Payroll Accounting 2024 10th International Edition Jeanette Landin, Paulette Schirmer - Solutions

2. Parker is an employee of the Moeller Gallery, and she has a company-issued vehicle to use to conduct business. Does this vehicle represent a fringe benefit?Why or why not?
1. Glazier Foods, Inc., provides an athletic facility on the premises for employees to use. Would this benefit be taxable on employees’ W-2? Why or why not?
3. What constitutes an HDHP?
2. What are two of the differences between FSAs and HSAs?
1. Which of the following types of insurance may be included in a POP?a. Cancerb. Visionc. Autod. Dental
3. Which of the following fringe benefits would also be exempt from Social Security and Medicare taxes?a. Working condition benefitsb. Adoption assistancec. Qualified health savings accounts
2. Which of the following benefits is not considered a fringe benefit? (Use Figure 4-2 as a reference.)a. Educational assistance for undergraduate studentsb. Group-term life insurance over $250,000c. Overtime hours worked during the yeard. Cell phones for business purposese. Retirement planning
1. What are the two main categories of fringe benefits?
LO 2-1 Identify Important Payroll Procedures and Pay Cycles
LO 2-2 Prepare Required Employee Documentation
LO 2-3 Differentiate between Exempt and Nonexempt Workers
LO 2-4 Explain Pay Records and Employee File Maintenance
LO 2-5 Describe Internal Controls and Record Retention for a Payroll System
LO 2-6 Discuss Employee Termination and Document Destruction Procedures
1. Which of the following artifacts must be included in the employee file?a. Full name and addressb. Occupationc. Mother’s maiden named. Pay ratee. Date of paymentf. Spouse’s name
2. Match the pay frequencies:Monthly The number of pay periods:a. 26 or 27b. 12c. 52d. 24
3. Match the pay frequencies:Semimonthly The number of pay periods:a. 26 or 27b. 12c. 52d. 24
4. Match the pay frequencies:Biweekly The number of pay periods:a. 26 or 27b. 12c. 52d. 24
5. Match the pay frequencies:Weekly The number of pay periods:a. 26 or 27b. 12c. 52d. 24
1. What is the difference between exempt and nonexempt workers?
2. What is the threshold after which an employee must be paid overtime, according to FLSA?a. 30 hoursb. 35 hoursc. 40 hoursd. 45 hours
3. What is the difference between a leased employee and a temporary employee?
1. Which classification of workers is subject to the wage and hour provisions for overtime in the Fair Labor Standards Act?
2. What is the difference between exempt and nonexempt employees in overtime pay requirements?
3. What is the difference between commission and piece-rate pay as the basis for compensation?
4. How do electronic time recording apps differ from manual time reporting?
5. Imagine that you have been approached to assist a business owner concerned about the security of his or her company’s payroll. In a team of three or four people, decide how you would distribute payroll responsibilities to implement excellent internal control procedures. How did you divide the
1. Which of these is not a payroll internal control procedure?a. Overtime approvalb. Removal of payroll oversightc. Cross-trainingd. File security
2. Which of these records should be retained in the event of a payroll audit?a. Employee medical recordsb. Employee reviewsc. Employee time and work recordsd. Employee nonpayroll correspondence
3. Which of the following represents protections against cyberattacks?a. Complex passwordsb. Open networksc. Employee training on common techniques of cyber criminalsd. Antivirus and anti-spyware software
1. How should paper payroll records be destroyed? How about electronic records?
2. Apollo, a resident of Hawaii, is terminated without cause from his job on October 11. He is terminated at the end of the day after the payroll manager has left. When must he receive his final pay? Is the employer required to pay a severance package? Explain.
