Which Selection Below Is FALSE Regarding Payroll

question 17

Multiple Choice

Which selection below is FALSE regarding payroll?

• A)Payroll involves preparing employee paychecks.
• B)Payroll involves paying independent contractors as well as employees.
• C)Payroll involves withholding the appropriate amount in taxes.
• D)Payroll is paying the company's share of payroll taxes.

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Definitions:

Saving

The portion of income not spent on consumption, often put aside for future use or investment.

Disposable Income

The amount of money an individual or household has available to spend or save after income taxes have been deducted.

Disposable Income

Money that becomes available for household savings and expenditures after income taxes are subtracted.

MPS

Marginal Propensity to Save, which is the proportion of an increase in income that is saved rather than spent on consumption.