The Anderson Company Started Its Business on August 2,2014

question 116

Multiple Choice

The Anderson Company started its business on August 2,2014.On August 15^th,it paid wages for the first time and accumulated a tax liability of $47,000.On August 29,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 lookback 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.

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Definitions:

Greater Risk

Increased chance of encountering a negative event, loss, or threat, often considered in decision-making processes.

Forethought

The thoughtful consideration and planning of actions in advance, often to achieve a desired outcome or avoid negative consequences.

Original Equipment Manufacturer

An entity that produces parts and equipment that may be marketed by another manufacturer.

Producer

An individual, group, or organization that creates goods or provides services, typically for sale.