1. What are three necessary elements of internal control for a payroll department?
2. Why should more than one person prepare and verify payroll processing?
3. What documents should be included in all new-hire packets?
6. What are the five main pay period frequencies?
8. What are two of the best practices for establishing a payroll system?
10. What are two different tasks involved in payroll accounting?
11. What agencies or organizations can audit a company’s payroll records?
12. How can a company protect itself from cybersecurity breaches?
13. How long should employee records be retained?
14. Why are independent contractors not paid through a company’s payroll system?
15. What is the difference between termination and resignation?
16. Explain some of the differences in termination and resignation pay regulations.
17. What are the differences among daily, weekly, biweekly, semimonthly, and monthly pay periods?
18. What differentiates exempt and nonexempt employees?
19. What challenges does a company face when using cloud-based payroll and personnel records?
LO 2-1, 2-4 Nike Tran, a nonexempt employee at Refurbished Woods, in Marquette, Wisconsin, works a standard 7:00 a.m.–4:00 p.m. schedule with an hour for lunch each day. Nike received overtime pay for hours in excess of 40 per week. During the week, Nike worked the following schedule:• Monday:
LO 2-1 London Weatherby is paid every other week while working for the federal government. Which of the following choices describes the pay frequency?1. Biweekly 2. Semimonthly 3. Weekly 4. Monthly
LO 2-2 Sage Rivera is a new employee for De Terra Glass. Which federal forms must be completed as part of the hiring process? (Select all that apply.)1. W-4 2. W-2 3. SS-8 4. I-9
LO 2-5, 2-6 West Matthews, a resident of Texas, resigned from employment with Grand Lake Cattle Farms on October 6, 2023. The next pay date for the company is October 13. By what date should the final pay be received?1. October 6 2. October 13 3. October 27 4. October 31
LO 2-5 Xailen Kelley is a new nonexempt sales associate for Oyondo Retail Stores.After completing the time card for the pay period, what is the next step in the payroll review process to ensure proper internal controls?1. Submit the time card to the payroll clerk.2. Have a friend check her math for
LO 2-6 Addison Silva needs additional filing space at the end of the year in the company’s off-site, secured storage. There are several boxes of payroll records marked for the current year’s destruction. What methods can Addison use to dispose of the payroll records? (Select all that apply.)1.
LO 2-1 Jaylin Blue is a payroll clerk at Quaking Aspens Antiques. Through reviews of the employee files, what information should be present for each employee?(Select all that apply.)1. Spouse’s name 2. Pay rate 3. Occupation 4. Supervisor name
LO 2-2 Camryn Klein is the payroll clerk for Neolane Transportation. A colleague who is classified as an independent contractor asks to be classified as an employee. What factors should Camryn consider? (Select all that apply.)1. Relationship of the parties 2. Behavioral control 3. Method of
LO 2-2 What are the forms of identification that establish employment authorization for the I-9? (Select all that apply.)1. Driver’s license 2. Native American tribal document 3. Voter registration card 4. Social Security card
LO 2-2 What are the forms of identification that establish identity for the I-9 for employees over the age of 25? (Select all that apply.)1. State-issued driver’s license 2. U.S. passport 3. School record 4. Certified copy of the birth certificate
LO 2-3 Rylen Patil is a candidate for the position of sales manager with Retrozz Furniture. This position will be required to supervise several employees and can determine the direction in which assignments will be completed. What guidelines should be followed when classifying workers as exempt or
LO 2-3 Tanner Robledo is the office manager for Wardley and Sons Auto Detailing.Because it is a small office, Tanner is required to keep track of all employee records and pay both employees and contractors. Which of the following are legal factors that will distinguish exempt from nonexempt
LO 2-1 Sawyer Walker is a vice president of sales at Fields Brothers Autos in Davenport, Iowa, and earns an annual salary of $59,000. What is Sawyer’s period pay for each of the following pay frequencies?1. Biweekly 2. Semimonthly 3. Weekly 4. Monthly
LO 2-2, 2-3 Xian Oni is a part-time worker for Senior Solvers and uses company equipment to perform job duties. Xian asks the payroll supervisor to grant independent contractor status. What should the payroll supervisor tell Xian?
LO 2-5 You are the new payroll supervisor for your company. Which payroll documentation control procedures are now your responsibility?
LO 2-2 Finley Figueroa is a new employee in the payroll department of Octolium Computers. After working at the company for one week, Finley asks you why it is so important to submit new-hire documentation. What guidance will you offer?
LO 2-2 River Tallchief is a citizen of the Northern Pomo Indian Nation. In completing the I-9, River provides an official Northern Pomo Indian Nation birth certificate to establish identification and employment eligibility. Is this sufficient documentation? Why or why not?
LO 2-3 Maria Rupert is the payroll supervisor at All Family Investments. Management is asking to have the investment salespeople, who are paid on an hourly basis, be classified as exempt employees because their job duties occasionally require evening and weekend work. What tests should the
LO 2-2 Teagan McCormick is a full-time life insurance agent with Centixo Insurance, a small insurance company. The company has classified Teagan as an employee. Teagan feels the classification should be independent contractor because there are no company benefits and Teagan sets the office hours.
