallo
wjmultiplejaccessjpointsjtojthejconfidentialjinformation.jThesejopenjchannelsjwouldjr
equirejsecurityjsettingsjtojensurejthejrequirementsjofjconfidentialityjarejmaintained.
5. Whatjarejtwojwaysjajpayrolljsystemjmayjprotectjajcompanyjinjthejeventjofjajvisitjfromjajgov
ernmentjauditor?
Answersjmayjvary,jbutjshouldjcontain:
a. Thejestablishmentjandjmaintenancejofjanjaccuratejpayrolljsystem.jTimelyjandjaccur
atelyjreportingjwagesjandjwithholdings.jAdherencejtojthejlegaljframeworkjofjpayroll.
©jMcGrawjHilljLLC.jAlljrightsjreserved.jNojreproductionjorjdistributionjwithoutjthejpriorjwrittenjconsentjofjMcGrawjHilljLLC.
.
SOLUTIONS MANUAL: j
PayrolljAccountingj2024jLandinj34thjEditionjbyjBernardjJ.jBiegjandjBridgetjStomber
g
Chapterj1-7
Chapterj1
WhichjLaw?
1.j j K
2.j j H
3.j j B
4.j j F
5.j j I
6.j j J
7.j j A
8.j j D
9.j j G
10.jC
11.jE
12.jL
WhichjPayrolljLaw?
1. D
2. A
3. F
4. C
5. G
6. J
7. B
8. I
9. E
10. H
What’sjEthical?
1. Answersjwilljvary.jSomejconcernsjincludejdatajprivacyjandjintegrityjinjthejsoftwarejswitcho
ver,jtaxjandjemployeejpayjintegrityjonjthejnewjsoftware,jandjemployeejpayjmethods.
©jMcGrawjHilljLLC.jAlljrightsjreserved.jNojreproductionjorjdistributionjwithoutjthejpriorjwrittenjconsentjofjMcGrawjHilljLLC.
.
, SMj7-2
2. Answersjwilljvary.jKarsynjcouldjchoosejtojignorejherjsororityjsister’sjrequest,jclaimingjC
onfidentiality.jShejcouldjalsojdiscontinuejactivejparticipationjinjthejsorority.jInjanyjcase,jKar
synjmustjnotjconsentjtojherjsororityjsister’sjrequestjforjconfidentialjinformation.
ConfidentialjRecords
Asjthejpayrolljclerk,jyourjtaskjisjtojprotectjthejprivacyjandjconfidentialityjofjthejinformationjyoujma
intainjforjthejcompany.jIfjajstudentjgroup—
orjanyjpersonneljasidejfromjthejcompany’sjpayrolljemployeesjandjofficers—
wishesjtojreviewjconfidentialjrecords,jyoujshouldjdenyjtheirjrequest.jIfjneeded,jyoujshouldjreferjthej
groupjtojyourjdepartment’sjmanagerjtojdiscussjthejmatterjinjmorejdepth.jThejlawsjthatjapplyjtojthisjs
ituationjarejthejPrivacyjActjofj1974,jU.S.jDepartmentjofjHealthjandjHumanjServicesjPrivacyjActj09
-40-0006,jCommon-LawjPrivacyjAct,jComputerjFraudjandjAbusejAct,jandjpotentiallyjHIPAA.
Largejvs.jSmall
1. Largejcompaniesjfacejissuesjwithjmultiplejdepartments,jemployeejaccessjtojonlinejp
ersonneljportals,jemployeejdatajsecurity,jandjtimekeepingjaccuracy.
2. Forjsmalljcompanies,jpayrolljprocessingjwilljinvolvejfewerjemployeesjthanjforjlargerjco
mpanies.jSmallerjcompaniesjcouldjmaintainjtheirjpayrolljneedsjusingjcompanyjpersonn
eljbecausejofjthejlowerjvolumejofjtransactions.jLargerjcompaniesjneedjtojconsiderjtheirj
availablejtrainedjpayrolljaccountantsjandjotherjstaffjtojdeterminejifjtheyjcanjreliablyjhan
dlejthejvolumejofjpayrolljneedsjinjajtimelyjandjaccuratejmanner.
WhatjIsjthejDifference?
©jMcGrawjHilljLLC.jAlljrightsjreserved.jNojreproductionjorjdistributionjwithoutjthejpriorjwrittenjconsentjofjMcGrawjHilljLLC.
.
