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.

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Definitions:

Recessive Gene

A gene that produces its characteristic phenotype only when its allele is identical or when the dominant allele is not present.

Chromosomal Pairs

The 23 pairs of linear DNA structures found in the nucleus of most living cells, carrying genetic information in the form of genes.

Down Syndrome

A chromosomal abnormality characterized by intellectual disability and caused by an extra chromosome in the 21st pair.

Sex-linked Chromosomal Abnormalities

Genetic disorders that are determined by the genes located on the sex chromosomes (X or Y).