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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Calculator

A calculator is a device or software used for performing mathematical calculations, ranging from basic arithmetic to complex mathematical operations.

Principal Square Root

The non-negative square root of a number, denoted as √x for a non-negative number x.

Real Roots

Real roots are the values of the variable that satisfy an equation, where the solutions are real numbers.

Calculator

An electronic or mechanical device used to perform mathematical operations.