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.

SM 7-2

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.

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 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?