Payroll Accounting 2011, Chapter 2 Net Activities 2-3
Payroll Accounting, 2011 Edition
Net Activities
CHAPTER 2
1. Use a search engine such as http://www.google.com/ or http://www.bing.com/ and type in “exempt work FLSA.”
a. What is the difference between exempt and nonexempt work?
A discussion of the differences between exempt and nonexempt work can be found at http://www.wfu.edu/hr/forms/exemption-worksheet.pdf. The main difference has to do with control of the work, which can be summarized as “An exempt employee must exercise discretion and independent judgment customarily and regularly (day to day). Decisions in significant matters refer to the kinds of decisions normally made by persons who formulate or participate in the formulation of policy, or who exercise authority within a wide range to commit their employer in substantial respects financially or otherwise.”
b. Do you think the professor of your course is exempt or nonexempt?
Most likely, the professor of the course is exempt from FLSA because their work:
· requires an advanced knowledge normally acquired through a prolonged course of study,
· performs original or creative endeavors of an artistic type
· requires the consistent exercise of discretion and independent judgment, and
· the work is intellectual and varied and of a nature that the output cannot be standardized with regard to time.
http://www.wfu.edu/hr/forms/exemption-worksheet.pdf
2. Use a search engine such as http://www.google.com/ or http://www.bing.com/ and type in “living wage.”
a. Approximately how many places in the United States have ordinances requiring a “living wage”?
http://en.wikipedia.org/wiki/Living_wage counts over 140 municipalities having a living wage ordinance as of 2007.
b. What are the benefits of a living wage law?
Baltimore had the following results:
· The cost of city contracts decreased.
· Business investment in the city increased substantially.
· Companies did not report reducing staff.
· The cost to taxpayers of compliance with the ordinance has been minimal.
Los Angeles had these results:
· The measures did not result in either unemployment or significant cost to their respective cities.
· The ordinance would not cause a net increase in the city budget, employment loss, or loss of city services to the residents of Los Angeles.
· The ordinance would bring a 50.4 percent reduction in the amount of government subsidies received by affected workers and their families.
· The living wage did not increase unemployment among less-skilled workers.
· The ordinance will not discourage businesses from either locating in Los Angeles or doing business with the city itself.
c. Whom does a living wage law benefit?
According to the site below, a living wage benefits everyone. Of course, it benefits the individual worker, but it also benefits the employer and the municipality where a living wage law has been enacted.
http://www.scribd.com/doc/3829282/Living-Wage-Laws-in-the-United-States
3. Search for three companies that offer online payroll services. Use a search engine such as http://www.google.com/ or http://www.bing.com/.
a. How much do they charge for their services?
There are many online payroll services. Some give their rates publicly, and some require you to ask. Most seem very reasonably priced. Here is a sampling of several businesses offering this service:
http://www.netpaypro.com/
https://www.paychex.com
http://www.propayroll.com/landing1.htm
b. How do they charge for their services? Do they charge by employee, per check, or a flat fee?
Again, different companies charge in different ways. For a small business with few employees, this would be an ideal way to do payroll.
You can get a free payroll services quote from multiple vendors at this link: http://www.buyerzone.com/personnel/payroll/qz_questions_265.jhtml?_request
id=8364
c. What are the advantages and disadvantages of using such a service?
Some of the advantages might be lower cost, easy data entry from anywhere in the world, and comprehensive payroll reports. Some of the disadvantages might be loss of security and control, and privacy issues.
4. Go to a search engine such as http://www.google.com/ or http://www.bing.com/ and type in “biometric time system.” Read several articles on biometric time systems. Next, read the article “Tracking Work Hours by Touch, Not a Punch” by Bonnie Rothman Morris at http://www.senseme.com/scripts/articles/articles5.htm.
a. What are the advantages of a biometric time system?
http://www.biometrika.it/eng/wp_biovspwd.html lists no unauthorized access,
no buddy clocking or fraud, no tokens, simple, safe, and foolproof, runs on an entry-level PC, and pays for itself as advantages.
b. Does such a system violate or enhance privacy?
http://www.senseme.com/scripts/articles/articles5.htm says, “Before Sept. 11 there were some employees who were hesitant to give their fingerprints,” said Dore Perler, chief executive of Sense Technologies in Tamarac, Fla., which makes the clock used in Mr. Rubin's store. “Now, if you don't want to give your fingerprint, people want to know why. The world has changed. We don't have a choice anymore about the things that we have to do.”
5. Go to http://www.usm.maine.edu/bus/eft.html. What are the benefits of Electronic Funds Transfers?
EFT payments are safer than checks and should eliminate more than $60 million annually in forged, counterfeit, and altered checks. EFT eliminates lost or stolen checks. EFT payments are faster than checks, with funds available on the date the payment is due. EFT payments eliminate the need to obtain and deposit your paycheck or cash your paycheck each payday. EFT payments
facilitate online banking at your bank or credit union.
6. Go to http://www.state.nj.us/treasury/revenue/eftfaq.htm. What are the procedures for making an Electronic Funds Transfer?
You have two choices for making the wire transfer.
· Under the first choice, you'll instruct one of the government's banking agents to transfer funds from your account to the government's account. The process is begun by calling either a toll-free number or using your personal computer (either bank will send you software if you prefer this option).
· Under the second choice, you'll instruct your own bank directly to withdraw funds from your account for transfer to the Treasury Department's account. Only certain banks offer this service.
· You won't be charged any fees by the government, its agents, or the IRS for their services, but you may be charged fees by your own bank for the services it provides you.