payroll accounting chapter 1

Katelijn Preston is a new manager at Resterra Incorporated She is looking at using the E-Verify process for new hires. What recommendations can you give her about the differences between having an employee complete the I-9 and the E-Verify process?

1. I-9 is still necessary if using E-verify 2. E-verify allows employers to use the internet to verify employees are eligible to work in the United States

Kalea Germain is a warehouse worker for a small grocery market. As she was moving some merchandise, the loading dock door unexpectedly fell and injured her. How does OSHA apply to Kalea for this type of injury?

1. She may be protected under FMLA, she may need to take an unpaid leave if she does not have leave available. 2. OSHA inspection to ensure the working environment was not the cause o injury. 3. Workers compensation insurance will provider the coverage of wage compensation for the employee

Jessalyn Poulsen is an accountant for her firm, a medium-sized company with 125 employees. The firm has traditionally maintained the administration of its payroll. Her co-worker, the only other accountant in the firm, retires. Because of budget concerns, the firm chooses not to refill the position. What options does Jessalyn have regarding the administration of the payroll?

1. The company could opt to process payroll manually. 2. Jessalyn could brain a software program to fill the need

Libbi Alberighi and Flavia van Peij are friends who work for the same company. Libbi manages a manufacturing department and Flavia supervises the payroll clerks. Which ethical guidelines or rules would these friends need to remember when discussing work?

1. exercising personal integrity to avoid any conflicts of interest 2. non-disclosure of confidential information they have over the employees in their areas

Ennis Locatelli is a new payroll accountant at Avata Electronics. In his review of previous manual payroll records, he noted several errors that required the issuance of additional checks to employees for unpaid payroll amounts. What are Ennis's options to avoid similar problems in the future?

1. switch to an automated system 2. include additional review ad verification of a standardized payroll system

Cahya Russell is a new employee in the payroll department for Winhook Industries. She has had several employees approach her with questions but is unsure how privacy regulations could affect her response. What advice would you give her about privacy laws and payroll?

1.The employee's privacy is an important consideration and payroll workersneed to be aware of updated information as it becomes available. 2. The Privacy Act of 1974 allows an employee access to their payroll records. 3Review U.S. Department of Labor OCFO-1 or the U.S. Department of Health and Human Services Privacy Act 09-40-0006.

Choose the correct definition for Internal controls documentation:

A provision of the Sarbanes-Oxley Act.

Consolidated Omnibus Budget Reconciliation Act of 1985 (COBRA)

ERISA was extended by this. This extended medical benefits for terminated employees at the employee's expense.

definition for USERRA:

Legislation that governs the treatment of military service personnel.

Choose the correct definition for IRCA:

Mandates completion of form I-9.

Erkan Dioli is the payroll accountant for Prosario Imports. His most recent experience with accounting was when he was in college, which was eight years ago. Which ethical guideline addresses his need to remain current with accounting practice?

Professional competence and due care

Choose the correct definition for Walsh-Healey Public Contracts Act:

Prohibited employment of individuals younger than 16 years of age.

Choose the correct definition for Tax Cuts and Jobs Act:

Reframing federal employee income tax computations.

Choose the correct definition for Lilly Ledbetter Fair Pay Act:

Repealed the 180-day statute of limitations on equal pay complaints.

Immigration Reform and Control Act of 1986 (IRCA)

Requires employer to verify employees' eligibility for employment in the US.

Choose the correct definition for Personal Responsibility, Work and Family Promotion Act of 2002:

Strengthened the child support provisions of PRWOR.

A group of employees, who read on a website that income tax collection is illegal, approach Hawa Furst, the controller for a large company. They request that he stop withholding income taxes from their pay unless he can explain what laws govern income tax collection. What should Hawa tell them?

The 16th Amendment to the U.S. Constitution created the legislation to support the collection of taxes from the employees.

Elias Motta is the office manager and payroll clerk for his company, which is composed of 12 employees. An employee, Sylvia Gladwin, stops by Elias's office and wants to view her payroll record. What privacy regulations must Elias consider before granting his co-worker access?

The Privacy Act of 1974 allows an employee access to their payroll records.

At Denniston Industries, employees have the option of choosing employer-sponsored health insurance. What responsibilities does the employer have according to COBRA upon the termination of an employee?

