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Bieg • Toland
Payroll 2018 2018 Payroll
Accounting Accounting
Ed i t i o n Ed i t i o n
Payroll Accounting
Bieg • Toland
Payroll Accounting
with
Payroll Accounting
with
To register or access your online learning solution or purchase materials
for your course, visit www.cengagebrain.com. 2018
Edition
Bieg • Toland
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91057_cvr_ptg01_hires.indd 1 SE — Bieg/Toland — Payroll Accounting, 2018 Edition ISBN-13: 978-1-337-29105-7 ©2018 Designer: Lou Ann Thesing 11/09/17 5:17 PM
Text & Cover printer: QuadGraphics Binding: Paper Trim: 9” x 10.875” CMYK
2018
FEDERAL PAYROLL TAXES CALENDAR
The calendar below and on the last page of the text shows the due dates for various returns, reports, and statements that employers must file,
as well as the due dates for monthly and quarterly deposits. The due dates for semiweekly depositors and those affected by the $100,000
one-day rule are presented in Chapter 3.
JANUARY
10. Form 4070. Employees receiving cash tips in December of $20 or more must report them to their employer. (See Chapter 3.)
16. Form 1040-ES. Final payment of 2017’s estimated tax due by self-employed persons required to file declarations, unless Form 1040
is filed no later than February 1. Farmers and fishermen file declarations and pay estimated tax or file final returns for 2017 by March 1
instead of making estimated payments.
Electronic transfer of FICA taxes and withheld federal income taxes for December due. (See Chapter 3.)
31. Form W-2. Employer must furnish employees with copies of the Wage and Tax Statement, showing wages paid, federal income taxes
withheld, and FICA taxes withheld during 2017. Employees terminated during 2018 may request that Form W-2 be furnished to them
within 30 days of their last payment of wages or the date of their request, whichever is later.
Form W-3, along with SSA copy of Form W-2 for each employee whether filed electronically or using paper forms. (See Chapter 4.)
Form 940. Annual return and deposit or remittance of any undeposited tax due for 2017 under Federal Unemployment Tax Act. If tax
deposits paid employer’s tax liability in full, return may be delayed until February 12. (See Chapter 5.)
Form 941. Quarterly return and remittance or deposit of undeposited FICA taxes and withheld income taxes for 4th calendar quarter
of 2017. If timely deposits of tax have been made that pay employer’s tax liability in full, return may be filed on or before February 12.
(See Chapter 3.)
Form 943. Annual return for agricultural employees, showing income taxes withheld as a result of voluntary withholding agreement
and required FICA information for covered employees. (See Chapter 3.) Individuals (other than farmers or fishermen) may file final
return for 2017 instead of filing estimate on January 16.
Form 944. Annual return of FICA and withheld income taxes for employers who owe $1,000 or less in employment taxes per year.
Form 945. Used to report income tax withheld during 2017 for nonpayroll items such as backup withholding and withholding on
pensions, annuities, IRAs, gambling winnings, and payments of Indian gaming profits to tribal members. If timely deposits have been
made, employers have until February 12 to file the return.
Form 1099. All businesses give recipients an annual information statement for certain payments made in 2017 such as compensation
to nonemployees, dividends, interest, prizes and awards, rents, royalties, etc.
FEBRUARY
12. Form 940. Annual return due, provided timely deposits for 2017 satisfied employer’s tax liability in full.
Form 941. Quarterly return showing withheld income taxes and FICA taxes for 4th calendar quarter of 2017 due, provided timely
deposits for that quarter satisfied employer’s full tax liability. (See Chapter 3.)
Form 4070. Employees receiving cash tips in January of $20 or more must report them to their employer.
15. Electronic transfer of FICA taxes and withheld federal income taxes for January due.
Form W-4. This is the expiration date for Form W-4 on which employees claim exemption from federal income tax withholding
because they anticipate no federal income tax liability.
28. Forms 1099 and 1096. Annual information returns due to report compensation of $600 or more paid to nonemployees, dividends in
excess of $10, and compensation from which federal income taxes were not withheld and which was not reported on Form W-2. (See
Chapter 4.) Last day for farmers and fishermen to file tax return for 2017 instead of filing estimate on January 16.
MARCH
12. Form 4070. Employees receiving cash tips in February of $20 or more must report them to their employer.
15. Electronic transfer of FICA taxes and withheld federal income taxes for February due.
APRIL
2. Electronic filing deadline for copy A of W-2G issued.
10. Form 4070. Employees receiving cash tips in March of $20 or more must report them to their employer.
16. Form 1040. Final return and payment of individual’s income tax due.
Electronic transfer of FICA taxes and withheld federal income taxes for March due.
Form 1040-ES. Declaration and payment of 1st quarter estimated tax for 2018 by individuals other than farmers and fishermen.
30. Form 941. Quarterly return and remittance or deposit of undeposited FICA taxes and withheld income taxes of less than $2,500
for 1st calendar quarter of 2018. If timely deposits for the quarter have paid employer’s tax liability in full, the return may be delayed
until May 10.
Electronic transfer of FUTA taxes due for the 1st calendar quarter of 2018 if liability exceeds $500. (See Chapter 5.)
Status determination date for adjusting an employee’s withholding to correspond to the employee’s changed withholding status.
(Continued on inside back cover)

2018 edition
Payroll Accounting
Bernard J. Bieg
Bucks County Community College
Judith A. Toland
Bucks County Community College
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Chapter 1
Affordable Care Act
Since proposals for the Affordable Care Act repeal have failed, the health insur-
ance mandates for employers and individuals remain the law. Unless and until it
is changed by Congress, it is still in effect.
New Form I-9

U.S. Citizenship and Immigration Services (USCIS) released a new version of
Form I-9, Employment Eligibility Verification. Employers must complete Form
I-9 for all newly hired employees to verify their identity and authorization to
work in the United States. Employers are required to begin using the new version
of Form I-9 beginning on January 22, 2018.
Chapter 2
“Living Wage”
Preemption laws, which bar cities or counties within the state from setting higher
minimum wage rates, are a trend that is spreading (currently nine states have
adopted these laws). Legal challenges from city officials are sure to follow.
White-Collar Workers
Plans to hike the salary threshold to qualify for overtime pay to $47,476 have
been changed to $33,000. Currently, the $23,660 threshold is still the basis that
is applied.
Chapter 3
Electronic Deposits
Users of the Electronic Federal Tax Payment System (EFTPS) can sign up for a
new e-mail feature that will allow them to receive e-mail notifications about their
electronic tax payments (reminders of scheduled payments, confirmation of pay-
ments, and any changes made to the payments).
FICA-OASDI Taxable Wage Base

In this edition of the textbook, we have used the 2017 wage base of $127,200 and
current projections have projected the 2018 wage base to be $130,500. Actual
annual increases to the FICA-OASDI taxable wage base are announced in Octo-
ber of the preceding year based on current economic conditions.
Chapter 7
Effective July 1, 2017, until June 30, 2018, the Philadelphia Wage Tax is 3.8907
percent (resident) and 3.4654 (non-resident). iii
P R E FAC E
PAYROLL ACCOUNTING AND TODAY’S

BUSINESS ENVIRONMENT
Today’s payroll accountant is a major player on a company’s management team.
Management’s need for timely and accurate payroll cost data as a part of the
total planning step has moved payroll from a disbursement and recording func-
tion to an integral part of the management process.
With constant changes in the legal environment, technology advancements
in the administration of payroll functions and with tax withholding responsibil-
ities, the payroll accounting occupation has become proactive. During this time
when the need for accurate information is so critical, Payroll Accounting has
established a record of being the most thorough book on the market for over
20 years. Each edition has been updated with the most current data available.
The 2018 edition of Payroll Accounting continues to provide the most user-
friendly payroll accounting coverage, in addition to significant resources that
will aid instructors and students alike in their mastery of payroll accounting.
CengageNOWv2
Payroll Accounting 2018 is fully integrated with CengageNOWv2, a powerful
course management and online homework tool that provides robust instructor
control and customization to optimize the student learning experience and meet
desired outcomes.
“To students, it’s quick CengageNOWv2 Includes

feedback, and they can
• Integrated eBook
improve the grades by working
• End-of-chapter homework with static and algorithmic versions
on the questions multiple
• Continuing Payroll Problems (CPP)
times; to instructors, it’s less
• Adaptive Study Plan and multimedia study tools
grading time, and easy to
• Test bank
evaluate students’
• Course management tools and flexible assignment options
performance.”
• Gradebook Analytics
-Jack Wu,
• REVISED Mastery Problems
Chemeketa Community College
• Tell Me More Lecture Activities with assignable questions
• Robust feedback
• Audit Tests in CengageNOWv2
• MORE! Show Me How Demonstrative Videos
iv
Payroll Accounting 2018 PREFACE v
Tell Me More Lecture Activities

Tell Me More Lecture Activities are available and correlate to each Learning
Objective (LO). These Lecture Assignments review the material covered in each
LO, giving students a way to review what is covered in each objective in a digest- TELL ME MORE
ible video activity format so they come to class more prepared and ready to
participate.
Audit Tests in Payroll Project

The Student Audit Tests are designed to help students as they work through the
Payroll Project. These tests can be assigned specifically to the Payroll Dates inside
CengageNOWv2, and students can answer them to ensure they are fully under-
standing the concept and process of the payroll project.
MORE! Show Me How Problem Demonstrative Videos

Show Me How Videos are available for all continuing payroll problems at the
end of each chapter and the most commonly assigned end-of-chapter assignments
in both the A Set and B Set. These Videos provide students with both a detailed
SHOW
walk-through of a similar problem and problem-solving strategies.
ME HOW
Going Further in Payroll Accounting

• Updated: Detailed Check My Work and Post-Submission feedback with
explanations and tips for completing the problem
vi PREFACE Payroll Accounting 2018
• REVISED: Mastery Problems within CengageNOWv2 are designed to help

students understand difficult topics in payroll accounting by breaking
down the topic into smaller parts. Each part builds on other parts through
a systematic problem-solving process. These problems address key chapter
learning objectives and are algorithmic for versatile assignment options.
• CengageNOWv2 contains numerous algorithmic problems that allow

instructors to have more flexibility and assurance that students are com-
pleting the projects on their own.
• Randomized Test Bank answers within CengageNOWv2 allow instructors
to assign the same multiple-choice test problems, but CengageNOWv2 will
randomize the selection choices. The selection order for each student
changes, combating student cheating. See the following example.
Payroll Accounting 2018 PREFACE vii
The entry to deposit FICA taxes and The entry to deposit FICA taxes and
federal income taxes withheld involves federal income taxes withheld involves
all of the following accounts except: all of the following accounts except:
a. Payroll Taxes. a. Cash.
b. FICA Taxes Payable—OASDI. b. Employees FIT.
c. Cash. c. Payroll Taxes.
d. FICA Taxes Payable—HI. d. FICA Taxes Payable—HI.
e. Employees FIT. e. FICA Taxes Payable—OASDI.
3-10 CHAPTER 3 • Social Security Taxes Payroll Accounting 2018
KEY FEATURES
Taxable Wage Base
• Mastery,TheApplication,
employer must consider the taxable wage base when
Motivation—Payroll computing the
Accounting OASDIand
2018
portion of the FICA tax. The law exempts wages that exceed this base during
CengageNOWv2 help($127,200
the calendar year you elevate
for 2017, student
please seethinking
“AS WE GOwith unique
TO PRESS” for content that
addressesestimated
each stage of theOnce
2018 OASDI). learning
the OASDI process,
taxable wageprepares students
base has been reached, to learn,
all payments made to the employee during the remainder of the year are not
providestaxable.
practice opportunities
The wage base applies tothat
amountsbetter prepareinstudents
paid employees for the exam,
a calendar year
and helpsandstudents achieve
not to the time when themastery with
services were toolsbythat
performed help them
the employees. make connec-
The HI
portion of the FICA tax is 1.45 percent withheld on total earnings plus an addi-
tions andtional
see0.9the big on
percent picture.
wages over $200,000. The employer does not “match” the
• The Washington Update—The
Employee’s Supplemental HI rate ofWashington Update,
0.9 percent on wages which
in excess appears within
of $200,000.
The employer HI rate is 1.45 percent on all wages. Just as social security benefits
Chaptersincrease
2, 3, each
4, and 5, advises
year based on changes thein student
the Consumer of Price
the tax
Index,code and tax laws
the taxable
that werewage
usedbasein the current
is increased also. edition. However, because tax code, tables,
This means that an employee who makes $34,000 would pay the FICA tax
and laws(6.2%
may1be 1.45%) on his or her total earnings,after
changed by Congress while anthe text has
employee been$1printed, the
who makes
student ismillion
advised
would on how,
pay the in practice,
HI portion (1.45%) ontheyhis or can find
her total the plus
earnings most current tax
addi-
tional HI tax (0.9%) on wages in excess of $200,000, but only $127,200 of the
code, tables, and laws.
$1 million would be taxed at 6.2 percent. Payroll Accounting 2018
WASHINGTON UPDATE
3-15A • LO 4, THE 5 NEW ADMINISTRATION

