Which of the Following Statements Regarding the Tax Consequences of Employee

question 66

Multiple Choice

Which of the following statements regarding the tax consequences of employee wages is false?

• A) Cash basis employees must report wages in the year payment is actually or constructively received.
• B) Employees may elect whether or not their employer withholds income and payroll taxes from their wages.
• C) Whether wages are currently deductible by the employer depends on the type of services rendered by the employee.
• D) Wages paid to business employees are either deductible by the employer or treated as a capitalized cost.

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Definitions:

British

Relating to Great Britain, its people, culture, and history, or pertaining to the United Kingdom as a whole.

Revolution

A fundamental change in political power, organizational structures, or society, often occurring in a relatively short period and sometimes accompanied by violence.

Colonists

Individuals who settle in a new land or territory while maintaining ties with their parent country, often involved in the establishment of new colonies.

British

Referring to anything related to the United Kingdom or its people, including its culture, history, and political influence.