SM 7-1
SOLUTIONS MANUAL:
Payroll Accounting 2024 Landin 34th Edition by Bernard
J. Bieg and Bridget Stomberg
Chapter 1-7
Chapter 1
Which Law?
1. K
2. H
3. B
4. F
5. I
6. J
7. A
8. D
9. G
10. C
11. E
12. L
Which Payroll Law?
1. D
2. A
3. F
4. C
5. G
6. J
7. B
8. I
9. E
10. H
What’s Ethical?
1. Answers will vary. Some concerns include data privacy and
integrity in the software switchover, tax and employee pay
integrity on the new software, and employee pay methods.
© McGraw Hill LLC. All rights reserved. No reproduction or distribution without the prior written consent of McGraw Hill LLC.
.
, SM 7-2
2. Answers will vary. Karsyn could choose to ignore her sorority
sister’s request, claiming Confidentiality. She could also
discontinue active participation in the sorority. In any case,
Karsyn must not consent to her sorority sister’s request for
confidential information.
Confidential Records
As the payroll clerk, your task is to protect the privacy and
confidentiality of the information you maintain for the company. If a
student group—or any personnel aside from the company’s payroll
employees and officers—wishes to review confidential records, you
should deny their request. If needed, you should refer the group to
your department’s manager to discuss the matter in more depth. The laws
that apply to this situation are the Privacy Act of 1974, U.S.
Department of Health and Human Services Privacy Act 09-40-0006, Common-
Law Privacy Act, Computer Fraud and Abuse Act, and potentially HIPAA.
Large vs. Small
1. Large companies face issues with multiple departments,
employee access to online personnel portals, employee data
security, and timekeeping accuracy.
2. For small companies, payroll processing will involve fewer
employees than for larger companies. Smaller companies could
maintain their payroll needs using company personnel because
© McGraw Hill LLC. All rights reserved. No reproduction or distribution without the prior written consent of McGraw Hill LLC.
.
, SM 7-3
of the lower volume of transactions. Larger companies need to
consider their available trained payroll accountants and other
staff to determine if they can reliably handle the volume of
payroll needs in a timely and accurate manner.
What Is the Difference?
© McGraw Hill LLC. All rights reserved. No reproduction or distribution without the prior written consent of McGraw Hill LLC.
.
, SM 7-4
a. Manual payroll systems involve the use of paper and pencil
record-keeping or a spreadsheet program, such as Microsoft
Excel. This is most appropriate for very small firms.
b. Computerized payroll systems can be used by any company,
regardless of size. Examples of computerized systems include
QuickBooks, Sage 100, and Microsoft Dynamics 365 GP. These
computer packages range in price, depending on the company size
and operational scope.
c. Outsourced payroll involves the engagement of a third party
to manage a company’s payroll data, issue employee
compensation, and prepare tax forms.
d. Certified payroll pertains to companies with employees who work
on federal government contracts. Certified payroll ensures that a
company reports payroll expenditures of contractually allocated
money.
ANSWERS TO END-OF-CHAPTER MATERIALS
REVIEW QUESTIONS
1. What is the purpose of a payroll system?
a. Provide for internal and external reporting of employee wages
and associated taxes, payment of employee compensation, and
monitoring of benefits to employees. It also serves as a means
of tracking labor costs that managers use for decision-making,
budgeting, and planning.
© McGraw Hill LLC. All rights reserved. No reproduction or distribution without the prior written consent of McGraw Hill LLC.
.
SOLUTIONS MANUAL:
Payroll Accounting 2024 Landin 34th Edition by Bernard
J. Bieg and Bridget Stomberg
Chapter 1-7
Chapter 1
Which Law?
1. K
2. H
3. B
4. F
5. I
6. J
7. A
8. D
9. G
10. C
11. E
12. L
Which Payroll Law?
1. D
2. A
3. F
4. C
5. G
6. J
7. B
8. I
9. E
10. H
What’s Ethical?
1. Answers will vary. Some concerns include data privacy and
integrity in the software switchover, tax and employee pay
integrity on the new software, and employee pay methods.
© McGraw Hill LLC. All rights reserved. No reproduction or distribution without the prior written consent of McGraw Hill LLC.
.
, SM 7-2
2. Answers will vary. Karsyn could choose to ignore her sorority
sister’s request, claiming Confidentiality. She could also
discontinue active participation in the sorority. In any case,
Karsyn must not consent to her sorority sister’s request for
confidential information.
Confidential Records
As the payroll clerk, your task is to protect the privacy and
confidentiality of the information you maintain for the company. If a
student group—or any personnel aside from the company’s payroll
employees and officers—wishes to review confidential records, you
should deny their request. If needed, you should refer the group to
your department’s manager to discuss the matter in more depth. The laws
that apply to this situation are the Privacy Act of 1974, U.S.
Department of Health and Human Services Privacy Act 09-40-0006, Common-
Law Privacy Act, Computer Fraud and Abuse Act, and potentially HIPAA.
Large vs. Small
1. Large companies face issues with multiple departments,
employee access to online personnel portals, employee data
security, and timekeeping accuracy.
2. For small companies, payroll processing will involve fewer
employees than for larger companies. Smaller companies could
maintain their payroll needs using company personnel because
© McGraw Hill LLC. All rights reserved. No reproduction or distribution without the prior written consent of McGraw Hill LLC.
.
, SM 7-3
of the lower volume of transactions. Larger companies need to
consider their available trained payroll accountants and other
staff to determine if they can reliably handle the volume of
payroll needs in a timely and accurate manner.
What Is the Difference?
© McGraw Hill LLC. All rights reserved. No reproduction or distribution without the prior written consent of McGraw Hill LLC.
.
, SM 7-4
a. Manual payroll systems involve the use of paper and pencil
record-keeping or a spreadsheet program, such as Microsoft
Excel. This is most appropriate for very small firms.
b. Computerized payroll systems can be used by any company,
regardless of size. Examples of computerized systems include
QuickBooks, Sage 100, and Microsoft Dynamics 365 GP. These
computer packages range in price, depending on the company size
and operational scope.
c. Outsourced payroll involves the engagement of a third party
to manage a company’s payroll data, issue employee
compensation, and prepare tax forms.
d. Certified payroll pertains to companies with employees who work
on federal government contracts. Certified payroll ensures that a
company reports payroll expenditures of contractually allocated
money.
ANSWERS TO END-OF-CHAPTER MATERIALS
REVIEW QUESTIONS
1. What is the purpose of a payroll system?
a. Provide for internal and external reporting of employee wages
and associated taxes, payment of employee compensation, and
monitoring of benefits to employees. It also serves as a means
of tracking labor costs that managers use for decision-making,
budgeting, and planning.
© McGraw Hill LLC. All rights reserved. No reproduction or distribution without the prior written consent of McGraw Hill LLC.
.
