The Anderson Company Started Its Business on August 3^rd

question 26

Multiple Choice

The Anderson Company started its business on August 3^rd.On August 14^th,it paid wages for the first time and accumulated a tax liability of $47,000.On August 28,it incurred an additional tax liability of $53,000.How is the Anderson Company treated as a payroll tax depositor?

• A)Monthly because its accumulated tax liability is not more than $100,000 on any one day.
• B)Monthly because new companies do not have a look back period.
• C)Semiweekly because its accumulated tax liability is $100,000 for the month.
• D)Semiweekly for this pay period only and then monthly for the remainder of the year.