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:

Cultures

The collective norms, values, beliefs, and practices that characterize groups of people or societies.

Behaviors

The actions or reactions of an individual or group in response to external or internal stimuli.

Work/Life Balance

The equilibrium between professional responsibilities and personal life activities and well-being.

Reluctant

Characterizes a feeling of unwillingness or hesitation to do something.