LO 2-2 Ash Hardy is an employee of Polyent Plastics, a company with headquarters in Rock Island, Illinois. Ash lives and works in Doha, Qatar, and earns an annual salary of $97,300. The company has been withholding U.S. federal income taxes from the pay, but Ash believes the wages should be exempt
LO 2-2, 2-4 Complete the W-4 for employment at Plexivent Plastics starting 9/6/2023.The employer’s address is 1 Plastics Way, Lincoln Valley, ND 58430, and EIN is 56-4658631.Harley W. Pierce 2024 Denhoff Highway, Apartment 12 Lincoln Valley, ND 58430 SSN: 687-55-4658 Marital status: Married
LO 2-2, 2-4 Complete the I-9 for employment at Plexivent Plastics starting 9/6/2023. The employer’s address is 1 Plastics Way, Lincoln Valley, ND 58430, and the EIN is 56-4658631. Harley is starting work on 9/6/2023. Be sure to complete Section 2 of Form I-9.Harley W. Pierce 2024 Denhoff Highway,
LO 2-1, 2-4 Dallas Walters, a nonexempt employee of Consolidated Utilities, works a standard 10:00 a.m. to 7:00 p.m. schedule with an hour for lunch. Dallas works in Weed, California, and the state requires overtime pay for hours exceeding 8 per day and for those exceeding 40 in a week. During the
LO 2-1 Micah Volkov is a salaried employee earning $49,850 annually. Micah is paid twice per month. Which of the following best describes the pay frequency?1. Biweekly 2. Semimonthly 3. Weekly 4. Monthly
LO 2-4, 2-6 On June 21, 2023, Dorian Goodman was terminated from Black Diamond Sports in New Hampshire. Black Diamond Sports pays its employees biweekly on Fridays, and the next payday is 7/7/2023. When must Dorian receive the final paycheck?1. On the next pay date 2. Within seven days 3.
LO 2-4, 2-6 Kal Andrews resigned from Atlas Inks on March 21, 2023. When is the earliest that Atlas Inks may destroy Kal’s payroll records?1. March 23, 2024 2. March 23, 2025 3. March 23, 2026 4. March 23, 2027
LO 2-5 Blake Brown is a new payroll accountant at Zata Imports, a company with 250 employees. After completing all time card data for the pay period, what should Blake’s next step in the payroll review process be?1. Ask employees to verify that the time Blake entered is accurate.2. Generate
LO 2-6 Jesse Oliveria needs additional filing space at the end of the year in the company’s office and chooses to use off-site, secured storage. Upon arriving at the storage facility, the unit is nearly full and there are several boxes marked for destruction at the end of the calendar year. What
LO 2-1 Sam Rogers is conducting a review of the payroll files for each employee at Meejo Games. Which of the following items must be present in the file?(Select all that apply.)1. The basis upon which compensation is paid 2. Overtime pay earned during each pay period 3. Hours worked during each pay
LO 2-2 Jamie McCarthy is preparing to compute employee pay and needs to determine the amount of employee federal income taxes to be withheld. Which of the following should be consulted?1. USCIS I-9 2. IRS Publication 15-T 3. DHS Schedule F 4. SSA Schedule 8
LO 2-2 Dana Baker is a new employee of Farnsdel and Babcock, LLP. Which of the following will provide proof of employment authorization for the completion of the I-9? (Select all that apply.)1. U.S. passport 2. U.S. military identification card 3. U.S. citizen identification card 4. State-issued
LO 2-2 Reed Pelliere is completing the I-9 as part of the new employment file with the state of New Mexico. Which of the following provides proof of identity?(Select all that apply.)1. Social Security card 2. Certificate of birth abroad, issued by the U.S. Department of State 3. New Mexico
LO 2-3 Corey Watkins is a candidate for the position of marketing manager with the promotions department of Paramba Productions, earning $17.50 per hour.Corey will work occasional overtime in the new position and will not have managerial or supervisory duties as a regular part of the job
LO 2-3 Ryan Marshall manages a ski resort with year-round and seasonal employees.Assuming that the ski resort engages in interstate commerce, what FLSA requirement(s) should Ryan consider? (Select all that apply.)1. Hourly wages paid to employees 2. Safety of the working conditions 3. Number of
LO 2-2 Stevie Webb is an independent contractor for Antimbu Exports, where you are the payroll accountant. Stevie feels entitled to employee benefits based on the number of hours dedicated to the company. What guidance could you offer Stevie?