SHOW
See Example HAS
3-5 EXPRESSED INTEREST
on page 3-20, seeINFigure
RESCINDING
3.10THE
on CURRENT
page 3-26 ME HOW
0.9 PERCENT ADDITIONAL EMPLOYEE HI TAX ON WAGES IN EXCESS OF $200,000.
The taxable wages and withheld taxes for Stafford Company (EIN 00-0001462), semiweekly depositor, for the first
quarter of 2018 follow.
PLEASE SEE “AS WE GO TO PRESS” FOR THE MOST CURRENT UPDATES.
Semimonthly Gross and FICa Withheld FICa Withheld Federal Income
paydays taxable Wages OaSDI HI tax Withheld
Determining OASDI tax:
IRS CONNEC • TION Enhanced
1/12
1/31 If:
Excel Templates—The Excel Templates include a feedback
$ 24,500
23,985
$1,519.00
1,487.07
$ 355.25
347.78
$ 3,185.00
3,090.00
section
In 1950, there were 16 workers 2/15 giving Cumulative instructors
Wages
25,190 1 Current theWage option Payment
1,561.78 for 6adding OASDI Wage a365.26
comment/grade
Base, then and an
3,410.00
area
paying into the social security 2/28for $52,400to
students show
25,530 1 their $6,000work.
1,582.86 5 $58,400
370.19 3,497.00
system for every one person 3/15 compute the OASDI 24,950tax on the entire wage payment. ($6,000361.78
1,546.90 3 0.062 5 $372.00) 3,385.00
• By 2042,
collecting benefits. Superior
3/30 Examples—Examples 25,100 are
1,556.20identified and363.95 numbered within 3,400.00 the
the projection is a ratio of If:
text. Various $149,255
end-of-chapter $9,253.81 $2,164.21 $19,967.00
2 to 1. Cumulative Wages 1 Current problems Wage Paymentare 7 OASDIidentified Wage Base,as athen
problem similar to
Payrollan example within the1 text.
941 on See thefor examples below.
a. Complete $108,800
Schedule B of Form $26,000
page 3-51 the 5 first quarter $134,800
for Steve Hazelton,
Accounting 2018 CHAPTER 3 • Socialthe owner
Security Taxesof 3-31
Stafford Company.
compute the OASDI tax on the part of the current wage payment that brings the
b. Below list the due dates
cumulative wages of up
eachtodeposit
the OASDI in thetaxable
first quarter.
wage limit. ($108,800 1 $18,400 5 “Excellent! In the past it was often
Yeld Company failed to pay its employment taxes of $5,000 for March (due April 16) until May 21. The failure to pay penalty
$127,200) EXAMPLE 3-7
assessed against Yeld Company is: paydays
difficult to point students to a
$18,400 3 0.062Deposit 5 $1,140.80 Due Dates
Failure to Pay Tax ($5,000 3 0.5% 3 2)January 12 5 1. $50.00
particular example when there was
InterestEmployees’
on Taxes Due ($5,000 FICA (OASDI/HI)
3 0.04 3 35/365) 31 Taxes
January 5 2.and 19.18
Withholdings more than one on a page.”
FICA requires employers to collect the OASDI/HI
Total Penalty $69. 18taxes from their employees and
February 15 3. -Karen Spray,
ON THE JOB pay the taxes to the IRS at the same time they pay their own tax. The employer
Note: In addition, a penalty for failure to make a timely depositFebruary
will also be assessed.
28 4.
deducts the tax from the wages at the time of payment. The amount of each tax Northeast Community College
Cost of employer-provided to be withheld is computed Marchby 15applying 5. to the employee’s taxable wages the tax
group-term life insurance in rate in effect at the time that30 the wages 6. are received. In calculating the amounts
Failure March
excess of $50,000 is taxable to Make Timely Deposits
of FICA taxes to withhold from employees’ pays, the employer may disregard
and is subject to social
Penalties may apply anyiffractional
employerspart do not
of a make required
cent, unless deposits
it is one-half oncent
timeorinmore, ON THE JOB
an which must be “I like this connection; students can
security and Medicare tax
withholding.
authorized government
3-16A • LO 5 rounded depository.
up
Seeone cent. 3-5 on page 3-20, Example 3- 6 on page Deposits
Example 3-29, are applied to the easily test themselves on a specific
Example 3-7 on page 3-31 most recent tax liabilities example.”
Deposits made 1 to 5 calendar
Vulcan CompanyRuth
days
is aEngle
late pay on January 5, 2018,2 for
receives percent
workofdone
the undeposited
during for taxes
the last week of December
2018 is2017. The wageswithin
would bethe quarter; however, a
monthly
taxedlate
depositor whose tax
as income in the calendar year 2018,5using 2018
liability
tax rates.
March $2,505.
depositor can designate to the -Jennifer Morton,
Deposits made 6 to 15 days percent of the undeposited taxes
1. What is the due date for the deposit of these taxes? IRS the period to which a
Deposits made 16 or more days late 10 percent of the undeposited taxes Ivy Tech Community College
2. Assume that no deposit was made until April 30. Compute the following penalties: deposit is to be applied. The
Deposits made at unauthorized financial institutions or 10 percent of the undeposited taxes employer has 90 days from
a.
directly to IRS
Penalty for failure to make timely deposit. $ of a penalty notice to
the date
b. to
Penalty for failure to fullybut pay tax. make $ the designation.
Deposits subject electronic deposit requirements 10 percent of the tax deposit required
not deposited c.byInterest
EFTPS on taxes due and unpaid (assume a 4% interest rate). $
d. Total
Amounts unpaid penalty
more than 10 days imposed.
after IRS notice 15 percent of the undeposited taxes $
Greerson Inc. must make a deposit of $1,800 on June 15. The deposit was made 11 days late. The penalty assessed against EXAMPLE 3-8
Greerson is:
Failure to make timely deposit ($1,800 3 5%) 5 $90
Failure to Furnish Payee Statements
If employers willfully fail to furnish their employees with properly executed wage
viii PREFACE Payroll Accounting 2018
COMPUTERIZED PAYROLL PROJECT

Chapter 7—The Payroll Project
Chapter 7 consists of a practice set or simulation. The student applies the knowl-
edge acquired in the first six chapters to a practical payroll simulation as the
payroll accountant for Glo-Brite Paint Company. The Payroll Project can be com-
pleted manually using fold-out Payroll Registers located at the back of the text or
by completing the Excel templates located on the Payroll Accounting Web site:
www.cengagebrain.com.
Appendix A—Excel Template Instructions for the Glo-Brite

Payroll Project (Chapter 7: Short Version)
Appendix A consists of an electronic version of the books of account and payroll
3-4 CHAPTER 3 • Social Security Taxes records. It has specific instructions
Payroll Accounting 2018 for using the Excel template, illustrative case
demonstrating November 20 payroll, and complete instructions for the short
Exempt Employees
version are
Employees of not-for-profit organizations project.
subject toStudents are ser-
FICA taxes. Some encouraged to complete one manual payroll from
vices, such as those performed Chapter 7 prior
by duly ordained to of
ministers using theremain
churches, Excel template. The Excel template is located on the
exempt from FICA taxes, but the individuals are then subject to self-employment
Payroll
tax on their net earnings. Ministers, Accounting
certain Weborders,
members of religious www.cengagebrain.com.
site: and
Christian Science practitioners previously electing exemption from social security
coverage may now be covered by filing a waiver form with the IRS. Once an elec-
tion to be covered by social security is made, it is irrevocable.
OUTSTANDING PEDAGOGY
The following are also exempt from both the OASDI and HI portions of
5-10 the tax:
CHAPTER 5 • Unemployment Compensation Taxes Payroll Accounting 2018
• Medical interns.
• Student nurses. Credits Against FUTA Tax Learning Objectives
• LOInmates
3 of U.S. penal
Theinstitutions.
actual FUTA tax paid is usually only 0.6 percent, since employers are enti-
• federal
Compute the Those tled to aincredit
serving temporarily
unemploy- against
case of their FUTA
emergency taxflood,
(storm, liability for contributions made under
etc.). Learning Objectives are enumer-
approved state unemployment compensation laws. The maximum credit permit-
ment tax, the credit against the
tax, and any credit reductions that ted is 5.4 percent (90% of 6%). Thus, in the preceding example where the gross ated at the beginning of each chap-
might apply.Voluntary CoverageFUTA tax rate is 6.0 percent, the net FUTA rate would be 0.6 percent if the full
Coverage under FICA can5.4bepercent
extended to applied.
credit certain classes
Even if of servicespay
employers thata otherwise
SUTA rate of less than 5.4
ter, and the numbers are repeated
percent, they
would be excluded. For example, still get
service in the
thefull credit of
employ against theor
a state FUTA
localtax.
govern- next to the start of the applicable
ment that began prior to April 1, 1986, is still exempt for the OASDI portion of
Payroll Accounting 2018
the FICA tax. However, coverage can be extended to these employees by means
text
CHAPTER 3 • Social Security coverage
Taxes 3-5 for easy navigation.
EXA
ofM P L E 5 -agreement
a voluntary 4 Totalentered into
taxable earnings byexample)
(above the ...........................................................................................................
state and secretary of health and $49,290.00
human services. When aNetstate elects
rate of tax voluntary
(6.0% 2 coverage, it becomes responsible
5.4%) ....................................................................................................................... 3 0.6%
3.2
F I G U R Efor Amount of net
the collection and payment ofFUTA
thetaxFICA
...................................................................................................................................
tax as if it were covered employment. $ 295.74
THE JOB Contractor Status
ONIndependent
Test for
Eighty percent of the FUTA
Workers
tax paid SELF-STUDY
be classified
maygoes QUIZ
as independent
to pay federal 3-1To obtain
contractors if they: the maximum credit of 5.4 percent against the federal tax, the
Self-Study Quizzes
employer must make the state contributions on or before the due date for filing
1.(4 percent)
Hire, supervise,
Which
and pay assistants. the annual return under FUTA (see page 5-24)—January 31, 2019. If the employer
and state
of the following are covered by FICA (indicate Yes or No)? Self-Study Quizzes appear through-
2.(76 percent)
Determine administrative
the sequence of their work.
1. Andrian
costs. The other 20 percent
3.goes
Setinto
theiranown hours2.of work.
is late ainfull-time
Mitchell, paying the life state contributions,
insurance salesperson. the credit is limited to 90 percent of the
out each chapter and test the
extended John Sain, aamount
federal of the depositemployee,
government that wouldhired have in been 1990. allowed as a credit if the late contri-
4.unemployment
Work for as many
account.
employers
benefits
3. Bonnie as they wish.
Stone,butions
a realhad estatebeen paid on time.
agent. understanding of major concepts.

5. Are paid by the job.4. Stuart Schuck, who offers lawn care service to homeowners in the
6. Make their services available to the public.
neighborhood.
Answers to the quizzes are avail-
7. EHave
XA an Mopportunity
Note: L E for
PAnswers 5 profit
5 oron
- are loss.page
Sutcliff3-33.
e Company had taxable wages totaling $87,500 in 2018. During the year, the company paid some of its state able within each chapter.
8. Furnish their own tools. contributions after the January 31, 2019, cutoff. The penalty for tardiness is shown in the following calculation of the firm’s
9. Have a substantial investment in their net FUTA tax for 2018:
trade.
10. May be dismissed only under terms of Amount contract. of gross FUTA tax ($87,500 3 6.0%) ............................................................................... $ 5,250.00
Independent Contractor
State taxable wages ..................................................................................... $87,500
Sutcliffe’s SUTA tax rate ................................................................................ 3 5.4%
Sutcliffe’sindependent
The FICA tax law identifies contractors as persons who follow
SUTA tax ....................................................................................... $ 4,725an
independent trade, business, orofprofession
Sutcliffe’s SUTA taxwhere payments: they offer their services to the
Over the Line Real-World
Breakdown
public. The Small BusinessBeforeAdministration
1/31/19—$3,000 3 100% estimates that nearly 5 million work-
credit ...................................................................................... (3,000.00)
ers are independent contractors. The test
After 1/31/19—–$1,725 3 90% increditFigure 3.2 determines independent
........................................................................................ (1,552.50)
Over the Line
contractor status.
Employers do not pay
Amount of net FUTA tax...................................................................................................................
If theor
company had made timely
withhold payroll payments taxesof its state
oncontributions,
payments the amount
madeof its tonetinde-
$ 697.50
FUTA tax would have been
Ethics Cases
Stanford Yellow
pendent Cab of Mountain
contractors. reduced to $525,View,
However, the for a savingswas
individual of $172.50, assessed
as follows: $3 million in back
contractors are liable for social The Over the Line feature illus-
pay andsecurity
damagestaxesfor misclassifying
Amount of gross
(self-employment dozens
FUTA
taxes) taxon ($87,500
theof3net drivers
6.0%) as of independent con-
...............................................................................
earnings their businesses. $5,250.00
Misclassifying
tractors. Drivers employees
were required to carries
Total taxable a penalty days aforweek the employer.
wages......................................................................................
work six for 12-hour Generally, shifts.$87,500 the
trates cases of companies either
Driverspenalty will be the
were forced to abide
Credit againstshare
employer’s
Totalby
credita
tax .........................................................................................
dressofcode FICAand taxesnot plusallowed the income to change and3FICA 5.4%
...................................................................................................................................... 4,725.00
intentionally or unintentionally
taxes that were not withheld fromFUTA taxthe employee’s earnings. If the employee
their schedule or operate independently.
Amount of net 2
($87,500 3 0.6%) ..................................................................................
did report the earnings on his or her federal tax return, the penalty is voided.
$ 525.00
crossing the boundaries of fair-
If not reported, the employer may qualify for a reduced rate of 1.5 percent $697.50 2 $525.00 of 5 $172.50 savings ness in their interpretation of
the employee’s wage if a Form 1099 (see page 4-31) was filed (3.0 percent if
not filed). A reduced rate The might credit alsoagainst applythe toFUTA the employee’s tax for stateshare contributions of FICAdoes not apply to payroll laws.
Taxabletaxes—20
Wages percent of the anyfullSUTA FICA payments tax if deducted Form 1099 fromwas employees’filed (40 paypercent and penalties if and interest
The amountnot of
filed).
wages paid by not employers
included into thetheir contribution employees rate assigned during by the the state. calendar LO 2
year determines the amount ofExperience
OASDI/HI taxes. The basis of payment may be
Rating Identify the types of compensation
hourly, daily, weekly, biweekly,Insemimonthly, monthly,
some cases, employers
fund at the
a rate
annually,
may pay piece
contributions rate,
into Check Figures Included at the End of This Text
theiror a unemployment
state that are defined as wages.
lower than 5.4 percent. The method by which the employer con-
percentage of profits. Wages include following:
Check figures provide help and assist users in staying on track as they learn the
tributions may be adjusted because of a favorable employment record is referred
as experience whether
rating or merit rating.
1. Actual money received bytoemployees, called Thus,or
wages an salaries.
employer’s favorable experience
2. Cash value of meals and lodgingintricacies
provided for of the payroll accounting.
rate (employment record) qualifies the employer for a SUTA rate lower than
convenience of the
employees.
3. Bonuses and commissions paid by the employer with respect to
employment.
Other common types of payments that are considered wages under FICA are
available. In such cases, the employer may rely on any one of the following docu-
ments as evidence of age for minor employees:
1. Birth certificate (or attested transcript thereof) or a signed statement of the
recorded date and place of birth issued by a registrar of vital statistics or
Payroll Accounting 2018 recording births. ix
other officer charged with the duty ofPREFACE
2. Record of baptism (or attested transcript thereof) showing the date of
birth of the minor.
3. Statement on the census records of the Bureau of Indian Affairs and signed
Key Points Summary by an administrative representative thereof showing the name, date, and
place of the minor’s birth.
This summary at the end of the chapter ties the key points in the chapter The
to the
employer should maintain a copy of the document or indicate in the
Learning Objectives. payroll records which document verified the minor’s age.
Use of Marginal Icons Wage Theft