, SMj7-3
a. Manualjpayrolljsystemsjinvolvejthejusejofjpaperjandjpenciljrecord-
keepingjorjajspreadsheetjprogram,jsuchjasjMicrosoftjExcel.jThisjisjmostjappropriatejforj
veryjsmalljfirms.
b. Computerizedjpayrolljsystemsjcanjbejusedjbyjanyjcompany,jregardlessjofjsize.jExamplesjofj
computerizedjsystemsjincludejQuickBooks,jSagej100,jandjMicrosoftjDynamicsj365jGP.jT
hesejcomputerjpackagesjrangejinjprice,jdependingjonjthejcompanyjsizejandjoperationaljsco
pe.
c. Outsourcedjpayrolljinvolvesjthejengagementjofjajthirdjpartyjtojmanagejajcompany’sjpa
yrolljdata,jissuejemployeejcompensation,jandjpreparejtaxjforms.
d. Certifiedjpayrolljpertainsjtojcompaniesjwithjemployeesjwhojworkjonjfederaljgovernmentjco
ntracts.jCertifiedjpayrolljensuresjthatjajcompanyjreportsjpayrolljexpendituresjofjcontractual
lyjallocatedjmoney.
ANSWERSjTOjEND-OF-
CHAPTERjMATERIALSjREVIEWjQUESTIONS
1. Whatjisjthejpurposejofjajpayrolljsystem?
a. Providejforjinternaljandjexternaljreportingjofjemployeejwagesjandjassociatedjtaxes,jpa
ymentjofjemployeejcompensation,jandjmonitoringjofjbenefitsjtojemployees.jItjalsojserv
esjasjajmeansjofjtrackingjlaborjcostsjthatjmanagersjusejforjdecision-
making,jbudgeting,jandjplanning.
2. Whatjarejtwojdifferencesjbetweenjlarge-jandjsmall-companyjpayrolljpractices?
a. Smalljcompaniesjwouldjhavejfewerjemployeesjandjreportingjrequirementsjandjwouldjb
ejlessjlikelyjtojbejrequiredjtojhavejautomatedjpayrolljsystems.
©jMcGrawjHilljLLC.jAlljrightsjreserved.jNojreproductionjorjdistributionjwithoutjthejpriorjwrittenjconsentjofjMcGrawjHilljLLC.
.
, SMj7-4
b. Largejcompaniesjhavejmorejemployeesjandjgreaterjdepartmentalization.jThisjincreasej
injemployeesjleadsjtojajhigherjleveljofjcomplexityjinjpayrolljaccounting,jdisbursements
,jandjreporting.jLargerjcompaniesjmayjalsojprovidejIntranetjportalsjforjemployeejself-
servicejoptions.jAdditionally,jlargerjcompaniesjmayjneedjadditionaljaccuracyjchecks.
3. Whatjisjcertifiedjpayroll?jWhichjcompaniesjmustjusejit?
a. Certifiedjpayrolljisjajreportingjrequirementjforjcompaniesjthatjworkjwithjfederaljco
ntractsjthatjarejsubjectjtojDavis-
Baconjwages.jOnlyjthosejcompaniesjthatjhavejthesejtypesjofjemployeesjwouldjbejr
equiredjtojcompletejajcertifiedjpayroll.
4. Whyjmightjitjbejajgoodjideajtojletjemployeesjmanagejtheirjpayrolljrecords?jWhatjarejsomejofjt
hejpitfalls?
a. Anjadvantagejofjallowingjindividualsjtojself-
managejtheirjpayrolljrecordsjwouldjbejthejemployeejwouldjbejablejtojanswerjsomejsi
mplejquestionsjonjtheirjownjwithoutjhavingjtojcomejtojthejpayrolljaccountantjforjans
wers.jIfjemployeesjhavejaccessjtojtheirjpayrolljrecords,jtherejwouldjbejthejneedjtojallo
wjmultiplejaccessjpointsjtojthejconfidentialjinformation.jThesejopenjchannelsjwouldjr
equirejsecurityjsettingsjtojensurejthejrequirementsjofjconfidentialityjarejmaintained.
5. Whatjarejtwojwaysjajpayrolljsystemjmayjprotectjajcompanyjinjthejeventjofjajvisitjfromjajgov
ernmentjauditor?
Answersjmayjvary,jbutjshouldjcontain:
a. Thejestablishmentjandjmaintenancejofjanjaccuratejpayrolljsystem.jTimelyjandjaccur
atelyjreportingjwagesjandjwithholdings.jAdherencejtojthejlegaljframeworkjofjpayroll.
©jMcGrawjHilljLLC.jAlljrightsjreserved.jNojreproductionjorjdistributionjwithoutjthejpriorjwrittenjconsentjofjMcGrawjHilljLLC.
.
