Which of the Following Statements Regarding the Tax Consequences of Wages

question 29

Multiple Choice

Which of the following statements regarding the tax consequences of 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.

---

Definitions:

Differentiation

The process of distinguishing or setting apart entities or elements, often discussed in the context of product marketing or organizational performance.

Complexity

The state or quality of being intricate or complicated, often referring to systems with numerous parts that interact in dynamic and unpredictable ways.

Structures

The arranged and organized systems or frameworks within an organization that determine the manner in which activities are coordinated and directed.

Human Relations

The study and practice of improving interpersonal relationships, especially in a workplace setting, to enhance productivity and job satisfaction among employees.