Continuing Payroll Problem only. If students are required to prepare written answers to

1–1 © 2023 Cengage ® . May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

CHAPTER 1

Note: Working space and special forms are provided for the Practical Problems and the Continuing Payroll Problem only. If students are required to prepare written answers to the Questions for Review, Questions for Discussion, and Case Problems, blank paper should be provided.Learning Objectives

After studying this chapter, students should be able to:

• Identify the various laws that affect employers in their payroll operations.
• Examine the recordkeeping requirements of these laws.
• Describe the employment procedures generally followed in a Human Resources

Department.

• Identify the various personnel records used by businesses and the type of

information shown on each form.

• Identify the payroll register and the employee’s earnings record.

Contents

Chapter 1 outline:

LEARNING OBJECTIVES

THE PAYROLL PROFESSION

FAIR LABOR STANDARDS ACT

FEDERAL INSURANCE CONTRIBUTIONS ACT

INCOME TAX WITHHOLDING LAWS

UNEMPLOYMENT TAX ACTS

RECORDKEEPING REQUIREMENTS

FAIR EMPLOYMENT LAWS

Civil Rights Act of 1964 Executive Orders Age Discrimination in Employment Act Americans with Disabilities Act

OTHER FEDERAL LAWS AFFECTING THE NEED FOR PAYROLL AND PERSONNEL

RECORDS

Federal Personal Responsibility and Work Opportunity Reconciliation Act of 1996 Immigration Reform and Control Act of 1986 E-Verify Family and Medical Leave Act of 1993 1 / 2

1–2 Payroll Accounting © 2023 Cengage ® . May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.Uniformed Services Employment and Reemployment Rights Act of 1994 Employee Retirement Income Security Act of 1974 Disclosure Requirements Affordable Care Act of 2010 (ACA) Applicable Large Employers (ALEs) Small Employers

OTHER STATE LAWS AFFECTING THE N EED FOR PAYROLL AND PERSONNEL

RECORDS

Workers’ Compensation Laws Disability Benefit Laws

HUMAN RESOURCES AND PAYRO LL ACCOUNTING SYSTEMS

HUMAN RESOURCES SYSTEM

Job Descriptions Requisition for Personnel Application for Employment Reference Inquiry Hiring Notice Employee History Record Change in Payroll Rate Terminating an Employee

RECORDKEEPING SYSTEM

Employee Access—Personnel Files

PAYROLL ACCOUNTING SYSTEM

Payroll Register Employee’s Earnings Record Paycheck Outsourcing Payroll

KEY TERMS

KEY POINTS SUMMARY

Matching Quiz (p. 1–27)

• B
• D
• F
• A
• H
• I
• J
• C
• E
• G
• / 2