Wage theft is a term that refers to situations when employers do not pay employ-
Use of marginal icons (“On the Net,” “News Alert,” “IRS Connection,” and
ees in accordance with statutory or contract requirements. This includes viola-
tions such as not paying minimum or agreed-upon wages, not paying the proper
“On the Job”) helps integrate the real-world applications of this facts-intensive
overtime rates, having employees working off of the clock or under the table, or
area of study. “On the Net” icons allow optional integration of Internetmisclassifying
research employees as consultants. States are now attacking this problem
sites for learners. with increased costs of noncompliance. States’ remedies include assessing higher
fines and penalties, prohibiting companies from receiving state contracts, denying
The icons in each chapter highlight the most current forms, instructions, andbusiness licenses, or criminalizing the violations.3
or canceling
wage and tax2-2laws available.
CHAPTER 2 • Computing Wages and Salaries Payroll Accounting 2018
Penalties
The U.S. government may bring civil or criminal actions against employers
Coverage
IRS CONNEC TION who violate the FLSA. Violators of the wage and hour provisions of the FLSA
The FLSA provides for two bases of coverage—enterprise coverage and individual
are liable for the unpaid minimum wage and overtime requirements and could
ON THE JOB employee coverage.
Employees have two years to be assessed equal amounts in liquidated damages, besides reasonable attorneys’
sue for pay mistakes involving fees and court costs. This would result from court action brought by the U.S.
A National Call Center has Enterprise Coverage
unpaid minimum wage and government against these employers. The penalties that could result are:
been established by the unpaid includes
Enterprise coverage overtime, all
andemployees
three of an enterprise if:
Department of Labor to years to sue for willful
1. At least mistakes.
answer employees’ and two employees Misclassified
engage in interstate
In 2015, in commerce or produce Workers goods
for interstate
employers’ questions on a commerce.
settlements of over Interstate
8,700 commerce refers to the trade, trans-
• unintentional with a filed Form 1099 (showing nonemployee compensa-
portation,
range of employment issues. or communication
lawsuits, among several states or between a state and
the U.S. Department
tion)—1.5 percent of wages paid 1 20 percent of the employee’s social
The toll-free number is any place of outside that state.
Labor collected moreThe
thanlaw also covers employees if they handle,
security tax.
1-866-4-USA-DOL. $250 million
sell, or otherwise from on
work employers.
goods or materials that have been moved in or
• unintentional without a filed Form 1099—above penalties are doubled.
produced for interstate commerce, and
• intentional—100 percent of the worker’s federal income tax and social
2. The business has annual gross sales of at least $500,000.
security taxes.
NEW! Relatable Images

ON THE NET
Coverage extends, without regard to annual sales • volume,
in addition to thewho
to those above, the employer remains liable for any penalties for
operate:
failure to withhold, to file returns, and to pay taxes.
1. A hospital.
Images have been added throughout the
http://www.dol.gov/ 2. Atextbook
nursing home. to reinforce the topics and
concepts on a more visualoflevel.
U.S. Department Labor 3. An institution for the mentally ill.
3 “States, Localities Crack Down on Wage Theft,” PAYTECH, November 2015, p. 40.
Employment Standards 4. A school for mentally or physically handicapped or gifted children.
Administration homepage. 5. A preschool, elementary, or secondary school.
THOROUGH END-OF-CHAPTER MATERIALS
This site contains various
sections of code, such as
6. An institution of higher education.
7. A public agency.
affirmative action and
End-of-chapterworkers’
assignable materials
compensation. To includeThe matching quizzes,
enterprise coverage underreview
the FLSAquestions,
does not apply to family estab-
find the most useful lishments, often referred to as “mom and pop stores.” Thus, if the only reg-
discussion questions, practical problems,
information, choose the ESA
case problems,
ular employees and continuing
of an establishment include the payroll
owner, parent, spouse, child,
D A T E _________________ N A M E _____________________________________________________________
problems, which canthat
program also be you.
interests completedor using Excel. family members, the establishment is exempt from FLSA
other immediate
coverage.
Individual Employee Coverage

CONTINUING PAYROLL PROBLEM • A SHOW
ME HOW individual employee coverage, the FLSA covers a worker if the employee
Under
either engages in interstate commerce or produces goods for such commerce. Cov-
Refer to the partially completed payroll register you erage 2.alsoUsing the amount
includes recorded
employment in ainfringe
step 1, compute the
occupation closely related and directly
started at the end of Chapter 2. You will now determine
essential totaxes
thefor each employee
production and record
of goods in the appropri-
for interstate commerce. Coverage depends
the amount of FICA taxes to be withheld from each ate column.
on the activities of the individual employee and not on the work of fellow employ-
employee’s pay for the pay period ending January 8, 20--.
ees, the nature
Note: Keepofyour
the partially
employer’s business,
completed or the
payroll character
register for of the industry as a
1. In the Taxable Earnings columns, record the amount whole.useThus, even
at the endthough a business
of Chapter 4. does not meet the enterprise coverage test, it
of each employee’s weekly earnings that is subjectmust pay FLSA wages to those workers eligible for individual coverage.
to FICA taxes. All wages are taxable for OASDI and
HI taxes.
Glenn Morris works for a small manufacturing firm that has an annual sales volume of $370,000. Although the firm does not
meet the $500,000 volume-of-sales requirement for enterprise coverage, Morris is individually covered since he operates
machinery used to produce goods for interstate commerce.
Up-to-the-Minute Tax Law Changes
CONTINUING PAYROLL PROBLEM • B SHOW
ME HOW
Up-to-date knowledge IRS CONNEC is especially

TION important Employerfor today’s payroll specialists. This
edition has
Refer to the been
partiallycompletely
completed payroll updated to reflect
register you
The
2. Usingthe
FLSAtaxes tax
the amount
defines an law changes
recorded
employer thatacting
in step 1, compute
as “any affect
the
started at the endIfof
you want the
Chapter 2.IRS
Youto will now determine for each employee and recordperson directly or indirectly in
in the appropri-
payroll accounting.
the amount determine
of FICA Users
taxeswhether can
a worker
to be withheld find
isfromthese
each changes
the interest
ate of an listed
column. employer”oninthe “AstoWe
relation Go To In order to protect
an employee.
file Form employees, courts have defined “employers” in the broadest sense. Co-owners
employee’s pay foranthe
Press” page in the employee,
pay period
text and onSS-8,
ending
Determination of Employee
www.cengagebrain.com.
January 8, 20--.
Note: Keep your partially completed payroll register for
who control the day-to-day operations of the business are employers who are
1. In the TaxableWork
Earnings
Statuscolumns, record
for purposes of the amount use at the end of Chapter 4.
individually liable for violations of the law.
of each employee’s weekly
Federal earnings
Employment that is subject
Taxes
INSTRUCTOR RESOURCES
to FICA taxes.and
AllIncome
wages Tax
are Withholding.
taxable for OASDI
and HI taxes.Over 90 percent of these filed
Employee
An individual is an employee if he or she performs services in a covered employ-
Solutions Manual/Test Bank (Exams)/Achievement Tests
forms were determined to be
for employees. ment. As long as the common-law relationship of employer and employee exists and
the employment is not exempt from the provisions of the law, both are covered and
(ISBN:
CASE9781337291200)
PROBLEMS
ThisC1.robust
Auditing printed
Form 941. LOmanual
4, 5. contains the Learning Objectives, Chapter Out-
line,Your
and solutions
assistant to all aend-of-chapter
has just completed rough draft of Form exercises
Four of theand problems
company’s including
general ledger the
accounts are
941, shown on pages 3-72 and 3-73, for the quarter end- shown on the following two pages. The company’s 17
C ontinuing
ing March 31, Payroll Problems,
20--. As the Case
supervisor and Problems,
authorized andarethe
employees paidPayroll Project.
on the 15th The
and last day Test
of each
signer, you are auditing the form before it is mailed to month. The company is a semiweekly depositor. Indicate
ensure its accuracy. any changes that should be made on the form before it is
signed, dated, and mailed.
x PREFACE Payroll Accounting 2018
Bank questions and solutions are included to assist with choosing True/False,
Multiple-Choice questions, and problems for examinations. Achievement
Tests and keys are provided for additional testing and can also be
reproduced.
Test Bank Available with Cengage Learning Testing

Powered by Cognero
What is Cognero?
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• Full-featured, online-assessment system allows instructors to manage test
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bank content from multiple Cengage Learning solutions.
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Brown Mackie College
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• Create tests from school, home, the coffee shop—anywhere with Internet
access.
How do I access it?

• Log into your Cengage Learning SSO account at login.cengage.com.
• Add Payroll Accounting 2018 to your bookshelf (ISBN: 9781337291057).
• Once the book is added to your bookshelf, a link to access Cognero for
Payroll Accounting 2018 will appear, along with the link to the instructor
and student companion sites.
How do I start?
• Online resources, user guides, and instructional videos are available on the
instructor companion Web site at login.cengage.com.
• Please address any other technical questions to Cengage Learning Technical
Support at support.cengage.com.
Instructor Web Site

(login.cengage.com)
In addition to the material available to students online, the instructor site con-
tains password-protected instructor resources. Instructors can find the following
resources:
• Solutions Manual in Microsoft Word
• Comprehensive PowerPoint slides
• Achievement Tests and Keys
• Excel solutions for all end-of-chapter problems
• Excel solutions for Payroll Project (Chapter 7)
STUDENT RESOURCES
Student Companion Web Site
(www.cengagebrain.com)
Accessible through www.cengagebrain.com, the student Web site contains Check
Figures, Web Links, and PowerPoint slides. The Excel templates are posted for
the full version of the Glo-Brite Payroll Project (short-version templates are avail-
able from the instructor), Continuing Payroll Problems A and B, and selected
end-of-chapter problems designated by the Excel icon. In addition, the student
has access to important information contained in Appendix B: Social Security
Benefits and Appendix C: Unemployment Benefits.
AC K N O W L E D G M E N T S
Our sincere appreciation is extended to the many instructors and students who have contributed suggestions to make
the textbook more interesting, understandable, and practical to those who pursue the study of payroll accounting. As
a result of their very helpful recommendations, the textbook will better satisfy the learning needs of students and the
teaching needs of instructors. We would like to thank the following instructors for their valuable comments and
suggestions:
Steven Barela Stephanie Desormeaux Penny Hahn

Santa Fe Community College Delta Tech Henderson Community
Gretta Biggs Shelly Dhir College
Nunez Community College Unitek Diann Hammon
Melissa D. Boback Barbara Dickson JF Drake State Community
Cambria-Rowe Business College MTI College College
Robert Bolmer Kerry Dolan Toni R. Hartley
Everest Institute Great Falls College Montana Laurel Business Institute
Sharon Brown State University Lyle Hicks
Kaplan University Marianne Edmunds Danville Area Community
Tracy Carmichael Daymar College College
Fletcher Technical Community Annette Edwards JoLynn Hightower
College Tennessee College of Applied Texas State Technical College
John Chappell Technology West Texas
Northland Community and Dustin Emhart Kim Hurt
Technical College North Georgia Technical College Central Community College
Amy Chataginer Brian Fink Connie Jones
Mississippi Gulf Coast Danville Area Community Wake Tech
Community College College Lynn Krausse
Diane Clugston David Forester Bakersfield College
Cambria-Rowe Business College Haywood Community College Jessica Lancaster
Nancy Cowett Paul Franklin McCann School of Business and
Northern Maine Community Kaplan University Technology
College Connie Robin Gibson Greg Lauer
Bruce Creech TriCounty Community North Iowa Area Community
Sampson Community College College College
Margaret Lynn Crossman Marina Grau Gil Logan
Laney College Houston Community College Bryant & Stratton College
Amy Crouch Susan Greene Angel Luper
International Business College Cloud County Community Tri-County Technical College
Cher Cuppari College Jason Marconi
Everest University Steve Groves McCann School of Business and
William H. Dams Ivy Tech Community College Technology
Lenoir Community College Bruce Gunning Dan Marlow
Judy Daulton Kent State University at East American Business and
Piedmont Technical College Liverpool Technology University
xi
xii ACKNOWLEDGMENTS Payroll Accounting 2018
Sharon Martinez Michelle Parker Marie Stewart

Brown Mackie College Coastal Pines Technical College Laurel Technical Institute
Michelle Masingill Jamie Payton Juanita Sweet
North Idaho College Gadsten State Community Cape Cod Community College
Carole Maske College Shunda Ware
Southwestern Community Ann Price Atlanta Technical College
College Blue Ridge Community and Cammy Wayne
Drew McCabe Technical College William Rainey Harper College
Brown Mackie College Barbara Rice Lynn Whiddon
Linda McCarley Gateway Community and Central Georgia Technical College
Bevill State Community College Technical College Michele Wilkens
Dawn McKinley Patricia Scales Minnesota State University
Harper College Brookstone College Tomeika Williams
Lori Meseke Tracy Schmeltzer Rasmussen College
Vandalia Community Schools Wayne Community College Jack Wu
Joseph Malino Nicassio Karen Spray Chemeketa Community College
Westmoreland County Northeast Community Jessica York
Community College College National College
In addition, the authors would like to thank the following content providers and verifiers for the 2018 edition:
Bernie Hill, Spokane Falls Community College, retired instructor, for preparing the Excel templates and for
verifying the text and all the elements on the Web site and verification of CengageNOWv2 and all end-of-chapter
material.
Lisa Swallow, Program Director/Associate Professor, Missoula College, University of Montana Business and
Accounting Technology, for aid in end-of-chapter verification, supplemental items, and CengageNOWv2
verification.
Molly McFadden-May, Tulsa Community College, Assistant Professor, for aid in the CengageNOWv2
end-of-chapter feedback revisions.
A B O U T T H E AU T H O R S
Bernard J. Bieg
A
fter receiving his Master’s in Busi-
ness Administration from the Uni-
versity of Notre Dame and passing
Courtesy of Steve Bacher, Bucks County Community College
the Certified Public Accountants’ exam

in the early 1970s, Bernard Bieg turned
his attention toward a career in teaching.
He has been a professor at Bucks County
Community College for more than 30
years. During that time, he has taught the
whole spectrum of accounting offerings,
including payroll accounting. He has main-
tained strong connections with today’s
business world by serving as an internal
auditor for a local nonprofit organization.
His association with this textbook began
in 1977 as a co-author with one of the
originators of the book, Bill Keeling.
Judith A. Toland
J
udith Toland received her Master’s
Degree in Education from Temple Uni-
versity in 2002, her Bachelor’s Degree
in Business Administration—Accounting
Courtesy of Steve Bacher, Bucks County Community College
from Bloomsburg University in 1981,

and her Associate’s Degree from Bucks
County Community College in Business
Administration in 1979. Judy has taught
Accounting courses at BCCC since 1989
and is currently a professor in the Business
Studies Department. Judy earned the pres-
tigious Certified Payroll Professional (CPP)
designation in 2011.
xiii
CO N T E N T S
A S W E G O TO P R E S S .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . iii
P R E FA C E .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . iv
A C K N O W L E D G M E N T S.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . x i
A B O U T T H E AU T H O R S .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . x iii
1 The Need for Payroll and Personnel Records................................1-1