The company must offer terminated employees COBRA coverage upon termination. The employee would be required to pay the health insurance premiums.

Emmett Colquhoun is a military veteran who requires many absences for medical reasons. His boss at Betri Farms has demanded that he reduce the number of sick days unless he provides his medical history. Which law(s) protect Emmett?

USERRA & HIPAA

Walsh-Healey Public Contract Act (1936)

affected governmental contractors providing goods or services exceeding $10,000

The Tax Cuts and Jobs Act (TCJA) has lead to 4 specific areas of focus for employees:

compliance controversy international tax compensation for executives state taxes

Davis-Bacon Act of 1931

created a standard of wages for governmental contracts totaling more than $2,000

Occupational Safety and Health Act of 1970 (OHSA)

denied and enforced healthy and safe working environments for employees.

Americans with disabilities act amendments act (ADAAA)

extended the definition of disability to include a greater number of disabilities.

Americans with Disabilities Act of 1990 (ADA)

extended the provisions of the civil rights act of 1964 by ensuring that people with disabilities have the same oppurtunities as those without mental or physical impairment.

Defense of Marriage Act in 2013 (DOMA)

forced employers ti offer COBRA coverage to same-sex spouses

Uniformed Services Employment and Reemployment Rights Act of 1994 (USERRA)

governs the rights of military service members in terms of length of military, return to work, and accommodations for injured vets.

family and medical leave act of 1993 (FMLA)

granted employees the right to take medical leave under reasonable circumstances without fear of job loss. (possible unpaid leave)

civil rights act of 1991

granted employees who have been discriminated against the chance to be paid monetary damages through legal proceedings

setting every community up for retirement enhancement (SECURE) Act

granted small employers tax incentives if they implemented an automatic retirement plan enrollment for their employees.

Sixteenth Amendment (1913)

incorporated a tiered income tax, including exemptions and deductions to limit the tax imposed on wages earned

SOX v. DODD-FRANK act intersection

led to a bill introduced in congress to create and independent board to oversee auditor conduct in publicly held companies, thus limiting conflicts of interest

Affordable Care Act (ACA)

mandated health care coverage for all Americans regardless of employment status

Personal Responsibility and Work Opportunity Reconciliation Act of 1996 (PRWOR)

mandated that employer file a new hire reporting form within 20 days after an employee initially commences work.

Equal Pay Act of 1963

mandated that men and women doing equal jobs receive equal pay

American taxpayer relief act of 2012 (ATRA)

parts of ARRA's were reinstated through this act

protecting Americans from tax hikes (PATH) act of 2015

prevented certain types of tax fraud, extended the ATRA provisions by offering employers tax credits for hiring qualified veterans and individuals who have endured long-term unemployment

Age Discrimination in Employment Act of 1967

prevents mandatory retirement of older employees (older than age 40) and prohibits age-based discrimination in hiring.

Civil Rights Act of 1964

prohibited discrimination because of race, religion, national origin, and gender

Health Insurance Portability and Accountability Act of 1996 (HIPAA)

protects workers and their families who have preexisting medical conditions from discrimination based on those conditions

tax cuts and jobs act (TCJA) (public law 115-97)

provided a tax credit to employees who offer their employees paid leave under the FMLA

Sarbanes-Oxley Act of 2002 (SOX)

provided criminal penalties for violations of ERISA

American recovery and reinvestment act of 2009 (ARRA)

provided tax credits for employers and employees through the making work pay provisions

employee retirement income security act of 1974 (ERISA)

regulates the management of retirement and pension plans.

Lilly Ledbetter Fair Pay Act of 2009

removed the 180-day statue of limitations on claims of unequal treatment

defense of marriage act of 1996 (DOMA)

restricted payroll-related taxes and benefits to include only traditionally married couples, denying married status to people in same-sex unions

Mathias Acker is the new bookkeeper for Meganyx Enterprises, a small business consulting firm, and was hired to replace a long-time employee who retired. Upon starting the position, Mathias notices that the prior bookkeeper used a purely manual system. The company owner has said that Mathias may update the payroll system. What options are available?

spreadsheets, programs like Quickbooks, MyPay solutions