LO 2-6 Max Wexler was terminated for cause by Santel Auto Parts in North Carolina on July 20, 2023. As of the date of his termination, he had worked 22 hours of regular time. Employees at Santel Auto Parts are paid semimonthly on the 15th and last day of the month. Max would like to know when the
LO 2-2 Devin Coahoma is a member of the Algonquin Indian Nation and is a new employee at Pactco Game Designs. During the process of completing the I-9, Devin claims that the only way to prove his identity is the Algonquin Indian Nation’s official birth certificate. Is this document sufficient to
LO 2-2 Addison Manning is a new employee of Symity Batteries. Addison is curious about the purpose of the requirements for new-hire documentation to be forwarded to government agencies. What should you tell Addison?
LO 2-3 Pax Arturo wants to start a company and hire employees. Because you are a seasoned payroll professional, Pax approaches you for guidance about the differences between exempt and nonexempt employees. What would you tell Pax?
LO 2-5 Skyler Alvarez is a new payroll clerk for Remm Plumbing. Skyler is curious about the purpose of the different steps in the payroll review process and asks you, as the supervisor, for guidance. What would you tell Skyler?
LO 2-4 Karsyn Aldri started as a payroll accountant at Sticktoit Adhesives, a company with 100 employees. Karsyn soon notices that the former payroll accountant had been processing payroll manually and suggested that the company immediately switch to cloud-based payroll. What types of documentation
LO 2-5 Yael Morris, a payroll clerk, has received a promotion and is now the payroll supervisor for Fligen Enterprises. What document control items could now become part of Yael’s responsibility?
LO 2-2 Kennedy Watkins is in the payroll department of Neombee Plastics, a multistate company. The company has historically been filing employee information with each state. What alternative exists for multistate employers?
LO 2-1 Drew Allen is the payroll supervisor for Caposis Freight. The company is preparing to merge with another distribution company that has a different pay cycle. The president of the company wants to know the difference between biweekly and semimonthly pay cycles as far as pay dates and payment
LO 2-2, 2-4 Complete the W-4 for employment starting 5/23/2023 at Martel Semiconductors, located at 2445 Manchester Road, Lakehurst, NJ 08733, EIN 26-4684136.Tatum A. Noren 221 First Street Lakehurst, NJ 08733 SSN: 785-56-4321 Single with no dependents No additional tax withholding
LO 2-2, 2-4 Complete the I-9 for employment starting 5/23/2023 at Martel Semiconductors, located at 2445 Manchester Road, Lakehurst, NJ 08733, EIN 26-4684136. Be sure to complete Section 2 of Form I-9.Tatum A. Noren 221 First Street Lakehurst, NJ 08733 SSN: 785-56-4321 Birthdate: 6/5/1998 Tatum
2-2. You have been hired as a consultant for Semiva Productions, a company facing an IRS audit of its accounting records. During your review, you notice anomalies in the payroll system involving overpayments of labor and payments to terminated employees.What should you do?
2-1. Using a search engine such as Google, Yahoo, or Bing, search the Internet for the term “new-hire packet contents.” Compile a list of the different new-hire packet items that you find in at least three companies. What are some unique items that you found on the companies’ lists?
2-3. Want to know more about some of the concepts discussed in this chapter? Check out www.uscis.gov www.irs.gov/businesses www.archives.gov/federal-register/cfr/subject-title-26.html www.proshred.com www.ironmountain.com
2-4. The Massachusetts Institute of Technology (MIT) has created a website with a living wage calculator. This tool is designed to help people compute the wages they need to earn in order to achieve their desired lifestyle. Check it out at Living Wage Calculator.
LO 1-1 Identify Legislation That Pertains to Payroll and Business
LO 1-2 Discuss the Legal Framework Specific to Payroll Accounting
LO 1-3 Discuss the Ethical Guidelines for Payroll Accounting

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Payroll Accounting 2024 10th International Edition Jeanette Landin, Paulette Schirmer - Solutions

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