The Payroll Profession.......................................................................... 1-2
Fair Labor Standards Act..................................................................... 1-3
Federal Insurance Contributions Act.................................................... 1-4
Income Tax Withholding Laws............................................................ 1-4
Unemployment Tax Acts...................................................................... 1-4
Recordkeeping Requirements............................................................... 1-5
Fair Employment Laws........................................................................ 1-5
Other Federal Laws Affecting the Need for Payroll
and Personnel Records......................................................................... 1-8
Other State Laws Affecting the Need for Payroll and
Personnel Records...............................................................................1-13
Human Resources and Payroll Accounting Systems............................1-14
Human Resources System.................................................................. 1-15
Recordkeeping System........................................................................ 1-22
Payroll Accounting System................................................................. 1-23
2 Computing Wages and Salaries..................................................2-1

The Fair Labor Standards Act.............................................................. 2-1
Determining Employee’s Work Time.................................................. 2-15
Records Used for Timekeeping........................................................... 2-19
Methods of Computing Wages and Salaries....................................... 2-22
3 Social Security Taxes.................................................................3-1

Coverage Under FICA.......................................................................... 3-1
A Self-Employed Person..................................................................... 3-13
Employer Identification Number........................................................ 3-14
Employee’s Application for Social Security Card (Form SS-5)............ 3-16
xiv
Payroll Accounting 2018 CONTENTS xv
Returns Required for Social Security Purposes.................................. 3-17

Preparing Form 941 (Employer’s Quarterly Federal Tax Return)....... 3-22
Failure-to-Comply Penalties............................................................... 3-29
4 Income Tax Withholding............................................................4-1

Coverage Under Federal Income Tax Withholding Laws...................... 4-1
Tax-Deferred Retirement Accounts...................................................... 4-8
Withholding Allowances.................................................................... 4-10
Federal Income Tax Withholding....................................................... 4-15
Other Methods of Withholding.......................................................... 4-18
Supplemental Wage Payments............................................................ 4-19
Wage and Tax Statements.................................................................. 4-22
Returns Employers Must Complete.................................................... 4-29
Information Returns.......................................................................... 4-29
Independent Contractor Payments..................................................... 4-31
Backup Withholding.......................................................................... 4-31
Electronic Filing Form W-2 and Information Returns........................ 4-31
Withholding State Income Tax........................................................... 4-32
5 Unemployment Compensation Taxes..........................................5-1

Coverage Under FUTA and SUTA........................................................ 5-2
Unemployment Compensation Taxes and Credits................................ 5-9
Unemployment Compensation Reports Required
of the Employer.................................................................................. 5-19
6 Analyzing and Journalizing Payroll.............................................6-1

The Payroll Register............................................................................. 6-1
The Employee’s Earnings Record.........................................................6-4
Recording the Gross Payroll and Withholdings....................................6-6
Methods of Paying Wages and Salaries.............................................. 6-13
Recording Payroll Taxes..................................................................... 6-18
Recording Workers’ Compensation Insurance Expense...................... 6-22
Recording the Deposit or Payment of Payroll Taxes........................... 6-23
Recording End-of-Period Adjustments............................................... 6-24
Summary of Accounts Used in Recording Payroll Transactions......... 6-26
Illustrative Case................................................................................. 6-27
7 Payroll Project.........................................................................7-1
Books of Account and Payroll Records................................................ 7-2
General Information............................................................................ 7-3
Start of Payroll Project......................................................................... 7-6
Appendix A – Start of Short Version of Payroll Project
(Continuation of Payroll Project).........................................................7-16
xvi CONTENTS Payroll Accounting 2018
appendix A: Excel Template Instructions for the

Glo-Brite Payroll Project
(Chapter 7: Short Version)..................................... A-1
I. Getting to Know Excel............................................. A-1
II. Excel Templates for Payroll Project’s Short
Version.............................................................. A-5
III. Illustrative Case.................................................... A-10
IV. Short Payroll Project............................................. A-17
V. Optional Activities.................................................A-20
TAX TABLE A: TABLES FOR PERCENTAGE METHOD OF INCOME TAX
WITHHOLDING............................................................................................................................................................. T-1
TAX TABLE B: WAGE BRACKET METHOD
TABLES FOR INCOME TAX WITHHOLDING................................................................................................... T-5
CHECK FIGURES......................................................................................................................................................... CF-1
GLOSSARY....................................................................................................................................................................... G-1
INDEX.................................................................................................................................................................................. I-1
FEDERAL PAYROLL TAXES CALENDAR......................................................................................................... PC-1
Online Web Appendices (cengagebrain.com)
Controlling Costs: Payroll, Benefits, and Taxes........................... CC-1

appendix B: Social Security Benefits........................................ B-1
What Factors Are Used to Determine Social
Security Benefits?......................................................... B-1
What Benefits Are Provided by Social Security?........... B-2
What Are Reduced Benefits?........................................ B-4
How Does Working After Retirement Affect Social
Security Benefits?......................................................... B-5
How Do You Apply for Social Security Benefits?..........B-6
What Is Medicare?....................................................... B-7

appendix C: Unemployment Benefits...................................... C-1
Unemployment Compensation Benefits........................ C-1
The Need for Payroll and CHAPTER 1
Personnel Records
LEARNING OBJECTIVES
C
an’t wait to get started? Let’s take our time
After studying this chapter, you should be able to:
and get an overview of the entire payroll
process. 1 Identify the various laws that affect employers in their
payroll operations.
It’s not easy being an employer. Many legal
do’s and don’ts must be followed before we even 2 Examine the recordkeeping requirements of these
laws.
begin to consider the costs of employing workers,
3 Describe the employment procedures generally
and the do’s and don’ts are always changing.
followed in a Human Resources Department.
We need to have applications completed, con-
4 Recognize the various personnel records used by
duct interviews, check references, and examine
businesses and know the type of information shown
credit reports. How far can we go in checking on on each form.
the background of an individual applicant? What 5 Identify the payroll register and the employee’s earnings
records should we keep on each employee? Where record.
do we show the calculations that must be com-
pleted in order to give each employee a paycheck?
Get ready to begin the process of understand-
ing payroll operations.
No matter the size of the company, the profitability, the product or service being
sold, or the type of organization, employees have to be paid. This task has become
more difficult as numerous regulations have been enacted. Recent legislation has
only added to the administrative burden, and future legislation will continue this
trend. The payroll person is no longer the employee stuck in the corner who only
appears on payday to distribute paychecks. The job responsibilities have multi-
plied and now require persons with advanced knowledge in the area of payroll to
handle the position. In many cases, the payroll specialist has been on the leading
edge of change and automation.
Payroll professionals are responsible for processing over 4 billion pay state-
ments each year to over 100 million people in the workforce of the United States.
The processing of payrolls allows no margin for error. Employees, employers,
and government agencies monitor the work performed by payroll professionals.
A payroll accounting system is the only operation in a business that is almost
completely governed by various federal, state, and local laws and regulations.
Rules establish who is an employee, what is time worked, when overtime is to be
paid, what deductions are made, when to pay an employee, what benefits have to
be provided, and when taxes are paid. Lack of compliance with these laws and
regulations can result in both fines and back-pay awards.
The payroll professional has risen in the ranks of the accounting profession
and now demands salaries commensurate with his or her peers. The confidential-
ity of the payroll information from each employee’s pay rate to the garnishments
1-1
1-2 Chapter 1 • The Need for Payroll and Personnel Records Payroll Accounting 2018
imposed on some employees has tightened the link to the upper management
teams. The confidence and trust that must be placed in payroll professionals
have made them an integral part of the “inner circle.” This chapter briefly
examines the various laws that affect employers in their payroll operations
and the payroll and personnel records that they use to meet the requirements
of the laws. First, however, let’s take a brief look at payroll accounting as a
profession.
The Payroll Profession

A 2017 payroll survey of large employers conducted by Robert Half Associates
revealed a range of salaries for payroll managers of $63,750–$98,750 and for
payroll clerks of $38,750–$50,250.
Typically, an entry-level payroll clerk collects, reviews, approves, and
records time records. The clerk also updates attendance records, including vaca-
tion, sick, and personal days. Once a payroll is processed, the clerk reviews
the information to ensure the accuracy of each employee’s pay statement. Job
responsibilities will include entering the following information into the payroll
system:
1. Time-worked data.
2. Pay rate changes.
3. Tax rate changes.
4. Employee-authorized payroll deductions.
5. New employee information.
6. Marital and employee allowance changes.
Providing information to the Finance Department concerning the amounts
to be paid for taxes, health insurance premiums, retirement plans, etc., may also
be part of the evolving duties of the advancing payroll professional. One of the
final stages involves the completion of payroll tax returns, employee informa-
tion returns, federal and state census surveys, and fringe benefit and welfare plan
returns.
Payroll professionals must keep abreast of the changes in their field so that
they can remain technically proficient. This need has been met by an association
of payroll practitioners—the American Payroll Association (APA). Membership
in the association is open to anyone interested in or engaged in the support of
payroll accounting. The APA offers professional training seminars and various
publications to its members. Each year, the APA administers examinations for
the payroll accountant and awards certificates to those who pass the exams,
Fundamental Payroll Certification (to demonstrate a baseline of payroll compe-
tency) and Payroll Professional Certification (for the experienced professional to
demonstrate the full-range of payroll competency). This testing and certification
process has helped the payroll profession to gain recognition in the business com-
munity. The APA has also established guidelines for the conduct of the payroll
professional. This “Code of Ethics,” shown in Figure 1.1, sets the direction for
the profession.1
One of a number of publications designed to provide current information
to the practitioner is published by the Research Institute of America, Inc. This
biweekly publication is entitled Payroll Guide, and it is a comprehensive review
of changes in regulations affecting payroll reporting.2
1 For more information on the organization, write to American Payroll Association, 660 North Main Avenue, Suite 100,
San Antonio, TX 78205-1217; Tel: 210-224-6406; APA@americanpayroll.org.
2 Payroll Guide is published by Thomson Reuters, 121 River Street, Hoboken, NJ 07030; Tel: 1-800-431-9025.
Payroll Accounting 2018 Chapter 1 • The Need for Payroll and Personnel Records 1-3
FIGURE 1.1
APA Code of Ethics
1. To be mindful of the personal aspect of the payroll relationship between employer and employee, and to ensure
that harmony is maintained through constant concern for the Payroll Professional’s fellow employees.
2. To strive for perfect compliance, accuracy, and timeliness of all payroll activities.
3. To keep abreast of the state of the payroll art with regard to developments in payroll technologies.
4. To be current with legislative developments and actions on the part of regulatory bodies, insofar as they affect
payroll.
5. To maintain the absolute confidentiality of the payroll within the procedures of the employer.
6. To refrain from using Association activities for one’s personal self-interest or financial gain.
7. To take as one’s commitment the enhancement of one’s professional abilities through the resources of the American
Payroll Association.
8. To support one’s fellow Payroll Professionals, both within and outside one’s organization.
Source: For more information on the organization, contact the American Payroll Association, 660 North Main
Avenue, Suite 100, San Antonio, TX 78205-1217; Tel: 210-224-6406; APA@americanpayroll.org.
WASHINGTON UPDATE
With a new administration in Washington, there is now more than in
past years a sense that there will be major changes in the laws con-
cerning payroll activities. Not only changes in tax and wage rates, but
also fundamental changes in many of the labor laws. Because of the
timing of the publishing of the printed text, a number of these changes
might not be shown in this edition of the textbook. In order to keep
abreast of these changes, please refer to our online version of the
textbook where these developing changes can be listed as they become
law. The printed version will be as current as possible based on the
information available to the authors at the time of the writing of the
manuscript.
Fair Labor Standards Act LO 1

The Fair Labor Standards Act (FLSA), referred to as the Federal Wage and Hour Identify the various laws that
Law, is covered in Chapter 2. The outline of the law deals with: affect employers in their payroll
operations.
• Minimum wage ($7.25 per hour) and overtime pay requirements.
In addition, equal pay for equal work, employment of child labor, public
service contracts, and wage garnishment.
• Coverage of employers engaged in interstate commerce or in production of
goods and services for interstate commerce. On the JOB
• Maintaining records that explain the basis of wage differentials paid to
Up until July 24, 2009, the
employees of opposite sex for equal work.
minimum wage was $6.55 per
• Displaying a poster (from the regional office of the Wage and Hour division) hour.
informing employees of the provisions of the law.
• States’ Minimum Wage and Maximum Hour Laws that also establish
minimum wage rates for covered employees. Where both federal and state
laws cover the same employee, the higher of two rates prevails (e.g., Rhode
On the NET Island—$9.60 per hour).
• The State’s wage orders that also can affect pay periods, pay for call-in
http://www.dol.gov/whd/ and waiting times, rest and meal periods, absences, meals and lodging,
minwage/america.htm This uniforms, etc.
Web site contains the
minimum wage laws by state
Federal Insurance Contributions Act

in map and text form.
Chapter 3 covers FICA (social security) in detail; however, the basic provisions of
the act deal with:
• Tax on employees (set percent of their gross wages) and employers for the
Federal Old-Age and Survivors’ Trust Fund and the Federal Disability Insur-
ance Trust Fund.
• Separate tax on employees and employers to finance the Health Insurance
Plan—Medicare.
• Tax on net earnings of the self-employed individual (Self-Employment Con-
tributions Act—SECA).
• Making payments to persons who are entitled to benefits under these social
security taxes.
Income Tax Withholding Laws

