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:

Construction Company

A business entity focused on the building of residential, commercial, or industrial structures, as well as infrastructure projects.

Workplace Bullying

Harassment or abusive behavior in a professional environment, targeting an individual or group, leading to psychological or emotional harm.

Malicious Rumors

False and damaging statements spread about someone, often with the intent to harm their reputation.

Management

The process of dealing with or controlling things or people, often within a business or organization.