Chapter 4 covers income tax withholding, but basically:
On the NET • Income tax is levied on the earnings of most employees and is deducted
http://www.payroll-taxes.com/
from their gross pay.
Premiere Payroll Tax Research • Income taxes can be imposed by federal, state, and local governments.
Library. This site contains • Federal Income Tax (FIT) employs a percentage formula used by each
addresses, phone numbers, employer to withhold a specified amount from each wage payment.
form numbers (with • State tax rates vary from state to state.
explanations), and filing dates
for federal and state taxing
authorities.
Mr. B Hughes/Shutterstock.com
Unemployment Tax Acts

Chapter 5 covers unemployment taxes with a detailed discussion of:
• Tax levied on employers (Federal Unemployment Tax Act—FUTA) that is
used to pay state and federal administrative expenses of the unemployment
program.
• A credit granted against most of the FUTA tax if the employer pays a state
unemployment tax. A smaller credit is granted to states that have not paid
back borrowings from the federal government which were used to pay the
cost of benefits to their eligible unemployed workers.
• State unemployment taxes (SUTA) on employers imposed by all states.
These taxes are used to pay unemployment benefits.
• Standards set by the Social Security Act that result in a high degree of
uniformity in the requirements of state unemployment laws.
• Employers’ need to be aware of the SUTA laws in the states where they
operate.
Recordkeeping Requirements LO 2
Although the laws do impose recordkeeping requirements on employers, no E x a m i n e t h e re c o rd k e e p i n g
specific form of record is mandated. Figure 1.2, on page 1-6, lists the specific requirements of these laws.
information needed and the retention time periods required.
Fair Employment Laws

Federal and state legislations have been enacted to enforce fair employment
practices. Many of these laws deal with discrimination on the basis of age, race,
color, religion, gender, or national origin.
Civil Rights Act of 1964

Title VII of the Civil Rights Act of 1964, entitled “Equal Employment Opportu-
nity,” provides for several fair employment practices. The act, as amended, for- On the NET
bids employers to discriminate in hiring, firing, promoting, compensating, or in
any other condition of employment on the basis of race, color, religion, gender, http://www.eeoc.gov/ This
or national origin. Guidelines, established by the Equal Employment Opportu- EEOC homepage overviews
nity Commission (EEOC), also include physical characteristics in the definition guidelines and services of the
of national origin discrimination. For example, unnecessary height or weight Equal Employment
Opportunity Commission
requirements could exclude some individuals on the basis of their national origin.
(EEOC).
The EEOC has also declared that sexual harassment violates the Civil Rights
Act. Unwelcome sexual advances, requests for sexual favors, and other verbal or
physical conduct of a sexual nature can constitute sexual harassment.
The EEOC prohibits unions from excluding or segregating their members on
these bases, and employment agencies may not refer or refuse to refer applicants On the JOB
for employment on the basis of race, color, religion, gender, or national origin.
This act covers all employers who engage in an industry “affecting com- Title VII requires employers to
merce’’ and who employ 15 or more workers for each working day in each of 20 reasonably accommodate
or more weeks in the current or preceding calendar year. Employers specifically workers’ religious-based
excluded from coverage of the fair employment practices include the U.S. gov- requests without causing an
undue hardship to others.
ernment (state and local governments are covered), a corporation wholly owned
by the United States, Indian tribes, private membership clubs (other than labor
unions) exempt from federal income tax, and religious societies in the employ-
ment of members of a particular religion to work on the societies’ religious activ-
ities. Although the U.S. government is classified as an exempt employer, the act
states that the policy of the U.S. government provides equal employment oppor-
tunities without discrimination and that the president should use his existing
authority to implement this policy.
Title VII does not protect an employee from arbitrary treatment or dismissal.
As long as the employer applies these policies in a nondiscriminatory manner,
Title VII requirements have not been violated.
FIGURE 1.2
Summary of Information Required by Major Federal Payroll Laws
Fair Labor Social Income Tax Unemployment

Item Standards Act Security Withholding Tax
Name Yes Yes Yes Yes
Address Yes Yes Yes Yes
Gender Yes .... .... ....
EMPLOYEE DATA
Date of birth Yes .... .... ....

Social security number Yes Yes Yes Yes
Withholding allowances claimed .... .... Yes ....
Occupation Yes Yes Yes Yes
Period employed .... Yes Yes Yes
State where services rendered .... Yes .... Yes
Beginning and ending dates of
employee’s employment .... Yes Yes ....
Day and time of day when workweek
begins Yes .... .... ....
Regular hourly rate of pay Yes .... .... ....
Basis of wage payments; e.g.,
EMPLOYMENT DATA
$9.25 per hour; $74.00 per day Yes .... .... ....
Hours worked each day Yes .... .... ....
Hours worked each week Yes .... .... ....
Daily or weekly straight-time pay,
exclusive of overtime pay Yes .... .... ....
Amount and nature of exempt pay Yes .... .... ....
Weekly overtime pay Yes .... .... ....
Total additions to or deductions from wages Yes .... .... ....
Total remuneration for payroll period Yes Yes Yes ....
Total remuneration for calendar year .... Yes .... Yes
Date of payment Yes Yes Yes Yes
Payroll period Yes Yes Yes Yes
Employee’s wages subject to tax for
payroll period .... Yes Yes ....
Employee’s wages subject to tax for
calendar year .... Yes .... Yes
TAX DATA
Taxable remuneration—if different from

total remuneration, reason for difference .... Yes Yes Yes
Tax deductions from employee’s wages .... Yes Yes Yes
Date tax collected if other than date of
payment .... Yes Yes ....
Tax paid by employer but not deducted
from employee’s wages .... Yes Yes Yes
Specific form of records No No No No
GEN’L
Number of years records must be kept 2–3 4* 4* 4*
*Four years after the due date of the payment of the tax to which the records relate.
Over the Line

Yellow Transportation has a policy that new employees can be fired if they
are late for work during their first 30 days of employment. A non-white
employee who was late twice during this period was fired. He then sued the
company for racial bias, stating that long-term white employees were not
held to the same standard. The court rejected his claim and stated that in
order to prove bias the comparison had to be made with newly hired white
employees. This ruling confirms the right of a company to set stricter rules
during an initial training period.3
To accomplish the purpose of eliminating discrimination, the EEOC tries

to obtain voluntary compliance with the law before filing a court action for
an injunction. It can institute court proceedings for an injunction if it believes
that any person or group of persons is not complying with the law. Where a
state or local law forbids discriminatory practices, relief must first be sought
under the state or local law before a complaint is filed with the Commission. In
most states, a special commission or the state Department of Labor administers
the laws and may authorize cease-and-desist orders that are enforceable in the
courts.
The Civil Rights Act of 1991 grants compensatory and punitive damages in
cases where the discrimination is intentional. It also provides for the repayment
of attorney fees and the possibility of a jury trial.
Executive Orders
Employers not subject to the Title VII coverage discussed above may come within
the scope of the Civil Rights Act by reason of a contract or a subcontract involv-
ing federal funds. In a series of executive orders, the federal government has
banned, in employment on government contracts, discrimination based on race,
color, religion, gender, or national origin.
Age Discrimination in Employment Act

The Age Discrimination in Employment Act of 1967 (ADEA) prohibits employ- On the JOB
ers, employment agencies, and labor unions from discriminating on the basis of Court rulings have updated
age in their employment practices. The act covers employers engaged in an indus- the regulations to state that
try affecting interstate commerce (who employ 20 or more workers), employment favoring an older individual
agencies, and labor unions. The act also covers federal, state, and local govern- over a younger individual
ment employees, other than elected officials and certain aides not covered by because of age is not unlawful
civil service. The ADEA provides protection for virtually all workers over 40. A discrimination under the
key exception is executives who are 65 or older and who have held high policy- ADEA.
making positions during the two-year period prior to retirement. If such an
employee is entitled to an annual retirement benefit from the employer of at least
$44,000, the employee can be forcibly retired.
In order to prove compliance with the various fair employment laws,
employers must keep accurate personnel and payroll records. All employment
applications, along with notations as to their disposition and the reasons for the
disposition, should be retained. All records pertaining to promotions, discharges,
seniority plans, merit programs, incentive payment plans, etc., should also be
retained.
3 HR Specialist, March 2012, p. 3.
Over the Line

Louisville-based Texas Roadhouse with more than 450 locations in the
United States is fighting a lawsuit brought by 55 women and men charging
discrimination against workers age 40 and older by refusing to employ
them as hosts, bartenders, and servers. In legal filings, the company stated
that even if its policies had an adverse impact on older workers, they were
lawful, because they are job-related and consistent with business necessity
(in that servers must line dance, wear jeans, and work evenings).
Americans with Disabilities Act

On the JOB The Americans with Disabilities Act of 1990 (ADA) prohibits employers with 15
or more employees, employment agencies, labor organizations, or joint labor-
Even though alcoholism is a
disability under the ADA, management committees from discriminating against qualified persons with dis-
employees can be disciplined abilities because of their disability.
for misconduct that occurred The prohibition of disability-based discrimination applies to job application
while under the influence. procedures, hiring, advancement, termination, compensation, job training, and
other conditions of employment. In addition, reasonable accommodations, such
as wheelchair-accessible restrooms and ramps for qualified disabled job appli-
cants and workers, must be provided.
Under the ADA, a person is considered “qualified” if he or she can perform
the essential functions of the job with or without reasonable accommodation.
Other Federal Laws Affecting the Need for

Payroll and Personnel Records
Generally, the payroll and personnel records and reports that a business prepares
and retains to meet the requirements of the laws already discussed provide sufficient
information needed under the laws outlined in Figure 1.3 and discussed below.
Federal Personal Responsibility and Work Opportunity

Reconciliation Act of 1996
The Federal Personal Responsibility and Work Opportunity Reconciliation Act
of 1996 (PRWORA) mandates that all states must establish new-hire reporting
programs. Every employer is required to report the name, address, and social
security number on each new employee and the employer’s name, address,
and federal employer identification number within 20 days of hire to the State
Directory of New Hire Reporting. In many states, submission of a copy of the
employee’s W-4 form (Employee’s Withholding Allowance Certificate) will sat-
isfy the reporting requirement. This information must then be forwarded within
5 business days by the state to the federal Office of Child Support Enforcement
(OCSE) for entry into the National Directory of New Hires.
Employers with operations in more than one state may file one report with
the state of their choice. That state is then to share the information with the other
states.
The main reason for this requirement is to help in the enforcement of child
support obligations. In addition, it will reduce fraud in the unemployment,
workers’ compensation, and public assistance programs. Failure to report this
information can result in fines of up to $25.00 per new hire. Even though under
federal law employers do not have to report this same information on indepen-
dent contractors, some states do require such reporting.
FIGURE 1.3
Federal Laws Affecting the Need for Payroll and Personnel Records
Contract Dollar
Law Coverage Minimum Major Provisions
Davis-Bacon Act (1931) Laborers for contractors or subcontractors on federal $ 2,000 Minimum wage set by secretary of labor (weight is given
government contracts for construction, alteration, or to union wage scale prevailing in the project area).
repair of public buildings or works.
Walsh-Healey Public Laborers for contractors who furnish materials, supplies, $10,000 Single minimum wage determined by secretary of labor
Contracts Act (1936) articles, and equipment to any agency of the United States. for all covered employees in a given industry.
McNamara-O’Hara Service employees on contracts with the United States or $ 2,500 Minimum wage set by secretary of labor based on
Service Contract Act (1965) the District of Columbia for the furnishing of services. minimum wage found to be prevailing in that locality.
Occupational Safety Any business involved in interstate commerce. $ 0 Sets specific occupational and health standards for
and Health Act (OSHA) employers; requires that records be kept of work-related
(1970) injuries, illnesses, and deaths.
Vocational Companies with federal agency contracts. $ 2,500 Must include in the contract an affirmative action clause
Rehabilitation Act requiring that the handicapped applicant or employee
(1973) will be given appropriate consideration.
Vietnam Era Veterans’ Government contractors with federal contracts or $10,000 Requires contractors to take affirmative action to employ
Readjustment Act subcontracts. and advance in employment qualified veterans of the
(1974) Vietnam era and disabled veterans.
Immigration Reform and Control Act of 1986

The Immigration Reform and Control Act of 1986 (IRCA) bars employers
from hiring and retaining aliens unauthorized to work in the United States. It
also requires all employers to verify employment eligibility for all individuals
by examining the employee’s verification documents and having the employee
complete Form I-9, Employment Eligibility Verification. Form I-9 lists the
documents that an employee can choose from to furnish to the employer.
These documents identify the employee and, if an alien, verify authorization
to work in the United States. The employer must examine the documents to
verify their authenticity and then record the appropriate information on the
employee’s Form I-9. Employers must also follow up on documents (with
an expiration date) that limit the employee’s authorization to work. The
employer cannot ask an applicant about his or her immigration status before
a conditional job offer.
Photocopying new employees’ I-9 documents is permitted but not required.
If done, photocopying should apply to all new employees.
Section 1 of the form must be signed by the employee no later than the first
day of employment, but not before accepting a job offer. Section 2 must be signed
by the employer or authorized representative within three business days of the
employee’s first day of employment. The person signing Section 2 must be the
same person who examined the employee’s documents.
Failure to produce the required documents can result in termination as
long as the employer applies this rule uniformly to all employees. If it is con-
firmed that an employee is not legally authorized to work in this country,
the employee must be fired immediately. Failure to do so can result in fines
to the employer of $3,000 in criminal penalties (civil penalties range from
$539–$21,563 depending on occurrence) for each unauthorized alien and/or
six months in jail.
The process of collecting, filing, and retaining I-9 forms should be a central-
ized function so that inconsistencies are eliminated. The forms (I-9) should be
filed separately from other personnel records so that the information contained
in the forms is kept private. The form must be retained for three years after the
date of hiring or for one year after the date the employment is terminated, which-
ever is later. Terminated employees who are rehired within three years of the date
of the initially filed Form I-9 need only reverify the information to the employer.
The U.S. Citizenship and Immigration Services (USCIS) can levy fines if an
audit uncovers recordkeeping violations. Civil penalties can be assessed from a
minimum of $216 to a maximum of $2,156 for each violation. For a first offense,
any person or entity found to have knowingly employed an unauthorized alien
is subject to civil fines of up to $4,313 for each worker. Criminal penalties are
assessed where a pattern of discriminatory practice is found.
E-Verify
This is a government-run Internet-based system that allows employers to check
the employment eligibility of new hires by comparing the information on an
employee’s Form I-9 with databases of the Social Security Administration and
the Department of Homeland Security. E-Verify requires a social security number
(SSN) for the employee, so even though a newly hired employee is not required to
have applied for a SSN before completing Form I-9, the employee must apply for
it as soon as possible.
For most employers, this is a voluntary program; however, if the employer
has a federal contract or subcontract that contains an E-Verify clause, the new
hires of that organization and the employees performing work on the federal
contract must be verified. All new federal employees must have their employment
eligibility confirmed through E-Verify. State laws can also require employers to
E-Verify (mandatory in over 20 states for some or all employees).
If there is a record mismatch, a tentative nonconfirmation is issued to the
employer who must then notify the affected employee. If the employee had vol-
untarily provided his or her e-mail address on Form I-9, E-Verify will inform the
employee at the same time as the employer. In case of a mismatch, the employee
has eight working days to correct the discrepancy or be fired.
Family and Medical Leave Act of 1993

The Family and Medical Leave Act of 1993 (FMLA) requires employers that
On the JOB have 50 or more employees within a 75-mile radius, for at least 20 weeks in the
current or preceding calendar year, to grant workers unpaid leave for a family
FMLA absenteeism is highest or medical emergency. In cases of childbirth, adoption, or serious illness of the
among health-care employees employee or the employee’s child, spouse, or parent, the employer must offer the
with 39 percent of their worker as many as 12 weeks of unpaid leave. The leave may be used all at once,
workforce with open FMLA or in separate weeks, days, or hours. However, the leave must be taken within 12
leave (average length of months of the qualifying event.
28 days). During the leave, employers must continue health-care coverage, and they
must also guarantee that the employee will return to the same job or to a com-
parable position. The employer can substitute an employee’s earned paid leave
for any part of the 12-week family leave as long as notification is
given to the employee within two business days of receiving the
request for the leave and it does not violate an existing employment
contract.
An expansion of FMLA allowed employees to take leave (up
to 12 weeks) when a family member is on active duty or when the
employee cares for a family member with a serious injury or illness
incurred in the line of duty (up to 26 weeks).
O_Lypa/Shutterstock.com
An employee who has used the 12-week allotment under

FMLA may be entitled to additional time off as a reasonable
accommodation under the American Disability Act (see page 1-8)
as long as the employee’s condition qualifies as a disability.
Employers can exempt the following:

1. The highest-paid 10 percent of their workforce.
2. Those who have not worked at least one year and at least 1,250 hours in
the previous 12 months for the company.
A few states have implemented paid family leave plans. For example, New
Jersey now allows workers six weeks’ paid leave (at two-thirds of their salary up
to $677/week) to care for family members with a serious health condition, or to
be with a child during the first 12 months after his or her birth or adoption. The
program is funded through payroll deductions that are estimated to cost employ-
ees a maximum of $33.50 a year.
Current regulations allow employers to contact employees’ doctors for clar-
ification on the information on the employees’ certification forms. This contact
cannot be made by the employees’ direct supervisors, but must be done by human
resources professionals, leave administrators, or management officials.4
The definition of “spouse” was revised to examine the law of the state in
which the marriage was entered into instead of the law of the state in which the
employee resides. This allows all legally married couples (whether opposite-sex,
same-sex, or married under common law) to have consistent family leave rights
regardless of where they live.
An organization that is below the limits of coverage could be courting an
FMLA lawsuit if in its employee handbook or benefits materials there is a state-
ment that it complies with the FMLA.
Uniformed Services Employment and Reemployment Rights

Act of 1994
The Uniformed Services Employment and Reemployment Rights Act (USERRA)
gives military personnel the right to take leaves of absences from their civilian
jobs for active military service and to return to their jobs with accrued seniority.
The reinstatement must be to the employee’s original position or its equivalent,
except for the dishonorably discharged. In addition, the return must be granted
within two weeks of the job request, and health benefits must be started without
any waiting period.
Employee Retirement Income Security Act of 1974

The Employee Retirement Income Security Act of 1974 (ERISA) covers employee
pension and welfare plans established or maintained by any employer or
employee organization representing employees engaged in commerce or in any
industry or activity affecting commerce. The legislation safeguards pension funds
by regulating how the funds are to be raised and disbursed, who controls them,
and what is to be done when funds are insufficient to pay promised benefits. The
law does not require every employer to establish a pension plan; however, if there
is an employer’s pension plan, every employee is eligible after reaching age 21 or
completing one year of service, whichever is later.
ERISA was designed primarily to ensure that workers covered by private
pension plans receive benefits from those plans in accordance with their credited
years of service with their employers. Vesting conveys to employees the right to
share in a retirement fund if they are terminated before the normal retirement
age. The vesting process is linked to the number of years needed for workers to
earn an equity in their retirement plans and to become entitled to full or partial
benefits at some future date if they leave the company before retirement. Once
vested, a worker has the right to receive a pension at retirement age, based on
4 “Compensation and Benefits,” HR Specialist, March 2012, p. 2.
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—Qu’y avait-il dans ce verre? dis-je épouvanté.
—Du poison, me répondit Pauline.
—Et vous l’avez bu! m’écriai-je.
—Savais-je que vous alliez venir? me dit Pauline en s’appuyant
contre la grille; car alors seulement elle se rappela qu’elle avait vidé
ce verre une heure ou deux avant mon arrivée.
—Souffrez-vous? lui dis-je.
—Pas encore, me répondit-elle.
Alors un espoir me vint.
—Et y avait-il longtemps que le poison était dans ce verre?
—Deux jours et deux nuits à peu près, car je n’ai pas pu calculer
le temps.
Je regardai de nouveau le verre, le détritus qui en couvrait le
fond me rassura un peu: pendant ces deux jours et ces deux nuits,
le poison avait eu le temps de se précipiter. Pauline n’avait bu que
de l’eau, empoisonnée il est vrai, mais peut-être pas à un degré
assez intense pour donner la mort.
—Il n’y a pas un instant à perdre, lui dis-je en l’enlevant sous un
de mes bras, il faut fuir pour trouver du secours.
—Je pourrai marcher, dit Pauline en se dégageant avec cette
sainte pudeur qui avait déjà coloré son visage.
Aussitôt nous nous acheminâmes vers la première porte, que
nous refermâmes derrière nous; puis nous arrivâmes à la seconde,
qui s’ouvrit sans difficulté, et nous nous retrouvâmes sous le cloître.
La lune brillait au milieu d’un ciel pur; Pauline étendit les bras, et
tomba une seconde fois à genoux.
—Partons, partons, lui dis-je, chaque minute est peut-être
mortelle.
—Je commence à souffrir, dit-elle en se relevant. Une sueur
froide me passa sur le front, je la pris dans mes bras comme j’aurais
fait d’un enfant, je traversai les ruines, je sortis du cloître et je
descendis en courant la montagne: arrivé sur la plage, je vis de loin
le feu de mes deux hommes.
—A la mer, à la mer! criai-je de cette voix impérative qui indique
qu’il n’y a pas un instant à perdre.
Ils s’élancèrent vers la barque et la firent approcher le plus près
qu’ils purent de la rive, j’entrai dans l’eau jusqu’aux genoux; ils
prirent Pauline de mes bras et la déposèrent dans la barque. Je m’y
élançai après elle.
—Souffrez-vous davantage?
—Oui, me dit Pauline.
Ce que j’éprouvais était quelque chose de pareil au désespoir:
pas de secours, pas de contre-poison; tout-à-coup je pensai à l’eau
de mer, j’en remplis un coquillage qui se trouvait au fond de la
barque, et je le présentai à Pauline.
—Buvez, lui dis-je.
Elle obéit machinalement.
—Qu’est-ce que vous faites donc? s’écria un des pêcheurs; vous
allez la faire vomir, c’te p’tite femme.
C’était tout ce que je voulais: un vomissement seul pouvait la
sauver. Au bout de cinq minutes elle éprouva des contractions
d’estomac d’autant plus douloureuses que, depuis trois jours, elle
n’avait rien pris que ce poison. Mais, ce paroxisme passé, elle se
trouva soulagée; alors je lui présentai un verre plein d’eau douce et
fraîche, qu’elle but avec avidité. Bientôt les douleurs diminuèrent,
une lassitude extrême leur succéda. Nous fîmes au fond de la
barque un lit des vestes de mes pêcheurs et de mon paletot: Pauline
s’y coucha, obéissante comme un enfant; presque aussitôt ses yeux
se fermèrent, j’écoutai un instant sa respiration; elle était rapide,
mais régulière: tout était sauvé.
—Allons, dis-je joyeusement à mes matelots, maintenant à
Trouville, et cela le plus vite possible: il y a vingt-cinq louis pour vous
en arrivant.
Aussitôt mes braves bateliers, jugeant que la voile était
insuffisante, se penchèrent sur leurs rames, et la barque glissa sur
l’eau comme un oiseau de mer attardé.
V.
Pauline rouvrit les yeux en rentrant dans le port; son premier

mouvement fut tout à l’effroi; elle croyait avoir fait un rêve consolant;
et elle étendit les bras comme pour s’assurer qu’ils ne touchaient
plus les murs de son caveau; puis elle regarda autour d’elle avec
inquiétude.
—Où me conduisez-vous? me dit-elle.
—Soyez tranquille, lui répondis-je; ces maisons que vous voyez
devant vous appartiennent à un pauvre village; ceux qui l’habitent
sont trop occupés pour être curieux; vous y resterez inconnue aussi
longtemps que vous voudrez. D’ailleurs, si vous désirez partir, dites-
moi seulement où vous allez, et demain, cette nuit, à l’instant, je pars
avec vous, je vous conduis, je suis votre guide.
—Même hors de France?
—Partout!
—Merci, me dit-elle; laissez-moi seulement songer une heure à
cela; je vais essayer de rassembler mes idées, car en ce moment j’ai
la tête et le cœur brisés; toute ma force s’est usée pendant ces deux
jours et ces deux nuits, et je sens dans mon esprit une confusion qui
ressemble à de la folie.
—A vos ordres; quand vous voudrez me voir, vous me ferez
appeler. Elle me fit un geste de remercîment. En ce moment nous
arrivions à l’auberge.
Je fis préparer une chambre dans un corps de logis entièrement
séparé du mien, pour ne pas blesser la susceptibilité de Pauline;
puis je recommandai à notre hôtesse de ne lui monter que du
bouillon coupé, toute autre nourriture pouvant devenir dangereuse
dans l’état d’irritation et d’affaiblissement où devait être l’estomac de
la malade. Ces ordres donnés, je me retirai dans ma chambre.
Là, je pus me livrer tout entier au sentiment de joie qui
remplissait mon âme, et que, devant Pauline, je n’avais point osé
laisser éclater. Celle que j’aimais encore, celle dont le souvenir,
malgré une séparation de deux ans, était resté vivant dans mon
cœur, je l’avais sauvée, elle me devait la vie. J’admirais par combien
de détours cachés et de combinaisons diverses le hasard ou la
Providence m’avait conduit à ce résultat; puis tout-à-coup il me
passait un frisson mortel par les veines en songeant que, si une de
ces circonstances fortuites avait manqué; que si un seul de ces
petits événemens dont la chaîne avait formé le fil conducteur qui
m’avait guidé dans ce labyrinthe n’était pas venu au devant de moi,
à cette heure même, Pauline, enfermée dans un caveau, se tordrait
les bras dans les convulsions du poison ou de la faim; tandis que
moi, moi, dans mon ignorance, occupé ailleurs d’une futilité, d’un
plaisir peut-être, je l’eusse laissée agonisante ainsi, sans qu’un
souffle, sans qu’un pressentiment, sans qu’une voix fût venue me
dire: Elle se meurt, sauve-la!... Ces choses sont affreuses à penser,
et la peur de réflexion est la plus terrible. Il est vrai que c’est aussi la
plus consolante, car, après nous avoir fait épuiser le cercle du doute,
elle nous ramène à la foi, qui arrache le monde des mains aveugles
du hasard pour le remettre à la prescience de Dieu.
Je restai une heure ainsi, et, je te le jure, continua Alfred, pas
une pensée qui ne fût pure ne me vint au cœur ou à l’esprit. J’étais
heureux, j’étais fier de l’avoir sauvée; cette action portait avec elle sa
récompense, et je n’en demandais pas d’autre que le bonheur même
d’avoir été choisi pour l’accomplir. Au bout de cette heure elle me fit
demander: je me levai vivement, comme pour m’élancer vers sa
chambre, mais à la porte les forces me manquèrent, je fus obligé de
m’appuyer un instant contre le mur, et il fallut que la fille d’auberge
revînt sur ses pas en m’invitant à entrer, pour que je prisse sur moi
de surmonter mon émotion.
Elle s’était jetée sur son lit, mais sans se déshabiller. Je
m’approchai d’elle avec l’apparence la plus calme que je pus: elle
me tendit la main.
—Je ne vous ai pas encore remercié, me dit-elle: mon excuse est
dans l’impossibilité de trouver des termes qui expriment ma
reconnaissance. Faites la part de la terreur d’une femme dans la
position où vous m’avez trouvée, et pardonnez-moi.
—Écoutez-moi, madame, lui dis-je en essayant de réprimer mon
émotion, et croyez à ce que je vais vous dire. Il est de ces situations
si inattendues, si étranges, qu’elles dispensent de toutes les formes
ordinaires et de toutes les préparations convenues. Dieu m’a conduit
vers vous et je l’en remercie; mais ma mission n’est point accomplie,
je l’espère, et peut-être aurez-vous encore besoin de moi. Écoutez-
moi donc et pesez chacune de mes paroles.
Je suis libre... je suis riche... rien ne m’enchaîne sur un point de
la terre plutôt que sur un autre. Je comptais voyager, je partais pour
l’Angleterre sans aucun but; je puis donc changer mon itinéraire, et
me diriger vers telle partie de ce monde où il plaira au hasard de me
pousser. Peut-être devez-vous quitter la France? Je n’en sais rien, je
ne demande aucun de vos secrets, et j’attendrai que vous me
fassiez un signe pour former même une supposition. Mais, soit que
vous restiez en France, soit que vous la quittiez, disposez de moi,
madame, à titre d’ami ou de frère; ordonnez que je vous
accompagne de près, ou que je vous suive de loin, faites-vous de
moi un défenseur avoué, ou exigez que j’aie l’air de ne pas vous
connaître, et j’obéirai à l’instant; et cela, madame, croyez-le bien,
sans arrière-pensée, sans espoir égoïste, sans intention mauvaise.
Et maintenant que j’ai dit, oubliez votre âge, oubliez le mien, ou
supposez que je suis votre frère.
—Merci, me dit la comtesse avec une voix pleine d’une émotion
profonde; j’accepte avec une confiance pareille à votre loyauté; je
me remets tout entière à votre honneur, car je n’ai que vous au
monde: vous seul savez que j’existe.
Oui, vous l’avez supposé avec raison, il faut que je quitte la
France. Vous alliez en Angleterre, vous m’y conduirez; mais je n’y
puis pas arriver seule et sans famille; vous m’avez offert le titre de
votre sœur; pour tout le monde désormais je serai mademoiselle de
Nerval.
—Oh! que je suis heureux! m’écriai-je. La comtesse me fit signe
de l’écouter.
—Je vous demande plus que vous ne croyez peut-être, me dit-
elle; moi aussi j’ai été riche, mais les morts ne possèdent plus rien.
—Mais je le suis, moi, mais toute ma fortune...
—Vous ne me comprenez pas, me dit-elle, et, en ne me laissant
pas achever, vous me forcez à rougir.
—Oh! pardon.
—Je serai mademoiselle de Nerval, une fille de votre père, si
vous voulez, une orpheline qui vous a été confiée. Vous devez avoir
des lettres de recommandation; vous me présenterez comme
institutrice dans quelque pensionnat. Je parle l’anglais et l’italien
comme ma langue maternelle; je suis bonne musicienne, du moins
on me le disait autrefois, je donnerai des leçons de musique et de
langues.
—Mais c’est impossible! m’écriai-je.
—Voilà mes conditions, me dit la comtesse; les refusez-vous,
monsieur, ou les acceptez-vous, mon frère?
—Oh! tout ce que vous voudrez, tout, tout, tout!
—Eh bien! alors il n’y a pas de temps à perdre, il faut que demain
nous partions; est-ce possible?
—Parfaitement.
—Mais un passeport?
—J’ai le mien.
—Au nom de monsieur de Nerval?
—J’ajouterai: Et de sa sœur.
—Vous ferez un faux?
—Bien innocent. Aimez-vous mieux que j’écrive à Paris qu’on
m’envoie un second passeport?...
—Non, non... cela entraînerait une trop grande perte de temps.
D’où partirons-nous?
—Du Havre.
—Comment?
—Par le paquebot, si vous voulez.
—Et quand cela?
—A votre volonté.
—Pouvons-nous tout de suite?
—N’êtes-vous pas bien faible?
—Vous vous trompez, je suis forte. Dès que vous serez disposé
à partir, vous me trouverez prête.
—Dans deux heures.
—C’est bien. Adieu, frère.
—Adieu, madame.
—Ah! reprit la comtesse en souriant, voilà déjà que vous
manquez à nos conventions.
—Laissez-moi le temps de m’habituer à ce nom si doux.
—M’a-t-il donc tant coûté, à moi?
—Oh! vous!... m’écriai-je. Je vis que j’allais en dire trop. Dans
deux heures, repris-je, tout sera préparé selon vos désirs. Puis je
m’inclinai et je sortis.
Il n’y avait qu’un quart d’heure que je m’étais offert, dans toute la
sincérité de mon âme, à jouer le rôle de frère, et déjà j’en ressentais
toute la difficulté. Être le frère adoptif d’une femme jeune et belle est
déjà chose difficile; mais lorsqu’on a aimé cette femme, lorsqu’on l’a
perdue, lorsqu’on l’a retrouvée seule et isolée, n’ayant d’appui que
vous; lorsque le bonheur auquel on n’aurait osé croire, car on le
regardait comme un songe, est là près de vous en réalité, et qu’en
étendant la main on le touche, alors, malgré la résolution prise,
malgré la parole donnée, il est impossible de renfermer dans son
âme ce feu qu’elle couve, et il en sort toujours quelque étincelle par
les yeux ou par la bouche.
Je retrouvai mes bateliers soupant et buvant; je leur fis part de
mon nouveau projet de gagner Le Havre pendant la nuit, afin d’y être
arrivé au moment du départ du paquebot; mais ils refusèrent de
tenter la traversée dans la barque qui nous avait amenés. Comme ils
ne demandaient qu’une heure pour préparer un bâtiment plus solide,
nous fîmes prix à l’instant, ou plutôt ils laissèrent la chose à ma
générosité. J’ajoutai cinq louis aux vingt-cinq qu’ils avaient déjà
reçus; pour cette somme ils m’eussent conduit en Amérique.
Je fis une visite dans les armoires de mon hôtesse. La comtesse
s’était sauvée avec la robe qu’elle portait au moment où elle fut
enfermée, et voilà tout. Je craignais pour elle, faible et souffrante
comme elle l’était encore, le vent et le brouillard de la nuit; j’aperçus
sur la planche d’honneur un grand tartan écossais dont je
m’emparai, et que je priai madame Oseraie de mettre sur ma note;
grâce à ce châle et à mon manteau, j’espérais que ma compagne de
voyage ne serait pas incommodée de la traversée. Elle ne se fit pas
attendre, et lorsqu’elle sut que les bateliers étaient prêts, elle
descendit aussitôt. J’avais profité du temps qu’elle m’avait donné
pour régler tous mes petits comptes à l’auberge; nous n’eûmes donc
qu’à gagner le port et à nous embarquer.
Comme je l’avais prévu, la nuit était froide, mais calme et belle.
J’enveloppai la comtesse de son tartan, et je voulus la faire entrer
sous la tente que nos bateliers avaient faite à l’arrière du bâtiment
avec une voile; mais la sérénité du ciel et la tranquillité de la mer la
retinrent sur le pont; je lui montrai un banc, et nous nous assîmes
l’un près de l’autre.
Tous deux nous avions le cœur si plein de nos pensées, que
nous demeurâmes ainsi sans nous adresser la parole. J’avais laissé
retomber ma tête sur ma poitrine, et je songeais avec étonnement à
cette suite d’aventures étranges qui venaient de commencer pour
moi, et dont la chaîne allait probablement s’étendre dans l’avenir. Je
brûlais de savoir par quelle suite d’événemens la comtesse de
Beuzeval, jeune, riche, aimée en apparence de son mari, en était
arrivée à attendre, dans un des caveaux d’une abbaye en ruines, la
mort à laquelle je l’avais arrachée. Dans quel but et pour quel
résultat son mari avait-il fait courir le bruit de sa mort et exposé sur
le lit mortuaire une étrangère à sa place? Était-ce par jalousie?... ce
fut la première idée qui se présenta à mon esprit, elle était
affreuse.... Pauline aimer quelqu’un!.... Oh! alors voilà qui
désenchantait tous mes rêves; car pour cet homme qu’elle aimait
elle reviendrait à la vie sans doute; quelque part qu’elle fût, cet
homme la rejoindrait. Alors je l’aurais sauvée pour un autre; elle me
remercierait comme un frère, et tout serait dit; cet homme me
serrerait la main en me répétant qu’il me devait plus que la vie; puis
ils seraient heureux d’un bonheur d’autant plus sûr, qu’il serait
ignoré!... Et moi, je reviendrais en France pour y souffrir comme
j’avais déjà souffert, et mille fois davantage; car cette félicité, que
d’abord je n’avais entrevue que de loin, s’était rapprochée de moi,
pour m’échapper plus cruellement encore; et alors il viendrait un
moment peut-être où je maudirais l’heure où j’avais sauvé cette
femme, où je regretterais que, morte pour tout le monde, elle fût
vivante pour moi, loin de moi; et pour un autre, près de lui...
D’ailleurs, si elle était coupable, la vengeance du comte était juste...
A sa place je ne l’eusse pas fait mourir... mais certes... je l’eusse
tuée... elle et l’homme qu’elle aimait... Pauline aimant un autre!...
Pauline coupable!... Oh! cette idée me rongeait le cœur... Je relevai
lentement le front; Pauline, la tête renversée en arrière, regardait le
ciel, et deux larmes coulaient le long de ses joues.
—Oh! m’écriai-je... qu’avez-vous donc, mon Dieu?
—Croyez-vous, me dit-elle en gardant son immobilité, croyez-
vous que l’on quitte pour toujours sa patrie, sa famille, sa mère, sans
que le cœur se brise? Croyez-vous qu’on passe, sinon du bonheur,
mais du moins de la tranquillité au désespoir, sans que le cœur
saigne? Croyez-vous qu’on traverse l’Océan à mon âge pour aller
traîner le reste de sa vie sur une terre étrangère, sans mêler une
larme aux flots qui vous emportent loin de tout ce qu’on a aimé?...
—Mais, lui dis-je, est-ce donc un adieu éternel?
—Éternel! murmura-t-elle en secouant doucement la tête.
—De ceux que vous regrettez ne reverrez-vous personne?
—Personne...
—Et tout le monde doit-il ignorer à jamais, et... sans exception,
que celle que l’on croit morte et qu’on regrette est vivante et pleure?
—Tout le monde... à jamais... sans exception...
—Oh!... m’écriai-je, oh! que je suis heureux, et quel poids vous
m’enlevez du cœur!...
—Je ne vous comprends pas, dit Pauline.
—Oh! ne devinez-vous point tout ce qui s’éveille en moi de
doutes et de craintes?... N’avez-vous point hâte de savoir vous-
même par quel enchaînement de circonstances je suis arrivé
jusques auprès de vous?... Et rendez-vous grâce au ciel de vous
avoir sauvée, sans vous informer à moi de quels moyens il s’est
servi?...
—Vous avez raison, un frère ne doit point avoir de secrets pour
sa sœur... Vous me raconterez tout... et, à mon tour, je ne vous
cacherai rien...
—Rien... Oh! jurez-le-moi... Vous me laisserez lire dans votre
cœur comme dans un livre ouvert?...
—Oui... et vous n’y trouverez que le malheur, la résignation et la
prière... Mais ce n’est ni l’heure ni le moment. D’ailleurs je suis trop
près encore de toutes ces catastrophes pour avoir le courage de les
raconter...
—Oh! quand vous voudrez... à votre heure... à votre temps...
J’attendrai...
Elle se leva.—J’ai besoin de repos, me dit-elle: ne m’avez vous
pas dit que je pourrais dormir sous cette tente?
Je l’y conduisis; j’étendis mon manteau sur le plancher; puis elle
me fit signe de la main de la laisser seule. J’obéis, et je retournai
m’asseoir sur le pont, à la place qu’elle avait occupée; je posai ma
tête où elle avait posé la sienne, et je demeurai ainsi jusqu’à notre
arrivée au Havre.
Le lendemain soir nous abordions à Brighton; six heures après
nous étions à Londres.
VI.
Mon premier soin en arrivant fut de me mettre en quête d’un

appartement pour ma sœur et pour moi; en conséquence je me
présentai le même jour chez le banquier auprès duquel j’étais
accrédité: il m’indiqua une petite maison toute meublée, qui faisait
parfaitement l’affaire de deux personnes et de deux domestiques; je
le chargeai de terminer la négociation, et le lendemain il m’écrivit
que le cottage était à ma disposition.
Aussitôt, et tandis que la comtesse reposait, je me fis conduire
dans une lingerie: la maîtresse de l’établissement me composa à
l’instant un trousseau d’une grande simplicité, mais parfaitement
complet et de bon goût; deux heures après, il était marqué au nom
de Pauline de Nerval et transporté tout entier dans les armoires de la
chambre à coucher de celle à qui il était destiné: j’entrai
immédiatement chez une modiste, qui mit, quoique française, la
même célérité dans sa fourniture; quant aux robes, comme je ne
pouvais me charger d’en donner les mesures, j’achetai quelques
pièces d’étoffe, les plus jolies que je pus trouver, et je priai le
marchand de m’envoyer le soir même une couturière.
J’étais de retour à l’hôtel à midi: on me dit que ma sœur était
réveillée et m’attendait pour prendre le thé: je la trouvai vêtue d’une
robe très simple qu’elle avait eu le temps de faire faire pendant les
douze heures que nous étions restés au Havre. Elle était charmante
ainsi.
—Regardez, me dit-elle en me voyant entrer, n’ai-je pas déjà
bien le costume de mon emploi, et hésiterez-vous maintenant à me
présenter comme une sous-maîtresse?
—Je ferai tout ce que vous m’ordonnerez de faire, lui dis-je.
—Oh! mais ce n’est pas ainsi que vous devez me parler, et si je
suis à mon rôle, il me semble que vous oubliez le vôtre: les frères,
en général, ne sont pas soumis aussi aveuglément aux volontés de
leur sœur, et surtout les frères aînés. Vous vous trahirez, prenez
garde.
—J’admire vraiment votre courage, lui dis-je, laissant tomber mes
bras et la regardant:—la tristesse au fond du cœur, car vous souffrez
de l’âme; la pâleur sur le front, car vous souffrez du corps; éloignée
pour jamais de tout ce que vous aimez, vous me l’avez dit, vous
avez la force de sourire. Tenez, pleurez, pleurez, j’aime mieux cela,
et cela me fait moins de mal.
—Oui, vous avez raison, me dit-elle, et je suis une mauvaise
comédienne. On voit mes larmes, n’est-ce pas, à travers mon
sourire? Mais j’avais pleuré pendant que vous n’y étiez pas, cela
m’avait fait du bien; de sorte qu’à un œil moins pénétrant, à un frère
moins attentif, j’aurais pu faire croire que j’avais déjà tout oublié.
—Oh! soyez tranquille, madame, lui dis-je avec quelque
amertume, car tous mes soupçons me revenaient, soyez tranquille,
je ne le croirai jamais.
—Croyez-vous qu’on oublie sa mère quand on sait qu’elle vous
croit morte et qu’elle pleure votre mort?... O ma mère, ma pauvre
mère! s’écria la comtesse en fondant en larmes et en se laissant
retomber sur le canapé.
—Voyez comme je suis égoïste, lui dis-je en m’approchant d’elle,
je préfère vos larmes à votre sourire. Les larmes sont confiantes et
le sourire est dissimulé; le sourire, c’est le voile sous lequel le cœur
se cache pour mentir. Puis, quand vous pleurez, il me semble que
vous avez besoin de moi pour essuyer vos pleurs... Quand vous
pleurez, j’ai l’espoir que lentement, à force de soins, d’attentions, de
respect, je vous consolerai; tandis que, si vous étiez consolée déjà,
quel espoir me resterait-il?
—Tenez, Alfred, me dit la comtesse avec un sentiment profond
de bienveillance et en m’appelant pour la première fois par mon
nom, ne nous faisons pas une vaine guerre de mots; il s’est passé
entre nous des choses si étranges, que nous sommes dispensés,
vous de détours envers moi, moi de ruse envers vous. Soyez franc,
interrogez-moi; que voulez-vous savoir? je vous répondrai.
—Oh! vous êtes un ange, m’écriai-je, et moi je suis un fou: je n’ai
le droit de rien savoir, de rien demander. N’ai-je pas été aussi
heureux qu’un homme puisse l’être, quand je vous ai retrouvée dans
ce caveau, quand je vous ai emportée dans mes bras en
descendant cette montagne, quand vous vous êtes appuyée sur
mon épaule dans cette barque? Aussi je ne sais, mais je voudrais
qu’un danger éternel vous menaçât, pour vous sentir toujours
frissonner contre mon cœur: ce serait une existence vite usée
qu’une existence pleine de sensations pareilles. On ne vivrait qu’un
an peut-être ainsi, puis le cœur se briserait; mais quelle longue vie
ne changerait-on pas pour une pareille année? Alors vous étiez
toute à votre crainte, et moi j’étais votre seul espoir. Vos souvenirs
de Paris ne vous tourmentaient pas. Vous ne feigniez pas de sourire
pour me cacher vos larmes; j’étais heureux!.. je n’étais pas jaloux.
—Alfred, me dit gravement la comtesse, vous avez fait assez
pour moi pour que je fasse quelque chose pour vous. D’ailleurs, il
faut que vous souffriez, et beaucoup, pour me parler ainsi; car en me
parlant ainsi vous me prouvez que vous ne vous souvenez plus que
je suis sous votre dépendance entière. Vous me faites honte pour
moi; vous me faites mal pour vous.
—Oh! pardonnez-moi, pardonnez-moi! m’écriai-je en tombant à
ses genoux; mais vous savez que je vous ai aimée jeune fille,
quoique je ne vous l’aie jamais dit; vous savez que mon défaut de
fortune seul m’a empêché d’aspirer à votre main; et vous savez
encore que depuis que je vous ai retrouvée, cet amour, endormi
peut-être, mais jamais éteint, s’est réveillé plus ardent, plus vif que
jamais. Vous le savez, car on n’a pas besoin de dire de pareilles
choses pour qu’elles soient sues. Eh bien! voilà ce qui fait que je
souffre également à vous voir sourire et à vous voir pleurer; c’est
que, quand vous souriez, vous me cachez quelque chose; c’est que,
quand vous pleurez, vous m’avouez tout. Ah! vous aimez, vous
regrettez quelqu’un.
—Vous vous trompez, me répondit la comtesse; si j’ai aimé, je
n’aime plus; si je regrette quelqu’un, c’est ma mère!
—Oh! Pauline! Pauline! m’écriai-je, me dites-vous vrai? ne me
trompez-vous pas? Mon Dieu, mon Dieu!
—Croyez-vous que je sois capable d’acheter votre protection par
un mensonge?
—Oh! le ciel m’en garde!... Mais d’où est venue la jalousie de
votre mari? car la jalousie seule a pu le porter à une pareille infamie.
—Ecoutez, Alfred, un jour ou l’autre il aurait fallu que je vous
avouasse ce terrible secret; vous avez le droit de le connaître. Ce
soir vous le saurez, ce soir vous lirez dans mon âme; ce soir, vous
disposerez de plus que de ma vie, car vous disposerez de mon
honneur et de celui de toute ma famille, mais à une condition.
—Laquelle? dites, je l’accepte à l’avance.
—Vous ne me parlerez plus de votre amour; je vous promets,
moi, de ne pas oublier que vous m’aimez.
Elle me tendit la main; je la baisai avec un respect qui tenait de la
religion.
—Asseyez-vous là, me dit-elle, et ne parlons plus de tout cela
jusqu’au soir: qu’avez-vous fait?
—J’ai cherché une petite maison bien simple et bien isolée, où
vous soyez libre et maîtresse, car vous ne pouvez rester dans un
hôtel.
—Et vous l’avez trouvée?
—Oui, à Piccadilly. Et, si vous voulez, nous irons la voir après le
déjeuner.
—Alors, tendez donc votre tasse.
Nous prîmes le thé; puis nous montâmes en voiture, et nous
nous rendîmes au cottage.
C’était une jolie petite fabrique à jalousies vertes, avec un jardin
plein de fleurs; une véritable maison anglaise, à deux étages
seulement. Le rez-de-chaussée devait nous être commun; le premier
était préparé pour Pauline. Je m’étais réservé le second.
Nous montâmes à son appartement: il se composait d’une
antichambre, d’un salon, d’une chambre à coucher, d’un boudoir et
d’un cabinet de travail, où l’on avait réuni tout ce qu’il fallait pour
faire de la musique et dessiner. J’ouvris les armoires; la lingère
m’avait tenu parole.
—Qu’est-ce cela? me dit Pauline.
—Si vous entrez dans une pension, lui répondis-je, on exigera
que vous ayez un trousseau. Celui-ci est marqué à votre nom, un P
et un N, Pauline de Nerval.
—Merci, mon frère, me dit-elle en me serrant la main. C’était la
première fois qu’elle me redonnait ce titre depuis notre explication;
mais cette fois ce titre ne me fit pas mal.
Nous entrâmes dans la chambre à coucher; sur le lit étaient deux
chapeaux d’une forme toute parisienne et un châle de cachemire fort
simple.
—Alfred, me dit la comtesse en les apercevant, vous eussiez dû
me laisser entrer seule ici, puisque j’y devais trouver toutes ces
choses. Ne voyez-vous pas que j’ai honte devant vous de vous avoir
donné tant de peine?... Puis vraiment je ne sais s’il est convenable...
—Vous me rendrez tout cela sur le prix de vos leçons,
interrompis-je en souriant: un frère peut prêter à sa sœur.
—Il peut même lui donner lorsqu’il est plus riche qu’elle, dit
Pauline, car, dans ce cas-là, c’est celui qui donne qui est heureux.
—Oh! vous avez raison, m’écriai-je, et aucune délicatesse du
cœur ne vous échappe... Merci, merci!..
Nous passâmes dans le cabinet de travail; sur le piano étaient
les romances les plus nouvelles de madame Duchange, de Labarre
et de Plantade; les morceaux les plus à la mode de Bellini, de
Meyerbeer et de Rossini. Pauline ouvrit un cahier de musique et
tomba dans une profonde rêverie.
—Qu’avez-vous? lui dis-je, voyant que ses yeux restaient fixés
sur la même page, et qu’elle semblait avoir oublié que j’étais là.
—Chose étrange! murmura-t-elle, répondant à la fois à sa
pensée et à ma question, il y a une semaine au plus que je chantais
ce même morceau chez la comtesse M.; alors j’avais une famille, un
nom, une existence. Huit jours se sont passés... et je n’ai plus rien
de tout cela... Elle pâlit et tomba plutôt qu’elle ne s’assit sur un
fauteuil, et l’on eût dit que véritablement elle allait mourir. Je
m’approchai d’elle, elle ferma les yeux; je compris qu’elle était tout
entière à sa pensée, je m’assis près d’elle, et lui appuyant la tête sur
mon épaule:
—Pauvre sœur! lui dis-je.
Alors elle se reprit à pleurer; mais cette fois sans convulsions ni
sanglots: c’étaient des larmes mélancoliques et silencieuses, de ces
larmes enfin qui ne manquent pas d’une certaine douceur, et qu’il
faut que ceux qui les regardent sachent laisser couler. Au bout d’un
instant elle rouvrit les yeux avec un sourire.
—Je vous remercie, me dit-elle, de m’avoir laissée pleurer.
—Je ne suis plus jaloux, lui répondis-je.
Elle se leva.—N’y a-t-il pas un second étage? me dit-elle.
—Oui; il se compose d’un appartement tout pareil à celui-ci.
—Et doit-il être occupé?
—C’est vous qui en déciderez.
—Il faut accepter la position qui nous est imposée par la destinée
avec toute franchise. Aux yeux du monde vous êtes mon frère, il est
tout simple que vous habitiez la maison que j’habite, tandis qu’on
trouverait sans doute étrange que vous allassiez loger autre part.
Cet appartement sera le vôtre. Descendons au jardin.
C’était un tapis vert avec une corbeille de fleurs. Nous en fîmes
deux ou trois fois le tour en suivant une allée sablée et circulaire qui
l’enveloppait; puis Pauline alla vers le massif et y cueillit un bouquet.
—Voyez donc ces pauvres roses, me dit-elle en revenant à moi,
comme elles sont pâles et presque sans odeur. N’ont-elles pas l’air
d’exilées qui languissent après leur pays? Croyez-vous qu’elles
aussi ont une idée de ce que c’est que la patrie, et qu’en souffrant
elles ont le sentiment de leur souffrance?
—Vous vous trompez, lui dis-je, ces fleurs sont nées ici; cet air
est l’atmosphère qui leur convient; ce sont des filles du brouillard et
non de la rosée; un soleil plus ardent les brûlerait. D’ailleurs, elles
sont faites pour parer des cheveux blonds et pour s’harmonier avec
le teint mat des filles du Nord. A vous, à vos cheveux noirs il faudrait
de ces roses ardentes comme il en fleurit en Espagne. Nous irons
en chercher là quand vous en voudrez.
Pauline sourit tristement.—Oui, dit-elle, en Espagne... en
Suisse... en Italie... partout... excepté en France... Puis elle continua
de marcher sans parler davantage, effeuillant machinalement les
roses sur le chemin.
—Mais, lui dis-je, avez-vous donc à tout jamais perdu l’espoir d’y
rentrer?
—Ne suis-je pas morte?
—Mais en changeant de nom?...
—Il me faudrait aussi changer de visage.
—Mais c’est donc bien terrible, ce secret?
—C’est une médaille à deux faces, qui porte d’un côté du poison
et de l’autre un échafaud. Écoutez, je vais vous raconter tout cela; il
faut que vous le sachiez, et le plus tôt est le mieux. Mais vous, dites-
moi d’abord par quel miracle de la Providence vous avez été conduit
vers moi?
Nous nous assîmes sur un banc au-dessous d’un platane
magnifique, qui couvrait de sa tente de feuillage une partie du jardin.
Alors je commençai mon récit à partir de mon arrivée à Trouville. Je
lui racontai tout: comment j’avais été surpris par l’orage et poussé
sur la côte; comment, en cherchant un abri, j’étais entré dans les
ruines de l’abbaye; comment, réveillé au milieu de mon sommeil par
le bruit d’une porte, j’avais vu sortir un homme du souterrain;
comment cet homme avait enfoui quelque chose sous une tombe, et
comment, dès lors, je m’étais douté d’un mystère que j’avais résolu
de pénétrer. Puis je lui dis mon voyage à Dives, la nouvelle fatale
que j’y appris, la résolution désespérée de la revoir une fois encore,
mon étonnement et ma joie en reconnaissant que le linceul couvrait
une autre femme qu’elle; enfin mon expédition nocturne, la clef sous
la tombe, mon entrée dans le souterrain, mon bonheur et ma joie en
la retrouvant; et je lui racontai tout cela avec cette expression de
l’âme, qui, sans prononcer le mot d’amour, le fait palpiter dans
chaque parole que l’on dit; et pendant que je parlais, j’étais heureux
et récompensé, car je voyais ce récit passionné l’inonder de mon
émotion, et quelques-unes de mes paroles filtrer secrètement
jusqu’à son cœur. Lorsque j’eus fini, elle me prit la main, la serra
entre les siennes sans parler, me regarda quelque temps avec une
expression de reconnaissance angélique; puis enfin, rompant le
silence:
—Faites-moi un serment, me dit-elle.
—Lequel? parlez.
—Jurez-moi, sur ce que vous avez de plus sacré, que vous ne
révélerez à qui que ce soit au monde ce que je vais vous dire, à
moins que je ne sois morte, que ma mère ne soit morte, que le
comte ne soit mort.
—Je le jure sur l’honneur, répondis-je.
—Et maintenant, écoutez, dit-elle.

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Payroll accounting 2018 edition Edition

Audit and Accounting Guide: Life and Health Insurance

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Wiley Cpaexcel Exam Review 2018 Study Guide Financial

Global Versus Local Perspectives on Finance and

Anarchist Accounting: Accounting Principles for a

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(Continued on inside back cover)

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FICA-OASDI Taxable Wage Base

PAYROLL ACCOUNTING AND TODAY’S

“To students, it’s quick CengageNOWv2 Includes

Tell Me More Lecture Activities

Audit Tests in Payroll Project

MORE! Show Me How Problem Demonstrative Videos

Going Further in Payroll Accounting

• REVISED: Mastery Problems within CengageNOWv2 are designed to help

• CengageNOWv2 contains numerous algorithmic problems that allow

3-10 CHAPTER 3 • Social Security Taxes Payroll Accounting 2018

3-15A • LO 4, THE 5 NEW ADMINISTRATION

COMPUTERIZED PAYROLL PROJECT

Appendix A—Excel Template Instructions for the Glo-Brite

Use of Marginal Icons Wage Theft

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Individual Employee Coverage

Up-to-date knowledge IRS CONNEC is especially

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Steven Barela Stephanie Desormeaux Penny Hahn

Sharon Martinez Michelle Parker Marie Stewart

the Certified Public Accountants’ exam

from Bloomsburg University in 1981,

1 The Need for Payroll and Personnel Records................................1-1

2 Computing Wages and Salaries..................................................2-1

3 Social Security Taxes.................................................................3-1

Returns Required for Social Security Purposes.................................. 3-17

4 Income Tax Withholding............................................................4-1

5 Unemployment ­Compensation Taxes..........................................5-1

6 Analyzing and Journalizing Payroll.............................................6-1

appendix A: Excel Template Instructions for the

Online Web Appendices (cengagebrain.com)

Controlling Costs: Payroll, Benefits, and Taxes........................... CC-1

The Payroll Profession

Fair Labor Standards Act LO 1

Federal Insurance Contributions Act

Income Tax Withholding Laws

Unemployment Tax Acts

5 Unemployment Compensation Taxes..........................................5-1

appendix A: Excel Template Instructions for the